Level 3 Diploma in Pre-U Foundation Studies
Unit 3.4: Foundation Business and Management
Scenario
Walmart Inc. is an American multinational retail corporation that operates a chain of
hypermarkets, discount department stores, and grocery stores. It is based in Bentonville,
Arkansas. Walmart began its business as a retail store with it’s a unique selling advantage of
providing products at a cheaper rate than what is available in the market to the consumers. It
was founded by Sam Walton. Walmart employs a creative marketing approach which focuses
on buy big, sell more.
In 1978, the company introduced their IPO. They are have acquired more than 14 companies.
Walmart provides services such as groceries, food items, healthcare services and medical
services.
The company employs more than two million employees (as of February 2020). Each employee
has clearly delineated duties and authorities. More importantly, there is a very distinct and
complex hierarchy. This is shown in the form of heads of departments, location managers,
facility managers and technology managers.
Prior to hiring of its personnel, HR Managers review the background of applicants. Interestingly,
Walmart does not rely solely on interviews. In order to retain new hires, the company offers
regular orientation programs to new members of staff. Additionally, HR managers clearly explain
the employee’s opportunities for career growth.
The student may choose to undertake their own research in identifying key factors to
support them in the achievement of this assignment. However, the word count should be
borne in mind when deciding how much content is required within the assignment.
Pre-U - Foundation Business and Management – FINAL - May 20
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Assignment (3500 words) - + or – 10% tolerance will be accepted in word count.
Examine the importance of entrepreneurship in developing countries. Discuss the influence of
mass media within the business. Examine the impact of Walmart`s cost leadership strategy in
line with its marketing strategy and business structure. Explore Walmart`s principle of market
penetration. Explain the problems which Walmart is likely to face in the next 5 years and
recommend mitigating approaches which can be taken.
State the objectives of Walmart`s pricing strategy. State two limitations of budgeting. Explain
disadvantages of cash flow forecast. Differentiate between Gross Profit Margin and Net Profit
Margin.
Examine Walmart`s recruitment and retention processes. Explore the ways in which Walmart
adapts a collegiate working approach. Explain the benefits of its current approach.
Recommend ways in which the current approach may be adapted to foster a more motivational
approach with due regard to their hierarchical culture.
Explain the way in which Walmart`s online marketing operates for customers. State the
benefits of Walmart`s three core operations. Define the major components of manufacturing
costs. State how the breakeven point formula is calculated. Given the depth and breadth of
Walmart’s product range, evaluate the need for a robust IT strategy; provide justification for
your response.
Evaluate the marketing approach of Walmart, with specific reference to the 4 P’s. Describe the
effectiveness of their marketing strategy in relation to global competition.
Pre-U - Foundation Business and Management – FINAL - May 20
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