...MAKALAH KELOMPOK MANAGEMENT CONTROL SYSTEM CASE #1-2 WAL-MART STORES, INC. BAB I PENDAHULUAN A. Latar Belakang : Sejarah Perusahaan Wal-Mart Inc. Sejarah bisnis Wal-Mart Inc tidak lepas dari kejeniusan Sam Walton. Alumnus Universitas Missouri, Columbia, ini mendirikan toko pertamanya berada di Roger, Arkansas tahun 1962, dan penjualan mencapai $1 Miliar pada 17 tahun kemudian. Di akhir bulan Januari 2002, Toko Wal-Mart menjadi toko retail terbesar dengan penjualan $218 Miliar (Achtmeyer, 2002). Bermula dari pengalamannya bekerja di perusahaan ritel Sears Robuck dan JC Penney, Walton memulai langkah bisnisnya dengan membeli sebuah waralaba dan penyewaan di kawasan Pelabuhan Ben Franklin, Arkansas, yakni jaringan penjualan dari peritel lokal Butler Brother. Dalam kurun waktu 3 tahun, Walton mampu meningkatkan penjualan tahunan dari USD80.000 menjadi USD225.000. 5 tahun kemudian (1950) Walton mengembangkan bisnisnya dengan membeli pusat perbelanjaan milik peritel Luther E Harrison di kawasan Bentonville, Arkansas. Sejak itulah, Walton mulai menamai jaringan pusat perbelanjaannya dengan sebutan Walton’s 5&10. Pada 1962, Walton berhasil mendirikan 11 jejaring bisnis ritelnya dengan pembukaan toko diskon Walmart pertama di Rogers, Arkansas. Jumlah jejaring bisnisnya semakin bertambah pada 1967, yakni menjadi 24 pusat perbelanjaan di seluruh negara bagian Arkansas. Perluasan ini menyumbangkan tingkat penjualan tahunan Walton’s 5&10 menjadi USD12,6 juta...
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...Wal-Mart Stores Inc.: Dominating Global Retailing The retail industry in the U.S. has become saturated, and the market is control by a few big retailers. They all offer very similar products, so the differentiating factor are usually quality and price. Competitive advantage comes from innovative strategic thinking, funds to buy other competitors, and impeccable execution. In addition, the global economic crisis has increase customers’ price sensitivity, and has put more pressure on retailers. In the past, when Wal-Mart was confronted with threads and challenges, it was forced to innovate. From the beginning, Mr. Sam Walton realized that the discount retailing concept would be profitable and presented this idea to his boss. After not finding the support he expected from Ben Franklin’s management, he decided to start his own business. He then realized that volume and inventory turnover were the main competitive advantages. Mr. Walton first decided to target rural areas. These areas were a great source of customers looking for low prices, and employees looking for a steady job that paid decent wages. In addition, competition was minimal because the other retailers were focused on more urban areas. Wal-Mart stores were big boxes stocked with shelves, and offered a large variety of merchandise. All these advantages translated into profits unmatchable by its city competitors. Nonetheless, being located in rural areas was also a challenge. Many suppliers were not willing or able...
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...Wal-Mart is not only the world’s largest retailers, but it is also the world’s largest company in terms of revenue ($485 billion USD in 2015) and the world largest private employer with 2.2 million employees. The case describes the growth of Wal-Mart under Sam Walton’s values and leadership and reviews the main functions and operation of the company. Q.1 The retail industry is a highly competitive industry. Although Wal-Mart can rarely be beaten on price, there are many big discounted retail stores such as Target and K-Mart. There are also competitors that offer other advantages such as higher quality (Whole Foods) or better service (Best Buy). There is also little differentiation between the retailers. As seen on Table 2, the sales increase (%) in international markets is higher that of the US market, which means faster growing markets and that the growth can be attributed the industry attractiveness. Table 4 shows that Wal-Mart is doing a lot better in terms of financial performance against its competitors. This means that its performance in more attributable to its competitive advantage rather than industry attractiveness. Competitive advantage has a bigger effect to the performance of Wal-Mart. Wal-Mart’s strategy is low prices and thanks to the huge size of the company, it is able to employ economies of scale in the best way possible. It can negotiate very low prices and offer cost savings to customers. It is also able to import and produce products at very low...
