Strategic Initiative Paper
FIN/370 Finance for Business
May 1, 2012
Strategic planning is the compass an organization requires to stay on the path toward successfully reaching their goals and objectives. It is paramount that businesses assess all critical areas such as management, sales, marketing, and finances with long-term health in mind. Tactical plans can be devised with the strategic plan as the guiding force. The allocation of resources, or financial planning, is what helps an organization realize its goals and achieve success. Wal-Mart successfully has accomplished this task year over year. In just under 50 years, one ...view middle of the document...
• Be supplied 100% by renewable energy;
• Create zero waste, and
• Sell products that sustain resources and the environment.
These three goals have guided sustainability efforts for the past four years.
In order to know the true impact of our business, we need to look at where products are sourced and manufactured, how they’re shipped and packaged, how they are used and ultimately what happens to the product when it’s disposed. In doing this, we are able to work more closely with our suppliers and, together, bring products to our shelves that our customers want at prices they can afford (Wal-Mart Stores, Inc., 2010, para. 4).
The organization has also attempted to streamline its online business, of which has netted over one billion visits in the past year. That is a 15% increase from the previous year, according to Wal-Mart’s 2010 annual report (Wal-Mart, 2010).
“We are focused on leveraging both operating expenses and our scale to improve performance and profitability. Sharing our knowledge and best practices helps drive efficiencies and increase sales within the country and across regions. We also recognize that one solution can’t meet the needs of every country, as customers trust their local brands to be relevant to their needs. Adhering to the “productivity loop” – buying for less, operating for less, and selling for less – remains critical to our success” (Wal-Mart, 2010, p. 9).
Wal-Mart’s sustainability initiative will have an effect on costs for this company. Investments are made into programs and processes that will improve the environment, internal and external to Wal-Mart. However, there will be a financial cost for the goal of sustainability.
First, the focus will be on Wal-Mart’s sustainability goal, of which is focused on how they reflect on to the world and how they care for their internal structure as a company. Wal-Mart has and will continue to create programs and processes that will help improve our environment. They are working toward total use of re-usable grocery bags, which they have been very successful. One example is allowing customers to purchase re-usable bags for a small fee. Another example is helping consumers recycle their grocery bags.
Wal-Mart has also been improving employee retention processes. For example, they are giving financial aid for furthering employee education, especially if that employee will use his or her education to help benefit Wal-Mart. Another example is that they are teaching ethics to all employees and rewarding employees for examples of good ethics. But, now there is the cost of trying to facilitate these programs and processes. Wal-Mart has a view on this subject as these programs are investments for their company and not a large debt. They are trying to look toward the future for their place in the business world and environment.
Sustainability will have an effect on Wal-Mart’s sales, but a positive one. Sales will...