Walmart’s Objectives

by Eugenie on September 27, 2011

As a major international public company, Walmart has lots of objectives. Here are some of them taken directly from Walmart’s 2011 Annual Report (which can be downloaded here)

“Expand multi-channel initiatives”

Strategies:

  • Develop and execute a global eCommerce strategy
  • Accelerate global online channel growth
  • Have accessible stores available for all of the customers’ needs

Tactics:

  • Conduct research on customers
  • Use new formats, such as Walmart Express™, in urban and rural markets.
  • Open Walmart’s first convenience format stores, Walmart Express, in the second quarter.
  • Complete specific transactions
    • Investing in global eCommerce (online commerce)
  • Create technology platforms and applications for every Walmart market
  • Deepening their understanding of consumer trends and creating new analytical tools.
  • Leveraging multi-channel innovations like Site-to-Store®, Pick Up TodaySM and Fed-Ex® Site to Store

“Grow in the United States”

Strategies:

  • Keep improving Sam’s Club®
  • Maintain excellent customer service – Give the customers what they want: quality products at affordable prices
  • Implement a four-point plan to improve comparable store sales (Investopedia says: “This statistic [comparable store sales] allows investors to determine what portion of new sales has come from sales growth and what portion from the opening of new stores.”)
  • Implement productivity initiatives

Tactics:

  • Open more supercenters
  • Attract more customers and Sam’s Club members
  • Use new formats, such as Walmart Express™, in urban and rural markets.
  • Open Walmart’s first convenience format stores, Walmart Express, in the second quarter.
  • Expanding their assortment, reallocating selling space and enhancing productivity initiatives to reduce costs.
  • Adding services to their pharmacies, such as free monthly health screenings and hearing centers.
  • Continue to add exciting brands in key categories, including apparel, jewelry, technology and entertainment.
  • Conduct research on customers
  • Deepening their understanding of consumer trends and creating new analytical tools.

“Improve returns”

Strategies:

  • Balance their commitment to aggressive growth with their long-term plan
  • Achieve positive comparable store sales [through four-point plan]
  • Enhance shareholder value

Tactics:

  • Opening supercenters in new regions of Canada and changing the competitive environment in Brazil with a shift to EDLP [every day low prices].
  • Leveraging multi-channel innovations like Site-to-Store®, Pick Up TodaySM and Fed-Ex® Site to Store
  • Expanding their assortment, reallocating selling space and enhancing productivity initiatives to reduce costs.
  • Adding services to their pharmacies, such as free monthly health screenings and hearing centers.
  • Continue to add exciting brands in key categories, including apparel, jewelry, technology and entertainment.
  • Deepening their understanding of consumer trends and creating new analytical tools.
  • Attract more customers and Sam’s Club members
  • Use new formats, such as Walmart Express™, in urban and rural markets.
  • Open Walmart’s first convenience format stores, Walmart Express, in the second quarter.

You’ve probably noticed that most of the tactics used are similar (or the same). This is because most of Walmart’s strategies are accomplished by regular changes over time (tactics). For example, as seen several times throughout this post, the opening of new supercenters. Supercenters work well, and so, are a good source of revenue. However, they also have to be positioned correctly as to satisfy the right type of customer and be in the most convenient lot in order to produce the revenue necessary to Walmart’s further expansion and fulfillment of strategies. Supercenters, and all other Walmart stores are also a means to put tactics in action. For example, if the objective is to decrease harmful energy consumption by 10% this year, a suitable strategy could be to develop an actual energy decreasing strategy or campaign, such as reducing the electricity consumed by Walmart stores by use of an energy decreasing program or increasing the use solar panels. The tactic would be investing a set amount of money in that program, or in solar panels. Investing in solar panels is a tactic that also helps most environmental objectives.Working on important (though they’re ultimately all important) financial transactions sealing, for example, a contract, is also a tactic, and you an imagine how many times Walmart has had to use it. It is not about the transaction itself as much as the work involved before it and the decision to choose this particular contract because it might be more advantageous to one or more strategies which contribute to one or more specific objectives overall.

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