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Walmart Presentation

  1. 1. 1 Business Presentation Wal-Mart Joyce de Jesus ISM3013 Professor Amaro June 28, 2013
  2. 2. How Did The Company Start? History Time Frame Geography Significance Expert Insight 2
  3. 3. WALMART HISTORY Sam Walton started is career in retail as a clerk for J.C. Penney. Then, after serving in the military until 1945, he purchased his own Ben Franklin store in Newport, Arkansas. He added several other of these store and became savvy about what makes for profitable retail sales over a twenty year period. He then opened his first Wal-Mart in Rogers, Arkansas in 1962. Since then, the Wal-Mart brand has steadily grown to a position as the “world’s largest retailer,” projected to do over $300 billion in sales during 2008. 3
  4. 4. WAL-MART TIME FRAME The company has been growing steadily since it opened in 1962. Five years later, there were 24 stores I Arkansas, one in Sikeston, Missouri, and another in Claremore, Oklahoma. In 1967, the company did $12.6 million in sales revenue. The company incorporated as Wal-Mart Store Inc. on October 31, 1969. Its home office in Bentonville, Arkansas opened in 1970. Sales revenues reached more than $1 billion by 1979, when the company had 276 stores in a total of ten states and employed 21,000 associates. 4
  5. 5. WAL-MART GEOGRAPHY In 1991, Wal-Mart opened its first store outside of The United States, in Mexico City. In 2000, Fortune Magazine named Wal-Mart the number five “Global Most Admired All-Star” and in 2003 and 2004 Fortune upped the ranking to number one. In 2007, Wal-Mart created 2.5% of the new jobs in Mexico. In 2008, Wal-Mart operated 4,100 facilities within the United States and 3,100 facilities abroad. Wal- Mart store, Wal-Mart Super Center, Discount Stores, Neighborhood Markets and Sam’s Clubs are in eight Latin American nations, as well as in China, Japan, Canada and the United Kingdom. 5
  6. 6. WAL-MART SIGNIFICANCE The Wal-Mart mission is to save “people money so that they can live better.” This pertains to everything that the company does, from its commitment to clean, renewable energy with zero waste to its reputation as a place where prices on name-brand opens are low thanks to the volume with which they can be purchased. It takes corporate citizenship seriously. One of its outreaches is a partnership with Food for America. The Cone/Roper report named Wal- Mart the number one corporate U.S. citizen. 6
  7. 7. WAL-MART EXPERT INSIGHT Wal-Mart has laid out an impressive set of goals going forward. The company has purchased enough wind energy to transition 15% of its Texas stores to this clean fuel source. By 2012, the company plans to run 30% of its facilities on totally renewable energy. It has a long-term goal of 100% dependency on clean fuel technology. Even though it is sometimes accused of disparities in its treatment of minority employees, the company deals with more than 3,000 minority and woman-owned businesses and suppliers. The leadership of Wal-Mart, as of February 1, 2009, includes Mike Duke as CEO, who succeeds Lee Scott in this position. Lee Scott remains involved on the Wal-Mart Board of Directors. 7
  8. 8. WAL-MART CULTURE Wal-Mart Mission Statement: People, Saving Money, Living a Better Live. Sam Walton built his business on values and morals. Those rules and customs have helped Wal-Mart become one of the world’s most admired companies. 8
  9. 9. WAL-MART BASIC BELIEFS & VALUES RESPECT FOR THE INDIVIDUAL  Wal-Mart associates are hardworking, ordinary people who have teamed up to accomplish extraordinary things. SERVICE TO THE CUSTOMERS  Customers are the reason Wal-Mart is in business, Quality merchandise is offered at the lowest prices, with the best customer service possible. STRIVING FOR EXCELLENCE  Constantly reaching further to bring new ideas and goals to life; always asking: Is this the best I can do? 9
  10. 10. WAL-MART RULES, LEADERSHIP & TEAMWORK 10-FOOT RULE  whenever an associate comes within 10 feet of a customer, they look them in the eye, greet them, and ask if they can be helped. SERVANT LEADERSHIP  Sam Walton’s leadership philosophy, It’s more important to 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. TEAMWORK  The ability to work together affects the quality of service the customers receive. 10
  11. 11. Questions 11
