...Wal-Mart This paper will discuss the structure of Wal-Mart's corporate culture and how it influences their employees. In order to understand an Organization Behavior there are different elements that will create the employees perspective of the organization’s culture such as the management’s philosophy, vision, values, and goals. The driving force of these elements will create the culture of the organization. An organization’s culture will define the leadership, and dynamics of the organization. With each element listed the employees of the organization will identify this as work life that will guide their level of motivation. Depending on which level of motivation the employees are at will determine the outcome of their performance, along with their satisfaction, and development. The entire elements combine helps to build the framework in the way the organization operates. (Davis, 1993) It is important for Wal-Mart to understand their employees’ job satisfaction, fairness, personal development and growth within its organization. Wal-Mart was founded by Sam Walton in 1962. Sam Walton business strategy was to supply products for customers at low prices. Sam Walton began the first Wal-Mart store in Rogers, Ark. While Wal-Mart was at their beginning stage their competitor Kmart was growing rapidly. During that time Walton was only able to invest in 15 stores. In the 1970s Wal-Mart offered stock which helped to expand the company with 276 stores in 11 states...
Words: 2964 - Pages: 12
...Introduction Wal-Mart is commonly known for its low prices, clean appearance, and large variety of products; however, the super store has constituently been the center of many ethical issues. From working conditions, wages, benefits, product issues, and even bribery, Wal-Mart has been shrouded in ethical disputes for years. In the next few pages I intend on discussing these issues, the impact they have had on the company, and the actions that management has taken in response to them. Predatory Pricing To begin discussing the ethical issues that Wal-Mart has faced in regards to predatory pricing, we must first understand what predatory pricing is. According to Investopedia.com; predatory pricing is “the act of setting prices low in an attempt to eliminate the competition” (Investopedia.com, 2013). Although many of us would think that a business could set whatever prices they choose; we would be wrong. A company cannot set prices with the intent of running another company out of business, and doing so is illegal. A company can, however, sell items at a lower cost because they are able to run more efficiently, have better, less expensive supply channels, or simply do not have the overhead of their competitors. Wal-Mart has been the focus of many lawsuits regarding predatory pricing. In fact, as recently as this year, Wal-Mart lost a price cutting lawsuit in Arkansas and was ordered to stop selling drugs and health products below their own cost (White, 1993). In addition...
Words: 1562 - Pages: 7
...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...
Words: 1545 - Pages: 7
...ISSUES Supply Chain / Logistics India’s transportation system is not as advanced as other countries systems’. In India many roads are not paved yet which will slow down the famous Wal-Mart supply chain. Wal-Mart’s core competency is price. One cannot find lower prices than they find in Wal-Mart on such a large assortment of products. One of the reasons that price can be Wal-Marts’ core competency relies on the efficiency of Wal-Marts’ world renowned Supply Chain. Wal-Mart will have to partner in some way with the Indian government. A modern road infrastructure is something India needs sorely. Wal-Mart and the country as well as all other businesses and citizens will benefit from a more updated travel system. Indian Culture India is a completely different culture than America. Americans are known for buying items they cannot afford by using credit cards. Indian citizens are known to have a different mentality and they prefer to save up their money and then buy. In America we often go to shopping malls and spend all day shopping for many items. However, eventually the two percent of organized retail businesses in India eventually do revolutionize this way of purchasing products in India. This all happens around the year 2000 when global brands begin to flood the Indian market. More choice among products and quality naturally transforms the mindset of Indian consumers. Increasing brand awareness and high...
Words: 988 - Pages: 4
...Diversity and Globalization in Wal-Mart Wal-Mart started in 1962 with one store in Arkansas. By 1970 Wal-Mart had 38 stores in a few states. The department store was and still is growing very fast. Wal-Mart employs a very diverse workforce with young people, students, varied ethnic groups, senior people, and both educated and uneducated men and women (Wal-Mart, 2009). In the 1960s Wal-Mart began with a simple discount store and over time evolved into supercenters, which have the original discount store but include a grocery section as well. The chain has grown considerably, from small town to Fortune 500, over many decades. Wal-Mart learned many lessons as they evolved such as how they can save money for the people and company regarding recycling and efficiency. Wal-Mart started off less environmentally conscious than they are today, paying significant attention to energy, fuel, recycling, resources which saves money and the environment. At Wal-Mart, management believes that business wins when everyone matters, and that the true strength of diversity is unleashed when each associate is encouraged to reach their full potential. Diversity then becomes the foundation for an inclusive, sustainable business that embraces and respects differences, develops our associates, serves our customers, partners with our communities, and builds upon an inclusive supplier base (Wal-Mart, 2009). Wal-Mart implements diversity as part of its business plan, ensuring we can continue to be a global...
