...Weekly Reflection – A Review of Wal-Mart Tim Justice, Leisa Allender, Michael Hyde, Matthew ECO/365 December 2, 13 Christopher Rakovalis Weekly Reflection – A Review of Wal-Mart Economics is a widely popular subject studied by economists around the world. Economics is divided into two primary sub-categories; macroeconomics and microeconomics. “Microeconomics is the study of individual choice and how that choice is influenced by economic forces” (Colander, 2008, p. 15). Wal-Mart, a retail conglomerate with retail locations found in many countries, is a perfect example of how one businessman who understood the theories of efficiency and the invisible hand theorem, created one of the world’s largest retailers. This reflection attempts to explain the history of Wal-Mart, the market in which it operates, the role of government regulations of the retail industry, and issues or opportunities faced by Wal-Mart today. Wal-Mart Stores, Inc. (Wal-Mart) was a vision for Sam Walton while he was operating a Ben Franklin variety store in Newport, Arkansas, in the late 1940s. Sam was always looking for deals from his suppliers and instead of pocketing the profits as the majority of retailers often do; he passed the savings on to the customers and earned his profits from volume. Sam Walton opened the first Wal-Mart store in Rogers, Arkansas, on July 2, 1962. What began as a small discount retail store has grown to thousands of stores in the United States and expanded internationally as well...
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... Ark., he had a simple but momentous idea. Like any retailer, Walton was always looking for deals from suppliers. Typically, though, a retailer who managed to get a bargain from a wholesaler would leave his store prices unchanged and pocket the extra money. Walton, by contrast, realized he could do better by passing on the savings to his customers and earning his profits through volume. This insight would form a cornerstone of Walton’s business strategy when he launched Wal-Mart in 1962. Walton understood that a major requirement for keeping costs down was controlling the payroll. He said, “Payroll is one of the most important parts of overhead, and overhead is one of the most crucial things you have to fight to maintain your profit margin.” Not only did Walton prefer to hire as few people as possible, but he also feared paying them more than he had to. Unions were particularly feared, and Walton did everything he could to fight them, almost always successfully. The company was incorporated as Wal-Mart Stores, Inc. on October 31, 1969. In 1970, it opened its home office and first distribution center in Bentonville, Arkansas. It had 38 stores operating with 1,500 employees and sales of $44.2 million. It began trading stock as a publicly held company on October 1, 1970, and was soon listed on the New York Stock Exchange. The first stock split occurred in May 1971 at a market price of $47 (equivalent to $274.00 in 2014). By this time, Walmart was operating in five states:...
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...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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...“The Wal-mart effect” Written by: William S. Kowinski Business journalist Charles Fishman begins his book with a disarming story of how Wal-Mart produced an environmental benefit when the company decided that paperboard boxes around cans of deodorant were unnecessary. So they disappeared -- not only from Wal-Mart but from everywhere -- thereby saving many trees. But the reason Wal-Mart did this, and the reason everyone else followed, he argues, are also the key factors in a new kind and extent of destruction. These factors cause the various manifestations of the Wal-Mart effect, which is the subject of Fishman's book. The first factor is the company's single operating principle, administered absolutely, without exception: always low prices. It is not only Wal-Mart's slogan but also its one commandment, its ultimate morality, trumping all other considerations. The second factor is Wal-Mart's unprecedented size. "For most of this decade, Wal-Mart has been both the largest company in the world, and the largest company in the history of the world," Fishman writes. It still would be in 2006 except that the doubling of oil prices places Exxon-Mobil in the top spot. But Wal-Mart is still America's largest private employer -- as well as the world's. And its stated goal is to be twice its current size by 2010. Ninety percent of Americans live within 15 miles of a Wal-Mart, and 93 percent of U.S. households shop at one at least once a year. Fishman concludes: "Wal-Mart reshapes...
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...SAVE MONEY. LIVE BETTER. WAL-MART'S POETENTIAL IMPACT ON NEW YORK CITY Management 520: Legal, Political Ethical Dimensions of Business Professor Pamela Aurelien Lena Alston lenaaalston@aol.com (516) 425-0814 Francisco Lazaro franciscolazaraojr@yahoo.com (347) 494-8147 Tajuna L. Sharpe tajuna629@gmail.com (347) 659-7010 Group Presentation Outline Interstate Commerce: The of Walmartization of New York City 1. Introduction A. Briefly introduce the topic and group B. Defining Interstate Commerce i. Conditions of interstate commerce ii. Wal-mart's current operations within New York State 2. History A. Company Overview i. Humble beginnings B. Employment Conditions i. Low wages ii. Medical Benefits & Fringe Benefits (sick leave, vacation pay, personal days) 3. Economic Impact A . Wal-mart customers i. The ideal Wal-mart shopper ii. Wal-mart's Competitors B. Economic Impact i. Urban (Chicago) ii. Rural/Suburban 4. The of Walmarization of New York City A. Potential Locations B. Potential Economic Impact in New York City C. Political Support/Opposition . Wal-mart's Potential Impact on New York City The Commerce Clause which is found in the United States Constitution, Article I, Section 8, Part 3 provides Congress with the power to regulate Commerce with foreign Nations and among several States...
