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Contents:
Introduction ...................................................................................................................................... 2 An over view for different schools of strategies ................................................................................. 2 The planning school ....................................................................................................................... 2 Culture school ................................................................................................................................ 3 Positioning school .......................................................................................................................... 4 Whittington strategic school .............................................................................................................. 5 The Strategic Decision of Global Retain: ............................................................................................. 5 The Overview of WALMART Strategy: ................................................................................................ 6 Five Forces by the Porter: .................................................................................................................. 6 Challenge: ...................................................................................................................................... 7 Porter Diamond Model: ..................................................................................................................... 7 Challenges ..................................................................................................................................... 8 Porters Generic Strategies: ................................................................................................................ 8 Challenges: .................................................................................................................................... 9 Conclusion: ...................................................................................................................................... 10 References: ..................................................................................................................................... 11 Websites...................................................................................................................................... 11 - Books ......................................................................................................................................... 11 Journals and Magazine................................................................................................................. 13

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Introduction
Strategy is the pattern plan that integrates an organisation goal, politics and action sequence as a whole . Mintzberg H Quin B (1997). Strategies are the elementary for any organisation to do successful business, a strategy matches the market position of the firm to its resources and capabilities, and it also provides business with a frame work for resource allocation. (Gordon Walker, 2003). In this assignment Mintzberg school are discussed and few of them are analysed to see how organisation are putting their strategies to attain their international aspiration. For this assignment Poter s five force, diamond and generic theories are discussed to for company study Wal-Mart case.

An over view for different schools of strategies

Needless to say that For a successful business of the major dynamic is strategic development, obviously every company have its own strategies so that it can beat the market and can take a competitive advantage through its strategies .Henry Mintzberd al at (1998) told us about different schools of strategy and also describe the process strategy safari , late on Turner (2003) purposed that in an attempt to guide those whose job is to put strategy into practice . There were total ten schools introduced by Henry and later those were again divided into groups according to synthesis, descriptive and prescriptive. First strategy formulation was focused to create a difference between descriptive and prescriptive but later on strategy development was also highlighted for this. Adding further to this Stacey (2008) suggested that in prescriptive schools group we include planning, design and position school. For any organisation these three schools are main basic components of strategy. A part from that other schools like power school, learning school, cognitive schools, culture school and environment schools as well were counted into the group of descriptive schools. The last school was synthesis school and that contain configuration school, which integrates the view of all other schools in terms of configuration or we can say transformation said by Stacey (2008). By this school we can certainly be aware of the complication of strategy. Author has chosen the company Wal-Mart for this assignment and to analyse the success of that company to fulfil its aims and objective he will take only three schools out of above. These are position, planning and culture school.

The planning school

As we already discusses above the planning school is prescriptive school and it s related more toward the formulation of any strategy instead of how it should be comprised. The issues which are counted in this model are budgeting programming and scheduling. For a development of any company it should have a planning and about its future steps that are the reason this model will be helpful for companies like Wal-Mart to grow in international level. 2|Page

Company Wal-Mart Inc was established in 1962 by Sam Walton. This company then later open its numerous breaches all over the country and also globally, like in Brazil it is known as its main brand name in UK knows as ASDA. According to Forbes it is the largest corporation by means of its revenue generation. How this big success is achieved and how they did the future forecasting about markets means in which direction market will go in future and the economic condition in different country in future. These all things were only made possible because of planning school. To reach the position where they are now they must have a strong strategy to follow the market trend, the forecast for economic situation in upcoming years and what will be their steps according to their budget. Solution of these of problems is planning school. More over Wal-Mart used the ans off model for their growth as want to be globalized therefore they open their store around the world by analysing their products and the market which they want to capture. WAL-MART is seeking to increase its consumers and their sales as well for this they also spent handsome money on their product development. For example Wal-Mart opened their store in Japan as exiting market can t fulfil the demands of consumers there. People like fresh food daily. Planning school also have a link to SWOT model because to plane a strategy a company should know about its strength and weakness not only internally but also threat coming from external sources. WAL-MART also used SWOT analysis for their company to treats coming from compotators around the world and also about their strength like how much stores branches they have to prevail over these threats. By SWOT also they also come to know about their weakness and it helps them to discover a manner to patch up them. Therefore planning school which is related to ansoff model and SWOT analysis is crucial for any organisation for their future planning keeping in mind about their economic conditions, timings and selection of methods to cope with not only their good and market its aims and objectives too. This school is for long term planning means it is on highest position on hierarchy of strategy trailed by mid and short term planning. Limitation There are many limitations in executing the planning school because to plane for long term is somewhat a prediction relying on facts and figure given in recent and past times which is so difficult and risky too on same time. Secondly, when practicing this model any manager who is planning focus himself in making a new idea this cause him to distract from current objectives and also from original place creating a myth, which is also uncertain for any organisation. Moreover as already said that predicting on basis of current data s is very difficult because making a prediction about any market or economic condition is very difficult.