Words: 1121 - Pages: 5
...Case: Wal-Mart’s Supply Current Strategy and Challenges Carjamin Scott MNGT 5650 QB S2 2015 Due: Saturday, April 18, 2015 Webster University Abstract This case is primarily based on the findings of the “Supplemental Benefits Documentation: Board of Directors Retreat FY06" to discuss the threats and challenges that Wal-Mart is currently facing. It will also overview the priorities of CEO Lee Scott as set in his “Wal-Mart: Twenty-First Century Leadership” address. Wal-Mart’s Board discussed proposals to meet (some of) these challenges at a board retreat in 2005. The Wal-Mart health cost strategy will also be examined with emphasis on the additional damage done to Wal-Mart by the leaking to the public of the Board Benefits Strategy document. I will also comment on two recent Wal-Mart initiatives from the standpoints of strategy and public relations. Also some strategic social challenges will be discussed from the standpoints of Bonini, Sheila M. J.; Mendonca, Lenny T.; Oppenheim, Jeremy M. “When social issues become strategic”. McKinsey Quarterly. 2006 no. 2. Introduction Sam Walton is the founder of Wal-Mart. In 1962, the first Wal-Mart store started in Rogers, Arkansas. The brand had a vision to provide customers with low prices, anywhere. After the Walton family earned 12.7 million in sales, the newly incorporated Wal-Mart, was on the fast track to become a worldwide leading multimillion-dollar retail store. Wal-Mart has over 8,000 locations within 3 business segments...
Words: 3399 - Pages: 14
...Strategic Initiative Wal-Mart Stores, Inc. is a global company that has taken a moral and ethical position on becoming a leader on social issues that each community finds itself dealing with daily. This year Wal-Mart has invested in what they currently call the Global Responsibility Report. This report covers a multi-faceted plan that it plans to deal with over the past year and how it will approach these social issues in the future. What we will be looking at is the strategic planning on the environmental initiatives that Wal-Mart has deemed a priority in the next few years, how these initiatives will affect the financial planning of the company, how it will affect the cost and sales of products not only to the customer but also the vendors and what the financial risk that are associated with the initiatives. As we look at these different pieces of Wal-Mart’s managerial direction it will give us a better understanding of how big businesses are not only leading in their current venue but also trying to be a leader in our social issues of the day. Strategic Planning of Environmental Initiative of Wal-Mart Stores, Inc. When reviewing the annual report of Wal-Mart Stores, Inc. it gives us a vivid look into how corporations are trying to play a larger leadership role in today’s social issues. Per Wal-Mart Annual Report (2011),”This year, we’ve published a Global Responsibility Report, expanding the dialogue to a broader range of major issues such as our environmental...
Words: 1116 - Pages: 5
...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...
Words: 2752 - Pages: 12
...com GM591 Leadership and Organizational Behavior Mar11 Sec Ac Professor Jere Ferguson 4/8/11 Wal-Mart is an American public multinational corporation that runs a chain of large discount department stores and a chain of warehouse stores. In 2010 it was the world's largest public corporation by revenue, according to the Forbes Global 2000 for that year. The company was founded by Sam Walton in 1962, incorporated on October 31, 1969, and publicly traded on the New York Stock Exchange in 1972. Wal-Mart, headquartered in Bentonville, Arkansas, is the largest majority private employer and the largest grocery retailer in the United States. In 2009, it generated 51% of its US $258 billion sales in the U.S. from grocery business. It also owns and operates the Sam's Club retail warehouses in North America. Wal-Mart has 8,500 stores in 15 countries, with 55 different names. The company operates under its own name in the United States, including the 50 states. It also operates under its own name in Puerto Rico. Wal-Mart itself has not produced the same results in different countries. With Wal-Mart's investments outside North America having mixed results its operations in the United Kingdom, South America and China have been highly successful, while it was forced to pull out of Germany and South Korea when ventures there were unsuccessful. As Wal-Mart grew rapidly into the world's largest corporation, many critics worried about the effect of its stores...
Words: 2569 - Pages: 11
...Wal-Mart SWOT Analysis Kara Groff Table of Contents: Overview……………………………..………..page 3 Strengths………………………………....…….page 4 Weaknesses…………………………...….…….page 6 Opportunities...............................................…...page 8 Threats…………………………………....……page 10 Recommendations…………………………......page 12 References……………………………….…….page 13 Student: Faculty Member: Kara Groff Dr. David J. Burns 2015 Cleneay Ave. Xavier University Marketing Department Norwood, OH 45212 3800 Victory Parkway (419)-656-1234 Cincinnati, OH 45407 GroffKC@Xavier.edu (513)-745-3956 Burnsd@Xavier.edu Overview Wal-Mart was founded in 1962 by Sam Walton when he and his brother James “Bud” Walton opened the first Wal-Mart Discount City in Rogers, Arkansas. Since then, Wal-Mart has grown to be the second largest company in the world. In the United States, the company includes Wal-Mart discount stores, Supercenters, Neighborhood Markets, and Sam’s Club warehouse membership clubs. The company also has many international operations. Wal-Mart is considered a variety store which focuses on low prices featuring apparel as well as hard goods, and has been committed to upholding their basic value of customer service. Advances in technology have contributed a great deal to the growth of Wal-Mart. Highly automated distribution...
