...Wal-Mart, 2005 At the start of 2005, Wal-Mart was up to nearly $260 billion in sales, managed over 5,000 stores in 10 different countries, and was an employer to over 1.5 million people worldwide- making it the largest supercenter, the largest company in the world. As of 1998, Wal-Mart began closing many of the original discount stores and opening supercenters in their place that provided “one-stop, round-the-clock family shopping,” with everyday low prices and convenient store hours. Supercenters doubled the size of the discount stores, employed over 200 and offered over 100,000 items (30,000 being grocery products). Some supercenters also consisted of specialty shops and others opened in urban areas as simply neighborhood markets offering limited drugs and groceries. Wal-Mart also continued to run the widely distributed warehouse clubs, SAM’S CLUBS, which directly competed with Costco and BJ’s Warehouse. By 2004, Wal-Mart maintained over 3,200 locations in the U.S., nearly 900 locations in the Americas (non U.S.), over 350 in Europe, and over 440 in Asia. Wal-Mart’s strategy began with the goal to provide customers with the goods they wanted when and where they wanted them. Wal-Mart then focused on developing cost structures that allowed it to offer low everyday pricing. This operational strength evolved from their strategic use of IT systems. These systems interchangeably shared information within stores, across stores, and with suppliers for forecasting, planning, replenishing...
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...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...
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...Wal-Mart's Globalization Efforts Over the years Wal-Mart has grown by leaps and bounds. Their presents has now been seen in "thirteen international markets" (Ball, Donald A.; Geringer, J. Michael; Minor, Michael S.; McNett, Jeanne M. 395). They began in Mexico, in 1991. From there they moved into Canada (1994), Hong Kong (1994), Brazil (1995), Argentina (1995), China (1996), Indonesia (1996), Germany (1998), South Korea (1998), the United Kingdom (1999), Japan (2002), Guatemala (2005), El Salvador (2005), Honduras (2005), Nicaragua (2005), Costa Rica (2005) and India (2007). Although they were not successful in every market, Wal-Mart is looking towards the future and the possibility of moving into Russia and South Africa. 1991 Wal-Mart made its first appearance in the international market in Mexico City. "The company used a 50-50 joint venture" (Ball, Donald A.; Geringer, J. Michael; Minor, Michael S.; McNett, Jeanne M. 396). Although they were not a new chain, Wal-Mart still made a few mistakes when entering a new country. "They had a huge American-style parking lot… [however] customers came in via buses not cars" (Mahajan-Bansal). They also made mistakes with product mix, trying to sell products that were not needed and sometimes not usable. They quickly figured out how to solve these small problems and Wal-Mart is now the number one retailer in Mexico (Mahajan-Bansal). 1994 Wal-Mart "entered Canada by acquiring 122 Woolco stores" (Ball, Donald A.; Geringer...
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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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...3—Summer 2007—Pages 177–198 The Causes and Consequences of Wal-Mart’s Growth Emek Basker W al-Mart plays a large and ever-growing role in the U.S. economy. As of January 31, 2007, Wal-Mart operated more than 3,400 U.S. Wal-Mart stores along with more than 550 Sam’s Club locations. Wal-Mart is the largest private employer in the United States, with 1.3 million employees, and the largest retailer in the United States. In 2004, Wal-Mart handled 6.5 percent of U.S. retail sales (8.8 percent if automobile sales are excluded); this number has since increased. Wal-Mart is the top U.S. seller of apparel, groceries, and music, among other products, and is the top retailer in most states. Wal-Mart’s 2005 revenues exceeded those of the next five U.S. retailers combined; these are Home Depot, Kroger, Sears Holding Company (which includes Sears and Kmart), Costco, and Target (Schultz, 2006). Wal-Mart currently accounts for 28 percent of Playtex’s sales, 25 percent of Clorox’s, 21 percent of Revlon’s, 13 percent of KimberlyClark’s, and 17 percent of Kellogg’s (Weinswig and Tang, 2006). Wal-Mart also accounts for over 15 percent of U.S. imports of consumer goods from China. More than 120 million U.S. consumers shop at Wal-Mart every week, and 84 percent of Americans shopped at Wal-Mart at least once during 2005 (Pew Research Center, 2005).1 Wal-Mart is also the largest retailer in the world. From a global perspective, Wal-Mart’s sales are larger than the next three retailers combined:...
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...Deadline: 16-02-2015 Wal-Mart: But We Do Give Them a 10 Percent Employee Discount "l I Tal-Mart began as a simple dream by its founder, Sam Walton: to provide low l' l' prices for customers every day. That philosophy has taken Wal-Mart in fortyfour years from one five-and-ten store in Bentonville, Arkansas, to the largest retailer in the world with estimated annual sales of close to $300 billion. In 2005 it was the largest company in the world based on revenue and slipped to number two in 2006 when Exxon/Mobil took over the number one position. Wal-Mart has more than 1.5 million employees worldwide, including 1.3 million in the United States, and generates more than 2 percent of the gross national product in the United States. On December 19, 2005, the results of a Pew Research survey showed that 81 percent of the 1,502 people who responded to the survey considered Wal-Mart a good place to shop. In addition, 69 percent of the respondents stated that they had a favorable opinion of Wal-Mart. However, 31 percent of the respondents stated that they had an unfavorable image of Wal-Mart. Furthermore, 68 percent of the respondents believed that having a Wal-Mart store in their area was good for the community, and 64 percent said that Wal-Mart was good for the United States. Finally, 54 percent of the respondents stated that they believed that Wal-Mart was a good place to work. 1 Sam Walton's vision and beliefs still remain the cornerstone of Wal-Mart's business philosophy...
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...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...
