Supply Chain Management Walmart

Save money. Live better
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Introduction:
A unique feature of Wal- Mart retailing is that it is virtually recession proof. In times of
economic downturn, consumers flock to discount retailers. During the recession of 1974-75,
sales expanded 42 percent; in the 1981-82 recessions, sales grew 44 percent; and the
recession of 1990s, sales grew 30 percent. As such, Wal-Mart is not affected by economic
downturns like many other retailers.
Wal-Mart has obtained a distinct competitive advantage by targeting small, rural
communities, which leads to lower operating cost .this advantage result from lower rents,
moderate wages. and the absence of unionization. In addition, real estate is significantly
cheaper, and smaller communities have a loyal and productive workforce.
Although the store location strategy was innovative, several other factors have played a
strong role in valuating Wal-mart the top of the retail mountain. For instance, Mr. Sam’s
Management practices were even more trend setting than his store location strategy. For
example employees are referred to as employees; instead they are called associates .Other
factors contributing to Wal-Mart success include rigorous cost control, an excellent
distribution Network, and technological advantage
Wal –Mart proudly moves up in Fortune’s list of the top ten “America’s Most admired
Companies in 200, rising to fifth on the list.
About Wal-mart
 Sam Walton opened the first store in 1962 in Rogers, Arkansas.
 Within 5 years there were 25 Wal-mart stores earning total revenue of $12.6 million in
sales.
 In 1972 Wal-mart was listed in the NYSE.
 In 1991, Wal-Mart became an international company when we opened a Sam's Club near
Mexico City. Just two years later, Wal-Mart International was created.
 In 2005 Wal-mart incorporated sustainability in it’s business under their CEO H Lee
Scott Jr.

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 In August 2007, Wal-Mart and Bharti Enterprises announced an agreement to establish
Bharti Wal-Mart Private Limited.
 Mike Duke succeeded Lee Scott as president and chief executive officer on February 1,
2009.
 Presently 7,800 stores and club locations in 15 markets employ more than 2 million
associates, serving more than 176 million customers a year
 Wal-mart’s major international operations are in the following markets:
Argentina Brazil Canada Central
Chile China India Japan
Mexico Puerto Rico UK
MissionStatement
Offers the best quality merchandise at the lowest prices in all their stores, from school
supplies, to household items and top quality groceries
Vision Statement:
Saving people money to help them live better
Purpose. . .
Sam Walton said it best,
“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.”

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Wal-Mart Logo Timeline:
1962 - 1964
Sam Walton names his new stores
WALMART. The Walmart name was
presented in just about any font/style
available to the printer.
1964 - 1981
Also known as the "Frontier Font Logo,"
this was the first official and consistently
used logo.
1968-1981
The Discount City mark was used in print
advertising, on the uniforms/smocks, in-
store signing, and other things. However, it
was never used as building signage or in an
annual report.
1981 - 1992
The logo was updated again in 1981.
1992 - 2008
The star was adopted as an update to the
existing logo in early 1992.
2008
New logo adopted by Walmart Stores U.S.

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Currently Wal-Mart:
We are a global retailer committed to growing our company by improving the standard of living
for our customers and serving communities around the world. We earn the trust of our customers
every day by providing a broad assortment of quality merchandise and services at every day low
prices while fostering a culture that rewards and embraces mutual respect, integrity and diversity.
Today, WalMart Stores, Inc. is the world’s largest retailer with more than 1.8 million associates
worldwide and nearly 6,500 stores and wholesale clubs across 15 countries. The "most admired
retailer" according to FORTUNE magazine has just completed one of the best years in its history:
Walmart generated more than $312.4 billion in global revenue in the fiscal year ended January
31, 2006, establishing a new record and an increase of 9.5 percent. The company earned almost
$11.2 billion in net income in fiscal 2005.
Guided by founder Sam Walton’s passion for customer satisfaction and “Every Day Low Prices,”
Wal-Mart’s four retail divisions offer a wide variety of quality merchandise to consumers around
the world.
Wal-Mart DiscountStores
Wal-Mart now has more than 1,470 discount stores in the United States offering a variety of
quality, value-priced general merchandise and a pleasant, convenient shopping experience. The
stores feature wide, clean, brightly lit aisles and shelves stocked with quality items including:
family apparel, automotive products, health and beauty aids, home furnishings, electronics,
hardware, toys, sporting goods, lawn and garden items, pet supplies, jewelry, and housewares.
Wal-Mart Supercenters
Developed in 1988 to meet the growing demand for one-stop family shopping, Wal-Mart
Supercenters today number more than 1,430 nationwide and most are open 24 hours a day for the
ultimate in convenience. Supercenters save customers time and money by combining full grocery
lines and general merchandise under one roof at Wal-Mart’s signature Every Day Low Prices. In
addition to general merchandise, Supercenters feature bakery goods, deli foods, frozen foods,
meat and dairy products, and fresh produce. Supercenters also are home to many specialty shops

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such as vision centers, Tire & Lube Expresses, Radio Grill restaurants, portrait studios and one-
hour photo centers, hair salons, banks, and employment agencies.
Sam's Club
Sam's Club is a chain of warehouse clubs which sell groceries and general merchandise, often
in large quantities. Sam's Club stores are "membership" stores and most customers buy
annual memberships. However, non-members can make purchases either by buying a one-
day membership or paying a surcharge based on the price of the purchase.[51] Some locations
also sell gasoline.[46] The first Sam's Club opened in 1983 in Midwest City,
Oklahoma [51] under the name "Sam's Wholesale Club".
Sam's has found a niche market in recent years as a supplier to small businesses. All Sam's
Club stores are open early hours exclusively for business members and their old slogan was
"We're in Business for Small Business." Their current slogan is "Savings Made Simple" as
Sam's Club attempts to attact a more diverse member base. In March 2009, the company
announced that it plans to enter the electronic medical records business by offering
a software package to physicians in small practices for $25,000. Wal-Mart is partnering
with Dell and eClinicalWorks.com in this new venture.[52]
According to Wal-Mart's 2007 Annual Report, Sam's Club's sales during 2007 were $42
billion, or 12.1% of Wal-Mart's total 2007 sales.[53]As of December 2009, there were 605
Sam's Clubs in the United States. Wal-Mart also operates more than 100 international Sam’s
Clubs inBrazil, China, Mexico, and Puerto Rico.[54]
Wal-Mart International:
Wal-Mart's international operations currently comprise 2,980 stores in 14 countries outside
the United States.[55] According to Wal-Mart's 2006 Annual Report, the International division
accounted for about 20.1% of sales.[41] There are wholly owned operations in Argentina,
Brazil, Canada, Puerto Rico (although PR is part of the US, the company's operations there
are managed through its international division[55]), and the UK. With 1.8 million employees
worldwide, the company is the largest private employer in the US and Mexico, and one of the
largest in Canada.[56]

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Wal-Mart has operated in Canada since its acquisition of 122 stores comprising the Woolco
division of Woolworth Canada, Inc in 1994.[57] As of October 31, 2008, it operates 310
locations, employing 77,500 Canadians, with a local home office
in Mississauga, Ontario.[58] Wal-Mart Canada's first three Supercentres (spelled as
in Canadian English) opened on November 8, 2006, in Hamilton, London, and Aurora,
Ontario. As of October 31, 2008, there are 39 Wal-Mart Supercentres in Canada,[48].
In 2008, Wal-Mart named German retailing veteran Stephan Fanderl as the president of Wal-
Mart Emerging Markets-East in an effort to, "explore retail business opportunities in Russia
and neighboring markets." The market is estimated to be worth more than $140 billion per
year in food sales alone.
In January 2009, the company acquired a controlling interest in the largest grocer in Chile,
Distribucion y Servicio D&S SA
In February 2010, the company agreed to buy Vudu, a Silicon Valley start-up whose three-
year-old online movie service is being built into an increasing number of televisions and Blu-
ray players. Terms of the acquisition were not disclosed, but a person briefed on the deal said
the price for the company, which raised $60 million in capital, was over $100 million.
Grass Roots Process
“Listen to your associates. They’re the best idea generators.”
Sam Walton said that, and he believed it. For years, he traveled
continuously so he could visit all of his stores at least once a year,
listening to associates and asking for their ideas.
We’re still listening.
The sheer size of our company limits how many stores executives can physically visit each
year. But, Sam’s philosophy lives on today in our Grass Roots Process A key part of that
process is the associate opinion survey — it gives every single associate a way to voice their
ideas, suggestions, and concerns.

