New Strategic Plan
Importance and relevance of article
Strategic management is a part that is vital in our studies. A strategic plan is essential for a business, and managers should take the duty to draft and implement the strategic plan. A strategic plan is vital to the organization, as it will result in a substantial increase in proceeds and dominance in the market. When creating a strategic plan, managers should be conscious of the weaknesses, opportunities, potentials, and the threats of the organization Analysis of these four perspectives will result in a strategic plan that will be successful and easy to implement.
Wal-Mart’s new strategic plan to reinforce growing business
The strategic plan is designed to ensure the company keeps its leading position in the industry and is both a price leader and a capacity leader. The strategic plan also has an objective to maximize the returns of the capital invested by the company shareholders by giving them satisfactory dividends. The strategic plan guarantees that the company increases more branches all over the globe at low cost. The new strategy being implemented is also designed to maximize the daily sales and reduce the expenses. This strategy also intends to ensure that the purchaser needs are met effectively and the sales are made at a pleasant price and with friendly terms to the customers. The strategy also aims at making sure that Wal-Mart is one of the leading companies in the world that is dominating the larger proportion of customers. The policy also ensures that the yield is maximized by working with minimum employees who are competitive (Kelleher, 2012).
Strategy and performance plan
Wal-Mart will be recruiting a strong management panel that is competent and experienced in management. This team will make decisions that will be in line with profit maximization objective of the business. The workers’ performance will be monitored, and the workers who will not perform their duties well will lose their jobs.
The strategy will also be implemented by ensuring price leadership. This is done by implementing the output loop, raising business efficiency, minimizing business costs, and selling the products at affordable prices to draw more customers and keep the present ones. Venture in technology and supply chain is also one of the strategies Wal-Mart stores are using to grow the network all over the world. This technology ensures a future increase by 20% in the sales made online and effective customer accessibility of the products dealt with. The strategy will aim at increasing advertisements. Advertisement is an extra expense, but it will result in increasing the number of customers, and hence an increase in sales. Customers’ discounts will be available for large purchases, and there will be a flexible payment method. The execution of the plan will also be done through the development and the expansion of the branches that the company has. The shareholders will not be called to contribute more money, and their dividends will not be affected, as the company has enough funds for expansion. Expansion will ensure an increase in the volume of sales and hence greater returns from the investment. The company will also execute the strategic plan by continuing to sell products of high quality and give warranties to the customers. The company will aim at ensuring that customers’ needs are given a top priority. This will ensure customer retention and dominance in the industry. There will also be a strategy to reduce the number of personnel who are operating in lower positions. Salaries amount to huge expenditure, and this will result in the decrease of the expenditure. Once there is a reduction in this expenditure, profits will be higher (Westervet 2012).