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...profits and overall net income of these multinational corporations. McDonalds, Exxon and Wal-Mart are among many global companies that have been able to increase their revenues by operating in international markets. Wal-Mart’s international ventures accounts for 20.1% of their total revenue which is estimated at $60 billion annually. The purpose of this paper is to select a company and discuss their business model. The company we will be looking at through out this paper is Wal-Mart. Wal-Mart’s slogan “Saving people money so they can live a better life” is what Wal-Mart’s business model is all about. Selling thousands of quality merchandise to low-income consumers at extremely low prices has been responsible for their success in the United States. Achieving success domestically is quite different from succeeding internationally. Doing business globally requires different business models. For a successful transition into the global environment, each business model must be designed to adhere to the preference or norms of each individual country. Both Wal-Mart and Ikea realized that success in the global market goes beyond offering low priced items when they moved into the global market. Its failure in Germany and South Korea made them realize that culture is a factor that must be considered when operating in international In this paper I will also look at some the factors affecting Wal-Mart and based on my opinion offer recommendations. Some of the factors that will be discussed...
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...Wal-Mart: Corporate Giant or Corporate Beast? Ever since Wal-Mart’s establishment, there has been an ongoing debate amongst shoppers of whether or not the company is a magnificent creation or a complete monster. On one side, costumers cannot deny that their everyday savings certainly do draw a smile on their faces; while on the other side, costumers feel that there must be some terrible reason for the prices of their products to be so low. This mystery that has stewed up this ongoing debate over the years about Wal-Mart needs to be discovered. In order to discover this mystery, research on the topic has to go all the way back to the beginning stages of the company. From the birth of the company to present day empire it has created, one question must be answered: corporate giant or corporate beast? Wal-Mart has a long history and they have been around much longer than what most people think. The founder of Wal-Mart was Sam Walton. Sam Walton was born into a farmer’s family in Kingfisher, Oklahoma on March 29, 1918. [31] He had one brother whose name was James Walton. Sam’s father was a farmer until he decided that farming was not producing enough revenue and decided to become a mortgage man. Sam grew up in the great depression where he learned many moral values like working hard. He had many odd jobs so he could help his family out with money. The family then moved to Florida, while there Sam became the youngest Eagle Scout in the state’s history. After graduating...
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...Workplace,Business & Ethics on evaluation of job ethical standards in Wal-Mart in South Carolina In Partial Fulfillment of Business Research and Project BUS 499 Nagliesha L Miles Supervisor: Dr. Mmutakaego Chukwuanu Allen University Date: December 8,2010 Table of content Table of Content...............................................................................................................2 Abstract............................................................................................................................3 List of Illustrations Wal-Mart earnings preview......................................................................................13 U.S Retail food pricing.................................................................................14 Chapter 1 Introduction.....................................................................................................................5 Background information.......................................................................................5 Statement of problem............................................................................................5 Hypothesis............................................................................................................6 Chapter 2 Literature Review...........................................................................................................8 Chapter 3 Methodology.................................................
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...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. ) ...
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...WAL-MART IN GERMANY The case features in David Needle (2010), Business in Context, 5th edition, Cengage/South-Western, pp. 159-62. The Wal-Mart Success Story The first Wal-Mart store was established by Sam Walton in 1962 in Rogers, Arkansas. At first expansion was steady with 24 stores by 1967. The initial focus for Wal-Mart operations was small town, rural America. The company grew to 276 stores by 1980 and the Wal-Mart empire reached 640 stores by 1984. The company currently has around 4,100 stores in the USA and by 2003 it was the world’s largest retailer, three times as large as its nearest rival, the French company, Carrefour. It was also the world’s largest employer with 1.9 million employed worldwide in 2007. In terms of revenue, it remains the world’s largest company and in 2002 it was ranked number one in the Fortune 500. Wal-Mart is noted for its large and diverse product range, which includes food, clothing, electrical goods, homeware, pharmaceuticals and so on. The USA business comprised four types of operation, ‘supercenters’, ‘discount stores’, ‘Sam’s Club’ and a small number of convenience stores. The ‘supercenters’ carry the full range of goods, including food and a large variety of other types of merchandise. The ‘discount stores’ are like the ‘supercenters’ without the food and ‘Sam’s Club’ is a membership discount warehouse for bulk purchases. According to Knorr and Arndt (2003) the success of Wal-mart is based on four factors. • Low prices. • A focus on...
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...Wal*Mart’s Financial Performance vs. Competitors As of 1993, Wal*Mart’s financial performance is much stronger than that of its competitive peers. Based on the reading and some analysis of the exhibits, I identified Wal*Mart’s main competitors as Kmart, Target and Bradlees. Wal*Mart’s sales value of 44,900 in 1993 in discount department stores is much higher than its closest competitor, Target, which posted sales of 26,449. Furthermore, the CapEx that Wal*Mart has put into the stores has returned the most value, as the sales/sq foot is much higher for Wal*Mart than its identified competition at 534.52 vs 122, respectively (Appendix1) Wal*Mart’s Strategy & How it was Employed Initially, Wal*Mart employed a focused low cost strategy to provide consumers in rural territories access to discount stores (Appendix5). They aimed to build large stores in isolated markets with smaller populations and offer attractive prices for a variety of products to compete with local grocers and cities within driving distance. Wal*Mart would buy product in bulk and store it in a regional warehouse facility utilizing 2 step hub and spoke and cross-docking to minimize distribution costs when transferring products to stores. These cost savings allowed Wal*Mart to charge lower prices to their consumers as well as minimize external distribution costs. This is displayed in Wal*Mart’s financial statements, most notably in its operating expenses (Appendix3). Wal*Mart continued to expand beyond...
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