The Good & the Bad of Final)

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Wal-Mart Stores, Inc. is anAmerican public corporationthat runs a chain of large

discount department stores.

In 2010 it was the world's largestpublic corporation by revenue

with stores in 17 countries,annual revenue for 2009 at US$408.21 billion and approx.2,100,000 employees


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1950 : Walton opens first five-and-dime

1962 : Walton opens first Wal-Mart in Rogers,Ark.

1970 : Wal-Mart has IPO

1979 : Annual sales top $1 billion 1985 : Wal-Mart has about 880 stores and

$8.5 billion in revenue, smaller thancompetitors Kmart and Sears

1990 : Wal-Mart surpasses Kmart in size

1991 : Wal-Mart opens first internationalstore in Mexico City

1992 : Wal-Mart surpasses Sears in size

1994 : Wal-Mart surpasses in size Kmart and

Sears combined


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1995 : Has 1,995 discount stores, 239 Supercenters,433 SAM'S CLUBS and 276 international stores withsales at $93.6 billion

1999 : Collaborates with AOL to provide low costinternet to increase reach among internetconsumers through its website, especially ruralAmerica.

2005 :Has more than 6,200 facilities around theworld, employing more than 1.6 million associatesand $312.4 billion in sales

2006 : Close Operations in Germany

2007 : Starts Operations in India


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Built on three basic beliefs established by Walton

1) Respect for The Individual

2) Service to Customers

3) Strive for Excellence


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Importance to employees in accomplishing

Organizational Goals

Employees being called Associates , thuscreating equality and encouraging Team Work

Open Door Policy

Importance to Diversity Initiatives


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Aggressive Hospitality

Stores employed Greeters to welcome

customers and hand them Shopping Carts.

Sundown Rule Dont put off until tomorrow whatyou can do today

10 Foot Rule : Pledge where once within 10feet of a customer associates shall look them inthe eye, greet them and ask if they can help.


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Always on look-out fornew ideas which could betranslated into greater value of its customers

Tried to obtain goods at lowest possible priceand provide best possible service.

Worked with suppliers to pack and distributegoods in most economical way withoutcompromising quality, so as to offer them at acheaper price to the customer


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Pricing philosophy stressed more importance onVolumes rather than Margins.

All advertisements focused on low pricesat stores.

Three types of pricing policies were followed :

o EDLP : Every day low priceson every product

o

Rollback : Prices reduced even further at certaintimes identified with mascot of yellow smiley

o Special Buy : A product sold at very low price forcertain periodorone product free with anotheror

More quantity for same price


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Teamwork : Individuals dont win, teams do

Grass Roots Process

Servant Leadership : Effective leaders do not lead frombehind their desks

Wal-Mart Cheer : Done by employees every morningand on special meetings

Slogan : Save Money, Live Betterand Always LessPrices


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Hierarchy Culture Market Culture


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Culture is essentially customer centric and service

oriented

Focus primarily on rationalization process ancontinuously improving existing services and deliverysystems

Maintaining Control and stability is Important asefficiency timeliness and smooth functioning arevital factors. Thus their growth strategy is centered

around Control line.

Emphasis on keep doing the same thing better


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Wal-Mart enjoyed a cult-likestatusand employees were referred as

Walmartians

Profit Sharing Plan

No Overtime


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First in Line Program

Associate in Critical Need Trust

Cultural Diversity


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Use of illegal workers

Sweatshop Support

In 1988 most goods stocked in Wal-Mart stores was fromsweatshops in ChinaBuys US$ 10 billion worth merchandise from sweatshops in chinaevery year. Child Labor also used extensively in such shops

Anti Union Stand

In 1970, Sam Walton resisted a unionization push by the Retail

Clerks International Union in two small Missouri towns by hiring aprofessional union buster to educate workers on the negativeaspects of unions

In 2002, Texas 11 meat cutters in Wal-Mart store joined the union,to which Wal-Mart responded by closing all meat cutting depts.And buying pre-packaged meat


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D

iscrimination towards women : Pay difference between men and women Not enough women being promoted to managerial positions

Betty Dukes files a sexual discrimination suit against Wal-Mart in2000 on being denied training for higher salaried position, laterturned into class action suit by 1.6 million women in 2004

National Organization of Women labels Wal-Mart asMerchant of Shame

CulturalD

ueD

iligence and failure inGermany


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Reasons Size of Company

Neglect of Wal-Mart

culture on the partof Store managers

Meteoric Growth

Mix of Cultures inMergers andAcquisitions

The Way Forward Pay based on

evaluation ratings

Importance toCultural duediligence

Efforts to instill newcultural values like

environmentfriendliness

Improve image inMedia


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o Greenberg, J, & Baron ,R.

Behavior in Organizations (9th

Edition) NewDelhi, India : PHI.

o Wal-Mart (n.d) In Wikipedia. Retrieved August 6, 2010, fromhttp://en.wikipedia.org/wiki/Wal-Mart

o Criticism of Wal-Mart (n.d) In Wikipedia.Retrieved August 6, 2010, fromhttp://en.wikipedia.org/wiki/Criticism_of_Wal-Mart

o History of

Wal-Mart (n.d) In Wikipedia

.

Retrieved August 6, 2010, fromhttp://en.wikipedia.org/wiki/History_of_Wal-Mart

o Culture (n.d) In Wallmartstores. Retrieved August 6, 2010, fromhttp://walmartstores.com/AboutUs/295.aspx

o Sam Walton Quotes (n.d) In Brainyquote. Retrieved August 6, 2010from http://www.brainyquote.com/quotes/authors/s/sam_walton.html

o Walmart Harvesting the Wind in Texas (April 20, 2010) in Youtube.Retrieved August 6, 2010 fromhttp://www.youtube.com/watch?v=nQawapwYMhA

o Back to School (August 9, 2010) in Youtube. Rerieved August 9, 2010from http://www.youtube.com/watch?v=lVjOOQDRMj8

o Lunchtime Legends (July 7,2010) in Youtube. Retrieved August 6,2010 from http://www.youtube.com/watch?v=zdiVn5kxjG0


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Documents

The Good & the Bad of Final)