If they did have a formal mission statement it would be,
“ To provide quality products at an everyday low price
and with extended Customer service…always.”
Their Vision Statement
"The secret of successful retailing is to give your customers what they want. And really, if you think about it from your point of view as a customer, you want everything: a wide assortment of good-quality merchandise; the lowest possible prices; guaranteed satisfaction with what you buy; friendly, knowledgeable service; convenient hours; free parking; a pleasant shopping experience."
- Sam Walton (1918-1992)
New Mission Statement
Our mission is to provide goods and services for our customers at everyday low prices. With our innovative technology we strive to have merchandise ranging from food, clothes, music, etc. on hand 24 hours a day 7 days a week. We are committed to the growth of Wal-Mart and challenge ourselves to be better. We strive to have the best, be the best, and provide quality and assurance to our customers. Our employees are a huge asset to our company, and we would not be the company we are today without them. They have a huge impact on what our company was, what it is, and what it will be. We also feel it is important to give generously to those who are less fortunate than others, which is why Wal-Mart donates thousands of dollars a year to different organizations.
New Vision Statement
Our vision is to provide good quality and services to our customers while remaining the market leader and striving daily to be the most admired company.
Divisions of WAL-MART
Nations largest distributor of food and merchandise to convenience stores.
In 2003 was sold to Berkshire Hathaway, Inc. so Wal-Mart could focus on core retail business.
Began in 1998
Located in market with Wal-Mart Supercenters
Offers customer groceries, pharmaceuticals & general merchandise.
Provides 28,000 items to customers.
Wal-Mart expanded so that customers everywhere would associate its name with low cost, best value, greatest selection of quality merchandise and highest standards of customer service.
Wal-Mart focused on Global Positioning.
Membership-only, cash-and-carry operations.
Financial service credit card program (Discover Card) available at all clubs.
Annual membership fee is $35; the Elite Membership is $100.
Elite membership has additional benefits like automotive service contracts, roadside assistance, home improvement, auto brokering and pharmacy discounts.
Bulk displays and name brand merchandise.
Worldly Stores 37 71 238 942 International Totals 0 0 10 248 United Kingdom 33 9 1 9 Puerto Rico 0 50 75 472 Mexico 0 0 15 0 Korea 0 0 94 0 Germany 2 4 20 0 China 0 0 0 213 Canada 2 8 12 0 Brazil 0 0 11 0 Argentina NEIGHBORHOOD MARKETS SAM'S CLUBS SUPERCENTERS DISCOUNT STORES Country
Stores in US and World 86 596 1496 2510 Grand Totals 49 525 1258 1568 U.S. Totals
Key External Factors
Agreement with Berkshire Hathaway, Inc. acquired McLane Company, Inc.
Fortune’s number one Most Admired Company and largest company in nation
World’s largest private satellite communication systems
Ron Brown Corporate Leadership Award
“ Buy American” policy
A solution to the monopoly that Wal-Mart has created
EFE 3.5 1 Totals 0.8 4 0.2 A solution to breaking the monopoly Wal-Mart has created 0.42 3 0.14 Target 0.45 3 0.15 “ Buy American” policy Threats 0 0.33 3 0.11 Ron Brown Corporate Leadership Award 0.64 4 0.16 World’s largest private satellite communication systems 0.56 4 0.14 Fortune’s number one Most Admired Company and largest company in nation 0.3 3 0.1 Agreement with Berkshire Hathaway, Inc. acquired McLane Company, Inc. Opportunities 1 to 4 0.0 to 1.0 Weighted Score Rating Weights Key External Factors
Key Internal Factors
Stores in all 50 states
Wide variety of merchandise
Nationally advertised merchandise
Limited lines of merchandise – made in USA
Point-of-sale bar code scanning
Great employee benefits
No formal mission statement
Management resisted putting women on board of directors
Hiring illegal minorities to clean
Growth for employees only in division
IFE 3.14 1 Totals 0 0.3 3 0.1 Growth for employees only in its division 0.16 2 0.08 Hiring illegal minorities 0.39 3 0.13 Management resisted putting women on board of directors 0.3 3 0.1 No formal mission statement Internal Weaknesses 0 0.27 3 0.09 Great Employee Benefits 0.52 4 0.13 Point-of-sale bar code scanning 0.24 3 0.08 Nationally advertised merchandise 0.3 3 0.1 Wide variety of merchandise 0.3 3 0.1 New Concepts - Hypermarkets, supermarkets 0.36 4 0.09 Stores in all 50 states Internal Strengths 1 to 4 0.0 to 1.0 Weighted Score Rating Weights Key Internal Factors
