...Wal- Mart Jose Vasquez MGT 230 MAY 20, 2014 Melanie Behunin Wal- Mart In a variety of business environments around the world, four management functions are usually found. The four functions of management are planning, organizing, leading, and controlling. Planning occurs within these functions of a business, and it helps to deliver strategic value. Organizing will build a dynamic organization and leading will mobilize people. Controlling is part of learning and changing as the organization grows. All four functions of management are the key concept to effective management. Internal and external factors influence the decision-making process that affects management. The competitive landscape is constantly changing; therefore, managers must consider people and businesses around the world. These are used from top-level management to frontline or organizational management. Globalization, technology, innovation, diversity and ethics are factors that affect these business functions. One can examine almost any organization and find this to be true. Wal-Mart is one of the leading retail organizations in the world whose management functions are affected by these factors. Opening its doors in Rogers, Arkansas, Wal-Mart started a profitable business in 1962. The founder, Sam Walton, could never have envisioned where his company would be in the present. Earning approximately $30,000 in 1962, Wal-Mart has evolved into a multi-billion dollar company earning over $15 billion in 2011...
Words: 1797 - Pages: 8
...When Sam Walton opened the first Wal-Mart in Rogers, Arkansas in 1962, he never expected his discount store to ever become the nation’s No. 1 retailer. In May of 1971, after being officially incorporated as Wal-Mart Stores Inc., Wal-Mart began selling shares as a publicly-held company and its stock experienced its first 100% split, at a market price of $47. By 1990, Wal-Mart had become the nation’s No. 1 retailer and by the end of the decade, the largest private employer in the world, with 1.14 million associates. Soon after, H. Lee Scott Jr. was appointed as the third CEO of Wal-Mart Stores Inc. In 2005, Scott introduced the company’s new commitment to bring environmental sustainability into its business and passed his success onto his replacement as president and CEO, Mike Duke, on February 1, 2009. Today, Wal-Mart has 7,800 stores and club locations in 14 different markets, employing more than 2 million associates, and serving more than 176 million customers a year. Wal-Mart is a public corporation that runs a chain of large department stores. Three business subsidiaries comprise Wal-Mart’s operations: Wal-Mart Stores, Sam’s Club, and Wal-Mart International. The nine retail formats of the company include “supercenters, food and drug stores, general merchandise stores, bodegas (small markets), cash and carry stores, membership warehouse clubs, apparel stores, soft discount stores and restaurants” (p. 17). Studies show that the customer base for discount retailers has been...
Words: 2449 - Pages: 10
...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...
Words: 3410 - Pages: 14
...Wal-Mart de Mexico Note: Most of this material is adapted from David Barstow, “Vast Mexico Bribery Case Hushed Up by Wal-Mart After Top-Level Struggle,” New York Times, April 22, 2012. In September 2005, a senior Wal-Mart lawyer received an alarming e-mail from a former executive at the company’s largest foreign subsidiary, Wal-Mart de Mexico. In the e-mail and follow-up conversations, the former executive described how Wal-Mart de Mexico had orchestrated a campaign of bribery to win market dominance. In its rush to build stores, he said, the company had paid bribes to obtain permits in virtually every corner of the country. The former executive gave names, dates and bribe amounts. He knew so much, he explained, because for years he had been the lawyer in charge of obtaining construction permits for Wal-Mart de Mexico. Wal-Mart dispatched investigators to Mexico City, and within days they unearthed evidence of widespread bribery. They found a paper trail of hundreds of suspect payments totaling more than $24 million. They also found documents showing that Wal-Mart de Mexico’s top executives not only knew about the payments, but had taken steps to conceal them from Wal-Mart’s headquarters in Bentonville, Ark. Wal-Mart de Mexico was the company’s brightest success story, pitched to investors as a model for future growth. (Today, one in five Wal-Mart stores is in Mexico. Wal-Mart now employs 209,000 people in Mexico, making it the country’s largest private employer. ) ...
Words: 1983 - Pages: 8
...Since 1962, Wal-Mart has lived by founder Sam Walton’s core strategy: “the lowest prices anytime, anywhere.” The first Wal-Mart originated in Rogers, Arkansas and within five year, twenty-four stories has since popped up around the nation. Today, according to the Wal-Mart Corporate website, there are more than 11,000 stories in over 27 countries worldwide. The company also employs over 2.2 million employees throughout all of its stores and sees an average of 200 million customers a week. Even though Wal-Mart produces thousands of jobs each year and maintains consistently low prices, the public’s view of the company as a whole is a less than desirable one. Through its commercials, Wal-Mart tries to portray itself as an All-American wholesale...
