Examine and Analyse the Role and Impact of Strategic Thinking for the Competitive Options of a Business of Your Choice

Question:

Examine and analyse the role and impact of strategic thinking for the competitive options of a business of your choice.

Strategic Management is a “bundle of decisions and acts which a manager undertakes and which decides the result of the firm’s performance. The manager must have a thorough knowledge and analysis of the general and competitive organizational environment so as to take right decisions.” Sam Walton opened the first Wal-Mart at Rogers, Arkansas. From then on Wal-Mart has been continuously growing. By the 1970’s they began sharing trading on the OTC market (Over The Counter) and was listed on New York stock exchange. They opened Sam’s club membership for the purpose of bulk buying, and Wal-Mart Supercentre for grocery and general merchandise. They later led to the internationalization of the company, when Sam club was established in Mexico City, Mexico. Wal-Mart has been continuously receiving numerous awards and recognition. In 2000 Fortune Magazine had the company listed 5th in its “Global Most Admired All Stars” and was number one corporate citizen on Cone/Roper Report. With their achievements, Wal-Mart continuously grows and improves. Currently they are responsible for: Wal-Mart discount stores, Supercenters, Neighborhood Markets and Sam’s Club, and has their company operating in Argentina, Brazil, Canada, China, Costa Rica, El Salvador, Guatemala, Honduras, Japan, Mexico, Nicaragua, Puerto Rico and the United Kingdom. Their innovative systems, well trained staff, wide variety of goods all are highly maintained and is continuously development.

When analysing a business/organisation, one of the main tools used is that of the SWOT Analysis. Invented by American businessman and management consultant, Albert Humphrey the S.W.O.T (Strength, Weakness, Opportunities Threat) Analysis, identifies the Strength and Weakness along with the Opportunities and Threats in which all company should consider in order to comprehend their position in the market and areas in which changes should be made to. These factors can be categorised into Internal and External factors. Two of the main qualities Wal-Mart is identified by is their wide range of products and services offered under one roof and also the fact that all their products and services are offered at low cost, with large discounts. With their lowered prices, maximum sales are achieved, minimizing their expenses which in turn lower prices. They believe that their H.R Department is a crucial aspect of the business. They have made investments in training employees to obtain proper work ethics and to be committed to their customers, in order to achieve their fullest potential from the employees. Despite having to finance and train employees, Wal-Mart still manages to be economically prudent with their resources retailer. According to the Global Five Hundred, they have accumulated