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...Wal-Mart Stores, Inc. vs Dukes The case of Wal-Mart vs Duke which was filed in court June 19, 2001 (Wal-Mart Stores, Inc. v. Dukes, 2017) and it was granted certiorari by the United States Supreme Court for review where the females received billions for the company. There were five other women with Betty Dukes, who started the case. The plaintiff stated that the company was engaged in discrimination against female workers under the violation of Title VII of the Civil Rights Acts of 1964. This law was passed by Congress to end racial discrimination, including women so they could feel protected on their job from discrimination. (Brown, 2014) The company did not want to give females promotions, pay decisions, job assignments and did not want to train the females, because the supervisor said that this was not a place or job for females. Wal-Mart now appeals to the Supreme Court, arguing that the class certification does not meet the requirements of Federal Rule of Civil Procedure 23(a). “Wal-Mart also claims that class certification was improper under Federal Rule of Civil Procedure 23(b) (2) because the employees primarily seek monetary compensation in the form of back pay, and Rule 23(b) (2) does not authorize the certification of claims seeking monetary relief.” (Rumpf, 2011)...
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...Wal-Mart Stores, Inc: Image Issues for the World’s Largest Retailer Where do you buy eggs, laundry detergent, and motor oil? If you are like millions of others the answer is Wal-Mart. “Each week, 138 million shoppers visit a Wal-Mart retail store somewhere, and 82% of Americans made at least one purchase at Wal-Mart in the year 2003” (O’Rourke, 139). “Wal-Mart’s central promise to its customers is always to have low prices for the goods they want” (O’Rourke, 139). Because of this promise, the company has had to engage in some questionable, perhaps illegal practices. The question is, how does the company balance the promise it made to its customers in 1962, while maintaining a positive image. Employees are an important aspect in any business. Wal-Mart employs a global workforce of 1.5 million people (O’Rourke, 140). In 2004, the average annual wage for a full-time Wal-Mart employee was $9.76 an hour (O’Rourke, 140). This comes out to $20,300 a year, $1,210 a year more than the poverty level for a household of three. If you increase the family size to four, the figure is $2,750 below the poverty level (aspe.hhs.gov). In 2004 it was discovered that Wal-Mart was locking in their overnight associates. The only ways to get out were through the fire exit or by having the manager manually open the door. Employees complained that if they used the fire exits to leave they would be fired. The also noted that on many nights there wouldn’t be a manager on duty to open the doors...
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...Case Study I: Sears, Roebuck and Co. vs. Wal-Mart Stores, Inc. Chao Han Junliang Shi Zhongyi Hu 2/25/2015 Azusa Pacific University Case Study I: Sears, Roebuck and Co. vs. Wal-Mart Stores, Inc. Sears, Roebuck and Co. and Wal-Mart Stores, Inc. are the two big retail companies in U.S. Although Wal-Mart was acknowledged powerhouse of the U.S. retailing industry, Sears’ ROE exceeded Wal-Mart’s 2%, which can show that this firm was the true powerhouse. Therefore, Don Edwards, an analyst with a prestigious investment bank. He compared two financial performances of these two companies and he wanted to figure out which company performed better in different areas. Sears, Roebuck and Co. was founded in 1891. It started originally with a sole catalog business and then expanded into retail stores in 1924. Its stores were primarily located in shopping malls, including a large variety of merchandise. Sears has become the world’s largest retailer in terms of annual sales. By the early 1980s, Sears faced increased competition and declining market share. In 1992, The CEO of Sears, Arther C. Martinez has carried out three methods to improve profitability. The first was to cut costs. The second was to re-oriented the product mix in which the target audience was set to be middle-class female shoppers. The third was to offer customers more flexibility through the use of the company’s proprietary credit...