Words: 738 - Pages: 3
...Wal-mart 2013 Principles of Management Wal-Mart and Effective Management Karwan S. Othman Wal-Mart, United States Of America Wal-Mart at Its Peak Wal-Mart is the largest retailer worldwide; the reasons may vary from different functional fields of the company. Fifty years ago, the company started the business based on the lowest prices that could be offered to customers. Since then, Wal-Mart is “Everyday low price” pricing strategy to maximize the sales as much as possible. Besides of that, it is using the current technology to keep track on every single sale at each store among all the stores in around forty countries. New financial systems through the new technology being in charge enable the company to manage the financial systems of each single store. Wal-Mart’s mission is to get to zero waste and highest sales among the other retailers. It is been said that Wal-Mart is doing the best of retailing, and it is because of various aspects of the organization although I believe planning, low pricing, using modern information systems and controlling strategies are the most vital characteristics of the organization’s triumph. Wal-Mart is established based on lowest prices possible for customers, and that is one of the most significant factors of the company’s success. Everyday low pricing, EDLP is a strategy that organizations use to offer low prices than common prices of products which would encourage customers to purchase without waiting for sales. According to the...
Words: 1906 - Pages: 8
... Planning: For the Porter’s generic strategies, Wal-Mart is overall cost leadership strategy, because Wal-Mart’s mission is “Save money. Live better.” It always low prices, and using this strength to attract customers. Moreover, for the Miles and Snow’s strategy, Wal-Mart is the type of analyzer which incorporates elements of both the prospector and the defender, because Wal-Mart is not only defending its current market by lowering its cost, but it also seeks out the market opportunities that expand its scope of globalization. Wal-Mart has over 7100 stores worldwide and more than 4000 in America, so Wal-Mart is also a global strategy company. It views the world as a single marketplace and addresses the needs of the customers worldwide. Wal-Mart has proactive stance for the social responsibility. This company always does feedbacks to the society. In this article, Wal-Mart donates 4 million dollars to a city program that offers summer jobs to young people. This behavior helps finance 3400 jobs. CSR can also motivate employees and strengthen brands, while also providing benefits to society. References: “Always low prices”. The Economist, 29 Feb. 2008. http://www.economist.com/node/10727908 Javier, C. Hernandez. “As It Campaigns to Build in the City, Wal-Mart Donates $4 Million”. The New York Times, 05 July. 2011 http://cityroom.blogs.nytimes.com/2011/07/05/as-it-campaigns-to-build-in- the-city-wal-mart-donates-4-million/ Organizing: Walmart's business...
Words: 970 - Pages: 4
...Wal-Mart Cross-Cultural Perspectives Timothy Johnson ETH/316 Ethics and Social Responsibility July 3, 2014 Rodney Adams Wal-Mart Cross-Cultural Perspectives The subject of whether ethical and social issues should be a major concern for businesses is frequently debated, expressly in an arrangement of compositions from Larry Summers, Bill Gates, and many others. In recent times, a book called Creative Capitalism was put in print to discuss this very issue. There are varying opinions in regards to the cross-cultural perspectives of cultural issues that affects the organization’s interactions outside the United States. Nevertheless when you see the optimistic influence from the intention of a favorably image conscious Wal-Mart is producing in China, it undoubtedly indicate that individuals advocating for ethical and socially conscious organizations may be as it should be. Even as Wal-Mart‘s national establishment has grappled over the course of one year, Wal-Mart’s global establishment hasn’t performed effectively as well. Propelled by difficulties in China, Mexico, and Brazil, Wal-Mart’s global revenues “grew by a mere 1% in 2013 and its revenue per square feet declined by 4.2%.” (Team, 2014) Now that Mexico is Wal-Mart’s principal global site, austere outcomes from Mexico are an immense consternation for the mega department store. The China market is also crucially imperative to Wal-Mart in regards to enduring perspective, despite the...
Words: 1186 - Pages: 5
...In the News… Week 5 Business Policy Wal-Mart vs. Compliance By Daniel Williams Student of DeVry University Professor Bethany Poore Compliance with laws and fairness are a major hurdle for most companies. There is a fine line between paying someone for their services and giving them money for an upper hand. Recently there have been allegations against Wal-Mart for some unethical behavior in foreign countries. This has created such uproar that investors are now suing top Wal-Mart executives. Several board members involved in the scandals are being asked to step down from their positions by some shareholders (D'innocenzio, 2012). Wal-Mart CEO Mike Duke has come forward to reassure the public that Wal-Mart will take care of the problems and make things right. The scandals came about when the New York Times came out with a story stating Wal-Mart had allegedly bribed key foreign official. Then Wal-Mart failed to notify law enforcement after finding evidence that officials authorized millions of dollars in bribes in Mexico (Clifford, 2012). The alleged bribes where meant to get speedier building permits and other favors. Shock and dismay can be used to describe the public’s reaction to the recent controversy. Wal-Mart has been polishing their image so they can win over the public and create a feeling of trust. Mexican president Felipe Calderón recently stated he was “indignant” over Wal-Mart’s behavior (Clifford, 2012). The Mexican government is now looking...