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Our associates — making a difference.
Using the survey, we continually find ways to improve our customer service, and how to
better serve our associates. We continue to learn how to be a more efficient, more
environmentally friendly company. Using the Grass Roots Process and the survey, our
associates have made Walmart one of the most admired companies in Am
Basic Beliefs & Values
Three simple things that make us great:
Our unique culture has helped make Walmart one of the world’s most
admired companies. Since Sam Walton opened the first Walmart in 1962,
our culture has rested on three basic beliefs. We live out these beliefs
every day in the way we serve our customers and each other.
1. Respect for the Individual
We’re hardworking, ordinary people who’ve teamed up to accomplish extraordinary things.
While our backgrounds and personal beliefs are very different, we never take each other for
granted. We encourage those around us to express their thoughts and ideas. We treat each
other with dignity. This is the most basic way we show respect.
2. Service to our Customers
Our customers are the reason we’re in business, so we should treat them that way. We offer
quality merchandise at the lowest prices, and we do it with the best customer service possible.
We look for every opportunity where we can exceed our customers’ expectations. That’s
when we’re at our very best.
3. Striving for Excellence
We’re proud of our accomplishments but never satisfied. We constantly reach further to bring
new ideas and goals to life. We model ourselves after Sam Walton, who was never satisfied
until prices were as low as they could be. Or that a product’s quality was as high as customers
deserved and expected. We always ask: Is this the best I can do? This demonstrates the
passion we have for our business, for our customers, and for our communities.

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Sundown Rule
Our founder Sam Walton created the Sundown Rule.
It’s really just a twist on “why put off until tomorrow what you
can do today?” Observing the Sundown Rule is very simple.
Whether it's a request from a store across the country or a call
from an associate down the hall, we do our very best to give our customers, and each other,
same-day service.
We take the Sundown Rule seriously.
It’s one of the many ways we provide superior customer service. When we show a sense of
urgency, we show people we know their time is valuable. We care about their needs, and we
want to help them quickly. When we observe the Sundown Rule with other associates
(employees), it shows we respect each other. And we’re proud to be part of a team working
together to get things done.
The Sundown Rule in action:
Jeff, a pharmacist at a Walmart store in Harrison, Arkansas, got a call at home one Sunday
morning. He learned one of his diabetic customers had accidentally dropped her insulin down
her garbage disposal. Knowing that she could be in grave danger without insulin, Jeff
immediately rushed to the store, opened the pharmacy, and filled her prescription. This is just
one of the many ways our associates honor the Sundown Rule every day.
10-FootRule
The 10-foot Rule is one of our secrets to customer service.
During his many store visits, Sam Walton encouraged associates to take
this pledge with him: "I promise that whenever I come within 10 feet of a
customer, I will look him in the eye, greet him, and ask if I can help him."
The 10-foot Rule was something Sam practiced his entire life.

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"I learned early on that one of the secrets to campus leadership was the simplest thing of all:
Speak to people coming down the sidewalk before they speak to you,” Sam once said. “I
would always look ahead and speak to the person coming toward me. If I knew them, I would
call them by name, but even if I didn't, I would still speak to them. Before long, I probably
knew more students than anybody in the university, and they recognized me and considered
me their friend. I ran for every office that came along."
We’ve kept Sam’s promise.
Not only was Sam elected to nearly all of those offices at the University of Missouri in
Columbia, but the 10-foot Rule helped Sam build a successful business, too. Today, in stores
around the world, associates put Sam’s rule into practice every day. From the greeters at the
front doors, to associates throughout the store, and the friendly smile at the checkout lane,
The 10-foot Rule is one of the things that makes Wal-Mart great.
Open Door
The door is always open.
At Wal-Mart, our management believes open communication is critical to
understanding and meeting our associates’ and our customers’ needs.
Through our “open door” policy, associates (employees) are free to share
suggestions, ideas, and voice concerns. Whether it’s help with a problem,
guidance or direction, or simply getting an answer to a question.
Associates can trust and rely on the open door.
This means that managers will treat all discussions fairly, with an open mind, and without
bias. They’ll maintain complete confidentially, whenever it’s possible. They’ll work with you
to mutually resolve any issues or problems you may have.
It’s one of the most important parts of our culture.
We’re all part of the same family —the Walmart family. And like family, we care. The open
door has helped solve some of our biggest problems, and its generated some of our greatest
ideas.

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Servant Leadership
Effective leaders don’t lead from behind a desk.
It's more important than ever that we develop leaders who are servants, who listen to their
partners – their associates – in a way that creates wonderful morale to help the whole team
accomplish an overall goal,” Sam Walton, our founder said that.
Sam believed in servant leadership, and so do we — to this day.
Echoing Sam’s leadership philosophy, our leaders are out on the floor with their associates.
Whether in a Wal-Mart store, Sam’s Club, Distribution Center, the Home Office, or at any
other facility around the world, our teams can expect their managers to be there, serving right
alongside them. It’s what makes us great. It’s what makes us a team
Teamwork
Sam Walton believed it’s our teamwork that makes us special.
"What makes ordinary people do extraordinary things?”Sam
Walton, our founder once asked. “Aren't we a group of ordinary
folks? We really are. And I think we, together as a team, have
done extraordinary things. We've all grown, we've all accomplished much more than any of
us ever thought that we could."
We believe in the power of teamwork, too. As our business grows and the pace of modern
life quickens, Sam’s philosophy of teamwork has become even more important. Our ability to
work together affects the quality of service our customers receive. To give the very best
service to our customers, and to each other, we rely on guidelines that made our culture great.
And make us proud to be a member of the Wal-Mart family:
Guiding Principles:
 Always act with integrity.
 Lead with integrity, and expect others to work with integrity.
 Follow the law at all times.

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 Be honest and fair.
 Respect and encourage diversity, and never discriminate against anyone.
 Work, actions, and relationships outside of your position with the company should be
free of any conflicts of interest.
 Ask your manager or the Global Ethics office for help if you have any questions about
our Statement of Ethics, or if you face an ethical problem.
 Inform the Global Ethics office about any suspected violations of our Statement of
Ethics.
 Reveal and report all information truthfully, without manipulation or
misrepresentation.
 Cooperate with and maintain the private nature of any investigation of a possible
ethics violation.
 When involved in an ethics investigation, you should reveal and report all information
truthfully. You should present all the facts you are aware of without personal opinion,
bias, or judgment.
Sam Walton’s Wal-Mart Philosophy
Sam Walton built America’s vast chain of Wal-Mart stores on the philosophies of excellence
in the workplace, customer services, and always having the lowest prices. Walton,
affectionately known to his staff as ‘Mr. Sam’, was a true entrepreneur. He established Wal-
Mart in 1962 at the age of 44. He died in 1992, having seen his company become America’s
biggest retailer.
Walton believed that each Wal-Mart store should reflect the values of its customers and
support the vision they held for their community. Today, Wal-Mart’s Community Outreach
Programmes underwrite college scholarships, raise funds for local children’s hospitals,
provide money and manpower for fund raisers, and help educate the public about recycling
and saving the environment. Wal-Mart even helps American towns and cities build up their
local industries by providing industrial development grants.

