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1. Walmart’s company strategies and supporting activities
Walmart is a major multinational American retail chain and supermarket which, at the time of the case, was planning a rapid phase of expansion by creating strategies to expand domestically and internationally, consisting of new store formats, new store franchises and new product ranges.
Walmart’s company strategy is to dominate the retail market, expand domestically in North America and into international markets, create positive brand recognition, and to expand into new sectors of retail. Supporting activities at the corporate level include ensuring that overall pricing and expansion approaches are aligned with the company strategy, and lobbying with Super Political Action Committees (SuperPACs) in Congress. Supporting activities at the business level consist of a revamped public affairs strategy in the domestic and international marketplace, as well as the strategic expansion into new retail sectors such as automotive repair, pharmacies and groceries. Supporting activities at the functional level include rolling out new products and store formats which are culturally tailored to the preferences and tastes of their local consumers. These include the use of open-air raw meat and fresh seafood sections and traditional Chinese medicine sections in Walmart China, the addition of different types of wheat tortillas in Mexico, and the use of festive Diwali promotions in South Asia.
Walmart’s corporate level actions are connected to its business level actions because the corpoXXXX level XXXXXXX create an XXXXXXXXXXX XXX XXXXXXXX XXXXX actions to XXXXXXX. This XXX be demonstrated in XXX XXXXXXXXX ways. XXX XXXXXXX, XXXXXXX’s push XXX greater XXXXXXXXXXXXXXXXXXXX XXXXX middle XXXXX business XXXXXXXX XXX mandate XX XXXXXX XXXXXXX specific XXXXXXXX, XXX allows Walmart XX XXXXXX XXXXXXX XXXXXXX XXX XXXXXXXXXXXX XX expand effectively. Walmart’s lobbying XXX XXX XX SuperPacs XX the corporate level, to create a more business XXXXXXXX XXXXXXXXXX environment, XXXX XXXXXXX am XXXXXXXXXXX for Walmart’s XXXXXXXX operations XX XXXXXX.
X. Stakeholder XXXXXX of the firm: theory XXX XXXXXXXXXXX
XXX XXXXXXXXXXX theory of XXX firm XXXXXXXX that a firm’s XXXX XXXX XXX XX XXX XXXXXXXX XXX XXXXXXXX XXXXXXXXXXXX, such as its XXXXXXXXX, XXXXXXXX, XXXXXXXXXX XXXXXXXXX, XXXXXXXXXX, XXXXXXXXXXXX, XXXXXXXXX, clients, suppliers and XXXXXXXXX. XXXX theory stands in stark contrast XX the XXXXXXXXXXX XXXXXX XX the XXXX, XXXXX suggests XXXX a XXXXXXX’s chief XXXX is XXXX XX its shareholders (ie. XXX XXXXXXXXX XXX purchased shares XX the XXXXXXX), XXX that XXX chief aim should XX XX maximise shareholder XXXXXXX XXX XXXXXXXXXXX wealth.
A XXXXX-XX-eat breakfast XXXXXX firm’s main internal stakeholders XXX stakeholders XXXX exist XXXXXX XXX XXXXXXXXXXXXXX structure XX XXX XXXX. These XXXXXXX XXX XXXXXXXXX cereal firm’s employees, managers and XXXXXXXXXX personnel. The XXXXXXXXX cereal firm’s external stakeholders XXXXXXXX XXXXXXXXXXXX XXXX XXXXX outside of XXX organisational structure of XXX firm. These XXXXXXX XXX XXXXXXXXXX, shareholders, XXXXXXXXX, clients, suppliers, XXXXXXX and creditors. In XXX XXXXXXXXX cereal firm’s case, XXXXX XXXXX XXXXXXX the Department XX Health XXX Human XXXXXXXX (which XXXXXXXX the XXXXXXXXXXX content of its XXXXXX products), XXXXXXXX with XXXXX children (XXX XXXXXXXXXX consume such products), and wheat suppliers.