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...Diversity in the Workplace / Wal- Mart Case Shirley Nolan October 30, 2011 Class #: 1109MGMT Section: 610514 Turnitin Score: 14% This Research paper is about diversity in the workplace. It also talks about how management handles diversity in the workplace and how they view it. The case that I will be talking about is the Wal-Mart case. This case will also show you how leadership played a very important role in this case when it comes to the managers that work for this company. This case had a big in pack on the retail organizations around the world. Woman that works for Wal-Mart are not given the same advances that the males are in the same position in this company. I also talk about some suggestions that managers at Wal-Mart could have done different to stop this case from going to the Supreme Court on June 20, 2001. One of the most significant issues that management faces today is diversity in the workplace. “Diversity means employing people without discrimination on the basis of gender, age and ethnic or racial background.” (Graves, 1993, p .4). Diversity has important implications for the values of an organization’s culture and for organizational effectiveness. Management is the process by which a person in a supervisory role focuses on planning...
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...majority of companies throwing in the towel due to the daunting and exasperating process of trying to reach the top. It is with these profound reasons that most companies have now developed a great array of skills and techniques in captivating the customers to attain the designed goals and objectives (Bhatnagar, 2004). One of the businesses that are known to face such extreme competition is the Wal-Mart Company. Wal-Mart is widely known for its vast range of chain stores that provides the world with the best and most affordable and accessible forms of technology. It is more so known to provide some of the latest stellar digital forms of technology and other appliances that are vital for human use. However, Wal-mart success has been hanging on the balance due to its recent controversy on its compensation plan. For sure this has not been a piece of cake and exasperating has it been for the company to retain back its lost glory. It is because of this that this paper is written to providing stellar corrective measures on compensation plan. Evaluation of the current pay structure used by Wal-Mart Company and the recognition of employee contributions. Compensation management is the strategic process of aligning pay, incentives and benefits of employees with the organizational goals and objectives (Bhatnagar, 2004)). Compensation management further aims at linking an employee and the organization though an employment relationship in such a way that the Company achieves its objectives...
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...management of Wal-Mart Stores, Inc. can apply the concepts of organizing and motivating to reach the organizational objective of resolving the ethical issues regarding wages and employee welfare by June 2012. 1.2 Background Vesilind (1988) defined ethics as the study of systematic methodologies which can assist one in making value-laden decisions when one is guided by his or her individual moral values. Hence, one is said to be practicing ethics when he or she is implementing ethical values in decision-making. When managers and employees do not practice ethical values, an organization will face ethical issues. In this report, the organization that is being discussed is Wal-Mart Stores, Inc. In the United States, Wal-Mart Stores, Inc. run large discount department stores and also warehouse stores. Even though Wal-Mart is the largest groceries retailer, the management of it has caused many ethical issues regarding wages and employee welfare as they did not practice ethical values. Wal-Mart Stores, Inc. paid their workers low wages that are even lower than the federal poverty line. Bianco and Zellner (2003) stated that in 2001, documents filed in a lawsuit that is against the corporation showed Wal-Mart sales clerks earned $8.23 an hour, or $13,861 a year on average. The wages is definitely low and insufficient, especially for a family of three, as the federal poverty line at that time was $14,630 (Bianco & Zellner, 2003). Besides that, Wal-Mart Stores, Inc. also forced...