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What was Sam Walton’s secret to success?
Rule 1: Commit to your business
“Believe in it more than anybody else. I think I overcame every single one of my personal
shortcomings by the sheer passion i brought to my work. I don’t know if you’re born with
this kind of passion, or if you can learn it. But I do know you need it. If you love your work,
you will be out there every day trying to it the best you possibly can, and pretty soon
everybody around you will catch the passion from you - like a fever.”
Rule 2: Share your profits with all your associates
“Treat them as partners. In turn, they will treat you as a partner, and together you will all
perform beyond your wildest expectations. Remain a corporation and retain control if you
like, but behave as a servant leader in a partnership. Encourage your associates to hold a stake
in the company. Offer discounted stock, and grant them stock for their retirement. It’s the
single best thing we ever did.”
Rule 3: Motivate your partners
“Money and ownership alone are not enough. Constantly, day by day, think of new and more
interesting ways to motivate and challenge your partners. Set high goals, encourage
competition, and then keep score. Make bets with outrageous payoffs. If things get stale,
cross-pollinate; have managers switch jobs with one another to stay challenged. Keep
everybody guessing as to what your next trick is going to be. Don’t become too
predictable.”
Rule 4: Communicate everything you possibly can to your partners
“The more they know, the more they will understand. The more they understand, the more
they will care. Once they care, there is no stopping them. If you don’t trust your associates
to know what is going on, they will know you don’t really consider them partners.
Information is power, and the gain you get from empowering your associates more than
offsets the risk of information your competitors.”
Rule 5: Appreciate everything your associates do for the business
“A paycheck and a stock option will buy one kind of loyalty. But all of us like to be told
how much somebody appreciates what we do for them. We like to hear it often, and

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especially when we have done something we are really proud of. Nothing else can quite
substitute for a few well-chosen, well-timed, sincere words of praise. They are absolutely free
- and worth a fortune.”
Rule 6: Celebrate your successes
“Find some humor in your failures. Don’t take yourself so seriously. Loosen up, and
everybody around you will loosen up. Have fun. Show enthusiasm - always. When all else
fails, put on a costume and sing a silly song. Then make everybody sing with you. Don’t do a
hula on Wall Street. It’s been done. Think up your own stunt. All of this is more important,
and more fun, than you think, and it really fools the competition. “Why should we take those
cornballs at Wal-Mart seriously?”
Rule 7: Listen to everyone in your company
“Figure out ways to get them talking. The folks on the front lines - the ones who actually talk
to the customer - are the only ones who really know what is going on out there. You did
better find out what they know. This really is what total quality is all about. To push
responsibility down in your organization, and to force good ideas to bubble up within it, you
must listen to what your associates are trying to tell you.”
Rule 8: Exceed your customers’ expectations
“If you do, they will come back over and over. Give them what they want - and a little more.
Let them know you appreciate them. Make good on all your mistakes, and don’t make
excuses - apologies. Stand behind everything you do. The two most important words I ever
wrote were on that first Wal-Mart sign, ‘Satisfaction Guaranteed‘. They are still up there,
and they have made all the difference.”
Rule 9: Control your expenses better than your competition
“This is where you can always find the competitive advantage. For 25 years running - long
before Wal-Mart was known as the nation’s largest retailer - we ranked number one in our
industry for the lowest ratio of expenses to sales. You can make a lot of different mistakes
and still recover if you run an efficient operation. Or you can be brilliant and still go out of
business if you are too difficult.”

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Rule 10: Swim upstream
“Go the other way. Ignore the conventional wisdom. If everybody else is doing it one way,
there is a good chance you can find your niche by going in exactly the opposite direction. But
be prepared for a lot of folks to wave you down and tell you you are headed the wrong way. I
guess in all my years, what I heard more often than anything else was: a town of less than
50,000 population cannot support a discount store for very long.”
Diversity:
The philosophy that drives diversity at Walmart is a natural extension of our company's core
beliefs. Diversity is a key dimension of our commitment to our customers and associates: Treat
them with fairness and respect, be their advocates, be sensitive to their concerns, value their
differences, and serve and support them the best we can.
Our commitment to diversity is fundamental to our success, and we don't take our success for
granted. Being a leading employer means that we have to set a good example and always strive
to improve our efforts. That's why we created the Office of Diversity. The office fosters diversity
throughout the company and ensures that diversity is interwoven with all of our associate
programs, recruitment efforts, supplier relations, philanthropic initiatives, and community
efforts.
We affirm our commitment and pledge our full support to equal employment opportunities for all
qualified people, regardless of race, color, age, sexual orientation, religion, disability, ethnicity,
national origin, veteran status, marital status, or any other legally protected status.
Our expectation is that all associates demonstrate sensitivity to and respect for our customers,
suppliers, and other associates. It is also our expectation that all associates are committed to our
diversity initiatives.
We take pride in our diverse, mosaic family of associates, and we will continue to celebrate that
diversity.

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Recent Awards and Recognition-2005:
 Asian Enterprise Magazine list top 10 Companies for Asian Americans.
 Latinos Hispanic Magazine list top 50 Vendor Programs for Supplier Diversity.
 Black Enterprise Magazine list Top 30 Companies for African Americans.
 Hispanic Magazine list 2005 Corporate 100 - The 100 Companies Providing the Most
Opportunities for Hispanics.
 Hispanic Association of Corporate Responsibility (HACR) Corporate Index Top 10.
 DiversityInc's list of the Top 50 Companies for Diversity.
Diversity Goals
We believe an inclusive workforce drives a sustainable business. We also believe it is
important for a diversity program to be built around quantitative and qualitative components,
buy-in from senior leadership, and review of diversity metrics and goals by the Board of
Directors. Based on these beliefs, the Diversity Goals program was established in 2003.
Placement Diversity Goals
 Filed management – establishes objective goals for placing diverse associates at a rate
consistent with the qualified, interested and available applicant pool in field
management positions.
 Home Office management – captures the candidate slate for officer and director-level
positions.
Good Faith Efforts Diversity Goals
 Tracks managerial leadership through encouraging involvement with diversity events
and diverse organizations.
 Requires managers to mentor at least three associates, including persons of diverse
race, gender, or background.
2008 Accomplishments

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 100% of company officers achieved Management Placement and Good Faith Efforts
Diversity Goals.
 99% of more than 50,000 managers across the company reached their Diversity Goals
program objectives.
Efficient operations:
With its stated goal to be low cost leader .Wal-Mart has build a network of stores and offices
that serve two important functions: it avoid the cost of building separate administrative
offices, and it creates a close feeling between store management and customer while
promoting a better work bond among co-workers .This design allows mangers to interact with
the customer during business hours.
Supportive system such as excellent distribution, as state of the art communications network,
and certainly the associates have been given management the ability to manage the large
scale growth while controlling operating cost. In early 1997 the company was recognized By
computer world and Smithsonian Magazine as one of the top five innovators in information
technology. This system provides sales data by item, by store, by day to vendor partners. This
help supplier in save time and expenses in planning which translate in lower merchandise
costs.
Shrinkage occurs as a result of shoplifting, inventory shortages, and employee theft
.Although the discount retail industry’s average shrinkage per store is 2 percent. Wal-Mart
pride themselves on a per store shrinkage of around 1 percent .With this low shrinkage rate
come clear rewards: stores that achieve target shrinkage rates earn bonuses of several
hundred dollars each.
Distribution Network:
Wal-mart distribution system is another key component of its efficient strategy. Most stores
are located with in 1 day’s drive of a distribution centre. Delivers are made to each Wal-mart
store daily. The company recognizes that communication is the backbone to an efficient
distribution network. Wal-mart budgets $ 500 million annually to its communication and
information staff of 1200 professionals.

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All but all of the distribution centers are automated, utilizing a complex conveyor system that
involves up to eleven miles of belts. Laser scanners route the goods which are strategically
tied to satellite network core in Bentonville.
Wal-Mart added a voice –based order filling system .The associate voice automatically
directs the request to the location in the ware house where the product is stored. Subsequently
the quantity ordered is filled and verified. This technology has eliminated the paper work and
product labeling cost.
Computer technology:
Wal-mart boasts the world largest private fully integrated satellite network. This satellite
connects Wal-mart MIS to every Wal-Mart store and distribution centre in 45 states. as well
as foreign operation in Mexico, Canada, brazil, china and other south pacific countries..Every
store is connected o real time to real time to the corporate information centre in Bentonville
so that each and every truncation is made online.
The operational goal of this network is to provide better customer service and improve
business efficiency. For instance if a credit transaction can be completed in 25 percent less
time ,one checker can handle 4 customers in that time it took to handle three using the manual
system. Hence a checker can process more customers in the same amount of time
In the event a particular store location does experience a stock-out associates are equipped to
scan their an item electronically check its availability in other area stores. Associates are
given “magic wounds” .The wands help keep up –to- minute track of the inventory on hand
deliveries and back-up merchandise in stock at Wal-mart distribution centers.
Online Wal-Mart retailing:
Wal-Mart online (www.wal-mart.com) relaunched on January 1, 2000 offers the well known
products found in traditional stores plus additional products offered only to online
users.”Virtual shelves” are always well stocked with the latest software, videos, music, home
products, office furniture, toys, tools, and collectibles. Similarly Sam’s club online
(www.samsclub.com) offer similar products found in Sam’s clubs, and the club’s members
still enjoy discounted prices.