As XXX CEO XX a XXXXX-to-eat breakfast XXXXXX company such XX XXXXXXX XXXXX, I would decide whether XX XXXXXXXX with XXX same artificial sweetener or seek XXXXXXXXXXX costly XXXXXXXXXXXX by XXXXXXXXXX the impact and response of XX XXXXXXXXXXXX to continuing to use XXXX XXXXXXXXX. The response of XXXX XX XXX XXXXX XXXXXXXXXXXX is as follows: internal XXXXXXXXXXXX XXXXX XXXXXX XX concerned chiefly with the XXXXXXXXX performance, XXXXXXXXXX and XXXXXXXXX XXXXXXX of XXX XXXXXXX, XXXXX XXX XX negatively XXXXXXXX XX the continued use XX XXX sweetener. In XXXXX of external XXXXXXXXXXXX, XXX government would prefer XXX XXX be XXXXXXXXXXXX in order to safeguard public XXXXXX, while the customers would XXXXXXXXX desire a switch to a healthier option. Shareholders, clients and suppliers would XXXX likewise be XXXXXXXXX XXXXX the XXXXXXXXXXXX backlash from XXX continued XXX XX the sweetener. Hence, it would XX XXXX, XXXXX the impact on XXXXXXXXXXXX, to seek XXXXXXXXXXX and more XXXXXX replacements.
XXXXXXX Five XXXXXX Model
Porter’s Five Forces Model allows XXXXXXXXXX XX analyse the competitive landscape XX an XXXXXXXX XXXXX XX XXX XXXXX XX suppliers, the power of buyers, substitutes, XXXXXXXX XX XXXXX, and XXXXX XXXXXXX. Porter’s XXXX XXXXXX model XXX been XXXXXXX to a XXXXXXX XX XXXXXXXXXX to analyse the XXXXXXXXXXX level XX an XXXXXXXX, XXX determine XXXXXXX an incumbent is XXXXXX an XXXXXXXXXXXXX XXXXX XX competition, or whether a new entrant XXX a XXXXXX XX XXXXXXX amid the competitive environment XX the industry.
XXX overall evaluation for the XXXXXXXX of each XX Porter’s XXXX Forces XX XX follows. Power XX XXXXXXXXX is XXX, XXXXX of XXXXXX XX moderate, XXXXXXXXXXX are high, barriers XX XXXXX is high, XXX price rivalry is high. XX the whole, this suggests that the XXXX XXXXXX XXXXXXXXX by XXXX Cola and Pepsi XX a highly competitive market XXXXXXXX for entry XX XXX entrants.
For Coca-XXXX and XXXXX, the XXXXX of XXXXXXXXX XX XXXXXXXXXX XXXX as the two XXXXXXXXX XXX XXXXXX XXXXXXXXX XXXXX production to XXXXXXX supplier in the XXXXXX South, XXXX as Vietnam or XXXXX, if XXX XXXXXXX XXXXXXXXXX XXXX in XXX XXXXX Americas XXXXX. Furthermore, XXXXX XXXX XXXX-XXXX XXX Pepsi have strong global XXXXXX chains, XXX XXXXXXX of one supplier XX deliver goods can XX XXXXXX XXXXXXXXXXX XXXX another supplier elsewhere. The power of buyers in this XXXXXXXX is XXXX XXX strong, XXXXX XXXX Coca-Cola and XXXXX have a virtual XXXXXXXX (or duopoly) on the soft-drinks XXXXXX, XXX are dominant XXXXXX in this XXXXXXX. However, XXXXXXXXX are highly XXXXX sensitive and will switch out XXXXX drink XXXXXXX if XXXXXX should rise too XXXX. In terms of substitutes, XXX XXXX-drinks XXXXXX XX saturated XXXX substitutes, as the XXXX-XXXX XXX Pepsi drinks XXX not only easily replicable XX white label XXXXXX, but XXXX face XXXXXXXXXXX XXXX XXXXX XXXXX XX energy XXXXXX XXX XXXXXXXXXXXXX XXXXXXXX XXXXXXXXX XXXXXX. Barriers to XXXXX XXX Coca XXXX XXX XXXXX are XXXX, XXXXX XXXX highly XXXXXXXXXXXXX supply XXXXXX XXX required XX XXXXXXXX the economy of scale XXXXXX XX XXXXXX off such low XXXXXX XXXXXX items. Finally, price rivalry in XXXX industry is XXXX, XXXXX that Coke XXX XXXXX XXX XXXXXXXXX rivalrous and XXXXX engage in price wars XX keeping their XXXXXX very low. Soda XX XXXX a XXX XXXXXX XXXX with XXXX XXXXXXXXXXXXXXXX, so price rivalry is XXXX driven XX.
XXXXXX XXXXX describe the XXXXXXXX of XXXXX, rarity, imitability, XXX XXXXXXXXXXXX.
Please XXXX the XXXXXXXXX XXX XXXXXXXXXXXX that you identify from XXX-mart under each of the question XX XXXX model.
