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Wal-Mart Store Strategic Audit Year 2005

Develop a strategic audit for Wal-Mart for 2005. This needs to include a EFAS, IFAS, and SFAS tables and explain how they are formatted.

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It is important to remember that the tables are but a pictorial representative of the information from the SWOT analysis, with the information rated in the order of importance. The SWOT analysis included both the information for the IFAS (Wal-Mart's strengths and weaknesses) and the EFAS (Wal-Mart's opportunities and threats) as shown below:

Example 1: Explaining Tables
SWOT ANALYSIS
Internal Environment (IFAS)
• Strengths
• Weaknesses
External Environment (EFAS)
• Opportunities
• Threats
On the other hand, the Strategic Factor Analysis Summary (SFAS) table for Wal-Mart will be a summary of these factors. The rating seems somewhat complicated, but once you understand the main idea behind the calculations, it is fairly easy. I have located an excellent resource, that explains the ratings as footnotes below the examples of the tables provided. See the attached Tables (from .ppt file) for examples of the rating systems.
Let's look at some examples of how to set the tables up and how to calculate the different columns and ratings in the tables, as the written information is easily transformed into table representation. However, the ratings need to be calculated. The ratings are somewhat arbitrary, as you will need to decide how important each factor is to the overall strategies of the company, but your research will probably uncover this information.
Now, let's look at some example (some drawn from the tables from a .ppt file, which are attached):

Example 2: Ratings in Tables
1. IFAS Table and rating
See example of IFAS table attached - I tried to attach the .ppt file, but it was too large to upload onto BrainMass system, so I cut and paste it below.

The following notes explain to explain how to calculate the column numbers and ratings for the IFAS table:
Notes:
1. List strengths and weaknesses (5-10 each) in column 1.
2. Weight each factor from 1.0 (Most Important) to 0.0 (Not Important) in Column 2 based on that factor's probable impact on the company's strategic position. The total weights must sum to 1.00.
3. Rate each factor from 5 (Outstanding) to 1 (Poor) in Column 3 based on the company's response to that factor.
4. Multiply each factor's weight times its rating to obtain each factor's weighted score in Column 4.
5. Use Column 5 (comments) for rationale used for each factor.
6. Add the weighted scores to obtain the total weighted score for the company in Column 4. This tells how well the company is responding to the strategic factors in its internal environment A weighted score of 3.0 means average performance. Source: T. L. Wheelen and J. D. Hunger, "Internal Strategic Factors Analysis Summary (IFAS)." (See attached file)

2. EFAS Table and ratings
(See example of EFAS table attached)
The following notes explain how to calculate the ratings for the IFAS table:
Notes:
1. List opportunities and threats (5-10 each) in column 1.
2. Weight each factor from 1.0 (Most Important) to 0.0 (Not Important) in Column 2 based on that factor's probable impact on the company's strategic position. The total weights must sum to 1.00.
3. Rate each factor from 5 (Outstanding) to 1 (Poor) in Column 3 based on the company's response to that factor.
4. Multiply each factor's weight times its rating to obtain each factor's weighted score in Column 4.
5. Use Column 5 (comments) for rationale used for each factor.
6. Add the weighted scores to obtain the total weighted score for the company in Column 4. This tells how well the company is responding to the strategic factors in its external environment. A weighted score of 3.0 means average performance.. Source: T. L. Wheelen and J. D. Hunger, "External Strategic Factors Analysis Summary (EFAS)."

3. SFAS Table and ratings
(See example of completed SFAS table attached and the notes are below)
Notes:
1. List each of the factors developed in your IFAS and EFAS tables in Column 1.
2. Weight each factor ...

Solution Summary

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