WalMart Management 310

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Wal-Mart Management 310
Henry AlexanderThomas HintonHai JinJonathan
Keys
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Vision

• Respect for the individualworkers should be
  treated fairly, equally, and with dignity
• Service to customersfundamental to Wal-Marts
  success
• Strive for excellenceachieve excellence through
  changes

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Mission Statement

• To give ordinary people the chance to buy the
  same thing as rich people.

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History - milestones

• Sam Walton in 1940s
• New Port, AR. 1945
• Expansion in 1948
• Walton's 5 10 in 1950
• Chain stores in Missouri, Oklahoma in 1968
• Present Retail Juggernaut

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1962 - Company founded with opening of first
Wal-Mart in Rogers, Arkansas.
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1972 - Wal-Mart approved and listed on the New
York Stock Exchange.
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1991 - International market entered for first
time with the opening of a unit in Mexico City.
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Global Strategy

• Gigantic buying power around the world
• Expertise and competencies in areas such as
  efficient store management, the effective use of
  technology vis-à-vis suppliers, merchandising
  skills, logistics, and informational technology
  deployment

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Local Adaptation

• Selects the country appropriate mode of entry
  - Acquisition of an existing player, alliance
  with an existing player, and starting new
  operations
• Decentralization- Responds more effectively to
  local and segmented consumer demand
• Economies of scale - Wedges its market by
  demography, geographic region, income level,
  ethnicity, and lifestyle.

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Organizational Structure
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Ethics Policy

• Global Ethics Office (June 2004 )promote
  ownership of Wal-Marts ethical culture to all
  stake holders globally.
• Ethical principals 1)        Follow the law at
  all times2)        Be honest and fair3)       
  Never manipulate, misrepresent, abuse or conceal
  information4)        Avoid conflicts of
  interests between work and personal affairs5)   
      Never discriminate against anyone6)       
  Never act unethically-even if someone else
  instructs you to do so7)        Never ask
  someone to act unethically
• 8)        Seek assistance if you
  have questions about the statement of ethics or
  if you face an ethical dilemma9)       
  Cooperate with any investigation of a possible
  ethics violation10)      Report ethics
  violations or suspected violations
• Unethical activities? Payroll violation?

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• Wal-Mart Foundation
• This foundation provides financial as well as
  volunteer support
• for communities worldwide. Their mission is As a
  globally
• responsible citizen, we strive to improve the
  quality of
• life for associates, customers, and communities
  through
• financial contributions, in-kind donations and
  volunteerism.

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• Management Decisions
• - Human resources- Training- New Technology
• Leadership - Three stage program - Investing in
  its own people
• Environment Community- Renewable energy, waste
  reduction, and sustainable products

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Corporate Level Organizational Strategies

• Growth strategy
• Improve their sales, profit, and performance
• Stability strategy

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Porters 5 Industry Forces

• Rivals
• Threat of new entrants
• Threat of substitute products or services
• Bargain power of suppliers
• Bargain power of buyers

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Intrapreneurship

• The Store within a Store program
• Encourage department managers to take the
  incentive to keep the department neat and
  desirable for customers as well as a profitable
  area of the store.

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Future

• Interview with Michael Cralton, manager of the
  Jonesboro Wal-Mart.
• nationwide growth of about 2
• Our opinions