Strategic Initiative Paper

Strategic Initiative Paper

Susan Aguilar, Pamela Cruz, Runnette Mitchell, Regina Radford

FINA 370

July 22, 2010

Professor Charles Prescott

Many companies throughout the years have developed new successful strategies and financial planning that has gotten them ahead of its competitors. Due to the economy and its competitors (e.g. Target, B.J’s, Costco etc) Wal-Mart has adopted new ideas, strategies and planning that has helped them excel and even beat the competition. In 2009, Wal-Mart introduced a plan called Project Impact, this project has been divided into three initiatives which are: Save Money, Live Better; Win, Show, Play; and Fast, Friendly and clean (Wal-Mart, 2008). This plan ensures and improves the benefits to customers by having more cleanliness and less clutter; friendlier customer service and the best prices in town. A strategic plan is the result of strategic planning that involves formulating strategies that sets out a clearer picture of what the company’s strengths and weaknesses are and what needs to be changed and improved. This is Wal-Mart's main focus, to develop strategies that can help them keep its number one place in the retail market for years to come by analyzing the business objectives and the business industry. This paper will focuses on the relationship between strategic and financial planning, Wal-Mart’s strategic planning initiative, the initiative effects, and finally what the initiative’s risks could be.

Strategic planning initiative

Companies must develop a strategic plan to determine the company’s long and short-term goals and identify measures for achieving those goals to ensure the success of the company and to remain competitive in the market in which they operate.

Wal-Mart strategies allow them to remain the leaders in the retail industry and they continue to implement strategies to ensure the company’s competitive advantage. Some of the strategies include the following: a) every-day low prices (EDLP)....