Words: 3317 - Pages: 14
...Wal-Mart and the Ethical Dilemma Presented to: Dr. Robert D. Gulbro In completion of MGT 5013 Organizational Behavior Florida Institute of Technology By: Felix Knight Wal-Mart was started by Sam Walton in 1962; the first store was in Rogers Arkansas. By the beginning of the 1970’s, Wal-Mart had grown to 1,500 employees and 44.2 million dollars in sales. The company also went public in 1970. The company’s growth continued throughout the decade, with the employee count reaching 21,000 by 1980 with $1.2 billion dollars in sales. Wal-Mart made its first acquisition, buying 16 Mohr-Value stores. In 1983, the first Sam’s Club warehouse opened followed by the first Wal-Mart Supercenter in 1988. By the end of the decade, the company had over 1,402 Wal-Mart and 123 Sam’s Club locations and $26 billion dollars in sales – an increase of 2,600% over the decade. Today, Wal-Mart is the world’s largest retailer, with $405 billion in sales, over 4,300 stores, and 2.1 million employees (Duke, 2010, p. 0). One hundred shares of Wal-Mart stock purchased for $1,650 when the company went public would have grown to 204,800 shares worth over $10.1 million as of July 9, 2010 for a return of 613,431% (“Dividends & stock splits”, 2010, July 9) (“Wal-Mart (WMT) stock quote” 2010, July 9). Daft (2008) stated “Wal-Mart is the largest retailer in the United States” (p. 129). Wal-Mart’s 2010 annual report provides the mission statement of the...
Words: 4186 - Pages: 17
...1. What is the ethical dilemma facing Wal-Mart in this case? Do Wal-Mart’s associates also face an ethical dilemma? If so, what is it? Wal-Mart faces the ethical dilemma of Quality of Life. While there are many components discussed in the book that comprise quality of life, the one component most subject to violation by Wal-Mart would be Maintaining Boundaries. The flexible schedule system being implemented by Wal-Mart does have business value, but at what cost? Wal-Mart rationalizes the system by focusing on improving customer service. “Our main goal is to ensure that we have the correct number of associates in our stores needed to serve the customers shopping which we believe results in better customer service hour by hour” (clwill.com). The problem is that many associates of Wal-Mart have been affected by the flexible schedule in a negative way. The flexible schedule makes it difficult for employees to plan babysitting needs or prevents them from having Wal-Mart as a second or third job. That means workers may not know when or if they will need a babysitter or whether they will work enough hours to pay that month's bills. Rather than work three eight-hour days, someone might now be plugged into six four-hour days, mornings one week and evenings the next (Maher, Kris 2007). 2. What ethical principals apply to this case? How do they apply? There are two ethical principals that apply to this case for Wal-Mart. The first is the The Golden Rule, which states “Do unto others...
Words: 1883 - Pages: 8
...Wal-Mart in China In the United States, Wal-Mart has become the leader of all retail stores and is the largest retailer than any other dominating the industry with stores in the international market. The company operates in 27 countries including Canada, and the United Kingdom (Farhoomand, & Wang, 2008; Wal-Mart, 2014). Wal-Mart was founded in Rogers, Arkansas by Sam Walton (Wal-Mart, 2014); and throughout the years it grew into a successful business. When Mr. Walton created Wal-Mart, he defined his business in three distinct objectives: individual respect, customer service, and strive for excellence (Hayden, et al., 2002). At that time, he utilized the “pricing philosophy” as one part of his corporate management strategy; this technique involved selling high quality, brand name products at the lowest price and has remained the same since Mr. Walton first opened the store (Farhoomand, & Wang, 2008; Hayden, et al., 2002, p. 16). Wal-Mart became a departmentalized, discount retail business and although the company launched its business in small-towns it expanded into larger cities (Farhoomand, & Wang, 2008; Hayden, et al., 2002). To accomplish his corporate aforementioned goals, Sam established two distinct rules; the first, the “Sundown Rule” in which an associate must logically provide an answer to a request or question from a customer or supplier within 24 hours (Hayden, et al., 2002, p. 16). Second, the “Ten Foot Rule” in which “an associate must greet, smile, and attend...
Words: 1469 - Pages: 6
...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...
Words: 1935 - Pages: 8
...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...
Words: 3388 - Pages: 14
