...Walmart Case Study Case study Questions and Answers: 1- Examine the development of Wal-Mart over its 40 year history. It is now nearly half a century since Walmart exists. From humble beginnings in the 1960s in Arkansas to the world’s leading retailer, Walmart has come a long way to its success. Starting domestically in Arkansas, it was dedicated to its principals; genuine customer courtesy, a culture of respect for the individual and everyday low prices. In the 1960s, Sam Walton, the founder of Walmart, started his business with a strong foundation which is providing everything to customers with low prices they can afford. From that time forward, Walmart kept its low price strategy and in return it became bigger and bigger. The company at this decade reached $ 12.7 million in sales and was incorporated as Wal-Mart stores, Inc. In the 1970s, the most appealing development in this decade was listing the company on the New York Stock Exchange (WMT). Also at that time, Walmart was growing nationally. In the 1980s, Walmart decided to take the lead among other businesses. The first Sam’s club opened to serve individuals and small businesses, the first supercentre opened in Washington that combines a supermarket with a general merchandise in order to provide one-stop shopping experience. We can say that the 80s in Walmart history was aiming to make things easier for its customers. That was clear when Walmart installed the biggest private satellite communication system in the...
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...Walmart Case Study Unit I Walmart makes the right decision to drop “Always low prices. Always.” Switching to their new slogan “Save Money. Live better.”, is a way for them to bring in new customers, while still keeping the low prices that their existing customers love and expect. Sam Walton’s vision for Walmart that drove his marketing plan was that “low prices would lead to better living for customers.” (Ghazzawi, 2014 ) Consumers value a better life over just getting lower prices. A recent advertising campaign show Walmart customers-firefighters, accountants and teachers-telling people what they are doing with the money they saved shopping at Walmart. These things ranged from investing in college to affording braces for their kids. (Buss, 2014). Another campaign stated, “Walmart saves the average family about $3100.00 a year, no matter where they shop.” (Kotler, Keller, 2012) Pointing out the benefits of more savings, like the ability to travel with your family or afford college tuition resonates strongly with consumers who may feel like they are working harder and longer hour, yet still struggling to make ends meet. The opportunity to get a quality product while saving money is a big selling point. Walmart's strategy to reinforce the value of spending time with your family and enjoying life is a smart and profitable decision. A few a steps that Walmart can take to protect themselves when the economy is on the rise. Building a stronger customer loyalty helps...
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...Walmart Case Study Beth R. Thornhill Organization The relevance of choosing Walmart lies in their enormous growth and their strategies to be and maintain their competitiveness in the free-market. Some of their strategies were outlined by San Walton, founder of Walmart include: Sam Walton’s strategy of, “If we work together, we’ll lower the cost of living for everyone…we’ll give the world an opportunity to see what it’s like to save and have a better life.” (Walmart.com) Background on Walmart Walmart serves customers and members more than 200 million times per week at more than 10,130 retail units under 69 different banners in 27 countries. With fiscal year 2012 sales of $443 billion, Walmart employs 2.2 million associates worldwide. Walmart was founded in 1962, with the opening of the first Walmart discount store in Rogers, Ark. The company incorporated as Wal-Mart Stores, Inc., on Oct. 31, 1969. The company's shares began trading on OTC markets in 1970 and were listed on the New York Stock Exchange two years later. The company grew to 276 stores in 11 states by the end of the decade. In 1983, the company opened its first Sam’s Club membership warehouse and in 1988 opened the first supercenter -- now the company’s dominant format -- featuring a complete grocery in addition to general merchandise. Walmart became an international company in 1991 when it opened its first Sam's Club near Mexico City. (Walmart.com) Background on Walmart Strategy Traditionally, Walmart...
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...Sustainability Strategy Case Study Question 1: “How is the company deriving value from its sustainability practices?” Walmart has been deriving value from its sustainability strategy through multiple factors. First of all, Walmart was able to create value by introducing new revenue streams from sustainable projects. For example the recycling initiative would create revenue stream that would otherwise not have been realized. Walmart has also created value by creating transparency within its own supply chain. By being directly involved with its suppliers, it was able to manage its supply chain. Walmart’s goal via its networks was to influence stakeholders, primarily its suppliers, to initiate sustainable practices that would be in line with Walmart’s values. By doing so, Walmart has to monitor every supply chain participants, and by doing so, they were able to eliminate redundant channels in the process. For example, instead of having a product manufactured and assembled in two different countries, Walmart was able to eliminate unnecessary channels by understanding the process, and thus creating a more efficient supply chain that is both innovative and cost effective. Another thing that they did was their overall cost reduction in the value chain processes. It was able to reduce inefficiencies in packaging, transportation, and waste, among other factors. By doing so, it sees the potential cost reduction in the long run. Furthermore, Walmart derived future long-term...
