Walmart is the world's largest company by revenue and the biggest private employer. Founded in 1962 by Sam Walton, it now operates over 11,000 stores worldwide under 55 banners. Its main divisions are Walmart Stores US, Sam's Club, and Walmart International. While known for its low prices due to large scale and supply chain management, Walmart also faces criticisms around labor issues and impact on local communities. It seeks further growth through expansion in emerging markets and increasing online sales.

1. Walmart
By Liza ormol

2. Contents
 Overview
 History
 Operating division
 SWOT analysis
 External environmental factors
 Wal-Mart strategies
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3. Overview
 Name: Wal-Mart Stores Inc.
 Headquarters: Bentonville, U.S.
 Current CEO : Mike Duke
 Revenue: $ 466.950 billion (2012)
 Profit: $ 15.699 million (2012)
 Employees: 2.2 million (2012)
 Main competitors : Dollar General Corporation , Costco
Whole Sale Corporation ,Target Corporation
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4. Five years financial summary
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5. History
 Walmart is an American multinational retail corporation
that operates chains of large discount department stores
and warehouse stores
 Headquartered in Bentonville, Arkansas
 The company was founded by Sam Walton in 1962 and
incorporated on octobar31,1969
 It has over 11000 stores in 27 countries, under total of
55 different banners
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6. Consolidated Statement of income
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7. Cont’d…
 Walmart is the world’s largest company by revenue ,
according to Fortune Global 500 list in 2014 and
maintaining it’s position from last year
 It’s the biggest private employer in the world with over
two millions employees
 And also it’s the biggest retailer in the world
 Walmart is a family-owned business, as the company is
controlled by the walton family, who own over 50 percent
of walmart through their company holding
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8. Cont’d…
 In 1945, a businessman and former J.C. Penney
employee, Sam Walton, purchased a branch of the Ben
Franklin Stores from the Butler Brothers
 His focus was on selling products at low prices to get
higher-volume sales at a lower profit margin
 He experience set backs, because of the lease price and
branch purchase were usually high
 But he was able to find lower-cost suppliers then the
ones used by other stores
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9. Operating division
 Walmart’s operations are organized into three divisions:
Walmart Stores U.S, Sam’s club , and Walmart
international
 The company does business in nine different retail
formats:
 supercenters, food and drugs , general merchandise
stores, bodegas(small markets), cash and carry stores ,
membership warehouse club , apparel stores, soft
discount stores and restaurants
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10. Walmart Growth( Net Sales )
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11. Walmart stores U.S.
 Walmart Stores U.S. is the company’s largest division,
accounting for $258 billion(equivalent to $279 billion in
2014), or 63.8 percent of total sales for financial year
2010
 It consist of three retail formats that have become
commonplace in United States: Discount stores,
Supercenters, and Walmart markets
 the retail department stores sales non-grocery products,
but it’s supercenters sales grocery items
 This division also includes Walmart's online retailer,
walmart.com
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12. Sam’s Club
 Sam’s club is a chain of warehouse clubs that sell
groceries and general merchandise, which are often in
large amount
 Sam’s club stores are “membership” stores and most
customers buy annual memberships
 There are three types kinds of memberships of Sam’s
Club, Sam’s Plus, Sam’s Business and Sam’s Saving ,
that each types provide benefit and convenience to
customers
 The first Sam’s club opened in 1983
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13. Walmart International
 As of 2014, Walmart’s international operations comprise
6,337 stores and 800,000 workers in 26 countries
outside United states
 There are wholly owned operations in Argentina, Brazil,
Canada and the UK. With 2.2 million employees
worldwide
 The company is largest employer in U.S , Mexico and
Canada
 Walmart’s international division sales were $108 billion in
2014, or 24.7 of total sales
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14. SWOT Analysis
 Strengths:
 1.International operations
 2.Scale of operations
 3. Competence in Information system
 4. Wide range of products
 5.cost leadership strategy
1.International operations :
Walmart does not rely on sales from US stores only as its competitors
do
It has earned $135 billion in sales in 2013 from its international
operations
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15. Strengths
 1. scale of operations :
 Walmart is the largest retailer in the world with more than $400
billion in revenue and 10,130 stores
 Due to such large scale of operations, the corporate can exercise
strong buyer power on suppliers to reduce the price
 It can also have high enemies of scale because of its high size that
results in lower prices that passed to consumers
 2. Competence in information system :
 The corporate achieve significant cost savings because of its
extensive information system that tracks orders, inventory levels,
sales and other information
 All this information can accessed , analyzed and decision made at
each store
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16. Cont’d…
 3. Wide range of products :
 Walmart can offer wider range of products than any other retailer
 It sales grocery , entertainment , health and home related products
among many other categories and offer both branded and own label
goods
 Wide range of products attract more customers
 4:Cost leadership strategy:
 This strategy helped walmart to become low cost leader
 It sells products at much lower prices than competitors do , builds
warehouse style superstores that contain extensive range of
products but doesn’t offer much additional benefits or services
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17. Weaknesses
 1. Labor related lawsuits
 2. High employee turnover
 3. Little differentiation
 4. Negative publicity
 1. Labor related lawsuits :
 Walmart face this situation every year , which cost millions of dollars
 It is criticized for poor work conditions , low wages , unpaid overtime