Culture school
Culture school is the member of descriptive schools. The approach of this school tries to involve the various groups and departments within the company, strategy formation is viewed as a fundamentally collective and cooperative process, the strategy that is developed is a reflection of

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the cooperate culture of organisation . (www.12manage.com). In strategy formation and decision making there are many factors which influence like beliefs and social interaction Dimension of organisational culture include teamwork, honesty, control, decision making process, reward and conflict among other aspects. The social interaction involving other within organisation is the key to strategy formation and emerging strategy will reflect the beliefs and understanding of those within the organisation. The culture of WAL-MART is a positive culture and it is solely customer driven culture. This culture is mainly in every type of business and many organisations are giving their efforts in employee training, researching emerging trends in market just to improve their customer service. Now a day a new era came which is e-business and it is also a positive way of communication between employees as well. Furthermore one can say that WAL-MART has a dynamic culture because it is adopting new changes and ideas to attract more and more customers. Limitation The major limitation in this model is for WAL-MART as well as other organisation too is beliefs. WALMART has taken much action to overcome this kind of drawback.

Positioning school
Positioning school was introduced in 1980 by porter, when he was focusing the constitution of business and their consequence on strategy. So position school in simple worlds can be defining as competitive strategy. Steward el at (2005) said The positioning approach looks at the companies situation in the economic market lay those goal is to distinguish the organisation from others within the equivalent field . Like WAL-MART many companies are following this position school model as everyone want to gain a position in the competitive market so they not only retain but also increase their revenue as well. WAL-MART use porter s five forces model to analyse the market and its major compotators. Porter s five force model is based on industrial organisation economics. Therefore WAL-MART understand these factors and its develop its own production strategy allow him or take benefit or may be shelter from these forces, This is allows to the Wal-Mart continually profitable & this model focus five forces affect the industry ( Suppliers, Buyers & substitutes etc) those also impact each other at some extent. The competitor for Wal-Mart in United Kingdom knows as Sainsbury s & Tesco. Which is opened in 1924 by Jack Cohen, this company also grow very fast and have same kind stuffs provided by Sainsbury s because these both are leading companies in retail industry likes other Sainsbury, Iceland etc. Wal-Mart / ASDA had is its price for its good is cheap. This is the main reason that people try to go there for their shopping. So WAL-MART used porter s five forces to gain the advantage and capture the market. Like porter (1985) said there are two strengths for a business success, one is cost advantage and other is differentiation strategy. IT used cost leadership strategy to gain advantage over his main competitor Tesco. The meaning of cost leadership strategy is that they are providing any good in low prise with same quality in particular business.

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There are some limitations for this model. First of all here only financially viable factors is counted and other like politics, technical and most important social are ignored. Secondly, the decision maker are usually senior level manager and action is taken at ground level so there may be any variation, in the same way these hierarchy level person have many ideas in their mind for future strategies but they fail to explain these lower staff because of communication gap, this leads to a major risk for company as it effects a lot to employee motivation also. (Susane, 200 5).

Whittington strategic school

There are total four types in this school; here it is important to talk about Whittington school because without describing Whittington school we cannot express strategic management fully. These four are very important for every business for strategic management with their demand.

