SOLUTION: BUS 499 SU External & Internal Environments Overview Walmart Business Capstone

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Week 3 Strategic Management and Strategic Competitiveness Assignment
Lashuna Boatman
Strayer University
BUS 499 Business Administration Capstone
Professor Brian Grizzell
10/26/2020
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Week 3 Strategic Management and Strategic Competitiveness Assignment
The task in context involves strategic management and strategic competitive analysis
carried out on a public company. The chosen public corporation is Walmart Inc. one of the
largest corporations within the retail industry. With that regard, an analysis is to be carried out to
determine how globalization alongside the change in technology has impacted Walmart Inc. in
the past years. Additionally, the industrial organization model and the resource-based model gets
deployed to help figure out how Walmart Inc. would deploy such approaches and realize revenue
margins above its current average revenue. Another examination will be ascertaining how the
corporation’s mission statement and vision statement have contributed to the overall success
experienced at Walmart. Then the last section takes a look at how different groups of
stakeholders linked to Walmart have also influenced the company’s success witnessed today.
Globalization
The ability of many corporations to be able to operate in geographical regions away from
their motherland can be attributed to the concept of globalization. Globalization is defined as the
existence of a scenario where countries and their respective corporations progressively become
inter-reliant on one another (Hitt et al., 1). The interdependence becomes evident through a
number of factors as presented by the impact globalization has had on Walmart Inc. The movement
of assets required to facilitate the provision of goods and services is evidence of how globalization
has impacted Walmart. In the process of expanding its territory and global market share Walmart
has been able to open up a number of retail shops in other continents like Asia and even some parts
of Africa. It is because of globalization, that the retail company is able to invest resources
harnessed in the United States to another country in a different country. Besides intercontinental
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flow of capital knowledge and skills are also able to be transferred across borders, and competition
at a global level. That is the reason why Walmart is able to move out of the USA and set up a store
in India for instance and compete with Indian retail companies without sparking any legal concerns.
As a result, Walmart has enjoyed an increased revenue base from its stores situated in different
parts of the world.
Technology
Walmart has enjoyed for some time the title as one of the largest retail companies in
America. However, just like any other corporation, they have been at risk of being threatened by
technological developments. The category of the technological invention that has impacted
Walmart’s operation is the disruptive technological inventions. Disruptive technological inventions
are characterized by their tendency of rendering irrelevant prevailing technology by coming up
with new approaches that result in newer opportunities (Hitt et al., 1). Disruptive technology has
impacted Walmart in a number of ways, and in order for the retail company to maintain their
position, they have had to adopt technologies that disrupt existing markets and keep them ahead
of the curve. For instance, as a way of keeping up with the growing online shopping method,
Walmart had to create more value with their operations by developing a technology called
Alphabot. The development has hastened the online shopping procedures by improving procedures
for picking products, packing, and faster deliveries to customers shopping at Walmart (Thomas,
2). This approach as result creates a new market for Walmart while devaluing the existing online
shopping approaches used by other retail companies.
Industrial Organization Model
Just like any other company, Walmart Inc.’s objective among other targets is to increase
revenue. In order to determine how much extra revenue above its normal average revue can be
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attained, it requires the adoption of an industrial organization model. The specific model
appropriate to enable this simulation is the industrial organization model focusing on returns that
are above average. Based on this model it is assumed that companies’ profitability tends to be
more influenced more by factors from outside the company more than internal factors like
management decisions (Hitt et al., 1). Therefore, Walmart can attain above-average returns by
making decisions intended to capitalize on external factors. Some of the external factors make
up the opportunities they can exploit and increase revenue. Walmart can increase its revenue to
heights above its current average revenue by developing strategic plans based on some of the
external influences. For instance, the company receives monthly payments of over $100 million
paid by its customers using banking billing methods like credit cards and debit cards among
other methods (Marcilla, 3). In the process, charges are incurred while processing payments. If
the corporation adopts a banking method of its own, it would be making extra revenue off the
processing charges.
