Swot Analysis
SWOT Analysis
Management
MGT 521
SWOT Analysis
Deciding on a company to invest in should not be done without careful consideration. An analysis should be done first to help determine if the risks of investing in a company are likely to pay dividends. A SWOT analysis is a way to help an investor make that decision. A SWOT analysis is a tool that evaluates the strengths, weaknesses, opportunities, and threats of an organization ("SWOT Analysis," n.d., para. 1). Taking the information from an environmental analysis and separating it into internal and external issues is the method the SWOT analysis uses to evaluate an organization ("SWOT Analysis," n.d., para. 1). Even before investing in a Fortune 500 company like Wal-Mart with revenues of $447 billion in 2012, it is important to evaluate the company to determine if it will continue to be a successful investment ("Wal-Mart Stores," 2012, para. 1).
SWOT Analysis
Strengths
A company does not climb to the top of the Fortune 500 list without possessing a few strengths. The size and consumer reach of Wal-Mart is massive. Wal-Mart stores service 200 million customers per week ("Our Story," 2012, para. 1). The company operates more than 10,000 retail stores in 27 countries ("Where in the World," 2012, para. 2). The largest grocer in the United States with more than $120 billion in food sales per year is Wal-Mart (Bustillo & Kesmodel, 2011, para. 3). Wal-Mart’s ability to negotiate lower prices from other companies and pass that savings on to customers is also an advantage. The company’s customer base is so large compared to other retailers that it can negotiate reduced prices with suppliers on some products that make it virtually impossible for other businesses to compete ("How Did Wal-Mart," 2006).
Wal-Mart has a very organized inventory, warehouse, and distribution structure that not only helps to maximize its ability to bring products to customers but also reduces costs for the company and its
Management
MGT 521
SWOT Analysis
Deciding on a company to invest in should not be done without careful consideration. An analysis should be done first to help determine if the risks of investing in a company are likely to pay dividends. A SWOT analysis is a way to help an investor make that decision. A SWOT analysis is a tool that evaluates the strengths, weaknesses, opportunities, and threats of an organization ("SWOT Analysis," n.d., para. 1). Taking the information from an environmental analysis and separating it into internal and external issues is the method the SWOT analysis uses to evaluate an organization ("SWOT Analysis," n.d., para. 1). Even before investing in a Fortune 500 company like Wal-Mart with revenues of $447 billion in 2012, it is important to evaluate the company to determine if it will continue to be a successful investment ("Wal-Mart Stores," 2012, para. 1).
SWOT Analysis
Strengths
A company does not climb to the top of the Fortune 500 list without possessing a few strengths. The size and consumer reach of Wal-Mart is massive. Wal-Mart stores service 200 million customers per week ("Our Story," 2012, para. 1). The company operates more than 10,000 retail stores in 27 countries ("Where in the World," 2012, para. 2). The largest grocer in the United States with more than $120 billion in food sales per year is Wal-Mart (Bustillo & Kesmodel, 2011, para. 3). Wal-Mart’s ability to negotiate lower prices from other companies and pass that savings on to customers is also an advantage. The company’s customer base is so large compared to other retailers that it can negotiate reduced prices with suppliers on some products that make it virtually impossible for other businesses to compete ("How Did Wal-Mart," 2006).
Wal-Mart has a very organized inventory, warehouse, and distribution structure that not only helps to maximize its ability to bring products to customers but also reduces costs for the company and its
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