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Recently Wal-Mart formed anew partnership with the internet venture –capital firm Accel
partners. The new venture is based in Palo Alto, California, and its financial results will be
consolidated into Wal-Mart stores, Inc is the majority shareholder, Futhermore the separate
company will have its own management team and board of directors.
In February of 1998 florist’s transworld delivery, Inc. announced that it had partnered with
Wal-Mart to launch an online flower shop in conjunction with Wal-Mart website. The
partnership allows FTD to sell holiday and every day arrangements, flowers and food items
and other gift-giving solutions.FTD provides merchandising support and fulfills floral orders
through its international affiliation network of more than 5400 FTD florists.
Regarding the safety of credit card system they utilize the secure sockets laser system. The
security system applies high tech encryption technology to ensure that credit card number are
kept away from desirable fraud artists
Support America Made:
The buy America program has evolved into support America made programe.Support
America made not only provides business for small American manufactures but also had
emphasis on better production and marketing of the product’s assist many small manufactures
whose production of distribution capacities for providing product to nation wide retailers are
limited. They also assist companies in finding more efficient and profitable ways of doing
business.
It will help any manufacturer of American made products with a sale history of 6 months or
more .Theses business can easily learn about and apply for membership in program through
Wal-Mart website.
The program also connect smaller manufactures with the network of support American made
partners that have experience in assisting companies with increasing their effectiveness in
competitive market .In addition financial advice ,management guidance and technical
assistance are available from these partners.

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The Wal-Mart Effect:
Wal-Mart has work hard over the years to create an image that is the working person’s store
.The store are staff with local, “everyday” people who are related well with the type of people
to which Wal-Mart is Marketing .But for some people the image of this wholesome American
store is trained by predatory pricing lawsuit.
Since the court ruling Wal-Mart has expanded into numerous towns and cities of United
States. There are also expansion efforts in Mexico and Canada and pressure to compete with
giant discount retailers are causing companies in these countries to work about their future.
Wal-Mart is working to correct the predatory pricing image by pushing the “All American
small town provider “ image even more.Altough the company is the leading retail provider in
small towns it promotes local economic growth by donating about $3 million in Economic
development grants each year. It has alliance with National Association of towns and
townships to bolster its image.
Wal-Mart is also affecting the Canadian marketplace by moving into the food retailing
business by opening mini-supermarket test centers.
Wal-Mart's Customer-Centric Policies
 Wal-Mart's pricing policies: consumers always wanted the best bargain on the products
purchased by them without compromising on the quality.
 Walton had used the captions -"We Sell for Less" and "Satisfaction Guaranteed" on the
very first Wal-Mart signboard.
 The main policy: Wal-Mart would always provide a wide variety of high quality, branded
and unbranded products at the lowest possible price, offering better value for the
customer's money.
 Their belief: Because you work hard for every dollar, you deserve the lowest price we can
offer every time you make a purchase.

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Service strategy
 Services must have
o Timely
o Accurate in speed and quality in fast time, every time and last time
 Increases its employee productivity
 Replenish shelves up to three times faster
 Keep proper track on the products
 Low inventory cost
 Make customer happy
The Service Philosophy:
• Half price.
• The price goes down, the more customers buying the products.
• Every Day Low Price
• Rollback
• Special Buy
Services atstore:
 Great return policy.
 Separate podiums are being set up in the middle of the main isle behind the cashier area
for customer queries.
 Photo gift card service. The capability to place a personal photo, business card and
phrases on the front of a gift card – plus the option to recharge the card at local Wal-Mart.
Returning Policy:100% Guaranteed:
 Everything is returnable.
 Items can be returned through mail.

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 To return computers, hardware or perishable items, call Wal-Mart.
 Exchanging items are also allowed
Wal-Mart’s AssetProgram:
It allows the resale of excess or outdated fixtures and equipment. Everything from glass
showcases, metal shelving, apparel racks, trash compactors to front end alignment lifts may
be available to purchase. Following are 3 methods to sale the excess
1) Public Auctions
2) On-line Auctions
3) Existing store sales.
How they attain service excellence
By using IT technology
 ASDA
 RFID
Use of IT for services – ASDA:
 Wal-Mart uses computers to help further educate and to train their employees.
 Wal-Mart’s 1.2 million employees in the U.S. are offered e-learning programs to help
develop their personal skills.
 Using this information technology Wal-Mart offers classes that help to increase
productivity at both work and in employee’s personal lives.
Use of IT for services – RFID:
 Wal-Mart uses RFID to increase its employee’s productivity.
 Wal-Mart is experimenting with a radio-frequency identification system.

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 With the use of RFID information technology, employees can replenish shelves up to
three times faster than with the old bar code technology.
 Products have a radio frequency that a scanner and detect determine the amount of
products and where they are located.
 Employees can also find products stored in the back room of the store quicker,
helping to make the employee more productive and the customer happier.
 Using RFID technology also helps to keep inventory costs down.
 RFID can automatically tell when products need to be reordered, which is more
efficient than being recorded when the employee determines the product needs to be
restocked.
Helping People Make A Difference:
Wal-Mart doesn’t only help their customers at their stores but they do help their customers
with their life.
• Provides scholarships
• Helps children’s hospitals
• Provides money to fund raisers
• Cares about environment
Health & Wellness:
At Walmart, we have the opportunity to positively impact the lives of millions of people
every day. That’s particularly true when it comes to helping our customers, our associates and
the people in our surrounding communities live healthier lives.
Our Customers
Millions of people around the world are struggling with the costs of health care. To help ease
the strain, we are using the strengths of our business to drive costs out of health care and
bring our customers the lowest prices on the products and services they need to stay healthy.

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We also work with several charitable organizations to ensure that communities in need
receive critical health information and treatment.
Our Associates
As an employer, providing our associates and their families with health care coverage is a
priority for Walmart. We are continually working to expand affordable access to care for our
Walmart and Sam’s Club associates and their families.
Our Neighbors
Finally, we see an opportunity to impact not only our customers and our associates but also to
advocate for broader change. That’s why we’ve joined together with leaders in government,
business and labor to call for reform in the American health care system, and why we are
working closely with other business leaders and academics to advance health information
technology. By combining the strengths of many, we can improve the quality of care
available to all Americans.
Walmart’s new Employer Solutions Program can dramatically reduce the amount self-insured
employers and health plans pay for employee prescription drugs and vision care. It allows
companies to cut health care costs without cutting a single benefit.
Corporate socialResponsibility:
Community & Giving:
At Walmart, we believe in a philosophy of operating globally and giving back locally. We
know we can make the greatest impact on our communities by supporting causes that are
important to our customers right in their own neighborhoods. We’re proud to be a "store of
the community" for all of the communities we serve by helping to provide financial and
volunteer support to more than 100,000 charitable and community-focused organizations, and
by using our locations to provide opportunities for our customers and associates to give back.
Education:

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First-Generation College Students Get Help from the Wal-Mart Foundation to Pursue
Their Degrees
The Wal-Mart Foundation awarded a $4.2 million grant to the Institute for Higher Education
Policy, which will support programs to help first-generation students achieve success at
minority-serving institutions.
Walmart Foundation Scholarship Programs
At the Walmart Foundation, we believe that a good education creates opportunities that lead
to a better life.
Walmart College Success Award Winners
Twentycollegesrecentlyreceivedgrantsof $100,000 each fromthe Walmart Foundationtohelp
themsupportstudentsseekingtobecome the firstcollegegraduate in
theirfamilies.HungerRelief:
Walmart and the Walmart Foundation have committed $2 billion
cash and in-kind, stepping up efforts to help end hunger in
America.
Fighting Hunger Together
Our "Fighting Hunger together" initiative includes four key components:
 Donating more than 1.1 billion pounds of food from Wal-Mart stores, distribution
centers and Sam’s Club locations, valued at $1.75 billion;
 Grants totaling $250 million to support hunger relief organizations at the national,
state and local levels;
 Mobilizing Walmart associates and customers. For example, Walmart’s logistics team
will lend their expertise to help food banks become more efficient in their operations;
and
 Collaboration with government, food manufacturers and other corporations that are
fighting hunger to increase impact and reach a greater number of families in need.