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...In 2012, the Tazreen Fashions factory outside of Dhaka, Bangladesh caught on fire, killing 112 employees. The Bangladesh factory produced garments for several well-known retailers, such as Wal-Mart Stores, Inc. and Sears Holding Corporation. According to the article, For Wal-Mart, Sears, Tough Questions in Bangladesh Fire, “Bangladesh has become the world’s second-largest clothing exporter, thanks in part to some of the lowest labor costs anywhere: The government sets the minimum wage for entry-level garment workers there at less than $37 a month” (Bustillo, Wright, & Banjo 2013, pg. 2). Wal-Mart Stores, Inc, faces the dilemma of seeking the lowest prices from suppliers globally to deliver low price products while projecting a corporate image of high ethical standards and corporate social responsibility. Traditionally, the purpose of a firm is profit creation, and sale of goods and services in a legal and moral manner. However, what has not always been a part of that tradition was the welfare of society and/or philanthropic endeavors. Due to numerous tragic events, like the one in Bangladesh, the issues of the role of business in social responsibility more frequently appears to be a topic of discussion. This has forced the corporate world to concern itself with the social impact of its decision-making. Firms are turning to ethical business models such as the Wall Street Journal Model to help them understand business ethics and to make ethical business decisions. The...
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...Wal-Mart: Strategic Plan [pic] Strategic Plan Saren Thompson BUS 413 TABLE OF CONTENTS Introduction Page 3 Mission Statement Page 4 Macro-Environmental Analysis Economics Page 5 Demographics Page 6 Socio-Culture Page 8 Political/ Regulatory Page 11 Technological Page 13 Micro-Environmental Analysis Industrial Page 14 Markets Page 16 Competition Page 18 Supplier Page 19 Resources Page 20 Preferences Page 22 Opportunities and Threats Strengths and Weaknesses Page 23 Opportunities and Threats Page 25 Opportunity Analysis Page 27 Alternative Strategies Formulation Page 28 Ranking Strategies Page 28 References Page 29 INTRODUCTION Wal-Mart is the top retail company in the United States and has grown from a small customer centered store in Arkansas to an International Retail Store. This company was founded in the 1962 by Sam Walton. Walton and wife Helen put up 95 percent of the money for the first Wal-Mart store in Rogers, Arkansas. He traveled abroad to study retail and believed it was the future. His company began a success and the Wal-Mart empire began when it was incorporated October 31, 1969. Wal-Mart stock was first traded over the counter as publicly-held company in 1970. Since Wal-Mart has had eleven 100 percent stock split as of March of 1999. The company has grown to new levels and I hope to introduce and inform throughout this paper. ...
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...Wal-Mart’s Industry Averages and Financial Ratios Paper Wal-Mart Stores, Inc. maneuvers trade warehouses in countless structures worldwide. The business functions in three sections comprising of Wal-Mart International, Wal-Mart U.S., and Sam’s Club. “It operates discount stores, supermarkets, supercenters, hypermarkets, warehouse clubs, restaurants, apparel stores, drug stores, and convenience stores, as well as various retail websites, such as walmart.com and samsclub.com.“ (Retrieved by: http://finance.yahoo.com/q/pr?s=WMT) Wal-Mart has an inventory ratio that is based on a traditional inventory system, but desire a change to a Just-In-Time inventory system. Analyzing Wal-Mart’s financial ratios provide an outlook on the financial health of the company. Furthermore, the financial ratios are compared to other industry ratios including profitability, solvency, and efficiency. Wal-Mart Stores, Inc. “As of June 5, 2014, it operated approximately 11,000 stores under 71 barriers in 27 countries; and ecommerce websites in countries.” (Retrieved by: http://finance.yahoo.com/q/pr?s=WMT) In 1945, Wal-Mart was originated and its headquarters is located in Bentonville, Arkansas. Wal-Mart Stores, Inc. SIC Code is 53119901. The company line of business is department stores, but often considered variety stores and miscellaneous general merchandise stores. Wal-Mart Stores, Inc. NAICS is 452112 or 452111. On the other hand, Wal-Mart Stores, Inc. deals with a number of items...