Resource-Based Model
Unlike the industrial organization model, the resource-based model deploys organization’s
internal capability as a way of increasing a firm’s profits. The best-recommended approach is
coming up with a strategic plan built on an integration of the organization’s strengths. The strengths
include all human capital and physical capital. With the resource-based model, Walmart Inc. can
improve its profits through the development of a strategic plan that uses its large revenue base of
over $400billions by integrating it with an approach where it sells a wider range of products
(Marcilla, 3). The best approach is then evaluated and all the organization’s capital, human capital,
and physical capital is deployed. As result, the increased sales will definitely result in higher
revenue.
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Vision
A corporation’s vision is stated in its vision statement. Whereby, the vision statement is a
declaration of what the company wants to be in the future. A company’s vision guides the
company’s actions and as a result, impacts the overall success level of the corporation. In the case
of Walmart, their vision statement talks about being dedicated to the service that regardless of how
their customers shop, they must still save money at the end (Walmart, 4). Taking an assessment of
the company’s overall success, it is evident the vision statement is their guide. They are able to
command a larger customer base due to the approach of selling their products at a relatively
cheaper price.
Mission
A corporation’s mission acts as the specifier as it explains exactly which sector the
corporation intends to offer its product or service. All that is given in a mission statement which is
normally built on a vision statement. For instance, through Walmart’s mission statement, it
becomes clear that they are inclined towards selling products at the retail level and the cheaper
prices (Walmart, 4). Based on the company’s mission statement their mission is ensuring that
people live better through saving their money. How that has impacted the company’s success is
profound since the company has established itself as a giant retail company that sells its prices at
a cheaper price. The company thrives on the pricing strategy, which is its secret to success, an
approach that gives them an edge.
Stakeholders
Stakeholders can be attributed as the individuals and entities that contribute to the bringing
up of a corporation and also keep it up and running. Stakeholders are individuals and entities within
an organization that can be affected by the organization’s decision and their decisions can also
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affect the organization’s well-being. They are grouped into product-market shareholders, capital
market shareholders, and organizational stakeholders. Under the product market, they include;
main customers and suppliers of raw materials or commodities. Capital market stakeholders are
the bankrollers of the business, they include; banks and company shareholders. In addition,
organizational stakeholders are made up of employees and managers within the organization (Hitt
et al., 1). In the case of Walmart, capital stakeholders are those initial investors in the company and
those who own shares of the company on the stock exchange. Organizational stakeholders are its
managers and employees. Customers and their suppliers make up the product market stakeholders’
category. With regard to the company’s success, stakeholders play a key role, especially the
suppliers. Walmart relies on the supply of products from local suppliers for them to be able to adapt
their pricing strategy. Their employees also accept minimum wage based on a part-time basis
which allows the corporation to sell its product prices at relatively lower prices.
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Sources
1. Hitt, Ireland, & Hoskisson. 2020. Strategic management: Concepts and Cases:
Competitiveness and globalization (13th ed.). Mason, OH: South-Western Cengage
Learning
2. Thomas, Lauren. 2020. Walmart Just Unveiled a New Technology that Could Help
Defend its Position as America’s Largest Grocer, CNBC. Retrieved
https://www.cnbc.com/2020/01/08/walmart-unveils-a-new-technology-for-its-grocerybusiness-alphabot.html
3. Thomas, Lauren. 2020. Walmart Just Unveiled a New Technology that Could Help
Defend its Position as America’s Largest Grocer, CNBC. Retrieved
https://www.cnbc.com/2020/01/08/walmart-unveils-a-new-technology-for-its-grocerybusiness-alphabot.html
4. Walmart, 2020. Walmart’s.com History and Mission. Retrieved:
https://www.walmart.com/help/article/walmart-com-s-history-andmission/a62ce500758c4746a211d00d7c2acfcd

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