work and females discrimination
 In addition corporates reputation has been damaged and fewer
skilled workers are working for it
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18. Cont’d…
 2. High employee turnover :
 The firm suffers from high employee turnover that increase firm’s
costs, as it has to train new employees
 The main reason is low skilled, poorly paid jobs
 3. Little differentiation :
 Walmart has no differentiation compared to its competitors
 Which might hurt the company in future if commodity prices or
average income would increase
 4. Negative publicity :
 The company often criticized for its questionable practices such as
bribery of authorities or poor work conditions
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19. Opportunities
 1. Retail market growth in emerging markets
 2. Rising acceptance of own label products
 3. Trend toward healthy eating
 4. Online shopping growth
 1. Retail market growth in emerging markets :
 Retail markets grew by at least 5% on average in emerging market
last year
 The business is currently operates in Brazil, Mexico, China and
India markets
 Walmart should increase its presence in these markets to sustain
future growth
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20. Cont’d…
 2. Rising acceptance of own label products :
 The sales of private label products increased by more than 40%
over last 10 years and it shows consumer acceptance of
supermarket chain products
 It is having an opportunity to increase the number of private label
products sold at its stores
 3. Trend toward healthy eating :
 The current trend of eating healthier food has resulted in higher
demand for grocery products that make an opportunity for walmart
to expand its grocery stores
 4. Online shoping growth :
 Walmart being the biggest offline retailer has huge opportunities to
expand its presence in online retail market
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21. Threats
 1. Increasing competition from brick and mortar online competitors
 2. Increasing resistance from local communities
 3. Rising commodity product prices
 1. Increasing competion from brick and morter online compitotors :
 Competitors like Target, Costco, Amazon and Tesco ( in UK) are
putting huge efforts to eliminate price differences that walmart
enjoys
 Walmart doesn’t differs from other low cost retailers and will
experience increased competition from them in the future
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22. Cont’d…
 2.Increasing resistance from local communities :
 Walmart superstores have a negative impact on local retailers and
communities
 Some of the local retailers are usually forced to closed off when
walmart superstore opens in the area and this effect not only
retailers but their community as a whole
 3.Rising commodity product prices :
 As price go up, the cost differences between the retailers decreases
and competition shifts from price to product and service
differentiation
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23. External environmental factors
 1. Political/Legal
 2. Sociocultural
 3. Technological
 4. Economic
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24. 1.Political/Legal
 Wal-Mart faced multiple accusations, charges , many resulting in
fines, including environmental violations, child labor law violations,
use of illegal immigrants by sub-contractors, and allegedly poor
working condition for association
 Wal-Mart has become a “poster company” on political issues related
to trade , health care , the environment, discrimination , worker pay
and general anti corporate sentiment
 Wall-Mart is alleged to have ‘engaged in a pattern and practice of
discriminating against women in promotions , pay , training and job
assignments
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25. 2.Sociocultural
 Eco-friendly practices. Wal-Mart launched its global environment
sustainability initiative in 2004 and has since taken action toward
several sustainability goals:
 Sell 100 million compact fluorescent bulbs by 2008; reduced
packaging by 5% by 2013; buy fish from certified fisheries; sell
“more organic and environmental friendly products
 Customers are more particular about purchases(people are getting
more knowledgeable and broad minded)
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26. 3:Technological
 Wal-Mart’s legendary inventory management capability is driven by
its advanced Texlon barcode system which could track sales price,
inventory levels of each product , keep a history of quantities sold ,
record trends and predict future needs
 All Wal-Mart suppliers must participate in Retail link, a computerized
system in which they plan , execute and analyze their business
 Wall-Mart’s technological supply-chain sophisticated is intended to
provide “value for customers, associates and shareholders.”
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27. 4:Economic
 Increase in wall-Mart net income. (over the past decade,
Wal-Mart doubled its store count, tripled its revenue, and
nearly quartered its net income)
 Customers are price sensitive. ( Shoppers likely have
lower price elasticity , a relatively lower switching cost,
but a higher sensitivity to brand reputation. )
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28. Wal-Mart strategies
 Business level strategy :
 Low cost strategy:
 It offers a wide variety of good quality merchandise , the lowest
possible price , guaranteed satisfaction, free parking
 Technology :
 RFID enables to track inventory locations , warehouses , shelves
 online service :
 The Wal-Mart logistic team uses an internal-based Transportation
link system to help them to move goods
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29. International Strategies
 Wal-Mart international includes “Wholly owned operations in
Argentina, Brazil , Canada , and UK; the operation of joint venture in
china
 Wal-Mart seeks markets where it feels that there is potential for it to
become a top three retailer, an opportunity that did not exist for it in
Germany or south Korea
 Wal-Mart is pursuing strategies which include sustainability efforts
and localized charitable giving to help poverty
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30. References
 http://www.ukessays.com/essays/management/general-
environmental-factors-affecting-wal-mart-management-essay.php
 http://www.strategicmanagementinsight.com/swot-analyses/walmart-
swot-analysis.html
 http://en.wikipedia.org/wiki/Walmart
 http://cdn.corporate.walmart.com/66/e5/9ff9a87445949173fde56316
ac5f/2014-annual-report.pdf
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