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...Literature Review Assignment RES/320 Foundations of Research April 4, 2011 Executive Summary The literature review essay attempts to assess secondary information sources on the aspect of customer satisfaction within the Wal-Mart Corporation. The problem statement clarifies the operations of Wal-Mart in which the company undertakes measures in maintaining a large customer base, excellent products and services, and a satisfied stakeholder foundation. The main body of the literature review commences with a quick history of consumerism and customer satisfaction and the effects of proper implementation. Various secondary sources examine survey and questionnaire reliability, deciphering such information, along with the positive and negative effects of proper evaluation of said questions. The essay shifts to customer satisfaction within The Wal-Mart Corporation coupled with opinionated and factual information on the corporation’s efforts concerning research and execution of the survey outcomes. Entailed in the literature body is an examination of internal factors such as Wal-Mart’s facts and figures, statements from the founder of the company Sam Walton, and details from store surveys. External factors include an outside perspective of Wal-Mart into the company’s research design, proper use of surveys, sources on research and how properly to conduct sound questionnaires. The research design entails qualitative phone surveys, written surveys done at the store...
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...1970 – With 38 stores open, Wal-Mart enjoys $44.2 million in sales. The company also opened its first distribution center in 1970 in Bentonville, Ark. 1972 – Wal-Mart is listed on the New York Stock Exchange. For two years before it was listed on the NYSE, shares in the company were traded over the counter, meaning that brokers directly bought and sold the stock from one another. 1977 – Illinois becomes the tenth state to have a Wal-Mart store. 1983 – The first Sam’s Club, the company’s first members-only warehouse store, opens in Oklahoma. The new club is setup to compete with Costco, which first opened for business customers in 1976. 1987 – Wal-Mart celebrates its 25th anniversary. After 25 years in business, the company boasts some 1,198 stores with $15.9 billion in sales that year. 1988 – The first Wal-Mart Supercenter opens in Missouri. Those stores, which now encompass some 109,000 to 220,000 square feet, contain a traditional Wal-Mart and a supermarket. 1990 – Wal-Mart becomes the number one retailer in the United States, with some $26 billion in sales. Wal-Mart also purchased grocery distributor McLane Co., which was sold to Warren Buffett’s Berkshire Hathaway in 2003. 1991 – Wal-Mart opens its first international store in Mexico City. The company also continued to increase the number of Sam’s Club by merging with The Wholesale Club Inc. of Indianapolis. Those 28 stores were then integrated into the Sam’s Club chain. 1992 – Wal-Mart co-founder Sam Walton dies at...
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...! ! ! !!!!!!!!!!! ! ! Did Wal-Mart Wake Up? How Strategic Management Handled Wal-Mart’s Reputation [ABSTRACT] The nation’s largest private corporation and retail giant Wal-Mart has faced multiple opposition from labor unions, grassroots organizations, religious groups, and even from its own employees, impacting its corporate reputation and ultimately its bottom line. This case study will demonstrate the strategic communication Wal-Mart used for its corporate reputation management (CRM). In particular, the case describes the company’s response to criticism regarding its current business policies and practices. Table of Contents Introduction………………………………………………………………3 1. Company History……………………………………………………..5 1.1 Wal-Mart’s Early History: 1960s to 1970s…………………………….5 1.2 Wal-Mart Expands and Goes International: 1980s to 1990s…………...6 1.3 Attack of the Advocacy Groups: 2000 to present……………………....7 1.4 Repercussions…………………………………………………………...8 2. The Issue: Employee Relations and Workers’ Rights…………………9 3. Opposition…………………………………………………………….10 3.1 Labor Union-Funded Groups…………………………………………...11 3.2 Gender Discrimination………………………………………………….12 3.3 Wal-Mart: The High Cost of Low Price……………………………………..13 4. Wal-Mart’s Response……………………………………………………15 4.1 Response to Labor Union-Backer Groups………………………………...16 4.2 Response to Gender Discrimination Lawsuit……………………………..17 4.3 Response to Greenwald’s Film……………………………………………18 4.4 Wal-Marting Across America: Jim and Laura’s...