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...Management Information Systems Assignment ON “Walmart Retail Link Case Study” MASTER IN BUSINESS ADMINISTRATION MBA++, FIRST YEAR IS SUBMITTED BY VAIBHAV AGHADATE (ROLL NO - 15227) CONCERNED FACULTY Prof. A.G. JOSHI DEPARTMENT OF MANAGEMENT SCIENCES PUMBA Q1. Where does Walmart’s supply chain start ? What triggers Walmart’s retail link system to ship goods to local Walmart store ? ANS : Walmart has one of the best supply chain management systems in retail. Walmart’s supply chain starts from the manufacturer as they have B2B supply chain management. Delivering the right product at the right time to the right customers is the core objective of Supply Chain Management of Walmart which leads to well stock of goods to their every retail store. Q2. Why is the detailed knowledge of consumer purchases at each store important to Walmart’s success ? ANS : Detailed knowledge of consumer purchases at each store is important because : 1) Walmart can identify which products they must keep in their stores in which region so that customers will be attracted. 2) Walmart can predict customers behavior depending on weather and forecast the demand and supply accordingly. 3) Walmart is always aware about every single products quantity to be provided in the store which is coming to end. Q3. Why can’t other retailers easily duplicate Walmart’s retail link ? ANS : Walmart has large network and it is more secure so it is difficult to duplicate. Also they have well...
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...citizen." But that was before the U.S. government began to probe whether its contractors knowingly hired illegal immigrants to clean stores. Earlier this month, researchers at the University of California at Berkeley released a study pointing out that because Wal-Mart's 44,000 workers in California must rely on public assistance programs, the company's business practices end up costing taxpayers US $86 million a year. (Maich, 2004) Walmart's Mid-Life Crisis Key Issues Insufficient Employee Wages * A study conducted by researchers at the University of California at Berkley concluded that 44,000 Walmart employees in California relied on public assistance. According to the study, this costed Californian taxpayers $86 million a year. This data was also the foundation of a lawsuit against Walmart in 2001. Discrimination * A noticeable lack of diversity in the corporation’s management ranks implied women and minorities were not afforded the same opportunities as their male, non-minority counterparts. Business Footprint * An aggressive business approach led to the rapid opening of hundreds of stores to the disdain of many who insisted Walmart was increasingly infringing upon their communities. Underlying Issues Lack of a Union * North American Walmart employees finally became members of a union in 2004, more than 40 years after the retail...
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...Joyce Layne Wal-Mart a Case Study Managerial Accounting February 4, 2015 ------------------------------------------------- History Walmart was originally founded by Sam Walton, who opened the first store in Rogers, Arkansas in 1962. His original vision was to bring everyday low prices to more rural areas by building large discount stores in small towns. While other competitors focused on populations greater than 500,000 this gave Walmart a chance to grow in smaller markets without much competition. Walton also introduced a process using what he called “Best Yesterday” ledgers which takes ledgers for a specific date and compares the information with the same date from the previous year to see the change in sales. Employees were rewarded by profit sharing and received rewards based on percentage of decrease in loss due to theft. ------------------------------------------------- Success By the end of 2005 Walmart, INC was the world’s largest retailer and the largest private sector employer in the world. The supply chain and logistics of the company is only second to the capability found in the Pentagon. This occurred by not only having the best computer system but also by having stores and distribution centers strategically placed so that any truck leaving the distribution facility could reach a store location in one day’s drive. Due to the large volume shipping needs of the distribution centers Wal-Mart owned a fleet of more than 6100 trailer trucks and employed...
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...WALMART Andrew Louis Webster University MNGT 5650 Kenneth Chapman Wal-Mart study Case#1 1. What threats and challenges is Wal-Mart currently facing? From the beginning, Walmart did not have many threats. However, not only the competition is different, several global retailers such as Target, Carrefour, Costco, and Amazon, are working hard to keep efficiency. They are trying to work together to shrink the prices difference between them. Walmart has facing difficulties from every single angle. Not only the company has internal labor relation problems, but also it has some external threats from its competitors. The company must work hard to get possible solutions against its competitors, and to solve any internal problems regarding its labor relations. Even though Walmart does not have any problems with its good sales performance, it does not stop the company to have issues with sales. Walmart needs to pay attention because there are too many claims from women regarding the lawsuit discrimination for several reasons inside the company such as pay, promotions, and training. The company has no other recourses to re-evaluate the situation to make its employees feel better as far as the coverage is concerned. There are several companies in the United States that offer better health insurance coverage than Walmart does. As a result, a re-evaluation is necessary so that associates can pay less with a higher contribution of the company. Life insurance is important for...