SWOT Find a solution to the monopoly that has been created and come up with a new concept to beat the problem. (S2, T3) Offer more merchandise that is not apart of the "Buy American" policy to attract more customers (S3, T1) Use point-of-sale bar code scanning as leverage over competitors like Target (S5, T2) Increase minority sales through buying minority products and selling them in discount stores (T1, W3) Use the Buy American policy to advertise nationally how American Wal-Mart is (S3, T1) Use the Most Admired Company award as leverage to advertise the wide variety of merchandise (S3, O2) Create mission statements for all of the acquired companies and the different divisions of Wal-Mart (O1, W1) Increase the amount of hypermarkets, supermarkets in 50 states as well as connect to the private satellite systems(S2, SO)
Add more hypermarkets and supermarkets to establish more growth
Buy products from other countries to have more of a variety of merchandise and better quality merchandise for customers
QSPM 5.26 6 6.78 1 total should be 1.0 0.3 3 0.3 3 0.3 3 0.1 Growth for employees only in its division 0.16 2 0.16 2 0.16 2 0.08 Hiring illegal minorities 0.39 3 0.39 3 0.39 3 0.13 Management resisted putting women on board of directors 0.3 3 0.3 3 0.3 3 0.1 No formal mission statement 0.18 2 0.27 3 0.27 3 0.09 Great Employee Benefits 0.39 3 0.52 4 0.52 4 0.13 Point-of-sale bar code scanning 0.24 3 0.32 4 0.24 3 0.08 Nationally advertised merchandise 0.3 3 0.4 4 0.3 3 0.1 Wide variety of merchandise 0.3 3 0.4 4 0.3 3 0.1 New Concepts - hypermarkets and supermarkets 0.36 4 0.36 4 0.36 4 0.09 Stores in all 50 states 1 to 4 1 to 4 1 to 4 Internal 1 total should be 1.0 0 N/A 0 N/A 0.8 4 0.2 A solution to breaking the monopoly that Wal-Mart has created 0.42 3 0.56 4 0.56 4 0.14 Target 0.6 4 0.45 3 0.45 3 0.15 "Buy American" policy 0.22 2 0.33 3 0.33 3 0.11 Ron Brown Corporate Leadership Award 0.48 3 0.48 3 0.64 4 0.16 World largest private satellight communication systems 0.42 3 0.56 4 0.56 4 0.14 Fortune's number one Most Admired Company and largest company in nation 0.2 2 0.2 2 0.3 3 0.1 Agreement with Berkshire Hathaway, Inc. acquired McLane's Company, Inc. 1 to 4 1 to 4 1 to 4 External TAS AS TAS AS TAS AS Weight Key factors Buy American More hypermarkets/ supermarket Wal-Mart
We decided to add more hypermarkets based on the QSPM even though the numbers were close for both strategies
Begin adding more hypermarkets to towns with populations large enough to support them.
Increase the amount of hypermarkets by one in every state (50 stores)
Increase revenue by Debt Financing per EPS/EBIT analysis
Store growth report
Annual Sales report
Stock prices in comparison to competitors
In the News…
In 2003 managed to get action lawsuit against Wal-Mart based on so few women being among its managers given that a majority of its workforce is female and also for equal pay. Ended up settling case because didn’t want to lose a case for discrimination because would hurt Wal-Mart’s bottom line. But as the judge rightly ruled, companies that do business on as large a scale as Wal-Mart have to be prepared to answer for their actions on an equally large scale. Case settled in June 2004 and began in September of 2003.
In the News…
In June 2005 Oklahoma grocer Super H filed lawsuit against Wal-Mart Stores for using a scanner to collect barcode data from the products on the Super H’s Shelves. Wal-Mart allegedly sent workers into Super H to check prices close to the time a Supercenter was opening in August. Super H wants the scanner back, not because of the price information but to make sure that there is not inventory and wholesale prices in the scanner. The real question in this case was not the price scanning but can the scanner capture other information from the scanning tag then just the price. The suit was dismissed per news reports.
In the News…
In April 2006 a suit was filed against a Wal-Mart in Maryland to ensure that larger employers pay up to a percentage toward health care for employees. ERISA is there to establish a uniform national framework for sponsoring, administering, protecting, and regulating employee benefit plans, including pension plans, and health and welfare plans. ERISA has a broad clause that pre-empts states and municipalities from enacting laws that relate to employee benefits plans. In this case it is not sure if the Maryland law or bills in other states violates the ERISA previsions. In February Wal-Mart announced plans to upgrade its health care benefits. This was decided in the middle of the uproar in this Maryland case.
Here are a few cases about Wal-Mart. There were 52 pages of cases if you would like to see more go to Business & Company Resource Center, News/Magazines.
In the News…
Military Families Outreach Project Partnership with Sesame Workshop to support children of military families.
Children's Miracle Network Buy a balloon, save a child's life.
2005 was a busy year for Wal-Mart International. In December alone, the company acquired 545 new stores and gained more than 50,000 new associates in Japan and South America, capping a year of robust growth.