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Wal Mart Stores Inc Case Study Analysis

Business is presently one of the most significant food chains worldwide. It was founded by Henri Wal Mart Stores Inc in 1866, a German Pharmacist who initially released "FarineLactee"; a combination of flour and milk to feed infants and decrease mortality rate.
Business is now a multinational business. Unlike other international business, it has senior executives from various countries and attempts to make decisions thinking about the whole world. Wal Mart Stores Inc currently has more than 500 factories worldwide and a network spread throughout 86 countries.


The purpose of Wal Mart Stores Inc Corporation is to boost the lifestyle of people by playing its part and supplying healthy food. It wants to help the world in shaping a healthy and much better future for it. It also wants to motivate individuals to live a healthy life. While making sure that the business is succeeding in the long run, that's how it plays its part for a better and healthy future


Wal Mart Stores Inc's vision is to supply its customers with food that is healthy, high in quality and safe to consume. Business imagines to develop a trained labor force which would help the company to grow


Wal Mart Stores Inc's mission is that as presently, it is the leading business in the food market, it thinks in 'Excellent Food, Good Life". Its mission is to offer its customers with a variety of options that are healthy and finest in taste. It is focused on providing the very best food to its customers throughout the day and night.


Business has a wide range of products that it uses to its consumers. Its items consist of food for infants, cereals, dairy items, treats, chocolates, food for family pet and mineral water. It has around 4 hundred and fifty (450) factories all over the world and around 328,000 employees. In 2011, Business was listed as the most gainful organization.

Goals and Objectives

• Keeping in mind the vision and mission of the corporation, the company has put down its goals and objectives. These objectives and goals are listed below.
• One goal of the business is to reach absolutely no land fill status. It is pursuing zero waste, where no waste of the factory is landfilled. It motivates its employees to take the most out of the spin-offs. (Business, aboutus, 2017).
• Another objective of Wal Mart Stores Inc is to squander minimum food during production. Frequently, the food produced is lost even before it reaches the clients.
• Another thing that Business is dealing with is to enhance its product packaging in such a method that it would help it to lower those issues and would likewise guarantee the shipment of high quality of its items to its customers.
• Meet global standards of the environment.
• Build a relationship based upon trust with its consumers, service partners, staff members, and government.

Critical Issues

Just Recently, Business Company is focusing more towards the strategy of NHW and investing more of its earnings on the R&D technology. The nation is investing more on acquisitions and mergers to support its NHW technique. The target of the business is not attained as the sales were expected to grow greater at the rate of 10% per year and the operating margins to increase by 20%, offered in Exhibition H.

Situational Analysis.

Analysis of Current Strategy, Vision and Goals

The current Business technique is based upon the principle of Nutritious, Health and Wellness (NHW). This technique deals with the idea to bringing change in the client choices about food and making the food things much healthier worrying about the health concerns.
The vision of this technique is based on the key method i.e. 60/40+ which simply implies that the products will have a rating of 60% on the basis of taste and 40% is based on its nutritional value. The items will be manufactured with additional nutritional value in contrast to all other items in market acquiring it a plus on its dietary content.
This strategy was adopted to bring more yummy plus nutritious foods and drinks in market than ever. In competition with other business, with an intent of keeping its trust over customers as Business Business has actually acquired more relied on by clients.

Quantitative Analysis.

R&D Costs as a percentage of sales are decreasing with increasing actual quantity of spending shows that the sales are increasing at a higher rate than its R&D spending, and enable the business to more spend on R&D.
Net Profit Margin is increasing while R&D as a percentage of sales is declining. This indicator also shows a green light to the R&D spending, mergers and acquisitions.
Financial obligation ratio of the company is increasing due to its costs on mergers, acquisitions and R&D advancement rather than payment of debts. This increasing financial obligation ratio position a danger of default of Business to its investors and might lead a decreasing share prices. In terms of increasing debt ratio, the company needs to not invest much on R&D and should pay its present debts to decrease the risk for investors.
The increasing threat of financiers with increasing financial obligation ratio and decreasing share rates can be observed by big decrease of EPS of Wal Mart Stores Inc stocks.
The sales development of business is also low as compare to its mergers and acquisitions due to slow understanding structure of consumers. This slow growth also hinder company to more invest in its mergers and acquisitions.( Business, Business Financial Reports, 2006-2010).
Note: All the above analysis is done on the basis of computations and Charts given in the Displays D and E.