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DisasterRelief:
When the Unthinkable Happens, Walmart is There.Whether the disaster is a fire, flood or
hurricane, Walmart and its Foundation are first in line to lend a helping hand to the
communities we serve. In the aftermath of a disaster, basic needs become paramount and
many of the products Walmart and Sam's Club contribute can save lives. Working
collaboratively with the American Red Cross and The Salvation Army, Walmart and its
Foundation are able to provide life-sustaining items and much needed peace of mind to those
in need of assistance. We’re proud to support disaster relief efforts in communities around the
world.
Chile Earthquake and Tsunami Relief
We're very concerned about conditions in Chile after the earthquake,and our thoughts are with
everyone who has been impacted by the devastation.
Haiti Earthquake Relief
In response to the tragic earthquake in Haiti, our operations around the world, along with the
Walmart Foundation, are responding.
DisasterPreparedness
Although disasters are truly devastating events, preparation for them is something that can
help save resources as well as lives.
Localized Efforts:
When disasters strike, they can have a tremendous impact on a community. Fast, reliable
access to vital supplies can make all the difference in areas that are facing overwhelming
damage and destruction. At Walmart, we have the unique ability to draw from both our
resources and our logistics network to distribute relief supplies to communities in need
immediately after a disaster takes place.
Longstanding Partners:
The Walmart Foundation is proud to have developed relationships with several national
nonprofits over the years. Below are a few examples of how we work with these
organizations to expand the impact of our work in the communities we serve.

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American RedCross
Every day, the American Red Cross responds to events, ranging from hurricanes, floods and
tornados to smaller emergencies such as house and apartment fires. Our long-standing
support of the American Red Cross is an important part of our disaster relief efforts.
Feeding America
Walmart is partnering with Feeding America, the nation’s largest hunger-relief charity, and enlisting
its entire network of Supercenters,Neighborhood Markets and Sam’s Club locations to help those in
need.
The Salvation Army
Walmart and Sam’s Club associates are committed to the Salvation Army’s “Red Kettle Campaign.”
For more than 20 years we have shown our support by raising funds in front of our locations
nationwide.
Children's Miracle Network
More than 1 million Walmart associates help a total of 17 million children each year through our
partnership with Children’s Miracle Network.
United Way Worldwide

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The Walmart Foundation has supported United Way Worldwide and its affiliates at a national
level since 1983.
ManagementStyle:
 Maintain an open-door policy
 Empowering associates
 Maintain technology superiority
 Build loyalty among associates, customers, and suppliers
Functional Strategies:
 Same goods for less( charges 2-5%lower price) & still earns profit.
 Very good operational efficiency.
 Use of IT in all verticals of business
 Effective use of logistics management
 Global Expansion for new market opportunity
 Networked to HQ via private satellite in 1983
 Bargaining power over suppliers
 Data used to “profile” each market
 Predicts demand, optimizes stock

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Marketing Strategies
Thinking globally. Serving locally.
Wal-mart international stores offer working families the things they need at prices they can
afford, and offer the customer service and convenience they’re famous for. In each of their
international markets, they use their strength as a global company to meet the local needs of
our customers, and provide help for their communities.
Saving People Money so they can live better.
Saving people money to help them live better was the goal that Sam Walton envisioned when
he opened the doors to the first Wal-Mart. Today, more than 40 years later with operations in
16 markets worldwide, Wal-mart continue to deliver that promise to families around the
globe. It’s the focus that underlies everything they do at Wal-Mart. And for the millions of
customers who shop at Wal-mart stores and clubs around the world each week, it means a lot.
‘Saving money — good news in any language’
“Every Day Low Price” is a epicenter of the Wal-mart marketing strategy.
SWOT Analysis of Wal-mart:
Strength
 Cost Advantage.
 Low Price and Customer Oriented.
 Focused strategy.
 Strong Supply Chain Management.
 People are key to success

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Weakness
 Ignore store decoration
 Wal-mart sell products across many sectors (such as clothing, food, or stationary), it
may not have the flexibility of some of its more focused competitors.
 Managing huge span of control.
Opportunity
 Strong Brand Equity.
 Put efforts on social welfare – better image.
 New location, or store types.
 Oversees Markets.
Threats
 Other Competitors.
 Intense price competition.
PestAnalysis of Wal-Mart:
1. Political:
Wal-Mart was at a time subject of the largest class action lawsuit. Was for gender
discrimination.
2. Economic:
"The decision is related to Wal-Mart's recently announced plans to moderate growth of U.S.
super centers as part of leveraging capital resources through a strategy designed to improve
returns and sales within U.S. stores."
3. Social Analysis:
• People looking for ONE STOP service come to Wal-Mart s a first choice in US.
• Wal-Mart and China.

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4. Technological Analysis:
Wal-Mart incorporates the latest MIS systems to vertically integrate with suppliers and
customers.
Key Success Factors
The Company’s ‘Low Price’ image, backed by the strong integrated marketing strategy is the
key success factor of Wal-mart.
People at Wal-Mart believe that , ‘saving money is a good news in any language’. – This
statement (believe) is certainly true as it helped them acquiring success in which this concept
is not so popular – like Germany.
Walton’s 10 commandments for business success were:
1. Commit to your business.
2. Share your profits with your associates (employees), and treat them like your partners.
3. Energies your colleagues.
4. Communicate everything you possibly can with your partners.
5. Appreciate everything your associates do for the business.
6. Celebrate your success.
7. Listen to everyone in your company.
8. Exceeds your customers expectations.
9. Control your expenses better than your competition.
10. Blaze your own path.
Management at Wal-Mart strictly adheres to these commandments, and that’s the key to their
success.
CostLeadership Strategy:
 It is the world's largest public corporation by revenue
 dominant player in the retailing industry

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 became successful by rigorously pursuing its core philosophy of cost leadership
 strategy of establishing discount stores in smaller towns and capturing significant market
share.
 growth in the 1980s by using information technology (IT) to manage its supply chain and
by expanding business in bigger metropolitan cities.
 In the late 1980s, it ventured into food retailing by introducing Supercenters
 In the late 1990s, Wal-Mart launched exclusive groceries/drug stores known as
"neighborhood markets"
Wal-Mart's Aggressive Pricing:
 Mission ” to provide a wide variety of high quality, branded and unbranded products at
the lowest possible price”.
 efforts to procure products at the lowest prices possible from manufacturers.
 Wal-Mart's products are usually priced 20% lower than those of its competitors
 generate more profits due to larger volumes.
 surplus generated was reinvested in building facilities(modern equipment, latest
technology) of an efficient scale
 Wal-Mart imposes a strict control on its overhead costs
 The stores are set up in large buildings, while ensuring that the rent paid was minimal.
Wal-Mart CustomerService:
 Wal-Mart’s key to success is that it thinks like the customer, give a good value in product
for the customer, sell the customer what he or she really wants to buy, exceeds the
customer’s expectation and ensures that the customer enjoy themselves in the process.
 Wal-Mart’s customer strategy is to have almost every aspect of their business centered on
its customer

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 Wal-Mart handles their customer’s complaints in a fast and friendly manner.
Wal-Mart GrowthStrategy:
 At present, the most important goal for Wal-Mart is to maintain their current net sales
growth of approximately 12 percent per year.
 expand into international markets that have large population centers.
 increasing the overall efficiency of the organization by reducing operating costs or cost
of goods sold.
 In the area of human capital, Wal-Mart has no unions, pays low wages, and relies
heavily on part-time and temporary help.
Corporate Strategy:
(Gain competitive advantage by) providing customer’s access to quality goods, when and
where needed, at competitive prices
Corporate Strategies
 Differentiate themselves from their competitors
 To grow through new services and alliances
 Growth of the supply chain capabilities
Corporate Goals
 Store openings
Globally in 2007, the company expects to add around 5.5 million square metres of gross retail
space, which is a 7.5% increase. The company will open over 660 new units during the year.
 Buying strategy
Wal-Mart's buying power is immense and it is seeking to gain further efficiencies by
increasingly shifting buying towards Asia.
 Pricing strategy