Words: 907 - Pages: 4
...has long emphasized visibility through the sharing of information with their suppliers. Although there are hundreds of logistical functions which allow Wal-Mart to be the price and logistics leader, the focus will be primarily on the company’s newly adopted strategy of making logistical processes “green” and more environmentally conscious. According to the Supply Chain Management Review, Wal-Mart CEO Lee Scott committed the company to three ambitious goals: to be supplied 100 percent by renewable energy; to create zero waste; and to sell products that sustain Wal-Mart’s resources and the environment. Wal-Mart’s 14 Sustainable Value Networks, the Network’s structure, new “green” logistics technologies, and additional future initiatives will be considered along with counter arguments which suggest that Wal-Mart’s green initiative is simply unsustainable. The main sticking point seems to be the same one that has long held back the adoption of better light bulbs, home solar panels, or hybrid cars. Upfront costs are unavoidable; and the promise of potential savings down the road does not resonate with consumers, or smaller Wal-Mart suppliers, the same way it does with big corporations. So that’s the big question: How much will Wal-Mart invest in green technologies now to clean up its act down the road? Introduction Wal-Mart has undergone many...
Words: 768 - Pages: 4
...THE CASE ON WAL-MART: Employee Rights In 1998, Barbara Ehrenreich, a social critic and journalist, embarked on a ground-breaking experiment. To understand the typical low-wage worker, she left her comfortable life and took on various jobs and attempted to survive on minimum wage in three different places in the nation. One of her stops was Minneapolis, Minnesota, where she was employed by Wal-Mart, America’s largest employer employs with approximately 1.3 million workers in this country alone. Founded in 1962, Wal-Mart was Sam Walton's vision of great customer service and was meant to be a way to lower the cost of living in America. However, it seems that the corporation chooses to forgo certain issues such as fair wages and decent healthcare for its employees, so that they may afford their low, low prices. In her New York Time’s Bestseller, Nickel and Dimed, Ehrenreich states that “[u]nderneath those vests […] there are real-life charity cases, maybe even shelter dwellers” (175). Ehrenreich’s claim that Wal-Mart employees are dreadfully paid and mistreated are still accurate today, seven years later, as is evident by the statements of current statistics and recent articles that Wal-Mart continues to pay their employees minimum wage while the company’s CEO has a multimillion dollar salary, fails to provide decent health benefits to half of their employees causing these workers to rely on the government, and is strongly anti-union so that the company can continue to exploit...
Words: 1038 - Pages: 5
...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 of the retail stores around the world, and provides a large array of common merchandise involving: groceries, apparel, electronics and...
Words: 3399 - Pages: 14
...The Wal-Mart Corporation Letitia L. Bryant-Busby University of Phoenix-Online Campus Sam Walton purchased a store from Luther E. Harrison in Bentonville, Arkansas on May 9, 1950. This first store was called Walton's 5 & 10. By 1952, Sam Walton took 95 percent of his capital and opened the first Wal-Mart Store. By 1960, Sam Walton had eleven stores. He managed this by keeping sale prices lower than his competitors by reducing his profit margin. That same year, he was able to open his own discount chain in Rogers, Arkansas. Walton had an assistant named Bob Bogle who came up with the chains name. Wal-Mart is still the leader in the retail industry. Famous for their slogan “Always Low Prices”. This company has, for years, prided themselves as the low price leader, striving to put the lowest cost items possible on their store shelves. The key players of Wal-Mart today are Mike Duke, President and CEO, Charles Holly, CFO and Rob Walton. Analysis of financial ratio for Wal-Mart over the last three years shows comparison that identifies areas in which the company could enhance the process through capital management. Wal-Marts' current ratio shows the company has a substantial debt at the end of each year which has to be paid off by the end of the following year. Although the failing economy has had a devastating toll on most of us, Wal-Mart has shown a steady increase of its annual dividend of 21 per...
Words: 599 - Pages: 3
...Case Study – Strategy Development in the Global Food Retail Supermarket Industry Introduction In order to develop a global strategy, the deep understanding of the term ‘globalization’ is very important for every company. Globalisation: The globalization increases the mobility of goods. Globalization is a term describing different complex ideological, political, environmental and cultural forces as one world. During World War II, the national boundaries got faded and financial markets, information services, manufacturing concerns as well as cultural products have made themselves available to the whole world. American hamburgers are available in Tokyo today and Japanese cars gets assembled and marketed in America. Virtually everybody is connected through Internet throughout the world. The world around us seems completely borderless. (Steger, 2009) The globalization of food retail super market industry has developed extensively in the supply chain retailing. It has made a greater impact on the public consumer market. The globalization has forced the local food retailers to think beyond retailing in the domestic markets for sustainable growth and presence. The global food retailing industry is a complex collection of diversified supermarket chains, independent food stores, and direct-to-consumer services that supply much of the food consumed today. The successful food retailers usually follow two strategic formats which are as follows: * Discount Outlets These kind...
Words: 3699 - Pages: 15
... 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 Walton - The man behind it all • Born in a farmer’s...
Words: 4841 - Pages: 20