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...! ! ! !!!!!!!!!!! ! ! Did Wal-Mart Wake Up? How Strategic Management Handled Wal-Mart’s Reputation [ABSTRACT] The nation’s largest private corporation and retail giant Wal-Mart has faced multiple opposition from labor unions, grassroots organizations, religious groups, and even from its own employees, impacting its corporate reputation and ultimately its bottom line. This case study will demonstrate the strategic communication Wal-Mart used for its corporate reputation management (CRM). In particular, the case describes the company’s response to criticism regarding its current business policies and practices. Table of Contents Introduction………………………………………………………………3 1. Company History……………………………………………………..5 1.1 Wal-Mart’s Early History: 1960s to 1970s…………………………….5 1.2 Wal-Mart Expands and Goes International: 1980s to 1990s…………...6 1.3 Attack of the Advocacy Groups: 2000 to present……………………....7 1.4 Repercussions…………………………………………………………...8 2. The Issue: Employee Relations and Workers’ Rights…………………9 3. Opposition…………………………………………………………….10 3.1 Labor Union-Funded Groups…………………………………………...11 3.2 Gender Discrimination………………………………………………….12 3.3 Wal-Mart: The High Cost of Low Price……………………………………..13 4. Wal-Mart’s Response……………………………………………………15 4.1 Response to Labor Union-Backer Groups………………………………...16 4.2 Response to Gender Discrimination Lawsuit……………………………..17 4.3 Response to Greenwald’s Film……………………………………………18 4.4 Wal-Marting Across America: Jim and Laura’s...
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...! ! ! !!!!!!!!!!! ! ! Did Wal-Mart Wake Up? How Strategic Management Handled Wal-Mart’s Reputation [ABSTRACT] The nation’s largest private corporation and retail giant Wal-Mart has faced multiple opposition from labor unions, grassroots organizations, religious groups, and even from its own employees, impacting its corporate reputation and ultimately its bottom line. This case study will demonstrate the strategic communication Wal-Mart used for its corporate reputation management (CRM). In particular, the case describes the company’s response to criticism regarding its current business policies and practices. Table of Contents Introduction………………………………………………………………3 1. Company History……………………………………………………..5 1.1 Wal-Mart’s Early History: 1960s to 1970s…………………………….5 1.2 Wal-Mart Expands and Goes International: 1980s to 1990s…………...6 1.3 Attack of the Advocacy Groups: 2000 to present……………………....7 1.4 Repercussions…………………………………………………………...8 2. The Issue: Employee Relations and Workers’ Rights…………………9 3. Opposition…………………………………………………………….10 3.1 Labor Union-Funded Groups…………………………………………...11 3.2 Gender Discrimination………………………………………………….12 3.3 Wal-Mart: The High Cost of Low Price……………………………………..13 4. Wal-Mart’s Response……………………………………………………15 4.1 Response to Labor Union-Backer Groups………………………………...16 4.2 Response to Gender Discrimination Lawsuit……………………………..17 4.3 Response to Greenwald’s Film……………………………………………18 4.4 Wal-Marting Across America: Jim and Laura’s...
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...Wal-Mart Principles of Management Introduction Wal-Mart (Wal-Mart Stores, Inc.) is currently ranked not only as America’s largest, but also as the world’s largest company (Soderquist, 2005). The store’s three business segments, Wal-Mart International, Wal-Mart Stores and Sam’s Club all operate in discount retail industry. Currently Wal-Mart’s leadership is facing challenging issues including an invariable customer base, a declining same store base and a crumbling reputation. However, Wal-Mart’s history is a living example of innovative and successful leadership. The company started with a single store in 1962, in Rogers, Arkansas and it has grown into what is now regarded as the world’s largest retailer. Wal-Mart runs each store with the products stocked in the store, to the front-end equipments, helping to speed up checkouts. Using the same philosophy in all its stores to provide low prices and superior customer service, Wal-Mart can sell at low prices and thus eliminate expenses associated with frequent sales promotions as well as have predictable sales. Wal-Mart has invented its own unique inventory system, the cross-docking system that has enabled the company to achieve economies of scale, thus reducing the cost of sales. In this system, goods are continually delivered to Wal-Mart’s stores within 48 hours and without the store having to inventory them. This allows the stores to replenish their shelves four times faster than...
