Question

Can you find evidence/examples of the financial and strategic objectives of Walmart, (perhaps in year-end reports ... or reports to stockholders)? If so, please present them and distinguish between the two.

Answer 1

Financial objective refers to the goal set by a company which is measured in monetary terms like profits of the company,or percentage increase in profit over a period of time.Strategic objectives are long term organisational plans to make its strategies succeed.Walmart's vision statement was to be the best retailer in the hearts and minds of consumers and employees.Now the vision statement has changed to "Be the destination for customers to save money , no matter how they want to shop."The change in the vision has made Walmart change its strategic objectives.The strategic plan is to remain the industry leader.Walmart used the strategy 'everyday low prices'to attract consumers in the global market. The three strategic objectives are 1)Save money , live better 2)Win,play ,show3)Fast, friendly, clean.For eg Walmart has decided to go from four plastic food storage bags to only two. Again leaving Johnson's ziploc and walmart's own great value product to be displayed.

The main financial objectives are profitability,efficiency , liquidity and stability.Walmart is an operational efficiency organisation . Their operational efficiency has given them advantage of cost so that they can sell at a lower price than their competitors.For eg Walmart made announcement that they are selling their classic version of monopoly for $5 whereas it is sold at $12 by other competitors. This is a very bold financial move by Walmart.

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