Every company wants to improve the system to attract the customers through the promotions and there strategy to maintain costs low to attract the new customers etc, like wise WALMART also running the same strategy to retain the old customers and attract new customers as well. WALMART always trying to compete with other Competitors i.e. Sainsbury s, Tesco etc, although almost the prices of the WALMART are lower than other competitors as well. Even through these promotions and cheap rates then other competitors WALMART have funds to spend on marketing and other activates to attract the new customers and make the successful plan for the future interventions.

Although every company have to fallow the local rules and there is no other ways of strategy. The Management get advice from the four strategy approaches & they understand that how and which approach of the strategy is the better for organizations business system & which the main factors to drives the organization towards part of global market. The other part have few strategies through those organization reach the its aims and objectives, and also through those organization can be part of the global market.

The Strategic Decision of Global Retain:

In the Retail industry the big problematic trend is globalization. Last Two decades it has been observed through the global arena is very difficult to many retailers. In the different countries i.e. Pakistan, India, Thailand etc different companies test the consumers on spending and buying. Even many retailers unable to establish be a part of the global market. After the discussion above this part of the assignment is assist the global market strategy for the T company. And also usage of Five forces of porter strategy and also the plc model analysis to give a nearby into WALMART circumstances in global market. The above strategy helps the management in the decisions and right track of the organization development and expansion in the global market. And it s also helping the management to minimise the management level mistakes which will harm

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the organization in the future. Because the WALMART is expanding in the different countries and it s not easy to expand without the strategy of the local areas and the culture for the company.

The Overview of WALMART Strategy:

WALMART strategies for the future are the give more facilities to the customers and attracts new customers and also retain the new customers through the different ways. They plan to gain millions of the customers in globally & more than millions customers had preferred WALMART. In 1999 when WALMART first presented their four part strategy; a strong UK Business, non-food, retailing services and international . Because of the above strategy the company is now working as International retailer, and also growing day by day in the retailing services in world. The above strategy which is followed by the WALMART company is showing that they chosen good for global market, but still company facing so many problems in expansion in some countries, It has been observed in 2003, WALMART was tried to expand its business towards Poland but it was unable to expand because of Economic problem and it needs to pay the higher cost to presence in the market. Not only Poland but company also faced some problems in Taiwan in same 2000 during the expansion because there was a big competitor Gaint Carrefour, who competes with WALMART and even Giant Carrefour start rumours that WALMART withdraw from Taiwan. Because of unsuccessful in both countries company realized it s very difficult to expand in global markets. As growth is not their primary goal, Smurfit-Stones generic growth strategy for their business units is primarily that of a stability strategy. This strategy has been chosen primarily due to the maturity of their industry. Although there is some internal growth in new product development, primarily at Smurfit-Stone, it is business as usual. As price is a primary influence in the packaging industry, their competitive strategy for their business units is one of best cost. In this strategy, Smurfit-Stone seeks to take advantage of high capacity utilization of its facilities, as well as technological advances and economics of scale. However increased competition has forced Smurfit-Stine to produce high quality packaging, with innovative designs, at the best cost possible, and this has been their true competitive advantage. Therefore WALMART have to more information about the International competitive global environment. But the analysis by the porter is still helpful for the company s assessment.

Five Forces by the Porter:

Using the Five forces of Michael Porters model, one can further evaluate the Industry in which Smurfit-Stone operates. The first of the five forces is the threat of new entrants to the industry. As mentioned previously, the threat of new entrants to the packaging industry is minimal. This is due to several factors, first and foremost is the maturity of the industry and the capital. Furthermore Porters 5 Forces model provides a framework within which to understand how sustainable from the Investor perception. There are different assessing tools and also external atmosphere and approaches i.e Porters five forces used. Almost companies using the different tools to analyse the Social and Political environment when they plan for future interventions in different areas. Company can asses

