MGT499 - Strategic Management Mod 1 Case Assignment - Essay Example

82% of American households have made at least one purchase at Wal-Mart during an annum. Company’s expansions are very aggressive where there is a new store opening every day. However analyzing the growth and profitability trends over the years, there is a declining trend in terms of same store performance which is currently covered up by the aggressive new outlet openings. This paper aims to assess whether the company’s mission and objectives are well aligned with its stake holder needs that will allow the long term sustaining of the company’s success.

Wal-Mart’s mission is “Saving People Money so They Can Live Better” This is the philosophy of the Wal-Mart founder Sam Walton who stated that “If we work together, we’ll lower the cost of living for everyone…we’ll give the world an opportunity to see what it’s like to save and have a better life.” This is the driving principle of the company’s low cost-low price business model. The company claims that their core principles of 1) respect for the individuals, 2) Service to the customers and 3) Striving for excellence has been the cornerstones of their success as they move forward (Wal-Mart Stores Website 2008).

While Wal-Mart has benefited from this business mission of offering every day low prices over the past decade, the trends indicate that the competition has intensified in the market and the competitors have streamlines their own operations, benchmarking against Wal-Mart. They have managed to increase their internal efficiencies and cut back on cost structures, allowing them to bring their prices closer to Wal-Mart but offer more value additions such as greater customer service, better product quality and greater stores ambiance that has increased their appeal to the middle and upper income group strata.

While the appeal of the low price offer has kept legions of low income customers loyal to the