Introduction
In this report, we would present a case study of strategic audit for Wal-Mart in China. We would begin by discussing the strategic posture, current performance, corporate culture and top management of Wal-Mart in China. Then, we would analyze the external environment of Wal-Mart by performing the PEST analysis and Six-Forces Model analysis. After that, we would analyze the internal environment of Wal-Mart by performing analysis on each of the corporate function. Based on the analysis in the external and internal environment, we would be able to present the SWOT model and identify the strength, weakness, opportunity and threat for Wal-Mart. From the SWOT analysis, recommendations would be made to Wal-Mart. At last, we would suggest ways to evaluate and control the strategies recommended to Wal-Mart.
Strategic Posture
The Mission
The Wal-Mart has a mission of ¡§To give ordinary folk the chance to buy the same thing as rich people."
The Objective
The Wal-Mart China has established an objective, ¡§Create 100 billion revenue in China retaining business.¡¨
Corporate Strategy
Wal-Mart has adopted the horizontal growth as the corporate strategy in China. Since there is a large demand for consumptions in some smaller cities such as Shaoxing, this offers a good chance for Wal-Mart to expand in China. To meet the demand, Wal-Mart would build stores in several second-tier cities including Yuxi, Yunnan, Weifang, Shandong, Wuhu and Anhui by the end of 2005. In 2006, the number of outlets would be increased from 49 to 62. This allows Wal-Mart to cover a larger geographic area as well as enjoy a larger economic of scale in China.
http://www.chinadaily.com.cn/english/doc/2005-11/10/content_493549.htm
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