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EDLP is Wal-Mart's key retailing ethos around the world and it seeks to offer shoppers the
keenest possible pricing without compromising quality. Own labels have been a core
component of the EDLP strategy.
 Marketing strategy
Wal-Mart actively uses TV, press and radio ads to market itself, its low prices and new
stores. Its US division is also home to the biggest instore TV network in the world.
Increasingly, in the face of more vocal criticism, Wal-Mart is using its marketing initiatives
to defend its reputation.
 Brand and Private Label Strategy
Private label development has been a cornerstone of Wal-Mart's success, and the company is
developing similar ranges in all of its markets. An example is the international roll-out of the
George clothing line.
 E-commerce
Wal-Mart has embraced e-commerce in a number of its core operating markets, although it is
by no means a universal strategy throughout its international operations.
 Supply chain management
Wal-Mart's supply chain infrastructure and systems are the envy of the retail world. The
company takes a very hands-on role in its supply chain operations and is keen to collaborate
with suppliers to drive out
 I.T. strategy
A cornerstone of Wal-Mart's growth has been its Retail Link system. This EDI system
enables suppliers and Wal-Mart to interact more effectively. Wal-Mart is also a keen
proponent of RFID implementation within the supply chain.
Strategic Goals:
 Dominate the Retail Market wherever Wal-Mart has a presence.

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 Growth by expansion in the US and Internationally.
 Create widespread name recognition and customer satisfaction with the Wal-Mart
brand, and associate the retailer with the reputation of offering the best prices.
 Branching out into new sectors of retailing such as pharmacies, automotive repair, and
grocery sales.
Job Analysis:
 Job Description
At Wal-Mart every employee gets his job description before starting his formal job after
training as they are very much conscious about their employees so they not only depend
on job description but also employees are guided by the supervisor and the line manager
or any other manager.
Wal-Mart offers the opportunity for you to start a career in a broad range of fields, such
as in cashier sales, hospitality, inventory, stocking, customer service, management,
maintenance, shipping and receiving, engineering, writing, programming, business
development and pharmacy
Wal-Mart cashier Job description:
A Wal-Mart cashier is responsible for effectively executing and adhering to the "Basic
Beliefs" of the founder, Sam Walton. These beliefs entail showing the customer respect at
all times, demonstrating outstanding customer service and settling for nothing less than
excellence while performing daily responsibilities.
Training
1. Wal-Mart cashiers are trained to provide excellent customer service. A cashier's
training focuses on the 10-foot rule, which ensures every customer encountered at this
distance is aided in a polite, serviceable manner.

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Responsibilities
2. The cashier is responsible for talking to the customer, responding to questions and
giving assistance while processing transactions. Cashiers should adhere to company
policy at all times.
Merchandising
3. Cashiers are required to uphold the tone of the register area by removing unpurchased
merchandise and restocking it in the appropriate areas. They also settle issues
pertaining to product pricing and UPC codes.
Characteristics
4. Aside from having the basic math skills and the operational knowledge of running a
cash register, the cashier should possess the people skills necessary for interaction
with customers.
Restrictions
5. A Wal-Mart cashier should be able to effectively confirm identification for customers
purchasing cigarettes, alcohol and other age-restricted products,
Carrier Available in Wal-Mart:
As one of the world's largest companies, the job opportunities at Walmart are unlimited.
Working at Wal-Mart is more than just a job, it's the chance to build and advance a life-long
career.
Take a moment to explore the many different areas within our company where you can apply
your skills to realize your goals. If you're a veteran, you can apply your skills here at Wal-
Mart.
Carrier Available in Respective Fields:
 Walmart stores, Sam's Clubs and distribution centers

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 Corporate Careers
 Walmart.com
 Pharmacy Careers
 Independent Doctors Optometry Careers
 Truck Driving Careers
Human Resources:
“Our philosophy is that management role is simple to get the right people in the right place
to do job and then encourage them to use their own inventories to accomplish the task at
hand”
Sam Walton
“We have super stores in Wal-mart we have average people operating in an environment that
encourages everyone to perform way above average”
David Glass
“Most of us wear a button that says, “Our people make the difference”. That is not a slogan at
Wal-mart it is a way of life .Our people really do make difference.”
David Glass
Culture:
Wal-Mart culture is most fearsome weapon .The company gospel is
“Be an agent consumer, find out what they want, and sell it to them for the lowest possible
price”
One source describe Wal- mart as follows:
The key to Wal-Mart success is the quality of their management, its style, and its recognition
of their importance of the individual player in the overall team effort .other companies are

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striving to achieve those cultural level but no other retail company is close .Wal-Mart people
work harder the most, probably because they have more fun .they are constantly being
challenged by one another and forced to laugh at themselves. They take pride in working for
perhaps the finest company in the world and their individual contributions are recognized”.
According to Mr. Sam “99 percent of the best ideas we ever had came from our employees”
.His explanation was simplistic but to the point. “if people believe in themselves ,it’s truly
amazing what they can accomplish”
Managers for each of the 40 departments with in a typical Wal-Mart are expected to un their
operations as if they were running their own business .According to one manager 90 percent
to their day is spend walking around stores communicating with associates he praises them
for well done jobs, discuss how improvement could be made and listens to comments and
solicits suggestions. The management style encourages ideas from its associates.
Wal-Mart corporate culture is defined by ten basic principles.
1. The customer is always right.
2. We are merchandise driven company.
3. Our people make the difference.
4. We communicate with our associates.
5. We maintain a strong work ethic.
6. Associates are partners.
7. Our leaders are also servants.
8. Associates are empowered.
9. We have integrity in all we do.
10.We control our expenses.
Store Meetings:
Every morning before store open and every evening after store close, associates and
managers meet for ten minutes to discuss over all operations, expectation how things went,
and so on. Every Friday morning each store has a general store meeting during which
associates at every level can ask questions and expect to get straight forward answers from

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management. These meeting communicate to associates information on new company
initiatives and policy change announcements. Video training films are shown time to time .As
a part of these meetings, corporate management, via satellite emphasis company most
important priorities for the operating week, which gives employee goals and keep them
focused.
Saturday Morning meeting at headquarters:
Since 1961 on every Saturday at 7:30 in Bentonville, Arkansas, Wal-mart conducts a very
informal meeting, employee dress casually some in hunting or tennis clothes for after meeting
fun. Those attending include top officers ,merchandising staff ,regional mangers who over
see store districts, and the Bentonville headquarters staff .they meet to discuss Wal-mart
issues such as week sales; payroll percentages; special promotion items ;unusual problems
and reports on transportation ,loss prevention and information systems.
People division:
Instead of personnel department Wal-mart has a people department .According to Von
Johnston director of people division: we deal with people; people are our jobs. One of the
board member suggested that we change our name to reflect our job and we did”
This division is divided into five functions; store operation, warehouse personal, T&D,
general office personal staff, and Walton life fitness centre staff. The primary focus of the
people division is recruitments of new associates.
“The Wal-Mart Way”:
“The Wal-Mart Way” summarizes that company unconventional approach to business and
the determination of its associate’s .This commitment t o “total quality’ is essential to the
company future success.”Quality the Wal-Mart way” is an on going focus with the emphasis
of doing every thing right the first time because that is the most efficient way .Key elements
are productivity ,team work the “elimination of dumb things: innovation that calls for
“breaking the frame”, and effort to continuously improve. This mind set has also been
adopted by Sam’s club, which has adopted HEATKTE-“high expectation are the key to
everything “ as its strategic rally cry”

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Staffing:
In store employees at Wal-mart consist of two categories: manager (salaried) and associates
(hourly) .Every retail outlet is managed by a store manger and one or more assistants
.Mangers are hired in three ways
1. People from other retail companies with outstanding merchandising skill are
recruited.
2. College graduates are hired
3. Hourly associates move up to the rank.
Recruitment and Selection at Wal-Mart:
The Wal –Mart recruitment is done through online website http://walmartstores.com
statements, including agreeing to a background check and a drug screening, and acknowledging
that misrepresentation or omission of any information will result in your disqualification from
consideration for employment or, if employed, your dismissal.
Register for an Applicant Account
The next step is to create an applicant account. Either create a new account or login to an existing
account, if you have one. If you are creating a new account, be prepared with your social security
number.
Complete the Wal-Mart Job Application
 You can choose to volunteer your gender or ethnic group, or, you can withhold this
information.
 Be prepared to answer whether or not you can prove your U.S. citizenship.
 Choose if you want to work at a Wal-Mart retail store, Sam's Club, or for Wal-Mart
distribution and transportation. Choose the city you'd like to work in, and select a store or
facility you're interested in.
 Provide your contact information - name, address, phone number, and email address.
 Fill out your scheduling availability.

