MBA FPX 5006 Assessment 3 Strategy Implementation

Strategy Implementation

Name of Student

Capella University

MBA-FPX 5006

Professor Name

Submission Date

Slide 1

Title Page

This Presentation will elaborate on each of the principles (Analysis, Formulation & Implementation) and how Walmart can utilize them for improved company performance and competitiveness within the retail industry. The Paper discusses Wal-Mart’s Business Strategy and Corporate Strategy which will give it a sustainable Competitive Advantage over all other retailer/ e-retailer competitors. There will also be a discussion on Wal-Mart’s Planning Process, Company Structure, Ethics and how they become and continue to be one of the largest Retail Companies in the World.

Slide 2

Introduction

Introduction to the Retail/E-commerce Marketplace that has become highly competitive in today’s marketplace. Why is it such an extremely competitive marketplace? Customer needs are constantly evolving along with: Technology, Pricing and Delivery Systems! Wal-Mart also faces intense competition from all other Retailers on a daily basis and from an ever-increasing number of e-retailers that are trying to attract the same customers through lower prices and better customer service. While most retail companies are focused too heavily on the competition, other retail companies are focusing just as heavily on their Management Systems and Planning Processes.

Slide 3

AFI Strategic Framework Summary

The following is just a snapshot of the Strategic Framework of AFI.AFI model is the model for strategic management, which is divided into three phases: Analysis, Formulation and Implementation.

Analysis stage – The business organisations will take an internal and external analysis and will be noting down what their Strengths, Weaknesses, Opportunities and Threats are. In this step, Walmart can improve its aspects, such as logistics, relationships, and competition in the market with its provider. Takes into account other concerns that can affect the business (economics etc.) as well.

The Formulation will be the next plan that will involve the formulation of strategies to be followed based on the goals of the company and market trends. This may be a low-cost strategy, such as that of Walmart or a combination online/offline strategy.

The last stage is Implementation. Strategies are not just implemented, they are done so via the leadership, company structure, technology and performance systems in this phase. All of these departments are now synced with one another (Sim et al., 2024). Walmart is looking at its performance across all departments to ensure it succeeds in the long term.

Slide 4

Internal Environmental Analysis Summary

This is an Internal External Analysis (IEA) Summary that is a summary of the internal environmental analysis. All of Walmart’s systems are extremely efficient, and its supply chain, logistical and purchasing systems have enabled it to run at a relatively low cost, and to benefit from the many efficiencies it gains in running. Walmart has three main ways to cut down on the transportation costs, as well as manage their inventory: automation, real-time inventory tracking and cross-docking.

The other advantage is it’s size – that’s mainly due to Walmart’s size, so they can purchase the product in bulk. Actually, Walmart does not make the customers pay high prices not only due to its policy towards customers, but also because of its policy towards the purchasers. Walmart has also come up with a technology that will guide them on how to manage their inventories, improve their forecasting as well as reduce their losses in inventory. Many of the stores are also distribution centres in the community, allowing Walmart to be first to market with a product into their stores – and thus be more competitive.

Slide 5

External Environmental Analysis

PESTLE Findings

Walmart’s typical work is done in an external environment. Political, economic, social, technological, legal and environmental factors are typically the types of factors that affect the External Environment. The political factor, including laws and tariffs that hurt their operation, is one of these. The adjustments in financial circumstances (inflation, alterations in purchasing power) play a significant role in influencing the price and sales.

Social trends indicate that they will buy a product if it’s convenient to them, and that they will soon make the transition and start to buy online and have it delivered to their doorstep. This indicates that Walmart has expressed its interest in investing in greater technologies, such as Artificial Intelligence, Robotics and Data Analytics, to enhance its customer experience and to streamline their operations.

Slide 6

Five Forces Findings

The retail industry is highly competitive in nature, in that it comprises of a large number of retailers all fighting over the business of the consumers. Well, this is clearly one of the pivotal battles in retailing and it’s probable that without the ability to generate profit, running a business successfully won’t come easily. By purchasing in large quantities, Walmart can acquire this at a lower price, which subsequently enables Walmart to acquire at a lower price and in the process, place itself in jeopardy in the supply chain by purchasing with Global Suppliers (Althabatah et al., 2023).

Slide 7

SWOT Matrix Analysis

By using a SWOT matrix, an analysis of Walmart has been provided, and strengths, weaknesses, opportunities and threats have been identified for Walmart and Target. The most excellent assets of Walmart is its worldwide operations, distribution channels and the fact that it is established and has long-term relationships with its vendors. All these contribute to the capacity of Walmart to be cost-effective/efficient. However, Walmart has its share of responsibilities as well such as low profit margin, complexities in operation occasioned by various government regulations and countries, among others.

Being aware of the factors, Walmart will be in a better position to develop an improved expansion strategy, as well as its sustainability and success (Grishunin et al., 2022).

Slide 8

Strategic Recommendations

As the number of automated and artificial intelligence (AI) technologies continues to increase, their usage in inventory and supply chains. This will enable Walmart to set itself up strategically to go head-to-head on a much greater level. Obviously, automation and AI can contribute to Walmart’s better-than-average cost efficiency, help them utilize their resources and provide them a quicker response to their customer’s needs.

The company could potentially earn even more revenue by utilizing other forms of services such as health care clinics, financial services and advertising. Moreover, an increased amount of profit will be available on work on private label products. To stay ahead of the pack, it will be Walmart’s impressive distribution system and technology that will enable it to continue to grow and deliver a better customer experience.

Slide 9

Ethical Responsibility Alignment

As team players strive to create a good relationship with their customers, vendors and community. Wal-Mart’s other model is to sell lower-priced products, which will allow more people, most of whom are likely to be in rural areas and/or low income, to buy these products. As well as offering their customers low prices, Walmart also attempts to have their employees be happy, by investing in their education and promotion through career path programs, and equality in all positions with employees. One of the strategies that Walmart has been pursuing is regarding sustainability; they have been striving to reduce waste coupled with their value chain, cut down carbon footprint and responsible sourcing of materials that are utilized in the manufacture of final products. They all have a vision of making the company more sustainable, more eco-friendly and becoming an ‘inside out’ sustainable company.

Slide 10

Conclusion

When it comes to Walmart’s business model, they have adopted low-price technology to operate their businesses, and to put an end to the brick-and-mortar and online consumers’ resistance, they have embraced the idea of omnichannel marketing. The company has plenty of infrastructure and is investing on latest machinery to be more efficient to satisfy their customers and in operations. The company has been flexible enough to cater to the changes in the market, has invested in innovation, and have shown a willingness to take on the challenges.

To get the first assessment of this class, visit: MBA FPX 5010 Assessment 1