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...efficiency. Wal-Mart developed the strategic planning initiative of Every Day Low Price (EDLP), which prices it products at low, affordable prices. Wal-Mart’s strategic planning has made the store one of the best known organizations and industry leaders in low prices. The strategic planning initiative effects costs and the sales within the organization that can also create risks; however, if managed effectively can make the discount giant even more profitable. Strategic Planning Initiative, Financial Planning Wal-Mart has grown from modest beginnings to become one of the most recognizable store chains in the world by operating almost 11,000 stores in 27 countries with more than two million employees (Wal-Mart, 2012). With such a large, well-known organization the company strives to remain competitive within a global market. To succeed, the company used strategic planning to identify an aggressive strategy within their 2012 annual report. Wal-Mart management entitled the strategy“Delivering Everyday Low Price (EDLP). According to Wal-Mart’s 2012 annual report, the EDLP strategy represents an essential component of its message of delivering the lowest prices possible every day to its customers. As part of the EDLP plan, the company initiated what it believes the strongest competitor advertisement matching policy in the retail industry. The company goal through implementation of EDLP separates Wal-Mart from its competitors through price variance (A. Wal-Mart Stores, Inc, 2013)...
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...Wal*Mart Stores, Inc. Aldi - Alvin - Cut Putri - Gia - Vanya Wal*Mart Stores, Inc. - Wijawiyata Manajemen 66 BAB I PENDAHULUAN Wal*Mart Stores, Inc. adalah perusahaan retail terbesar di dunia yang memiliki lebih dari 3700 toko di Amerika Serikat dan beroperasi di lebih dari 14 negara. Wal*Mart pertama kali didirikan oleh Sam Walton pada tahun 1962, di Bentoville, Arkansas, Amerika Serikat. Sam mendirikan Wal*Mart dengan sebuah visi, yaitu: if we work together we will lower the cost of living for everyone, weʼll give the world opportunity to see what itʼs like to save and have a better life. Berdasarkan Fortune Global 500 pada tahun 2008, Wal*Mart merupakan perusahaan publik terbesar yang dilihat dari sisi pendapatan atau revenue di seluruh dunia. Wal*Mart menjadi perusahaan publik pada 31 Oktober 1969 dan terdaftar pada New York Stock Exchange pada tahun 1972. Sam Walton membuat Wal*Mart fenomenal dan menjadi sukses dengan average return on equity sebesar 33% dan compound average sales growth sebesar 35%. Dengan tujuan memberi harga murah bagi konsumen setiap hari yang sesuai dengan slogan perusahaan mereka yaitu ”Always the low price – always”, Wal*Mart menjual berbagai produk dari berbagai pemasok maupun produk-produk yang dihasilkan oleh Wal*Mart dengan menggunakan label pribadinya sendiri. Wal*Mart berhasil menjangkau berbagai lapisan konsumen dengan membagi usahanya Halaman 1 Wal*Mart Stores, Inc. - Wijawiyata Manajemen 66 menjadi beberapa...
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...Sam Walton founded Wal-Mart in 1962. In 1991, Wal-Mart opened its first store outside of the United States in Mexico City, Mexico. Globalization helped Wal-Mart tremendously. They first tested the idea of selling of groceries, had restaurants, banks, and video stores in Europe and Brazil. At the time that many companies were closing factories in America Wal-Mart developed a program called “Bring it Home To The USA,” in which Wal-Mart was replacing items bought from overseas to buying them in the US. Although the company was using products that were made in the U.S. Wal-Mart was rapidly growing overseas. In 1991 they had only one store in Mexico. By 1998 they had over 600 stores overseas, which accounted for about 5 percent of their growth in sales and profits. Wal-Mart was very successful in the United States but in order for them to survive and grow they had to begin building stores overseas (Govindarajan & Gupta, 2002). Wal-Mart also had so many stores in the United States that their only other option to continue to grow was to move into other countries. Wal-Mart has been able to grow into the number one retailer in the United States. According to Bloomberg, the current Chief Executive Officer (CEO) at Walmart is Michael Terry Duke. Mr. Duke has been the CEO at Wal-Mart Stores Inc. since 2006 (2011). And Bloomberg also reports that Charles M. Holley Jr. is the current Chief Financial Officer of Wal-Mart and has held that position since late 2010. Mr. Holley’s education...
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