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 Provide two references.
 Complete your employment history - employers, dates worked, - up to ten years ago.
 Provide your qualifications, such as if you have any special skills or if you are bilingual.
Wal-Mart Employment Questionnaire
Next, you will fill out a questionnaire in which you are asked to provide your age, and if you have
ever been convicted of a felony, theft, fraud, or a violent crime. You need to answer whether
you're available to work evenings/weekends, if you can work the night shift, and if you'd like to
work full-time, part-time, or on temporary basis.
You will also be asked the highest level of education you have completed, if you're a student, the
lowest amount of money you would accept for the job, your past employment experience, if they
can contact your past employers, when you can start working, along with answering questions
that will determine if you are eligible to receive federal tax credits.
Wal-Mart Pre-Employment Assessment Test
This retail Wal-Mart assessment test has 65 questions in four sections.
Section 1: Six multiple choice questions about customer and employee relations. They are
looking to see what path you would take in handling conflicts that you might experience working
in a Wal-Mart store. For example, they ask you how you would deal with angry customers,
customer complaints, and conflict with coworkers. Each question asks a hypothetical situation
and you choose the option which is most similar to how you would deal with the situation.
Section 2: You are asked about work-related situations and you are asked to grade the
effectiveness of different responses to problems. For example, they ask you if you think it is very
ineffective, somewhat ineffective, somewhat effective, very ineffective, or neither ineffective or
effective to ask your supervisor to schedule you to work with someone else when it comes to
dealing with a difficult employee you don't want to work with.
Also rate how much you disagree/agree with questions like, "I complete my tasks at work
successfully" or "I feel I am an expert in what I do at work."

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Section 3: Questions about how much you disagree/agree (choose somewhat disagree, strong
disagree, somewhat agree, strongly agree, or neither) with self-analysis questions about your
work ethic, personal decisions, your behaviors, and moral issues, such as whether or not you
agree with the fact that stealing from work is wrong.
Section 4: Questions about your past experience in previous jobs such as your quality standards,
your attention to detail, if you would sacrifice quality for getting something done on time, the
number of your past employees, and your self-discipline.
Sample Test Questions
 Two of your co-workers are having a disagreement. One is from your department and the
other is from another department. You find them arguing and how would you handle it?
 A customer has complained about the same problem three times. Do you ask her to explain
the problem and tell her you'll solve it? Do you say you will get the last person she talked to
and let them solve it? Do you ask her to wait while you talk to the last person she talked to
and find out why it hasn't been resolved?
 A person in your department is habitually late, and the others in the department are picking up
the slack, but they're getting mad about it. Do you tell her that she needs to start being on
time? Do you mention being late at the next department meeting? Do you explain how it's
affecting the whole department when she's late?
 Do you do your job as fast as possible to meet the deadline without checking it? Or do you
make sure you leave extra time to check it before turning it in, even if it may make it a little
later?
Passing the Pre-Employment Test
If you did not pass the Retail Pre-Employment Assessment Test or the Logistics Pre-Employment
Assessment Test, you can retake it after 60 days. If you took the Supervisory Leadership
Assessment but did not pass it, you can take it again in 6 months.
Wal-Mart Interview Questions
Do you have an interview scheduled or have you interviewed at Wal-Mart? Review interview
questions and add your questions to the list.

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Training and Development:
Management training and succession:
In order to ensure well trained future store managers, Wal-mart is committed to an on going
training program for store managers, assistant mangers, and department managers .All
managers complete structured management training program that consist of on the job
training and book work..Areas studied include management topics such as internal/external
theft; scheduling; store staffing; retail match; merchandise replenishment; and Wal-mart key
to supervision series, which deals with interpersonal skill and personnel responsibilities
.After completing the training program trainees are given responsibility of an area in a store
they length of the time they are in this position vary according to how the trainee progress
.Subsequent to this the training is promoted to assistant manger.
In 1985 Wal-Mart created the Walton institute of retailing which was open in affiliation with
the University of Arkansas. Currently every Wal-Mart corporate and store manger is
expected to participate in the institute special program to strength and develop company
managerial capabilities.
Wal-mart believes that good people need good challenges therefore with respect to senior
management .Wal-mart offers cross training to enable them to master new areas.
Associate training:
Upon being hired new associates must complete a “new hire’ checklist and a 3-day
orientation ,and they are immediately placed in position for on the job training .No formal
training is provided by Wal-mart headquarters for hourly associates.OJT is Wal-Mart
philosophy regarding associates training .Store manger and train and supervise employees
.The use of video films is popular training technique, shown from time to time in Friday
morning meetings .Topic of the videos vary from new cash register functionality to security
policies. Wal-mart also use satellite television broadcast to retail management seminars to
disseminate information from headquarters.
Associates have every opportunity of advancement .the management trainee program is
designed to give associates an opportunity to learn and apply basic skill necessary to advance

43
to the assistant manager position .The program is structured 20 weeks period with each
including a specific focus .the objective is to build strong knowledge and experience base in
following areas: personnel functions and administration, operation, merchandising and
supervisory skills. The trainee program is implemented via CBL Computer based learning
provide training on approx 200 task areas and test the associate on each learning module. It is
used to train newly hired associates.
Performance Evaluation:
Wal-Mart calls the process of performance appraisal “evaluation”. All managers and
associates are evaluated annually.
Associate are hired more than minimum wage and can expect to rise with in one year .New
associates receive two evaluation during the first fiscal year. The first at 90 day and the
second on the anniversary date. The four performance appraisal level are
 Below standard
 Above standard
 Standard
 Outstanding
Assuming performance is above standard the employee receives raise at the 90 day
evaluation and at the annual evaluation..Employees who are performing outstanding can
receive rise in pay ant time during the year. All employees must be in their current position
for at least 6 months before they are promoted to next leve
Compensation and Benefits:
 Executive Compensation:
Wal-mart uses the compensation and nominating Committee and the stock option
committee to help determine executive compensation parameters The Wal-mart
compensation and nominating committee administer Wal-Mart stock option and
restricted stock plans sets the interest applicable to the deferred compensation plan
and reviews the benefits and benefits structure for executive officers. This committee
has make nomination for directors..