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sustainability framework in sixth force . There are many other external factors that effect organisation mainly social environment around that area and political situation. y Threats of new Entrants, The Retailing obstruction entry is high, There are the high initial investment in the retails and fixed cost obstruct new interested investors and other problems in the access is economies of scale. All the big supermarkets i.e. Sainsbury s , Tesco etc used to buy large stuff of goods in the lower price and the smaller firms don t have such funds to buy the high volume of stocks, so that why they pay the higher prices and there rates as compare to WALMART and other companies are very high. Threats of alternative options, this is the also big threat for WALMART company because the goods which selling by WALMART the same other retailers selling as well. That can be analyzed what level of customers is going to alternative retailers. In this case WALMART company should try to retain the old customers with different kind of promotions and new products as per customer needs & also compete with the other market competitors and low the profit margins and increase the productivity, means sell in low rates and sells will be increase then previous. The negotiation Powers of supplier, generally most people s have choices of different retailer chains, the compete with the different type of promotions to attract the customers; this also a big factor which is always make suppliers should have Bargaining power. Although WALMART have There are the big major players in the global market Wal-Mart, TESCO etc trying to increase the market share & therefore in the grocery market in the competitive particularly.

Challenge:
WALMART s Strategy, The model is based on Structure and Revelry. It s clear strategy, with growth being pursued from four areas the core UK bunnies food, non food, telecommunication and international expansion services such as financial services.

Porter Diamond Model:

The Diamond model of the Porter strategy and the objective is control the production cost very low in the industry. WAL-MART division in the manufacturing are goods supplied with minimizing costs. If the selling price target has been achieved or its equal / near to for the average market, then company strategy will be a lower cost producer and best profits. These kind of strategies usually use in the high scale business offers and the standard products with comparatively most of the customers accepting the strategy. Another factor related to this strategy of Porter maximizes sales. Wal-Mart also launched a low cost sales strategy in food line in the most of supermarkets and its mechanism to take on reduction. It have to also launch the new model for its existing stores. Through this way they keep the old customers happy and attract new customers as well through using of the porters diamond strategy.

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WALMART is using the own discounters versions and products within stores. Through this way on above strategy of porters Diamond model it keep exiting customers happy and also attract new customers as well.

Challenges
WALMART Company has faced lot of deferent situations and has made very small mistakes in the trial-&-errors of expanding, the form or management which is realistic on perceptions in the every foreign and local market. Important need is learning things by doing in the local level of spatial which is indicates learning from international processes shall sometimes be every gradually, reiteratively processes. (Ferine JH. 05) WALMART Company has been experienced to develop in the opportunities in very large level businesses in the France where it was very unlikely 2 be realized upcoming environment which has been planning through permission has made difficult acquisition value which is very high. Therefore, the Chateau had become a less then strategically very important. WALMART Company has learned through advisors who only advised that it. It doesn t trust on any investment through bank. When it is decreasing new, Nowadays, especially in United Kingdom and EUROPE markets which very big demanded day by day. And at the same time oil price overall & credit crunches shall deepen which shall be pulling in the back demand. WALMART Company is retailer grocery stores, so in a very general and common food/ agricultural industrial faces which cost Is high and which is even every people is continuing the feed there necessity in a natural way. WALMART Company might need some more investment in the future agriculture food industry supplements. And the new challenged and others necessary challenges is one of them which about to need some technologies as every major and Important technology in the present days. And today has based on oil, coal and gas. WALMART Company will close their door which like a last summer in the other United Kingdom retailer. Which could be even E-Commerce focused in the WALMART Company.

Porters Generic Strategies:

The term generic means universally applicable or derived from certain basic postulates. In competitive Strategy (1980), Michael Porter presents three basic generic strategies for improving competitive power. A company that wants to achieve a competitive edge must make a strategic choice to avoid becoming all things to all men . The three basic strategies are: 1. Cost Leadership 2. Differentiation 3. Focus

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WALMART company also using some of strategies but the pricing strategy is the effective versus of the its competitors in UK i.e. TESCO and Sainsbury s holds hope of UK food retailers. There is always high competition in the retail business. WALMART competes with the large variety of retailer business in the UK and as well as globally.