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...Wal-Mart Case Study Introduction Wal-Mart Stores, Inc. is the largest retailer in the world and also the world’s largest private employee. One can walk into almost any Wal-Mart Supercenter and get a haircut, buy groceries, cash a check, get an exam with prescription glasses or contact lenses, fill medical prescriptions, or even have your car’s oil changed and tires rotated. Wal-Mart is able to provide all these services to consumers around the globe while offering more choices or varieties, while almost always offering better prices than there competitors. Since Wal-Mart is the world’s largest private employees, they are probably the most scrutinized company in the world. This is probably because of the high amount of part-time employees, or the public’s negative perception that they “squeeze their suppliers”, or because they are “killers of mom and pop stores”. This paper will attempt to discuss threats and challenges that Wal-Mart faces while also discussing the different strategies and initiatives that the Wal-Mart management team used to meet those challenges and neutralize threats. History Wal-Mart was founded by Sam Walton and the first Wal-Mart store opened in 1962 in Rogers, Arkansas. Less than ten years later, Wal-Mart 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 (Wikipedia, 2012). Wal-Mart now has stores all over the...
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...Wal-Mart Case Study Elijah Anthony, Jr MNGT 5650 Feb. 11, 2012 Introduction Wal-Mart Stores, Inc. is the largest retailer in the world and also the world’s largest private employee. One can walk into almost any Wal-Mart Supercenter and get a haircut, buy groceries, cash a check, get an exam with prescription glasses or contact lenses, fill medical prescriptions, or even have your car’s oil changed and tires rotated. Wal-Mart is able to provide all these services to consumers around the globe while offering more choices or varieties, while almost always offering better prices than there competitors. Since Wal-Mart is the world’s largest private employees, they are probably the most scrutinized company in the world. This is probably because of the high amount of part-time employees, or the public’s negative perception that they “squeeze their suppliers”, or because they are “killers of mom and pop stores”. This paper will attempt to discuss threats and challenges that Wal-Mart faces while also discussing the different strategies and initiatives that the Wal-Mart management team used to meet those challenges and neutralize threats. History Wal-Mart was founded by Sam Walton and the first Wal-Mart store opened in 1962 in Rogers, Arkansas. Less than ten years later, Wal-Mart had 38 stores operating with 1,500 employees and sales of $44.2 million. It began trading stock as a publicly held company on October 1, 1970, and was soon...
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...A Corporate Giant Or A Corporate Beast Introduction This case discusses: • • • • • • Introduction to Wal-Mart History of Wal-Mart The Road to Success - Corporate Strategy The Criticism and the Challenges Wal-Mart’s PR strategy The Road ahead Wal-Mart – An Introduction • American public corporation that runs a chain of large, discount department stores • World's largest public corporation by revenue • Largest private employer in the world • Fourth largest utility or commercial employer • Largest grocery retailer in the United States ( 20% ) • Largest toy seller in the United States ( 22% ) Wal-Mart at a Glance • • • • • • • • • Founded - Arkansas, USA(1962) by Sam Walton Headquarters - Bentonville, Arkansas, U.S.A. Products - Discount Stores, Super centers, Neighborhood Markets Revenue - US$ 351.1 billion (2007) (Ranked # 1 on Fortune 500 list) Net income - US$ 11.3 billion (2007) Total assets - US$ 151.193 billion (2007) Total equity - US$ 61.573 billion (2007) Employees - 1.9 million (2007) Slogans - The Lowest Prices. Guaranteed! - Save Money, Live Better (U.S.) - WE SELL FOR LESS every day! (Canada) Wal-Mart at a Glance (contd..) • • • • • List of Assets In U.S.A.Wal-Mart Stores Division U.S. (3,900) Wal-Mart Discount Stores (1,033) Wal-Mart Super centers (2,349) Wal-Mart Neighborhood Markets (124) Sam’s Clubs(585) Internationally• Stores in 14 countries outside U.S. (2980) • Joint venture with Bharti Enterprises to enter India(2006) History of Wal-Mart • Sam...
