1. BPP4133
STRATEGIC MANAGEMENT
CASE STUDY
PRESENTATION

2. Team Members
NABILAH BINTI MOHAMAD PB08028
MAIMUNAH BINTI AMANAH PB08063
NURUL NAJWA BINTI ABDULLAH PB08078
IBRAHIM BIN KASIM PB08030
YUSMIN BIN JAFFAR PB08049

3. QUESTION 1
How can Wal-Mart Stores and Sam’s Club
increase same-store sales?
• Maintaining the strength of the provided services
or items to be sold in each location between
these 2 stores
• Program expansion for each segment regarding
to their product or services to be sold to
customers (product/services variety)
• Implementing the proposed strategies:

4. Wal-Mart Stores Sam’s Club
Mimicking competitor’s Reinvigorating the brand
Localizing selections Improve inventory
management
Appealing Optimize the “in-club
experience”

5. Question 2
How should the company capture share of
middle- and upper-income wallets?
- sell inferior goods for which demand increases when
income falls (low price).
- provide substantial services
- provide appropriate products for each location
- strategic leaders – 8leaders
- always take initiatives in order to satisfy customers
- creates value for customers – highly efficient and
innovative supply chain management operation
- put customers first (prime focus) – customer-focused
strategies

6. Question 3
Should Wal-Mart Stores fully retreat from
fashion- forward merchandising and
marketing?
No. as mentioned, they moved too quickly in
this strategy. They should make it slowly to
see the response from the customers. So, they
only have to retreat partially.

7. Question 3
Will it’s neighborhood-store-localization
strategy increase sales enough to offset
the associated cost?

8. • Neighborhood store localization will increase
sales and should be enough to offset the
associated costs.
• Launched 6 different types of customized stores
to attract difference demographic.
• More to “store of the community”
• Reflect the individual needs of each
neighborhood.

9. Question 3
What should it do to make it’s new 3-
types-of-customers segmentation strategy
work?

10. • Have more of a neighborhood feel to it.
• Provide better quality items.
• Developing unique, innovative product and
providing distinguished brand.
• Reduce the product on shelves and widen the
aisles.
• More UPC scanners in the store.

11. QUESTION 4
Should company spin off Sam’s Club? If
not, what should it do to compete more
effectively against Costco?

12. In desperate times, spinning off Sam’s Club
can be considered as a good idea to give Wal-
Mart the room to breath as Wal-Mart is
already have stores in U.S and fast-growing
international operations.
Due to the stock price soared for the last few
years under the leadership of Lee Scott,
spinning off Sam’s Club can help to increase
stock price a little bit plus allowing Wal-Mart
to focus more on its other fast-growing
marketing segmentation.

13. QUESTION 5
ls Wal-Mart expanding the right kind
of new stores at the right pace and in
the right places?

14. • Yes, because Wal- Mart’s international’s U.K. – based
Asda subsidiary brings in the largest share of the
company’s international revenue, at 37.4 percent.
Then, Wal- Mart de Mexico provides the next largest
share, at 23.6 percent of Wal- Mart International
sales.
• Unfortunately, Wal- Mart face difficulties to obtain
the scale and results that targeted such as in
Germany and South Korea due to providing
inappropriate products for that location.

15. QUESTION 5
How and where should the company
continue to grow internationally?

16. • Prioritize “where the greatest growth and greatest
return exist”- called “majoring in the majors” include
the America primarily, followed by U.K. and Japan, as
well as China and India over the long term.
• Two types of strategy which are “focused portfolio
execution” and global average or “taking full
advantages for their worldwide assets, including
formats, Information System, purchasing
organizations, category expertise, and shared best
practices.

17. QUESTION 5
Should Asda buy J. Sainsbury?

18. • Yes, because as the second –largest in U.K., Asda
should acquiring the third- largest U.K. retailer, the
J. Sainsbury to better compete with U.K. leader-
Tesco.

19. QUESTION 6
What will it take to restore the
company's reputation in the United
States?

20. • Pursuing two key strategy to overcome external
issues affecting the company, including
environmental and community-impact issues, among
others.
• Strategies include “sustainability efforts” and
“localized charitable” which giving show it as being a
responsible corporate citizen and a good neighbor.
• Launched its global environment sustainability
initiative in 2004.

21. • Wal-Mart has beefed up pro-community, pro-sustainability, ,
and pro-health information on its website, television ads, and
annual report.
• For example: launched In Front with Wal-Mart a 30-minutes
television show arising on the lifetime and USA networks that
give Wal-Mart a chance to show case its incredible associates
and the variety of ways they give back to their communities,
bettering the lives of America’s working families and shed
light on some of Wal-Mart eco-friendly practices.
• Stresses its benefit to suppliers and communities, as well as
its commitment in providing affordable health care and
competitive wages for its associates.

22. QUESTION 7
Should Lee Scott change Wal-
Mart’s course? If so, how?

24. • Diversify products, merchandising and
marketing strategy based on their strength as
one of the top ten global retailer
- Large scale of operations, powerful retail brand, pricing
advantage, efficient logistic system
• Overcome weaknesses
- Continuous product recall, community relations problems,
environmental issues
• Opportunities
- IT development, opportunities in developing countries such
as Asia
• Effectively manage threats
- Intense competition, foreign currency fluctuation, recession,
expansion issues

25. SWOT
STRENGTH WEAKNESSES
•Large scale of operations •Continuous product recall
•Powerful retail brand •Community relations problems
•Pricing advantage •Environmental issues
•Efficient logistic system
OPPORTUNITIES THREATS
•Intense competition
•IT development
•Foreign currency fluctuation
•Opportunities in developing •Recession
countries such as Asia •Expansion issues

26. Should
replace
Rob Walson Lee scott?
If so, when and with whom?

28. WHEN?
As of 2004 Wal-Mart was the world's most-
sued entity, after the U.S. government. The
company's lawyers faced an astonishing array
of legal challenges from tort cases—often
referred to as "slip-and-fall" suits—to
large, class-action suits filed by employees.

30. WHO?

31. Michael T. Duke

33. • Michael T. Duke is a longtime Scott’s protege. As
such, Duke is not expected to veer far from the
course set by Scott.
• Given his previous role as head of international
operations, Duke is likely to expand Wal-Mart's
presence in Russia and China to offset slowing
growth at home.
• Risk taker and strategic thinker
• Moreover, Duke is the best candidate there is as
he have similarities with Lee Scott that can
benefit Wal-Mart in many ways.
• Plus, Duke is more of people person rather than
Lee Scott and this might actually help to
overcome issues concerning employee-employer
relationship

34. Memo by Rob Walton regarding the
retirement and replacement of Lee Scott
with Michael T. Duke to Wal-Mart
employees on November 21st 2008

35. “Mike has had broad experience
throughout the company, having
successfully led the Logistics Division,
U. S. operations and International
operations. Many of you have worked
for Mike, and know first-hand why he
is a highly respected executive both
domestically and internationally. He
understands retail and appreciates the
complex global environment in which
we operate. Mike is committed to our
company's culture, its mission and to
our associates and customers, and he
has built strong teams wherever he
has led”