INTRODUCTIONWalmart store inc. the largest retailer andthe largest company in terms of revenue. Sam Walton ,the founder of Wal-Mart,opened the first Wal-Mart store in Rogers,Arkansas in 1962. The company is publiclytraded at the New York StockExchange under the symbol WMT and hasits headquarters in Bentonville, Arkansas.
"The secret of successful retailing is to give your customers what they want. And really, if you think about it from your point of view as a customer, you want everything: a wide assortment of good- quality merchandise; the lowest possible prices; guaranteed satisfaction with what you buy; friendly, knowledgeable service; convenient hours; free parking; a pleasant shopping experience." - Sam Walton (1918-1992)
FEATURES OF WALMART Merchandise Feeling of family for the employees Operating division
BACKGROUND Started on 2nd July 1962 in Rogers, Arkansas. Expansion of company Listing in stock exchange Launch of supercenter concept
BACKGROUND Home delivery services Focus of the company Cost cutting concept
PLANNING : SMALL TOWNS TO A GLOBAL STRATEGY Traditional stores and Supercentre Supercentre stock everything Many Wal Mart Supercentre also have a Garden Centre, Pet Shop, Pharmacy, Tire and Lubricants, Optical Centre, Photo processing lab etc By the early 1990s Wal Mart has Gone international
PLANNING : SMALL TOWNS TO A GLOBAL STRATEGY Clubs and Stores are world wide Wal Mart’s international operations currently comprise 4263 stores and 660,000 workers in 15 countries outside the U.S Known for its Brand Strategy Hub and Spoke Distribution System
ORIGINATION STRUCTURE Information system is centralized Operation is decentralized Meetings provides opportunity for customer feedback Origination is based on 3 basic values Respect for the individual Service to the customers Striving for excellence
HUMAN RELATION MANAGEMENT Employee advancement programs Campus recruitment Good retention rate Training and Development Sams suggestion system
LEADERSHIP Personal leadership Experimenting Valuing team work Delegate responsibility resilience
CONTROLLING Modern technology and inventory system Relationship with supplier Customer controlling
GLOBAL CHALLENGES FOR THE FUTURE Weakest overseas business in Germany Cut throat competition in China Failure in influencing the Chinese customers
STRENGTH Walmart is powerful retail plant Walmart has grown substantially over recently year, and has experience global expansion The company has a core competency involving its user of IT to support its international logistics system A focus strategy in place for HRM and development
WEAKNESS The corporate is huge but still has presence in 14 countries Customers sometimes are curious about the quality of products Keep poor performance employee on hand The market share is low outside the US market Supplies profit margin is very low
OPPORTUNITY Take over , merge with , or form alliances with global retailers focusing on specific market such as Europe or China Due to recession in 2008-09 the purchasing power of customers is reduce Market development untapped market specially.
THREATS Being leader it faces a lot of competition Poor human relation Effect on local retailers.
Can Walmart adopt same strategies in other countries like U.S NO Difficulties of Walmart :-• Hire a large no. of employees• Demand of urban people• Appropriate pricing• Organization culture
Can organization be copied to other countries from U.SYESChanges suggested :- Change in organization culture Pricing strategy
Could competitors copy the inventory system of Walmart Walmart uses SMART inventory system , it keeps tracks of all the stock of Walmart and can automatically order the product which is out of stock. NO other companies cannot copy their system because Walmart had ordered that software specially for them and they patented them.
Would you like to be a manager of walmart A bigger brand of world wide Comprehensive training program for all types of associates Company use to offers generous financial rewards for their associates Offers good salary package to its managers.
What should walmart to be successful in other countries GLOCAL Joint ventures Improving their efforts
How can walmart control the global enterpriseWalmart operations are organised into three divisions :- Walmart stores US SAM’s club Walmart international