Task 1

SWOT analysis of Wal-Mart

SWOT analysis is useful analytical model to conduct strategic analysis of
business environment. It looks for internal resources and competence
(strengths and weakness) as well as e!ternal factors (Opportunities and
threats) facing the organi"ation.
Wal#$art was founded in %&'( and since then it has grown to second largest
retailer in the world. Wal#$art is considered as a variety store which focuses
on low prices and better customer services.
Strengths
Wal#$art has a strong brand identity. $oreover one of the ma)or strength
and source of competitive advantage is its outstanding logistics system with
%*&** physical points of distribution globally. (+nnual report (*%,) They
are able to deliver merchandise from any of their numerous distribution
centers at low#cost and e-ciently. .urthermore according to company /0O
/hange $anagement is embedded in company 12+ to constantly
responding to customer through innovative products and achieves
operational e!cellence.
Weakness
/ompany has poor reputation for wages. +ccording to company annual
report company already faces 3awsuit for 4Wage#and#5our /lass +ction6. In
addition tackling social and environment impact is signi7cant area to
address. 0nvironmental activists are concern of congestion and pollution
along with 0thical shoppers who are concerned with the well#being of small
retailers are angry at the monopoli"ing power Wal#$art.
Opportunities
$arket development in the segment of 0commerce is ma)or opportunity for
Wal#mart. /ompany should take advantage of growing Smartphone8s and
internet. +dditionally emerging markets especially 9:;I/8 represent great
opportunity for international e!pansion through <oint venture or ac=uisition.
Taking advantage of ecommerce and distribution centre company could
investment in home delivery segment.
300 Words
Threats
/ompany e>orts to e!pand in non#grocery items may di-cult to attain like
home improvement because of di-cult economic conditions. .urthermore
?eo#political unrest especially in $iddle 0ast and conservative behavior of
emerging market company could have devastating e>ect on its balance
sheet through capital losses. 2onetheless if new stores do not open on time
or are sub)ect to delays then this could share price.

Task 2 on Next Page
Task 2
Toyota $otor wants to establish it8s a new assembling plant in /hina for
capturing automobile market so you are hired for conducting the PST
analysis of !hinese "arket based on which company will take decision
to enter into /hina. #$00 %ords&
@0ST or @0ST03 analysis is useful strategic management framework to
e!ternal macro#environment. +s Toyota is looking to built manufacturing unit
we look in detail relevance of each factor.
1' Politi(al and legal
One of favorable condition for Toyota is that /hinese government used
stimulus measures such as cuts in sales ta! for small automotive
manufacturer. In addition governments positive attitude makes no
di-cultly with automobile merger of cross border or oversea purchase
domestic brands. (?aughan (**A) Thus government creates favorable
environment for investors. /hina makes new electric cars ta!#free
(www.theguardian.com)
2' (ono"i(
:eing a growing market /hina has potential for available of credit and
supplier network. +s economy is growing people have more money at
their disposal and bring more of the population within 7nancial reach of
car ownership. It is evident from diagram below that demand for cars
has increased dramatically over the last (* years from *.B million to
C.B million.
3' So(ial
/ustomerDs mood plays a role in choosing car model and composition. +s
more and more people getting e!tra disposal income so they prefer lavish
life#style. 5owever people lives in family in china compare to life#style of
Western countries i.e. is arranging the abilities depended on the travel
tendency of the entire family.
4. Te(hnologi(al and n)iron"ent
/hinese government is ready to promote new technology like electric
vehicles. 5owever recent plans of govt. to take ' million vehicles o>
road have speculative risk for Toyota. +ccording to research work
industry is very competitive in china therefore representing a great
opportunity for Toyota to benchmark it performance or have e-cient
supply chain network.
The protection of intellectual property has been a ma)or concern for foreign
companies engaging in operations in /hina along with lack of ;esearch and
development de7ciency (M. 5olweg <. 3uo and 2. Oliver)
2onetheless additional framework like @orter 1iamond could have been
used in combination with @0ST30 to make entry decision. 5owever a )oint
venture with local partners could have been a save option.
Task 3
1e7ne and e!plain the role of 5uman ;esources $anagement department in
this digital century.
,** words
The purpose of 5uman ;esource $anagement (5;$) is to hire train and
develop sta> and where necessary to discipline or dismiss them.
?lobali"ation has changed the business models signi7cantly. 2ow companies
operate cross borders products have shorter life cycles and people from
di>erent backgrounds.
*+M as strategi( !ontrol
5aving e>ective control is vital to business success. 5;$ can deploy control
through SO@8s technology and policy and hire suitable person for
organi"ation. .urthermore it can
@erformance +ppraisal ( 0#appraisal)
$eet the training needs (online and distance learning)
0nsuring employee ;etention (;eward system and Incentives)
1iscipline and grievances
Need of *+M for Ser)i(e organi,ation #strategi( -sset&
In (%th century this challenge is more obvious than for what most 7rms
claim to be their most important intangible asset their people (:rian et al
(**%). Therefore it is important to retain employee and even some
companies capitali"e the cost on their balance sheet.
."portan(e of So(ial Media
Social $edia has change dynamic of traditional business methodology. 2ow
with greater circles people are more connected.
Managing !hange
5;$ department can e>ectively manage change by deploying change
champion. 2onetheless 5aving people with right skills and competence is
crucial for business success.