XXX VRIO analysis is a toolkit XXX evaluating XXX XXXXX of a company’s XXXXXXXXX, XXXXX XX how value XXX expensive a resource XX, how rare or limited it XXXXX XX be, how challenging it is XX XXXXXXX the resource, and XXXXXXX the XXXXXXXX is XXXXXXXXX and adequately XXXX by the organization. This XXXXX will evaluate XXXXXXX’s XXXXXXXXXX, XXXXX XXXXXXXXXXX , direct-XX-XXXXXXXXXXXX XXXXX, XXXXXXXXXXXXX XXXXXX supply XXXXX, XXXXXXX of stores, workforce, online XXXXXXX and culture XX customer XXXXXXX.
Foremost, Walmart’s XXXXXXXXXX XX XXXXXXXX, XXXX, XXXXXXXXXX XXX XXXXXXXXXXXXXXXX supported. Walmart’s XXXXXXXXXX for XXXX XXXXXXX, XXXXX XXXX XXXXXXXX at the XXXXXX prices is XXXXXXXXX XXXXXX XXX retail industry. XXXXXXX’s reputation XX XXXXXXXXX XX replicate effectively, and XXXX many years to build up in a XXX XXXX XXXXXX XX easily XXXXXXXX XX a XXX entrant.
XXXXXXXX, XXXXXXX’s XXXXX proposition XX high quality, brand XXXX products at the lowest XXXXX is XXXXXXXX, common, imitable and organisationally XXXXXXXXX. While an effective value XXXXXXXXXXX, we sense that XXXX XXXXX XXXXXXXXXXX XX XXX altogether unique.
Next, XXXXXXX’s XXXXXX-XX-XXXXXXXXXXXX XXXXX, online XXXXXXX, XXXXXXX XX XXXXXXXX XXXXXXX and XXXXXXXXXXXXX global XXXXXX chain XX valuable, rare, inimitable and XXXXXXXXXXXXXXXX XXXXXXXXX in a way that XXX XX XXXXX XXXXXXXXXXX, XXXX XX Lidl, Audi, Carrefour XXX Auchan XXX able to do.
Finally, XXXXXXX’s XXXXXX and XXXXXXXXX are XXXXXXXXXX, XXXXXX, imitable XXX XXXXXXXXXXXXXXXX XXXXXXXXX. Typically, XXXXXXXXXXX XXXXXXX XX production such XX XXXX XXX labor XXX XXX XX XXXXXXXX as XXXXXXXXXX XXX supply XXXXX in the retail XXXXXXXX. XXXX is XXXXXXX Walmart’s brick-and-mortar XXXXXX and low-skilled XXXXXXXXX XXX be easily XXXXXXXXXX.
Internal Analysis:Please provide a XXXXX-XXXXX analysisfor XXX XXXXXXX XXXXXX-Cola.
Coca XXXX’s value XXXXX consists of its XXXXXXXX and development, XXXXXXXXX procurement, production, packaging, XXXXXXXXXXXX, XXXXXXXXX, sales, branding XXX resource XXXXXXXX. XXXX XXXX’s XXXXXXXX and XXXXXXXXXXX, XXXXXXXXX, and branding are XXXXXXXXX internally, XX they XXX higher XXXXX XXXXXXXXXX where most XX the value of the supply chain XX captured. XXXX Cola’s XXXXXXXXX XXXXXXXXXXX (such XX the sourcing of XXX ingredients and XXX XXXXXXXXX), XXXXXXXXXX, XXXXXXXXX, distribution, sales XXX resource recovery (XXXX XX XXX XXXXXXXXX initiatives) XXX outsourced. XXX outsourcing occurs for a number XX reasons. Foremost, XXX XXXXXXXXXX XXXXXXXXXX XXX be XXXX more XXXXXXXXXX XXXX at Coca XXXX’s production facilities in the United States. XXXXXXXXXX processes XXX also XXXXXX to XXXXXXX XXXX markets, XXXXX facilitates distribution.
Economic value XXXXXXXX , or economic value add, XX a measure XX the company’s fiscal performance XXXXX on XXXXXXXXX XXX XXXX XX capital from its operating or XXXXXXXX profit.
XXXXXXXX Value Creation = XXXXXXXX Value Add = Price of XXXXXXX - costs = XXXXXXX XXXXX - XXX material price - XXXXXXXXXXXXX cost - packaging cost - XXXXXXXXXXXX cost - sales and XXXXXXXXX XXXX - overhead allocation - XXXXXXXXXX facility rent - XXXXXXXX pay = XX - XX - 1 - X - 1 - X - X - X - 2 = X
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XXXXXX, XXXXX B., XXX Barbara XXXX."Wal-XXXX, 2005."Harvard Business XXXXXX Case 705-XXX, XXXXXXX XXXX. (XXXXXXX XXXXX 2005.)
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