Wal-Mart Case Study

Wal-Mart Case Study

TJ

Contents

Executive Summary 3

I. Introduction 4

II. Wal-Mart 4

a. Current situation 5

b. Board of Governance 6

III. External Environment: Threats and Opportunities 7

IV. Lee Scott’s Priorities in his “Wal-Mart: Twenty-First Century Leadership” Address 10

a. Wal-Mart’s Board initiatives outlined in the Supplemental Benefits Documentation 13

b. The Wal-Mart health cost strategy 15

c. Two Recent Wal-Mart Initiatives 16

V. Wal-Mart’s Strategic Social Challenges 17

VI. Wal-Mart Issues- 2003 and Now 18

VII. Recommendations 19

References 20

Executive Summary

Wal-Mart is not necessarily the cheapest retail store in its category. However, the retail store has often portrayed an image of the choice chain store for best bargains. In 2005, for instance, Wal-Mart announced a series of sweeping new strategic initiatives to counter lingering sustainability challenges. Bestowed in its new CEO Lee Scott, the retail store would embark on a journey of transformation, which has continued to propel it into a good strategic position globally. This, however, was not without challenges. This paper explores Wal-Mart’s business strategy and challenges during Lee Scott era at the helm, and in the post-2005 era. In particular, it highlights Wal-Mart's current threats and challenges, strategic priorities under Lee Scott, initiatives under the Supplemental Benefits Documentation: Board of Directors Retreat FY06, Wal-Mart’s health cost strategy, Wal-Mart’s strategic social challenges and two recent initiatives at Wal-Mart. It also makes recommendations based on the strategies adopted by the new CEO, Doug McMillon.

Introduction

Organization strategy refers to long-term plans that an organization enacts to aid its attainment of a goal or a set of objectives. In contemporary corporate world, a strategy is inevitable and should be aimed at addressing, among...