...ANALYSIS - CASE STUDY Wal*Mart Stores, Inc. a presentation p 1 Sam Walton Founder of Wal*Mart Stores, , Inc. Performance of Wal*Mart 20-year average return on equity of 33% Compound average sales growth of 35% Market value = $57.5 billion $ Wal*Mart Sales per square foot $300 Industry average $210 WAL MART Background 2 Year 1988 CEO: David Glass COO: Don Soderquist How to sustain the company’s phenomenal performance? 1987 Net sales Net Income Number Of Stores Number Of Stores Discount Stores Sam’s Wholesale Clubs Supercenters 1,114 84 N.A. 1,953 419 68 15,959 628 1993 67,345 2,333 WAL MART Background 3 Number of Stores (1994) 0 500 1000 1500 2000 Hypermarkets Warehouse Clubs Warehouse Outlets Wal*Mart Stores WAL MART Background 4 Where Emerged in the U.S. g When Mid-1950s Top 10 discounters in 1962 Wal*Mart remained only The industry became more concentrated Discount store companies p operated 50 or more stores accounted for 82% CR5 (1986) 38% 62% CR5 (1993) 29% 71% WAL MART 5 Discount Retailing Discount Retailing Industry Sa ales Grow wth 30 20 10 0 25% 9% 11.2% 7% WAL MART 6 Discount Retailing Comparative Pricing Study, 1993 WAL MART 7 Discount Retailing Overall Performance of Discounters WAL MART 8 Discount Retailing Year 1945 Ben Franklin franchise store In 1950s 15 stores Year 1962 Wal*Mart Discount City store Year 1969 18 Wal*Mart stores 15 Ben Franklin...
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...Organizational Background - Summary of company’s history, vision, mission, growth, development, and core competencies ORGANIZATIONAL BACKGROUND – Upon completion of his military service, Sam Walton opened a five-and dime store in 1945 in Bentonville, Arkansas (Wal-Mart, 2016). Sam was successful and inspired in his first venture and was driven to focus on consumers and providing value, Sam opened his first Wal-Mart store in 1962 in Rogers, Arkansas. By 1967, 24 Wal-Mart stores had opened. Sam’s vision was to “save people money so they could live better”, his core value was that of respect, for customers, employees and suppliers (Ghazzawi, Palladini & Martinelli-Lee, 2014) and this continues to be the mission and values of Walmart today. Since the opening of the first store in 1962, Wal-Mart has grown to 11,500 stores, operating in all fifty states, as well as 28 countries, under 72 banners and e-commerce, and employees 2.2 million people and weekly services 260 million customers and members. The Wal-Mart, Incorporated consists of four operating divisions Wal-Mart U.S., Walmart International. Sam’s Club and Global e-Commerce (Wal-Mart, 2016). Analysis of Management Functions: Planning. Based on what you have learned through your research, how would you characterize conditions in the planning environment? What types of problems does the organization face (e.g., structured, unstructured), and to what extent should the organizations decisions be programmed or nonprogrammed...
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...Analysis and Recommendations Introduction – Wal-Mart, founded by Sam Walton in 1962, is one of the world largest companies by market capitalization and number of people employed and touching millions of customers everyday. There are more than 7,800 Wal-Mart stores and Sam’s Club locations in 16 markets worldwide and there are more than 2 million associates serving more than 100 million customers per year (About Us, n.d.) It is the largest grocery retailer in the United States with an estimated market share of around 20% of the retail grocery and consumables business. To be able to efficiently operate such a complex operation at such a large and do it consistently would only be possible by the huge effort by Wal-Mart’s ‘associates’ as its employees are called. This papers looks at the human resources practices of Wal-Mart with a special focus on group and team behavior, leadership, conflict and negotiation, human resource practices and organizational culture and diversity within the company to understand them and also provide some recommendations to make them better in the future. Analysis of various HR related areas of Wal-Mart – One of the reasons why Wal-Mart has been so successful and scale up its model across so many locations is the values and beliefs established by its founder and the customer centric culture that is replicated across locations. The company right from the time of its inception has a clear mission which is to save its customers money and enable them to...
