You will explore the relationship between financial analysis and strategic analysis in a review of the case study Walmart, Inc. in 2018: The World’s Biggest Retailer Faces New Challenges (from your textbook(Contemporary strategy analysis 10th edition)). In addition, read: Chapter 2, “Putting Performance Analysis into Practice.”
A case study is a puzzle to be solved, so before reading and answering the specific questions, develop your proposed solution by following these five steps:
Read the case study to identify the key issues and underlying issues. These issues are the principles and concepts of the course area which apply to the situation described in the case study.
Record the facts from the case study which are relevant to the principles and concepts of the course area issues. The case may have extraneous information not relevant to the current course area. Your ability to differentiate between relevant and irrelevant information is an important aspect of case analysis, as it will inform the focus of your answers.
Describe in detail the actions that would address or correct the situation.
Consider how you would support your solution with examples from experience or current real-life examples or cases from textbooks.
Complete this initial analysis and then read the discussion questions. Typically, you will already have the answers to the questions, but with a broader consideration. At this point, you can add the details and/or analytical tools required to solve the case.
In an original post, present a well-written answer and diagnosis for the following case study questions:
How well is Walmart performing relative to its competitors?
From (a) the financial data and (b) what we know about Walmart’s businesses, can we identify the sources of Walmart’s inferior performance?
How are Walmart’s shareholders and stakeholders affected by the performance?
What can Walmart’s management do to close the performance gap?
Sample Solution