  12. 12. COMMUNITY & GIVING The Walmart Foundation strives to provide opportunities that improve the lives of individuals in the communities through financial contributions, in-kind donations, and volunteerism:  Education  Workforce Development/Economic Opportunity  Environmental Sustainability  Health and Wellness 12
  13. 13. COMMUNITY & GIVING Wal-Mart employed 2.2 million associates and employees worldwide and continue to serve more than 176 million customers and consumers a year. Wal-Mart most basic value has always been, and will always be customer service”. 13
  14. 14. WAL-MART TOP OF THE FORTUNE 500 Dominance in the Retail Market Expansion in the U.S. and International Markets Creation of Positive Brand and Company Recognition Brand Out into New Sectors of Retail 14
  15. 15. WAL-MART COMPANY’S SUCCESS Since Sam Walton’s death in 1992, Wal-Mart has gone from being the largest retailer in the world to holding the top on the Fortune 500 list as the largest company in the world. Don Soderquist, who was senior vice chairman during that time, played a crucial role in that success. Sam Walton said, “I tried for almost twenty years to hire Don Soderquist…But when we really needed him later on, he finally joined up and made a great chief operating officer.” Responsible for overseeing many of Wal-Mart’s key support divisions, including real estate, human resources, information system, logistics, legal, corporate affairs, and loss prevention. 15
  16. 16. WAL-MART INFORMATION TECHNOLOGY SUCCESS The use of information technology has been an essential part of Wal-Mart’s growth. A decade ago Wal-Mart trailed K-Mart, which could negotiate lower wholesale prices due to its size. Part of Wal-Mart’s strategy for catching up was a point-of-sale system, a computerized system that identifies each item sold, finds its price in a computerized database, creates an accurate sales receipt for the customer, and stores this item-by-item sales information for use in analyzing sales and reordering inventory. Aside from handling information efficiently, effective use of this information helps Wal-Mart avoid overstocking by learning what merchandise is selling slowly. Wal-Mart’s inventory and distribution system is a world leader. 16
  17. 17. WAL-MART INFORMATION TECHNOGY SUCCESS TELECOMMUNICATIONS To link directly from its stores to its central computer system and from that system to its supplier’s computers Allows automatic reordering and better coordination. Knowing exactly what is selling well and coordinating closely with supplier permits Wal-Mart to tie up less money in inventory than many of their competitors. 17
  18. 18. WAL-MART INFORMATION TECHNOLOGY BAR CODE SCANNER To record the sale of each item and make that information available immediately for both reordering and sales analysis. Accurate inventory. Competitive necessity for large grocery stores and retailers. Develop a universal product code (UPC) system, a standard method for identifying products with number and coding those numbers. 18
  19. 19. WAL-MART CONTRIBUTION TO THE TECHNOLOGY WORLD Invest in the latest to connect their global retail operations with one of the largest data warehouse in the world. Developing new technologies to transform the way customers shop. Continue to save people money so they can live better. Offer job opportunity for everyone, wit exciting projects, investments in new technologies, training, development and incredible. 19
  20. 20. WAL-MART STRATEGIC PLAN Retain oversight of all day-to-day operations at Focus on further integration of online and in-store capabilities hat provide multi-channel options for customers. Expand the site’s overall merchandise assortment and product information. 20
  21. 21. WAL-MART ECONOMIC IMPACT Jobs Taxes Wages Benefits Manufacturing Existing retail businesses 21
  22. 22. WAL-MART SOCIOLOGICAL IMPACT Globalization Labor Community mobilization Buyer-driven commodity chains 22
  23. 23. WAL-MART SOCIALOGICAL IMPACT GLOBALIZATION  Business model and organizational structure. LABOR  In terms of its own stores and working conditions in its global supply chain. COMMUNITY MOBILIZATION  The genesis and effectiveness of community mobilization against Wal-Mart. 23
  24. 24. WAL-MART SOCIALOGICAL IMPACT BUYER-DRIVEN COMMODITY CHAINS How Wal-Mart’s growth is linked to the emergence of buyer-driven commodity chains in the global economy. 24
  25. 25. REFERENCES  first-walmart-store-open.html    25
  26. 26. REFERENCES     26