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...Introduction Multinational enterprises must always consider several subjects. In addition, to the background and goals of the company, other factors such as the international business strategy, and the impact of globalization, cultures, and labor markets on human resource management function must also be addressed. There are also international human resource management functions that can be improved upon to better the productivity and competiveness of the multinational enterprise. The multinational enterprise that I have chosen to research and examine is Wal-Mart. A brief description of the enterprise Wal-Mart is considered to be the world’s third largest public corporation. It is family owned by the Walton family. Founded by Sam Walton in 1962, it is headquartered in Bentonville, Arkansas. In the 1980s, Wal-Mart continued to grow rapidly and by its twenty-fifth anniversary, there were over a thousand stores. In 2005, Wal-Mart had over six thousand stores around the world and employed over one million associates. As, the largest grocery retailer, Wal-Mart has over eight thousand stores in fifteen names under fifty-five different names. Wal-Mart is currently estimated to save families over two thousand dollars per year within the United States. Assess the impact of globalization, cultures, and labor markets on the human resource management function Wal-Mart comprises over four thousand stores internationally. They are mainly located in Argentina, Brazil, Canada...
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...beyond the United States, in 1991 Wal-Mart expanded operations into Mexico. By joining in a joint venture with Cifra they were able to capture the local look and feel of Mexico and an existing customer base. Shortly after entering they began expanding rapidly into all areas of the country. This was successful by utilizing successful entry modes via localized store concepts. The expansion of the Mexican economy was halted due to the economic downturn in the 2000’s. A recovery that is still slow to gain momentum. Despite this Wal-Mart continues to thrive as a quality resource for inexpensive merchandise. 2. Company Background It is rare for a company to grow so quickly as Wal-Mart has and to reach such a global scale. Starting from humble beginnings Sam Walton had a vision of providing low priced goods accompanied by helpful service. In 1962 Sam Walton split off from the Ben Franklin Co. creating the first Wal-Mart in Rogers, Arkansas. For the next six years Wal-Mart expanded within Arkansas and in 1968 expansion begins in Missouri and Oklahoma. Quickly after this expansion, Wal-Mart becomes a public company which raises capital allowing Sam Walton to buy up local chains around the country, creating the powerhouse it is today. It is important to understand Wal-Marts expansion and saturation of the U.S. market to identify its reasons behind expanding globally. In order to continue its growth and profitability for its shareholders Wal-Mart has entered many markets besides Mexico...
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...unfamiliar territories there are many challenges that companies ought to overcome such as cultures, regulation, communication barriers, and so forth. Currently, Wal-mart and Carrefour are dominating in China as the foreign discount stores but they have different strategy to compete in China. Background In 1959, Carrefour was created in Southern France and became international by 1969. “It innovated with the hypermarket format in France in 1963 where it introduced the idea of one stop shopping for food, clothing, electronics, appliances, etc. Although it does not compete in the USA, it has adapted successfully to Latin American and Asia markets” (Arnold, 2002, p. 563). “Now, it serves over 2 billion clients per year in its more than 9,000 stores, which are present in 32 countries across 3 geographic zones. Carrefour is not only the second but also the most internationalized retailer worldwide” (Shiue, Der-Juinn, & Yeh, 2006, p. 171). In 1962, Wal-mart began its story in Northwest Arkansas as the discount store and quickly expanded to the largest family owned business. “It is active in 11 countries and has stores in North and South America, Europe and Asia. It has over 4,400 stores, of which three quarters are in the USA and that still account for 80% of its growth” (Arnold, 2002, p. 564). Currently, Wal-mart Stores is the...
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...Resources Management GB520-01N Wal-Mart Case Study Contents Introduction 3 Background 3 Summary 3 Exploring Answers 4 The Secret Formula 4 The Issues 5 Recommendations 7 Conclusion 7 Introduction The purpose of this analysis is to examine domestic Human Resource strategies in contrast to International Human Resource strategies. One goal of globalization is to be able to do business across borders without stress. Similarly, as companies grow customer bases, it is important to have strategic business units in areas local to the customer base. It is what is required to successfully build a successful global presence. This analysis will attempt to highlight potential issues faced by Walmart when they opened up for business in China in 1996. This analysis will also provide a set of recommendations that may have helped to avert the issues that Wal-Mart faced. Background Wal-Mart Stores, Inc. started when Sam Walton set out on an ambitious mission to have a store with the lowest prices anytime, anywhere. In 1962 Sam Walton opened the very first Wal-Mart in Rogers, Arkansas. By 1967, they owned 24 stores and continued to rapid expanding. In 1983, they added to their portfolio by starting a wholesale/bulk retailer called “Sam’s Club” and by 1988, they started a hybrid of general merchandise stores and supermarkets and aptly called them “Super Centers.” In 1990 Wal-Mart became USA’s number-one retailer. In 1991, Wal-Mart opened its first global store in...
