SWOT Analysis Threats

Abstract

This paper is a comprehensive SWOT analysis on the current processes Walmart has in place for their store related to the chosen management issue. It highlights the weaknesses of current operations and articulates the reasons why the process needs to change. It also provides a business strategy to overcome the shortcomings identified as a result of the analysis.

SWOT Analysis

Background

Walmart’s current management theory used is the bureaucratic theory, and this theory can be inefficient and cost more in time and financial resources than it will save. If the flaws within this system are managed well and rule expansions limited to basic safety needs, it is a capable system that corporations and governments can use every day. When trying to assess the lay of the land, few tools are more useful than the SWOT analysis. It stands for strengths, weaknesses, opportunities, and threats; the SWOT analysis is a planning process that allows companies to overcome challenges and determine what new leads to pursue (Excelsior College, 2018).

Many businesses will only have the senior executives participate in a SWOT analysis process. While that can be worthwhile for operational analysis, a SWOT that focuses on sales and customer service should involve all employees that regularly interface with customers. These staff members have first-hand knowledge of the company's strengths and weaknesses and can provide valuable insight as to what is happening at the critical point-of-sale on a day-to-day basis. This SWOT analysis of Walmart discusses the company’s strengths, lesser known weaknesses, growth opportunities, and unyielding threats.

Strengths

• Brand recognition across the globe
•  Walmart is well-known around the globe.
•  It became a household name because of their low product prices.
•  The selection of products is expansive.
•  Many products are only available online as a way to encourage shopping.

Weaknesses

• Major issues for customers and employees
•  Some employees (weak performers).
•  Employee turnover.
•  Communication and Phone Skills.
•  'Winging It' - lack of professional systems and processes.
•  Communication between service and sales teams.
•  Too quick to discount to save sale.
•  Inconsistency.

Opportunities

• Potential future strengths
• Recruiting/Attracting quality employees (replacing weak performers).
• Training; Improving Sales/Customer Service Skills.
• Exceeding customer expectations.
• Improving corporate culture.
• Institutionalizing processes to create consistency.

Threats

• A doomed brand image and beloved competition
• Increased competition (online, national chains, etc.).
•  Poor Customer Service (Wait times, etc.).
•  Losing good employees.
•  Losing customers.
•  Social Media.
•  Complacency.

Action Plan

•  Strengths need to be effectively maintained, built upon and maximized.
•  Weaknesses need to be effectively remedied or eliminated.
•  Opportunities need to be effectively prioritized and optimized.
•  Threats need to be effectively countered or minimized.

1.  Review each area the SWOT matrix and prioritize the findings into two lists: one that is short-term with issues to be addressed within the next 6 months and one that is longer term of 6 months and beyond.
2.  Set the specific actions needed to achieve the objectives. This will take some brain-storming and strategic thinking and should be the longest part of the planning process.
3.  Attach a time-frame to each of the objectives with 'benchmark' dates to check on progress along the way. Shorter, 'round-table' meetings should be planned in accordance with these dates.
4.  Assign an employee or employees to be in charge of each action area. This is another major reasons SWOT analysis fail; everyone has good intentions but no one 'owns' anything so ultimately little gets accomplished. 

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