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  Case 22 WAL-MART STORES, INC.(1998): RAPID GROWTH IN THE 1990s I. CASE ASTRACT Wal-Mart Stores, Inc., in 1998, with corporate headquarters in Bentonville, Arkansas, was not onl the nation!s lar est discount depart#ent store chain $ut also had surpassed Sears, %oe$uck & 'o#pan as the lar est retail or ani(ation in sales volu#e in the )nited States. *he +ir# operated stores under a variet o+ na#es and retail +or#ats includin  Wal-Mart, discount depart#ent stores SAM!S 'lu$s, wholesale and retail #e#$ership warehouses and Supercenters, lar e co#$ination eneral #erchandise and rocer stores. In the international division, it operated stores in 'anada, Meico, Ar entina, Bra(il, /er#an and 'hina. *he Mc0ane 'o#pan, a support division with over 2,333 custo#ers, was the nation!s lar est distri$utor o+ +ood and #erchandise to convenience stores and selectedWal-Marts, SAM!S 'lu$s, and Supercenters. 4n 5anuar 1, 1998, Wal-Mart operated 6,761 Wal-Mart stores, 78 SAM!S 'lu$ stores, and 36Supercenters, which totaled ,732 stores.A #aor concern was Wal-Mart!s spectacular rowth and the do#inance o+ the +ir# in the #arket. *he +ir# was perceived to $e in the accelerated develop#ent or rowth sta e o+ the institutional li+e ccle in which sales are increasin rapidl, pro+its are hi h, new stores are $ein opened, eistin stores are $ein re+ur$ished, the product line is$ein reevaluated, service o++erin s are $ein up raded, auto#ation is $ein introduced to store operation, and $etter #ana e#ent controls are $ein developed. What #akes this situation unique is that the discount depart#ent store industr was perceived as $ein at #aturit. *he industr +aced increased co#petition, levelin o+ sales, #oderate pro+its $ survivin +ir#s, over-stored #arkets, and #ore co#ple operations pro$le#s than previousl.Another concern what o+ Wal-Mart without Sa# Walton: A new president and chie+ eecutive o++icer was in place. Mana e#ent clai#ed;*here!s no transition to #ake $ecause the principles and the $asic values <Sa# Walton= used in +oundin this co#pan were so sound and so universall accepted.; Senior #ana e#ent +elt that the +ir# could continue to #aintain its $listerin rowth pace $ ;out#aneuverin the co#petition with innovative retailin concepts.;%ealit was so#ewhat di++erent, however. Sales were no lon er increasin each ear in the 63> to 3> ran e as in the 1983s and earl1993s. In ?iscal @ear ?@ 1992 to ?@ 199C, sales increased onl16.7>. Sales +or ?@ 1993 were D6,231,333,333 and increased toD11C,98,333,333. *he increase was D8,C,333,333 or 621.8>. *he66-1  stores were ,732 al#ost dou$le and 1,C61 +or ?@ 199C and ?@ 1993,respectivel. *he rowth as a percenta e slowed $ecause $ase saleswere so lar e. In ?@ 199C, E#art had sales o+ D6,18,333 and sales o+D6,3C3,333 in ?@ 1993. E#art sales decreased $ FD11,333,333G whileWal-Mart sales increased $ D8,C,333,333 +or the ei ht ?@s 1993-199C.'opri ht H 1999 $ *ho#as 0. Wheelen and 5. avid Jun er. %eprinted $ our per#ission onl +or the Cth Kditions o+ 1 Strategic Management and Business Policy and 6 Cases in Strategic Management . De! s #$ Da%e: 1998 199& ' Saes: *11&,9+8,000,000 66-6  Case 22Wal-Mart Stores, Inc. (1998 199& ' Ne% I$!#e: *,+2,000,000 (199! iscal #ear $ #% &as 'rom eruary 1, 199! to )anuary *1, 199+   II. CASE ISS/ES AND S/ECTSRe%a  $D s!#3$% De4a5%e$%S%#5e I$63s%57 Industr AnalsisKecutive Succession'orporate 'ulture'o#petitive Strate Strate  ?or#ulationMission and 4$ectivesMarketin Strate iesKnviron#ental Scannin Ju#an %esources Strate Kecutive 0eadershipKvaluation and 'ontrolStrate ic /roups/rowth Strate ies istinctive 'o#petencies Lation!s 0ar est %etailer and0ar est iscount Store 'hainI#pact o+ ?ounderLew Strate ic Mana e#ent *ea#'o#petitive Advanta e*ar et MarketsMarket Se #entation;/reen; Marketin Mature IndustrSta es o+ evelop#entStrate  I#ple#entation4r ani(ational 0i+e 'cle'oncentration vs. iversi+ication66-  III. STEPS COERED IN STRATEGIC DECISION-MAING PROCESS St r a t egy F ormula t ion St ra t egyEvaluation & PerformanceStr ategicPostuCorpor ateGoExternalFactoInter nalFactoStr ategicFacto Review MB   Str ategic !ltern #$%'()   see igure 1.! on ages 2 and 21 4  K#phasi(ed in 'ase N  'overed in 'ase I. CASE OECTIES 1.*o discuss Wal-Mart!s success+ul rowth strate ies and per+or#ance over the past decade.6.*o discuss Wal-Mart!s entr into new retailin +or#ats superstores, SAM!S 'lu$. 'an these new retailin +or#ats $e as success+ul as the co#pan!s discount store +or#at:.*o discuss the concept o+ ; reen; #arketin and its i#pact on custo#ers and suppliers. Jow does ; reen; #arketin relate to social responsi$ilit:7.*o discuss the phrase, ;*he Wal-Mart Wa; and how it relates to Wal-Mart!s strate ic #ana e#ent..*o discuss Sa# Walton!s philosoph and its i#pact upon corporate culture and dail co#pan activities.*o discuss how lon this culture will continue a+ter his death.2.*o review how Wal-Mart succeeded in its o$ective to $eco#e the nation!s nu#$er one retailer.C.*o discuss what strate ies Wal-Mart has in place to achieve this o$ective, andOor to su est so#e new strate ies to achieve this o$ective.8.*o discuss how Wal-Mart can sustain its rowth strate ies while #aintainin its +inancial position.9.*o evaluate how success+ul Wal-Mart!s strate ic #ana e#ent has $een in a #aturin industr with intense co#petition.13. *o evaluate Wal-Mart!s #arketin strate ies. 11.Te !ase a3%#5 45#; 6e6 %e <##= $ s > %ea! $
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