Challenges:
Porter s generic model suggesting that if any company or individual wants to be successful in and it should pursue the any one strategy by the porter and not only stuck in middle. Always there are some areas of the competitive Advantage i.e. low prices & differentiation, but WALMART not fall in any single category & also WALMART not pursuing the both strategies i.e Low pricing and differentiation at the same time. WALMART also not offer any discounts at the shopping and also not cheapest then other big stores. WALMART just offers food stuff and Finest, and use lowest cost to supply great differentiation. The other part strategy of WALMART those could see a differentiating of community building.

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Conclusion:
From above discussion this is concluded that these all school of strategy are very essential for any business decision, because these are important tools used by the mangers on hierarchy who are responsible for all major future planning, forecasting the market direction, economic conditions and decision taking. A part from this other tools like porters generic model and porters five forces are also constructive as well. Manager are using 7S model in same fashion. That is really honoured to apply the strategic role models in all performance. By using these strategic models in practice these companies can achieve their goals like Wal-Mart, which is proved by its success around the world in different countries.

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References:

Websites
http://www.referenceforbusiness.com/management/Ex-Gov/Goals-and-Goal-Setting.html accessed on 01-12-2010 http://www.excellencegateway.org.uk/page.aspx?o=108214aceessed on 27-11-2010 http://www.tesco.com accessed on 25-11-2010 http://www.retailweek.com/news/2008/09/tesco_introduce_new_lowcost_food_offer.html accessed on 28-11-2010 http://www.prnewswire.co.uk/cgi/news/release?id=15880, accessed on 25-11-2010 http://www.asda.com/ accessed on 21-11-2010 http://walmartstores.com/aboutus/ accessed on 1-12-2010

- Books

Alex Scott (2007) Strategic Planning (Published by CAPDM Limited) 6th edition Edinburgh Business School

Alice H. Amsden (2003) The Rise of "The Rest": Challenges to the West from Late-Industrializing Economies (Published by Oxford University Press US)

Andrew J. Sherman, Milledge A. Hart (2006) Mergers & acquisitions from A to Z (Published by AMACOM Div American Mgmt Assn) 2nd edition

Bill Hefley (2010) Esourcing Capability Model for Service Providers (Published by Van Haren Publishing) Van Haren Series

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Charles Hill, Gareth Jones (2009) Strategic Management Theory: An Integrated Approach (Published by Cengage Learning) 9th edition

Gerry Johnson, Kevan Scholes, Richard Whittington (2008) Exploring corporate strategy (Published by Pearson Education) 8th edition

John L. Thompson, Frank Martin (2005) Strategic management: awareness and change (Published by Cengage Learning EMEA) 5th edition

Kate Hutchings, Kavoos Mohannak (2007) Knowledge management in developing economies: a cross-cultural and institutional approach (Published by Edward Elgar Publishing)

Kee-hung Lai, T. C. E. Cheng (2009) Just-in-Time Logistics (Published by Gower Publishing, Ltd)

Laurie J. Mullins (2007) Management and organisational behaviour (Published by Pearson Education) 8th edition

P. Hariharan (1996) Optical holography: principles, techniques, and applications (Published by Cambridge University Press) 2nd edition Issue 20 of Cambridge studies in modern optics=

Philip Kotler, Gary Armstrong (2010) Principles of marketing (Published by Pearson Education) 13th edition

Thomas G. Cummings, Christopher G. Worley (2008) Organization Development & Change [With Online Access Code] (Published by Cengage Learning) 9th edition 12 | P a g e

Uma Kapila (2009) Indian Economy Since Independence (Published by Academic Foundation) 19th edition

V. K. Narayanan, Gina Colarelli O'Connor (2010) Encyclopedia of Technology and Innovation Management (Published by John Wiley and Sons)

Walter Vieira (2008) The New Professional Salesman: Meeting Challenges in the 21st Century (Published by SAGE Publications Ltd)

Journals and Magazine

Black Enterprise (Jun 1995) Published by Earl G. Graves, Ltd (Vol. 25, No. 11) Billboard (Published by Nielsen Business Media, Inc) 31 Mar 2007 (72 pages) Vol. 119, No. 13 ISSN 0006-2510 www.brandchannel.com/features_effect.asp?pf_id=196

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