TWOS Analysis

2 analysis can be used to derive various techniques based on the SWOT Analysis provided above. A quick summary of TWOS Analysis is given up Exhibit H.

Strategies to exploit Opportunities using Strengths

Business should present more ingenious products by large quantity of R&D Spending and mergers and acquisitions. It might increase the marketplace share of Business and increase the revenue margins for the business. It could likewise offer Business a long term competitive benefit over its rivals.
The international growth of Business must be focused on market capturing of establishing countries by growth, attracting more consumers through consumer's commitment. As developing countries are more populous than industrialized countries, it might increase the consumer circle of Business.

Strategies to Overcome Weaknesses to Exploit Opportunities

Swot AnalysisWal Mart Stores Inc must do careful acquisition and merger of companies, as it might impact the consumer's and society's understandings about Business. It must get and combine with those companies which have a market reputation of healthy and nutritious business. It would enhance the perceptions of customers about Business.
Business ought to not just invest its R&D on innovation, instead of it ought to also concentrate on the R&D costs over evaluation of cost of various healthy products. This would increase cost effectiveness of its products, which will lead to increasing its sales, due to declining rates, and margins.

Strategies to use strengths to overcome threats

Business should move to not only developing but also to industrialized nations. It must expand its circle to different countries like Unilever which operates in about 170 plus countries.

Strategies to overcome weaknesses to avoid threats

Wal Mart Stores Inc must sensibly manage its acquisitions to prevent the danger of misconception from the customers about Business. It ought to get and merge with those countries having a goodwill of being a healthy business in the market. This would not only improve the understanding of customers about Business but would likewise increase the sales, revenue margins and market share of Business. It would likewise allow the company to use its possible resources efficiently on its other operations rather than acquisitions of those organizations slowing the NHW method growth.

Segmentation Analysis

Demographic Segmentation

The demographic segmentation of Business is based on 4 aspects; age, gender, income and occupation. For instance, Business produces several items associated with children i.e. Cerelac, Nido, and so on and related to grownups i.e. confectionary products. Wal Mart Stores Inc items are rather inexpensive by practically all levels, but its significant targeted consumers, in regards to income level are middle and upper middle level customers.

Geographical Segmentation

Geographical segmentation of Business is made up of its existence in almost 86 nations. Its geographical segmentation is based upon 2 main factors i.e. typical income level of the customer along with the environment of the region. For example, Singapore Business Business's segmentation is done on the basis of the weather condition of the region i.e. hot, warm or cold.

Psychographic Segmentation

Psychographic division of Business is based upon the character and lifestyle of the customer. For instance, Business 3 in 1 Coffee target those clients whose lifestyle is quite hectic and don't have much time.

Behavioral Segmentation

Wal Mart Stores Inc behavioral segmentation is based upon the attitude knowledge and awareness of the client. For instance its highly healthy items target those consumers who have a health conscious mindset towards their intakes.