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...9-387-018 REV: APRIL 12, 2007 PANKAJ GHEMAWAT Wal-Mart Stores’ Discount Operations In October 1985, Forbes declared Sam Walton the richest person in the United States. With his four children, he owned stock worth $2.8 billion. That put him $1 billion ahead of the next person on the list, H. Ross Perot. By the end of April 1986, Walton’s net worth had swelled by another $1.6 billion. Walton’s fortune consisted of a 39% stake in Wal-Mart Stores, a retailer that had focused historically on the Sunbelt. Although Wal-Mart had begun to diversify into other areas, discounting still accounted for 91% of the company’s sales in 1985 and 96% of its pretax profits. Wal-Mart had consistently led other discounters in both profitability and growth. Exhibit 1 summarizes Wal-Mart’s history over the past decade; Exhibit 2 compares its performance with that of its competitors. As a result of such comparisons, Wal-Mart’s market value in early 1986 was twice K mart’s, even though it was only a third as large. Analysts thought that Wal-Mart would overtake K mart as the largest discounter by the turn of the century, but they were divided over whether Wal-Mart stock remained a good buy at a price-earnings multiple of 26. This case describes discount retailing and the distinctive features of Wal-Mart’s discount operations. It also sketches the areas into which Wal-Mart was diversifying in the mid-1980s. Discount Retailing Discount stores emerged in the United States in the mid-1950s...
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...King Talal School for Business Management Information System Department Wal-Mart By: Yasmine Okasheh Supervisor: Dr. This graduation project was submitted in partial fulfillment of the requirement for the bachelor’s degree in MIS May 8, 2012 Committee Decision This graduation project "Market Segmentation" was successfully defended and approved on April 3, 2012. Examination Committee Signature Dr. Abd Al-Ghafoor ______________ Authorization Form I am Yasmine Okasheh authorize PSUT – King Talal school to supply copies of my graduation project to libraries or establishments or individuals on request. Signature _______ Date _______ Abstract On our research we focused on the selection of groups of people who will be most receptive to a product. The most common method of segmenting includes demographic variables such as age, race, sex, income, occupation, education, geographic location, household status etc. Much of the segmentation will involve a combination of these variables and no matter how the segments are defined they are characterized by considerable change over time. The main purpose of segmenting a market is to allow a market or sales program to focus on the prospects that are most likely to purchase the products or services on offer. If it is done properly it ensures that the best return for the marketing expense is outlaid. There are definite differences and these depend on whether you...
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...How Could Wal Mart Continue Its Extraordinary Growth Management Essay Introduction The history of Wal-Mart started in 1962 with the opening of its first store in Arkansas, USA. The store stared as a retailer in the United States, but grew to reach extraordinary levels in the years to come. Wal-Mart grew rapidly, and used several methods to accomplish this growth. They opened their own stores as well as acquiring existing stores and chains to facilitate their entry to the new markets. The growth was not limited to the number of stores that the company opened, but it extended to the areas of operation for the store. For example, Wal-Mart entered new areas of business as it grew like pharmacies and jewelries. Wal-Mart followed an aggressive expansion strategy that was the model for their business for years, redefining concepts as they grew. But what is Wal-Mart. The store can be described as the following. It is chain of discount department stores that operate with the purpose of reducing prices, and focusing on the volume of sales. The company’s growth is extraordinary in every sense; Wal-Mart is currently the world’s largest company by sales. Wal-Mart has recorded $260 billion in sales in 2005. The company manages over 5000 stores worldwide, 3200 of the stores located in the US, 900 in the Americas, 350 in Europe, and 440 in Asia. Wal-Mart employs a very large workforce, it has over 2 million employees, and the number is gradually increasing. Wal-Mart has adopted advance mean...
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...Bloomberg Businessweek Magazine Is Wal-Mart Too Powerful? Posted on October 05, 2003 http://www.businessweek.com/stories/2003-10-05/is-wal-mart-too-powerful In business, there is big, and there is Wal-Mart. With $245 billion in revenues in 2002, Wal-Mart Stores (WMT ) Inc. is the world's largest company. It is three times the size of the No. 2 retailer, France's Carrefour. Every week, 138 million shoppers visit Wal-Mart's 4,750 stores; last year, 82% of American households made at least one purchase at Wal-Mart. "There's nothing like Wal-Mart," says Ira Kalish, global director of Deloitte Research. "They are so much bigger than any retailer has ever been that it's not possible to compare." At Wal-Mart, "everyday low prices" is more than a slogan; it is the fundamental tenet of a cult masquerading as a company. Over the years, Wal-Mart has relentlessly wrung tens of billions of dollars in cost efficiencies out of the retail supply chain, passing the larger part of the savings along to shoppers as bargain prices. New England Consulting estimates that Wal-Mart saved its U.S. customers $20 billion last year alone. Factor in the price cuts other retailers must make to compete, and the total annual savings approach $100 billion. It's no wonder that economists refer to a broad "Wal-Mart effect" that has suppressed inflation and rippled productivity gains through the economy year after year. However, Wal-Mart's seemingly simple and virtuous business model is fraught with complications...
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