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...Wal-Mart’s Economic Influence on the American Economy and American Protectionism Policy ------------------------------------------------- Prepared by: Ugur Kaya Professor: John Bottomley Date: 09 December 2011 Word Count: 1570 EXECUTIVE SUMMARY The purpose of this report is to present Wal-Mart’s influence on the American economy in the long term. This report has considered Wal-Mart’s damaging effects on local stores and manufacturers which cause loss of jobs in the American society. Furthermore, effects of importing goods from foreign countries and selling it in local market are discussed. After taking above criteria into consideration, it is demonstrated that Wal-Mart impacts the American economy badly in long term. In order to recover the damages done to local manufacturers, retail stores and other injured parties/individuals, the American government may impose a protectionist policy. Table of Contents INTRODUCTION 1 BACKGROUND 1 DISCUSSION 2 CONCLUSION 4 WORKS CITED 5 INTRODUCTION The purpose of this report is to determine if and why or why not the United States of America may become more protectionist of the American economy than it is currently. In order to decide if harm is being done to American economy in the long term, Wal-Mart’s economic influence on the American economy will be taken into consideration as an example. BACKGROUND Wal-Mart is the largest company in the world, in the history. This is proven by numbers, revenue...
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...A—Good Work BUSN 6200 Major Project: Wal-Mart v. Target Target A. Background -Target is an upscale discounter that provides high-quality, trendy products, at attractive prices. The Company prides itself on having clean, spacious, guest-friendly stores. -Target operates stores under three main business segments; Target, SuperTarget, and its online business (Target.com). -In total the company operates 1613 regular Target strores and 218 SuperTargets stores in 47 states which compete with Wal-Mart and Super Wal-Mart. In addition to their retail stores, SuperTargets add upscale grocery shopping, photo processing, pharmacies, and Food Avenues Restaurants. http://investors.target.com/phoenix.zhtml?c=65828&p=irol-homeProfile B. History -Target was founded from three main company’s; Marshall Field & Company, D. L Hudson Company, and Dayton Company. George D. Dayton was an entrepreneur who tried his hand in banking, investments, and other business ventures before opening his first retail store. In 1903 Dayton built a six-story building in which a Minneapolis dry-goods store began operating out of. Mr. Dayton took over the business and renamed it The Dayton Dry Goods Company. He would lead the company until the 1960’s when he formed the Target Corporation. Dayton was renamed Target only a few years ago. It was the Dayton Hudson Corporation until fairly recently. http://www.daytonhouse.org/HouseHistory/Daytons/tabid/200/Default.aspx -Over the next 40 years...
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...Wal-Mart and Its Urban Expansion Strategy Herbert Reliza Drummond Columbia Southern University Course Title DBA 7035 4 October, 2011 Abstract Wal-Mart’s presence in the retail market industry has been extensive and profitable; resulting with Wal-Mart grossing sales of 256 billion, $9 billion profit, and employing 1.3 million associates (employees) within the United States. “With attractive sights becoming scarce, Wal-Mart pursued an urban expansion strategy and in 2004 negotiations commenced to open new stores in the Chicago metropolitan area, but none in the city itself” (Baron, 2010, p. 217). Furthermore, of its 3,000 plus stores Wal-Mart management altered its strategy and focused on two major areas primarily located on the Southside and Westside of urban African-American areas located in Chicago Illinois- Ryerson Tull and Helene Curtis facilities. However, in this case study we will closely analyze several factors dealing with Wal-Mart’s perils that have not only tarnished its reputation but also has questioned the probability of gaining the trust of Chicago’s social and political agencies to enter into the Chicago retail industry to compete with rivals: Target, K-Mart, as well as many others. Entering Chicago Retail Market Background According to Baron (2010), “Wal-Mart’s market strategy emphasized low prices, low costs, helpful sales...
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...Environmental background- Every company uses a tool to check and track the environment they are operating. Walmart uses the PESTLE analysis, which sometimes reffered as PEST analysis, is a concept of marketing principles . Moreover, this comcept is used as a tool by companies to track the environment they are operating in or planning to launch new product or service. PESTLE is a mnemonic which expanded form donates to P-Political, E- Economic, S-Social, T- Technology, L-Legal, and E-Environmental. Let’s see the few below for Walmart- • Political and Legal Environment Walmart donates to the governor but at times it still faces some huge problems like- locking up the employees in store at night, fake sustainability displays, gender discrimination, labor union problems, etc. Till 1998 no steps has taken towards the political aspect and in 2006 it rises up as the No. 1 corporate political contributor. Unstable government also caused hindrance in the path of company expansion. For instance- Walmart was unable to expand in South Africa due to unstable and no proper direction government. • Economic Environment Fortune Magazine named Wal-Mart the nation's most admired company. It now has more revenue and more employees than any other U.S. company. Wal-Mart's growth over the last decade is unprecedented -- the company has gone from being a successful discount retailer to being a dominant force that no other retailer can ignore. When recession hits US, Walmart is one of the...