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...WAL-MART’S CURRENT STRATEGY INTRODUCTION Wal-Mart operates more than 11,000 retail units under 69 banners in 27 countries and e-commerce websites in 10 countries. (Wal-Mart.com) They employ 2.2 million associates around the world; 1.3 million in the U.S. alone. Wal-Mart provides general merchandise: family apparel, health & beauty aids, household needs, electronics, toys, fabrics, crafts, lawn & garden, jewelry and shoes. Also, the company runs a pharmacy department, Tire & Lube Express, and Photo processing center as well (www.Wal-Mart.com). When Sam Walton created Wal-Mart in 1962, he declared that three policy goals would define his business: respect for the individual, service to customers, and striving for excellence (www.Wal-Mart.com). Wal-Mart's corporate management strategy involves selling high quality and brand name products at the lowest price. In order to keep low prices, the company reduces costs by the use of advanced electronic technology and warehousing. It also negotiates deals for merchandise directly from manufacturers, eliminating the middleman. This paper will analyze Wal-Mart's current strategy and challenges. In addition, I will discuss the threats and challenges facing Wal-Mart currently, priorities set by Wal-Mart CEO Lee Scott. I will also discuss the proposals outlined in the “Supplemental Benefits Documentation: Board of Directors Retreat FY06,”the result of the Board Benefits Strategy document leak, Wal-Mart initiatives from...
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...Problem Statement: Wal-Mart is one of the world’s largest companies and largest retailer in the world, with over 5,000 stores around the world and nearly 2 million employees there is no reason for this company not to be highly successful. Although Wal-Mart as whole is a highly successful company, they still have problems like every other company. Through Wal-Mart’s history they’ve encountered many obstacles and complications on the way to the top. Most of these problems have found a solution but Wal-Mart still has major and minor problems. Whether new problems or past ones still lingering, either way with a problem you must have solution. Especially with a multi-billionaire company such as Wal-Mart you want to be as efficient and eradicated of as much problems as you possibly can. Major Problem: Wal-Mart International In the highly successful world of Wal-Mart they face a problem most companies also have trouble conquering and that is going international. Wal-Mart International is a success in its own right, as it still is the world’s largest retailer but it’s just not successful on its own standards. Wal-Mart conquered North America with successful ventures in Canada and Mexico but not so successful in some countries over seas such as Germany and Japan. Wal-Mart expanded to Germany & Japan in the late 90’s and early 2000’s and for a long time was unprofitable in both regions. Whether its Wall-marts approach on new markets or forcing their culture too quickly, something...
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...Define Wal-Mart’s strategy Traditionally, Wal-Mart has essentially had a low-cost, high volume strategy. The strategy aims at customer satisfaction through low prices and relatively good customer service. Here are the basic details. • Low cost: Wal-Mart has lower operating expenses than the industry average. The primary cost advantage is Wal-Mart’s superior distribution capability (location of stores, inside-out growth patterns, cross-docking, superior information management). Quantitative details on cost advantage are set forth in Section 3 below. • High Volume: Industry analysts watch Wal-Mart’s growth of sales figure very closely. Wal-Mart’s prices are low by the industry standard, which, combined with its lower costs, indicates a strategy that aims at growth in volume through grabbing increased market share (cf. Dell). • Customer Satisfaction: Low prices, advanced data management and extremely motivated employees (“10 ft rule”, “sundown rule”) means a better customer experience than at other discount retailers, even though Wal-Mart remains a self-service retailer. In addition, the large size of the traditional Wal-Mart stores adds convenience by offering a one-stop solution by offering a wide range of products. In the words of Sam Walton, “Wal-Mart’s aims at creating a loyal customer base by lowering their cost of living through offering quality and other products at significantly lower prices, while surprising them on the convenience and service level side.” It’s...
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...1. Compare and contrast Wal-Mart’s efforts in Germany and South Korea with its operation in China? After more than a decade, Wal-Mart left Germany failing to become the popular “Everyday Low Prices” all in one shopping spot as it is in the U.S. Walmart has also failed abroad in other countries such as South Korea. There were only 16 stores in South Korea and was eventually sold out to a Korean discount chain, Shinsegae, for $882 million dollars. Reasons why Wal-Mart fails in these countries occur from the lack of strategic plan, other than the duplication of the U.S. strategy. The strategy of low prices, keen inventory control, and a huge selection of goods was not a success in German and Korean markets. The culture was also a factor that Wal-Mart needed to consider and alter their strategy before entering Germany and South Korea. For example, in Germany the company had American managers that like in the U.S. offer to bag groceries while Germans like to bag their own groceries. Also, the customer service was translated into being overly friendly with customers where smiling and greeting is not a norm in Germany. In addition, Wal-Mart never established relations with labor unions. In Korea, the racks were taller than that of competitors which raised a problem for people having to use ladders to reach items and the infrastructure also turned customers off with ceilings that showed pipes while their competitor E-Mart had decorated ceilings. Having failed to the tastes of South Korean...
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