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Walmart Brief

In: Business and Management

Submitted By kimberyohs
Words 661
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The founders of Wal-Mart, Sam Walton and James Bud Walton, built its first Wal-Mart Discount store in Rogers, Arkansas in 1962. In the early 1990s, it increased its market share by introducing certain ethnic groups items followed by its bilingual ads and promoted its awareness of environmental issues. Soon enough, Sam’s club partners with Wal-Mart. Since Wal-Mart contributes a great deal of high technology and commits to upholding customers’ satisfaction for its business’ growth, it broadens its business not only domestically, but also internationally. For example, Wal-Mart is able to significantly cut the cost of shipping and prioritize delivery time. Wal-Mart’s computer systems are installed to track any store’s inventories, which gives a quicker checkout time. During recession in 2007, most customers were fond of its idea of low price on all items compared to local stores. As it is shown on profile 4, Wal-Mart has increased 11.6% over net sales compared to last year. Currently, Wal-Mart reports its net sales of $256.3 billion. Thus, Wal-Mart becomes the second largest company in the United States.

Enterprise Risk Management at Wal-Mart
Atkinson believed that every business must consider applying Enterprise Risk Management (ERM), in order to assess and moderate the many possibilities that the company faces in the future. To illustrate his opinion, he mentioned about the process of ERM for Wal-Mart in the early 1990s. He simplified five strategies based on four basic questions; what are the risks? What are we going to do about these risks? How will we measure whether we are having a positive or negative impact on the risks? How will we demonstrate shareholder value?

• Risk Identification
To prioritize Wal-Mart’s biggest risks, Atkinson suggested applying a risk map on XY-axis. The X-axis stands for probability and the Y-axis stands for impact. Atkinson…...

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