Walmart is the largest retail store and most profitable company in the world. It operates various store formats including discount stores, supercenters, neighborhood markets, Sam's Club warehouses, and an online store. Walmart pursues strategies like efficient supply chain and inventory management to maintain low costs, and respects individuals, serves customers, and strives for excellence. It has continued successful growth even after the death of founder Sam Walton by following his strategic formulas.

1. What you knew about Wal-Mart The largest retail store in the world The most profitable company in the world Famous for its Everyday Low Price strategy Sam Walton was the original owner of the store

2. Group 3 Presentation Wal-Mart Stores, Inc. : Strategies for dominance in the New Millennium

3. MORE RECENT FACTS For FYE 2005, Wal-Mart reported net income of $10.3 billion on $ 285 billion sales revenue (3.6% profit margin) Largest employer in the United States, Mexico and Canada Holds 8.9% retail store market share Can be associated with several products’ price decline and job creation during 1985- 2004 (Global Inside study)

4. WAL-MART BUSINESSES WAL-MART Discount stores Average 9,290 square meters Sell general merchandise such as apparel, household products and etc.

5. WAL-MART BUSINESSES WAL-MART Supercenter Average 17,400 square meters Discount stores + fast food restaurants, car care shop, hair salons, video stores, and etc.

6. WAL-MART BUSINESSES WAL-MART Neighborhood market Average 4,000 square meters Grocery, pharmacy, limited general merchandise

7. WAL-MART BUSINESSES Sam’s Club Average 11,891 square meters Membership-only wholesale warehouse aimed at small business-owned customers

8. WAL-MART BUSINESSES walmart.com Online shopping site Also offers digital music download and online photo processing

9. WAL-MART BUSINESSES Wal-Mart International Operates various formats internationally including SAM’S CLUB, Discount stores, Supercenters, and restaurants.

10. WAL-MART STRATEGIES RESPECT FOR THE INDIVIDUAL SERVICE TO THE CUSTOMER STRIVE FOR EXELLENCE

11. WAL-MART STRATEGIES RESPECT FOR THE INDIVIDUAL “ ASSOCIATE ” Letter to the president program “ The Wal-Mart way ” - Wal-Mart cheers

12. WAL-MART STRATEGIES SERVICE TO THE CUSTOMER Less-crowded area selection Everyday low prices “ People Greeter”

13. WAL-MART STRATEGIES STRIVE FOR EXELLENCE Cost Leadership “ Buy American ” campaign Green Marketing Inventory control Global expansion

14. QUESTIONS & ANSWERS

15. 1. Identify and evaluate the strategies that Wal-Mart pursued to maintain its costs leadership position? - Efficient supply chain Distribution Centers’ locations Inventory control system by using information technology and Internet Sales Promotion

16. 2. Evaluate Wal-Mart’s competitive environment External Environment Economics: change in customer’s purchasing power Rival firms: change in marketing strategies - Technology: innovation of new technologies Trade Area: change in international policies Internal Environment House-brand strategies Cost leadership - Improved service qualities Sources of fund

17. 3. Discuss the importance of changes in the external environment to an organization like Wal-Mart Economic GDP trends Interest rates Money supply Inflation rates Wage/ Price control Energy availability and cost Social-Cultural - Lifestyle changes Attitudes Consumer activism Culture and tradition Life expectancies Birth rates Technological Total government &industry spending for R&D Focus of technological efforts New products New developments in technology Political-Legal Anti-trust regulation Environmental protection laws Tax laws Foreign trade regulations Attitudes toward foreign companies Stability of government

18. 4. What conclusions can be drawn from a review of Wal-Mart’s financial performance over the decade of the 1980 ? From this review , what can you conclude about the finance future of the firms ? DPS 0.20 0.24 0.28 0.30 0.36 0.52 USD/ sh a re ROE 22.9 21.3 19.4 20.9 21.3 22.1

19. 5. Speculate an how much impact the “absence” of Sam Walton had on the forward momentum of the organization. What steps have been or should have been taken by management to continue Sam Walton’s formulas for success? Wal-Mart has been able to continue its success even after Sam Walton passed away by following his 3 main corporate policies RESPECT FOR THE INDIVIDUAL SERVICE TO THE CUSTOMER STRIVE FOR EXELLENCE

20. 6. Is Wal-Mart competitive advantage imitable? Wal-Mart competitive advantage is inimitable due to - Its management efficiencies Its strongly supportive human resources Its emphasis on giving the best to customers Its privileges as the world’s biggest retailer

21. 7.What are the challenges facing Wal-Mart in the new Millennium? - Maintain its position in terms of market leader & market share International economic fluctuations, trade laws, culture, etc. Advancement of technologies

22. 8.What recommendations do you have for CEO Lee Scott ? - Maintain Wal-Mart’s Core Competence Search for new market opportunities Better the existing strengths Improve detected weaknesses and minimize threats

23. 9.What would we do if we were the CEO of Wal-Mart? Pass on corporate value - Improve benefits of Wal-Mart’s associates Engage in international non-profit activities for global corporate image Use only environmental-friendly products for building outlets - Strengthen e-commerce operations - Establish sales & service call center - Establish worldwide presence of Wal-Mart

24. The End & Discussion