Wal-Mart Business Operations Case Study Example | Topics and Well Written Essays - 2000 words

Wal-Mart Business Operations - Case Study Example The industry environment tools include: industry definition, industry life cycle, and Porter's five forces. The competitor environment can be analysed by the framework explained in chapter 2; comparison of critical success factors; and market commonality or resource similarity. A framework of competitor analysis takes into consideration the high or low level of market commonality, simultaneously with the high or low level of resource similarity. The portfolio of resources of two different firms are examined to find the degree of market commonality and resource similarity, and this is displayed graphically as shaded area. In question #2 we analyse the internal environment, which consists of: tangible resources, intangible resources, capabilities, core competencies, competitive advantage, and value chain analysis. We then summarise the main strengths and weaknesses that we have identified from the analysis of the internal environment. Question #2 is answered using the case study and tools such as SWOT matrix/SWOT analysis, Ansoff's matrix, Grand Strategy matrix, etc. These tools are used to identify strategic options available to Wal-Mart. We then critically assess these strategic options. The components of internal analysis leading to competitive advantage and strategic competitiveness include the inter... We then summarise the main strengths and weaknesses that we have identified from the analysis of the internal environment. Question #2 is answered using the case study and tools such as SWOT matrix/SWOT analysis, Ansoff's matrix, Grand Strategy matrix, etc. These tools are used to identify strategic options available to Wal-Mart. We then critically assess these strategic options. The components of internal analysis leading to competitive advantage and strategic competitiveness include the internal environment factors considered above. In addition, the category of discovering core competencies involves four criteria of sustainable advantages: valuable, rare, costly to imitate, and nonsubstitutable. Discovering core competencies also includes value chain analysis, that can be outsourced. In addition to competitive analysis is strategic competitive analysis. Tangible resources include financial resources, such as the ability to generate internal funds; organizational resources, which consist of the reporting, planning, controlling and coordinating systems; physical resources, such as access to raw materials; and technological resources, such as patents and trade secrets. Intangible resources include human resources, such as knowledge; innovation resources, such as ideas and capacity to innovate; and reputational resources, such as brand name. For a sustainable competitive analysis, McKinsey & Co. suggest a company strive for three to four core competencies. More than this number may cause a company to lose its focus. A value chain analysis is a tool that lets a company see where its value lies, and what elements of the company do not hold value. Value chain analysis is also used to understand the company's cost position. In a value chain,