Wal-Mart Stores Inc. Strategic Initiative Paper
Wal-Mart is a world of savings right? Their slogans range from “Always Low Prices, Always” to “Save Money. Live Better”. With all of these “savings” that the public is receiving it is apparent by Wal-Mart’s finance report that money is still being spent but is it to Wal-Mart's expectations? Team A has obtained a copy of Wal-Mart’s annual report and with the information from Wal-Mart’s annual report we will create a strategic planning initiative and identify an initiative discussed in Wal-Mart’s annual report. Team A will then explore how the initiative affects the organizations financial planning such as costs and sales. Finally we will describe the risks associated with the initiative and financial effects they may have.
A Strategic Planning Initiative for Wal-Mart
In Wal-Mart’s 2011 annual report it was highlighted that they were not satisfied with the net sales of Wal-Mart U.S. They go on to immediately comfort the stock holders uneasiness by guarantying an aggressive plan to reinforce their commitment to EDLP (everyday low prices) and to offer a broad merchandise assortment and presentation that is even more relevant to the customer. They are also opening their very first Wal-Mart express in the second quarter of 2012. These stores will be less than 30,000 square feet and will offer a full product line of groceries, pharmacy and limited general merchandise. With these improvements and others Wal-Mart hopes to increase net sales for Wal-Mart U.S. in 2012 (Ernst and Young, 2011).
Team A’s own strategic planning initiative idea is to place a basic touch screen computer on the end of every few isles that only directs the customer to Walmart.com. This is to show the customer what products Wal-Mart offers even if it’s not in the store. It could be product that is kept at the warehouse or even products that is only down the road at another location. Either way this is ensuring that the customer...