In today’s global market place strategic management planning is more important than ever. Developing a strategic management plan is vital to the future of the organization. First and foremost the strategic plan lays down a solid foundation for growth, defining company goals, direction the company is going in the future, and how it is going to get there. A strategic management plan is just like it sounds, it manages the steps along the path leading into the future making sure company goals are meet and if not what changes need to be made in order to stay on course.
Developing a strategic management plan can be difficult. Implementing an environmental scan will help identify both internal ...view middle of the document...
Wal-Mart and Target essentially sell the same kind of products in their stores but have a completely different way about marketing to the public.
Wal-Mart’s strategic plan is aimed at expanding their presence physically by moving into regions they are not currently located in. Their growth is not limited to the U.S. as they have been trying to gain a presence in other countries for years. Wal-Mart’s tactics are to move into a new area and takeover the local competition in every department of the products sold. Once they have succeeded in putting the competition out of business Wal-Mart will begin to diversify and expand into new areas of retail. Wal-Mart has a very direct connection or impact on its competition. Both internal and external factors have a direct impact on Wal-Mart’s market position.
Implementing an environmental scan by using the SWOT analysis technique is a very useful tool in identifying internal and external strengths and weaknesses. When taking an internal look into Wal-Mart it is obvious to see they have strengths and weaknesses. Wal-Mart has many strengths but its brand power is one of the main ones, not too many people in the United States haven’t heard of this retail giant. It is also very possible that if someone is looking for a retail outlet Wal-Mart is their first choice, just out of sheer convenience. Surprisingly they have an extremely high customer loyalty rating. Wal-Mart might not have an employee on every isle trying to help you find something but they will always have what you are looking for. Rigorously checking the quantity of their goods is another internal strength, backed up by an inventory system that is second only to the United States Pentagon inventory system.
Wal-Mart’s inventory system is what makes them the giant they are, allowing them to streamline operations and gain a competitive advantage. They can monitor changes in market trends and customer demands at every location they have worldwide. This inventory system monitors and records how items in the store are performing and puts out alerts when to order from their suppliers in order to capitalize on priority and profitability.
One weakness Wal-Mart has to deal with is it size, they are the world’s biggest grocery retailer and in some ways makes them weak and a target. Wal-Mart sells everything from beauty products to tires for you SUV which does not allow them the elasticity some of their competitors may have in cornering a niche market. Wal-Mart main weakness is their size which makes them a target for workers rights groups to create problems. They do not get involved with any union employment which some see as a problem and may show unfair worker treatment. ...