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...Diversification Strategies Arissra Stamps Strayer University Diversification Strategies Types of Diversification Strategies Diversification is a business strategy that allow a company to establish additional lines of commerce that maybe different from the current products or services. Depending on company’s directions, the different types of diversification that company utilize are: Horizontal, Vertical, Concentric, Heterogeneous (Conglomerate) and Corporate Diversifications (Small Enterprise Strategic Development Training, 2009). Horizontal Diversification is used when the company wants to develop new product or offer new service that could appeal to current customers. For example, a dairy who produces cheese wants to expand its products with new types of cheese. A construction company may choose Vertical Diversification; it may venture into new selling product such as paint and construction materials while the core business remains in providing construction services. Concentric Diversification is the method a company uses to enlarge the production portfolio by adding new products and aiming to utilize the potential of existing technologies and market system. The best example of this strategy would be a bakery who sales bread, pastries and cake who begins to sale dough products. Heterogeneous or Conglomerate Diversification is opposite from Concentric because it focus on new products or services that do not use existing technologies and does not have any commercial...
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...two companies that were once very successful, but now were struggling was not going to be the magic solution that they were hoping for. They both were failing and until that could be corrected, the question that everyone was wondering was would this only delay the inevitable. While it would make them the third largest retailer, the underlying issues that both companies were already facing it what truly needed to be addressed (Chandler, 2004). Even knowing this Lampert had high hopes as he had done well with Kmart, he had taken them from the brink of death and brought them back even without extensive management experience. He believed that he could do it again and make Sears Holding Corporation a strong competitor to Wal-Mart (Oneal & Jim, 2004). Let’s discuss background of each of these organizations. Kmart Kmart was born in Detroit in 1899. It carried 1,500 items that cost no more than a dime at that time. By 1912 they had become second largest five and dime store in the US. Kmart was well known in the 1990’s as a retailer and Sears was it only true competitor. Everyone remembers “the blue light specials” that they offered and they were a part of the culture during that time period. Things can change instantly and a decade later Kmart...
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...Wal-Mart: To Gain or Lose Geneva Moore MGT/521 October 28, 2012 Professor Phillip Norris Wal-Mart: To Gain or Lose I, as a Mutual Fund Manager, have decided to evaluate whether to invest in Wal-Mart. A SWOT analysis should prove helpful in identifying if it is feasible to take the investment risk with Wal-Mart. Several companies would be good investments but Wal-Mart has been a strong pillar in many communities for years therefore being the most logical choice. This paper will extend some background for the company and attempt to show the likelihood of profit by investing in Wal-Mart. Wal-Mart has been in business since 1962 in Rogers Arkansas. By 1967 Sam Walton, visionary of Wal-Mart, had 24 stores operating with millions of dollars in sales. ”Before the 1970’s Wal-Mart became incorporated and after the 1970’s Wal-Mart began to take the world by storm expanding globally” (http://corporate.walmart.com). In the 1970’s, “Wal-Mart became a publicly traded company and the first stock sold at sixteen dollars and fifty cents per share” (http://corporate.walmart.com). In 1972, ‘Wal-Mart was listed on the New York stock exchange” (http://corporate.walmart.com). “Wal-Mart’s first distribution and home office opened in Bentonville, Arkansas in 1971” (http://corporate.walmart.com). After the 1970’s, Wal-Mart started to make a rapid sprint towards becoming a leader in its industry. Such steps as “reaching one billion in annual sales in 1980, replacing cash registers with...
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...Responding to Internal and External Factors; Wal-mart Analysis Abstract; this report examines the ways in which Wal-mart responds to internal and external factors such as globalization, new technology, innovation, diversity, and ethics. Wal-Mart is a successful industry giant, so it stands to reason that they are proficient at responding to internal and internal factors and thriving . In this essay we explore Wal-Mart’s programs and initiatives and access if we could use their examples to learn from and grow as managers and business owners. There are various internal and external factors that affect the four functions of Management positively or negatively. Organizations need to pay close attention to these factors because it can enhance the company’s success when used appropriately. The most prevalent factors that management has to be concerned with in this era are globalization, new technologies, innovation, diversity, and ethics. Wal-mart is a big player in the nation nal and global market and must stay reactive to these internal and external factors to stay on top. Wal-mart is addressing each of these issues directly. Globalization has raised numerous questions about the credibility, leading to perceptions. Wal-Mart is one leading store serving millions of customers globally and continues to do so by opening more stores worldwide. Globalization has a great impact on the company. It has broadened their market structure and also increased profit margin. Even...
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