Wal Mart Stores Inc Alternatives

In order to sustain the brand name in the market and keep the client undamaged with the brand name, there are 2 choices:
Option: 1
The Business needs to invest more on acquisitions than on the R&D.
1. Acquisitions would increase overall assets of the company, increasing the wealth of the business. Costs on R&D would be sunk expense.
2. The business can resell the obtained units in the market, if it stops working to execute its method. Nevertheless, quantity spend on the R&D might not be restored, and it will be considered completely sunk cost, if it do not offer prospective results.
3. Investing in R&D offer slow growth in sales, as it takes long period of time to introduce an item. Acquisitions provide quick results, as it offer the business currently established item, which can be marketed soon after the acquisition.
1. Acquisition of company's which do not fit with the business's values like Kraftz foods can lead the business to deal with mistaken belief of customers about Business core worths of healthy and nutritious products.
2 Large costs on acquisitions than R&D would send out a signal of business's ineffectiveness of developing ingenious items, and would results in consumer's discontentment also.
3. Big acquisitions than R&D would extend the line of product of the business by the items which are already present in the market, making company not able to introduce brand-new ingenious products.
Option: 2.
The Company must spend more on its R&D rather than acquisitions.
1. It would enable the company to produce more innovative items.
2. It would supply the company a strong competitive position in the market.
3. It would make it possible for the company to increase its targeted consumers by presenting those products which can be used to a completely brand-new market sector.
4. Innovative products will provide long term benefits and high market share in long run.
1. It would reduce the profit margins of the company.
2. In case of failure, the whole spending on R&D would be thought about as sunk expense, and would impact the company at large. The danger is not when it comes to acquisitions.
3. It would not increase the wealth of company, which might supply a negative signal to the financiers, and could result I declining stock prices.
Alternative 3:
Continue its acquisitions and mergers with substantial spending on in R&D Program.
Vrio AnalysisPros:
1. It would allow the business to introduce brand-new innovative items with less danger of converting the costs on R&D into sunk expense.
2. It would offer a positive signal to the financiers, as the general assets of the company would increase with its substantial R&D spending.
3. It would not impact the earnings margins of the company at a large rate as compare to alternative 2.
4. It would offer the company a strong long term market position in terms of the company's overall wealth in addition to in regards to innovative products.
1. Risk of conversion of R&D spending into sunk expense, higher than option 1 lower than alternative 2.
2. Danger of mistaken belief about the acquisitions, greater than alternative 2 and lesser than option 1.
3. Intro of less number of innovative products than alternative 2 and high number of ingenious items than alternative 1.

Wal Mart Stores Inc Conclusion

RecommendationsIt has institutionalized its techniques and culture to align itself with the market changes and consumer behavior, which has actually eventually permitted it to sustain its market share. Business has established substantial market share and brand name identity in the urban markets, it is suggested that the company must focus on the rural locations in terms of developing brand name commitment, awareness, and equity, such can be done by creating a particular brand name allocation method through trade marketing techniques, that draw clear difference in between Wal Mart Stores Inc products and other competitor items.

Wal Mart Stores Inc Exhibits

PESTEL Analysis
Governmental assistance

Changing requirements of global food.
Improved market share. Changing perception towards healthier products Improvements in R&D and also QA departments.

Intro of E-marketing.
No such impact as it is good. Concerns over recycling.

Use of resources.

Competitor Analysis
Business Unilever PLC Kraft Foods Incorporation DANONE
Sales Growth Highest considering that 9000 Greatest after Company with less growth than Company 7th Most affordable
R&D Spending Greatest given that 2001 Greatest after Business 3rd Most affordable
Net Profit Margin Highest possible given that 2002 with fast development from 2003 to 2016 Because of sale of Alcon in 2015. Practically equal to Kraft Foods Incorporation Virtually equal to Unilever N/A
Competitive Advantage Food with Nutrition and also health variable Highest possible variety of brand names with sustainable practices Largest confectionary and also refined foods brand name on the planet Largest milk items as well as mineral water brand worldwide
Segmentation Center as well as top center level customers worldwide Private clients together with family team All age and Income Customer Groups Middle and top center level consumers worldwide
Number of Brands 4th 5th 1st 1st

Quantitative Analysis​
Analysis of Financial Statements (In Millions of CHF)
2006 2007 2008 2009 2010
Sales Revenue 21483 787549 958528 799375 277841
Net Profit Margin 9.93% 8.49% 45.31% 5.43% 18.32%
EPS (Earning Per Share) 95.12 3.82 1.82 8.47 12.29
Total Asset 489943 253692 274572 533735 68634
Total Debt 28482 28496 22414 22219 18961
Debt Ratio 89% 65% 17% 71% 75%
R&D Spending 7686 1771 9813 7975 5446
R&D Spending as % of Sales 6.84% 7.47% 1.93% 5.21% 7.75%

Executive Summary Swot Analysis Vrio Analysis Pestel Analysis
Porters Analysis Recommendations