MBA FPX 5006 Assessment 3 Strategy Implementation

Strategy Implementation

Slide 1

• Title Page

This presentation describes how Walmart Inc. is implementing its strategy using the AFI strategic framework. A brief overview of the main findings from the internal and external environments in the last evaluation, and how Walmart’s business and corporate strategies are helping the company remain competitive in the long run. The presentation further gives recommendations as to how to enhance strategic alignment with organizational structure, governance, and ethical responsibilities in an organization that is becoming more competitive in a retail setting.

Slide 2

• Introduction

Walmart is a very competitive company in the retail and e-commerce industry and faces different challenges in the retail field, including price competition, rapidly changing technologies, volatility in the supply chain, and the expectation of customers for fast and convenient delivery (Durand, Baud, 2023). Effective strategies alone are not enough; they need to be put in place effectively with effective structures, systems, and governance. At this point, the AFI strategic framework is applied to analyse the current strategic environment of Walmart; a summary of the internal and external environmental factors is provided, and whether the strategies are still suitable is indicated. After these analyses, strategic recommendations are suggested that will help Walmart’s growth in the interest of Walmart and its cost leadership model and ethical business practice.

Slide 3

• AFI Strategic Framework Summary

This document is intended to give a general overview of the AFI Strategic Framework.

AFI is a strategic management process that consists of 3 processes called Analyze, Formulate, and Implement. The analysis takes place at the analysis stage when the organisations analyse their internal strengths and weaknesses and the external opportunities and threats. The logistics efficiency assessment, relationship with suppliers, competition, and macroeconomic pressures are the key factors for Walmart (Sim et al., 2024). During the formulation stage, the leadership selects the strategy that is consistent with the organizational strengths and environmental forces, such as cost leadership and omnichannel retail strategy adopted by Walmart. The implementation stage is applied to make sure that strategies are buttressed by the organizational structure, performance system, the state of leadership, and governance. The implementation will need to be coordinated between the departments, technologies will need to be acquired, and the success of the implementation will have to be continually monitored to ensure that the strategic objectives are achieved.

Slide 4

• Internal Environmental Analysis Summary

The internal strengths at Wal-Mart are in the value chain or logistics/procurement and operations. In order to minimize storage time and transport costs, the company has put in place an extensive cross-docking system, which is also automated and delivers real-time information. Walmart can discuss good prices with its suppliers, and consequently, its cost-conscious strategy of having low prices every day (Chang et al., 2021). This is because inventory systems with technology increase the accuracy of forecasting and help to minimize wastage and stockouts. In addition, Walmart is designed to have its physical retail locations as the hub of its local delivery services, which further streamlines the delivery process and also provides a cost advantage. Walmart’s business processes overall will provide them with an edge as they are more cost-competitive than some of their competitors.

Slide 5

• External Environmental Analysis

PESTLE Findings

The macro-environment around Walmart is very complex in terms of affecting Walmart’s decision-making processes. Political issues such as trade policies, tariffs, and labor policies have an impact on sourcing costs and workforce management. This is caused by economic pressures, such as changes in consumer purchasing power, inflation, and other economic factors, increasing price sensitivity and making it more entrenched (Mennekes and Schramm-Klein, 2025). Changes in social trends in terms of convenience: online shopping, rapid delivery. The legal requirements of labor standards, consumer protection, and safety regulations increase compliance requirements. Due to sustainability issues, Walmart will have to implement sustainability policies to satisfy the needs of the stakeholders and the regulations. Walmart will be forced to implement sustainability policies because of sustainability issues to meet the needs of Walmart stakeholders and regulations.

Slide 6

• Five Forces Findings

There is a lot of competition in the retail industry due to the presence of large discount stores, warehouse stores, specialty stores, and international online stores. The price competitiveness is high, and the customers can easily compare prices on the Internet, thus having good bargaining power. Wal-Mart’s buying power is fair as it has the opportunity to negotiate a contract that is favourable for it, but at the same time the company relies on international supply chains and is vulnerable to disruption (Althabatah et al., 2023). There is also a high risk of substitutes, due to the alternative retail formats and online markets. Others have moderate barriers to entry (capital and logistics), but these can be lowered for niche retailers who may wish to enter a niche a bit more easily because they may have a digital platform.

Slide 7

• SWOT Matrix Analysis

The SWOT analysis is a merging of the internal and external analysis. Walmart’s strengths lie in its reputation for a good brand name, good supplier relations, efficient logistics system, and size. One of the drawbacks is low operating margins and the fact that the company operates in several countries, which makes it difficult for the management unit to work with and complicates the work of the regulator (Grishunin et al., 2022). T Threats include a rapidly growing e-commerce competition, manpower shortage, regulatory factors, and likely supply chain breakdowns. The knowledge of these factors assists in knowing strategic priorities that utilize the strengths and reduce risks.

Slide 8

• Strategic Recommendations

Walmart should continue to move forward with automation and AI, as well as in supply chain management and inventory management, to optimize efficiency and reduce company expenses to improve competitive dominance. Additional capacity of OM to respond to the needs of its customers will also help to make the customer path easier and improve the utilization of store resources (Menéndez et al., 2025). Clinics and other health services need to be further specialized, and new, high-margin income-generating services need to be introduced.

Slide 09

• Conclusion

The business strategy, corporate investments, and operational systems in Walmart are aligned to achieve an effective implementation of the cost leadership and omnichannel strategies because Walmart has a strategic alignment. The logistics and technology strengths within the company enable it to compete favorably in the physical and online retailing environments. The competition and regulation outside pressures demand the ability to remain innovative and adaptable.