Wal-Mart's Strategic Initiative

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Wal-Mart’s Strategic Initiative Stephanie Williams MGT521 February 22, 2012 Dr. Michael Lindquist Wal-Mart’s Strategic Initiatives The recent economic downturn in the U.S. has resulted in drastic behavioral changes in consumers. Consumers are spending and investing more conservatively. Wal-Mart’s success and survival depends on how they react to the recent changes in consumers’ shopping habits. So far, Wal-Mart’s strategy has proven successful in the midst of the recession, maintaining the title of the leading retailer world-wide. Adaptation Strategy Wal-Mart has recognized the shift in the spending habits of our consumers. They have realized that many consumers no longer purchase the products they want, but strictly the products they need. Wal-Mart’s strategy is to provide the products in high demand at the lowest possible cost. The company adhered to their strategy by implementing tactics such as, increasing the inventory in areas of necessity, such as food, health, and beauty, and decreasing the inventory on items such as apparel and home décor. Food consumption is not an option; it is essential. To capitalize off their consumer studies, Wal-Mart set aside 45% of its store space exclusively for groceries and consumables. Its competitor, Target, only allots 20% of its store space to groceries, while leaving 40% to home and apparel. The success of their strategy is evident. “Target's same-store sales have fallen for eight straight months; Wal-Mart's have risen for 22 straight months” (Gregory, 2009). Human Resource Contribution Wal-Mart has also decided to align their HR strategies with their existing business strategies. They believe the only way to successfully implement their strategy is to ensure all employees are committed to its success. With over 2.2 million employees, it can be challenging. Wal-Mart tasks their employees with driving down

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