44
 Director compensation plan:
This program is designed to
1. Provide fair compensation to executives based upon their performance and
contribution to Wal-mart.
2. Provide incentives to attract and retain key executives.
3. Instill a long term commitment to Wal-mart and develop pride and sense of
company ownership
This compensation package has three main parts.
1. Base salary, which is reviewed annually
2. Equity compensation consisting of stock option and for certain executive
restricted stock
3. Incentive payment under the company management incentive plan.
Wal-Mart has deferred compensation plan under which executives may defer compensation
with its interest accruing on amount deferred. .Executive also participates in the Profit
sharing plan which is doffed contribution to retirement plan with its assets primarily invested
in Wal-Mart stock.
Reward System:
Store manger receive additional compensation based upon their store profit .Assistant store
manger receive compensation based upon company profitability. All other persons are
compensated on hourly basis with the opportunity of receiving additional bonuses based upon
the company productivity and profitability.
Shrinkage bonuses are implemented in 1980 to control losses from theft and damage. If a
store holds shrinkage below corporate goal every associate in that store receive bonus .wall-
mart has paid several million dollars in bonuses for improving shrinkage problem.
A very successful incentive program is its volume producing item contest where by
departments with in a store have special promotion and pricing on items they want to feature
.the contest is initially among departments in the store .result are compared among

45
departments and region to region .This is done to boost sales and sell slow moving items .it
also encourages employees to be innovative.
Benefits Packages:
Wal-Mart benefit program is extensive and very competitive in the industry .Te benefits
package include
1. Profit sharing
2. Comprehensive health care plan and dental insurance for employees and their
dependants.
3. Group life insurance and optional term life insurance plan
4. Business travel accident policy
5. Salary continuance.
6. Long term disability insurance
7. Paid vacation
8. Purchase discount
9. Store managers bonus program
10. Generous stock purchase plan.
Our benefits are designed to help associates meet their unique personal, family, and financial needs,
and the program is divided into four areas:
Career Benefits
Career benefits are designed to give each Associate every opportunity to grow, prosper, and advance
in his or her career. Regardless of gender, color, religion, age, national origin, or sexual orientation,
an Associate with the desire and the ability to get the job done will find many career paths and
opportunities to explore.
We also provide classroom training, computer-based training, in-store and on-the-job training,
mentoring, and a host of other opportunities to give associates the knowledge and skills for a
successful career.
Financial Benefits
Financial benefits offer associates several ways to save and invest for their financial security. Our

46
Profit-Sharing and 401(k) Plan help associates save for long-term financial needs, such as
retirement.
Another financial benefit is the Associate Stock -Purchase Plan, which allows associates to buy stock
through payroll deductions.
Health Care Benefits
The foundation of our health benefits is to provide a choice of medical coverage options designed to
protect associates from catastrophic medical costs.
Health care benefits also include Life and Accidental Death and Dismemberment Insurance, Short-
and Long-Term Disability Insurance, and a dental plan that covers a range of general and major care.
Personal Benefits
Our personal benefits include such extras as discounts on child care, education, and travel.
Personal benefits also include medical and personal leaves of absence, long-term service benefits,
and even a professional and personal associate counseling service.
 Profit sharing and Stock option plans:
Wal mart believes that each of its associates is a partner in the company and
encourages stock ownership .To maintain feeling of ownership and to keep them
informed the company stock price is announced storewide ate the end of each
business day .eight percent of the Wal-Mart full time associates own stock
Current Problems and issues:
Non-Unionization:
Unlike its competitors in the retail industry Wal-Mart has remained non-unionized. Its
alternative is an open door policy which aims to encourage employees to take their
complaints beyond management. Wal-Mart employees commence at lower wages than
unionized corporations, quitting by the end of the first year

47
Low Wages:
The average Wal-Mart associate makes between a paltry $12,000 and 17,000 annually.
suggest that the company cares more about keeping its prices low than to increase employees’
wages and thus, in turn, their standard of living.
Discrimination againstWomen:
Wal-Mart has been accused of discriminating against women by its actions of denying
training and promotion opportunities that are generally offered to men. Men are also paid
more than women. In June 2001 a group of six current and former female Wal-Mart
employees filed a sex discrimination lawsuit (seeking to represent up to 500,000 current and
former Wal-Mart workers) against the company . The suit was filed because Wal-Mart failed
to provide equal employment opportunities for women. Women comprise 72% of the
workforce but only small percentages are in supervisory or managerial positions. In addition,
“Wal-Mart is the nation's largest employer of women, but unfortunately they are being treated
without dignity and respect." (Cookson, 2001). The data also shows that women are rated
higher in performance evaluations across all positions except cashier.
Summarizing the research of Richard Drogin (Anon., 2003d) are that:
Women are disproportionately employed in lower paying hourly jobs
Total earnings paid to men is about $5,000 more than paid to women
Women are on lower hourly rates but have been employed longer than men
Women scored higher in performance ratings
Over 95% of Store Managers and Co-Managers change stores at least once upon entering the
positions. 80% of Support Manager promotions did not appear in job posting data .
Wal-Mart's (Anon., 2003d) treatment of its female employees is characterized by a sexually
demeaning atmosphere, where female employees are told that "women do not make good
managers", that "a trained monkey" could do their jobs, and that women with kids couldn't be
managers.

48
Production/Operations:
The largest source of concern for this functional area is the slowing speed of checkout lines.
This is simply a product of Wal-Mart's success. Because more and more people are going to
Wal-Mart, and the number of checkout lines is staying constant, the only way to compensate
is for the time to checkout increase. This is a problem because it can and will cause people to
choose other stores that are less congested. They are basically losing sales due to this fact.
Researchand Development:
This is a weakness because they do not actively engage in any research and development.
Specifically, they do not do any prior site research before opening a store. They simply
approach a local government and build.
Conclusion:
In conclusion, Wal-Mart is the number one retailer in the United States and is at the top of
the Fortune 500 listing. Wal-Mart operates in many countries world-wide and is moving into
new countries every year.
Wal-Mart is also expanding as a retailer. They have expanded into many other sectors of the
marketplace, including groceries, gas stations, electronics, and auto maintenance. Each year,
Wal-Mart finds new ways to grow and offer more services to their customers.
Each year, the number of people who have a stake in Wal-Mart also grows. Each year, more
claims are made against Wal-Mart by the unions and other businesses that have been forced
out of business. Wal-Mart is often able to uncut many other local industries and more and
more local businesses are shutting down when Wal-Mart moves into town. The unions are
filing more court claims against Wal-Mart because they encourage their workers not to join
unions.
As a result of Wal-Mart's ever growing size and variety of services they offer, their
public affairs department is going to become more and more important. And as the animosity
against Wal-Mart becomes more widespread, here and in foreign countries, Wal-Mart is
going to have to work harder to maintain their good reputation. Wal-Mart's foundation will
become increasingly more important for giving things back to the community.

49
In order for Wal-Mart to stay at the top of their game and follow the company strategy
and achieve their key policy goals, they are going to have deal better with their stakeholders
and make sure they guard their reputation well.
• Wal-mart is more oriented towards making profits by cutting down costs
• Has little concern about its employees
• One stop shop, low priced and diverse services makes wal-mart a tough competitor
• Has slowed down its growth.
Recommendation:
• Introducing higher and equal incentives for both genders.
• Continue trade with china to reduce cost.
• Discovering new geographical opportunities.
• Being more concerned about employees.
Workshops, Training & Seminars :
The HR department, emphasizing that Wal-Mart is serious about its strategic initiatives to
promote and hire more women to managerial and supervisory positions. From the data and
research collected, it appears that the key people in charge of promoting and hiring of staff
are male. In order to change their perspectives and beliefs regarding women in the workforce,
we believe it is imperative that these people realize the benefits, experience and knowledge
that women can bring to the organization. We realize it will be a gradual and at times
seemingly slow process, but many psychology studies (Bentham, Veltman, & Vebrugge,
2004) confirm that a change of beliefs is possible via avenues such as sensitivity training and
workshops.
Diversity Task Force :
The creation of a Women’s Group which actively promotes, supports and brings attention to
women’s rights in the company will help increase equality. Other organizations have
implemented diversity task forces to great success, such as Napa Valley College, Kodak,

50
Wells Fargo and AT&T (Cole, 2007) – who report that turnover has decreased whilst staff
morale and job satisfaction has increased. The CEO of the Diversity Advisory Board (DAB)
Eric Beresford states that “If a company is willing to say diversity is a business imperative,
then a diversity advisory board [or diversity council] is a terrific way to make that a reality ...
But if diversity is three layers deep in an organization, the diversity council may get
frustrated. But if diversity is a business imperative, then a diversity council can provide
tremendous value."
Clearly postedjob openings/promotionopportunities and abolish implied
‘relocation’for Managementpositions :
Wal-Mart should ensure advertisements for any managerial or supervisory positions are
easily viewable by all staff, and that there are no conditions attached to the job, ie.
Relocation, non-flexible hours, which may result in women being hesitant to apply.
The diversity initiatives have managed to salvage what was left of its reputation and
continues to slowly change the community’s perception of the company for the better. Wal-
Mart must also be extremely diligent when navigating international markets due to cultural
differences in human resource practices. Potentially damaging misunderstandings may occur
which will be reported and hyped up by the media, resulting in a loss of faith, trust and
revenue.

Supply Chain Management Walmart

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