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The Walmart Organization
Rochelle Frazier
The Walmart History
• The Walmart story began in 1962, when Sam Walton, our founder opened the company’s first discount store in Rogers, Ark.
The Walmart History
1970’s
•1st Distribution Center and Home Office built in Bentonville Arkansas
•Began selling shares over the counter publicly
•Company closed out the decade 276 stores and 21,000 associates
1980’s
•Implementation of the people greeter in all stores
•1st supercenter opens in Washington, Missouri
•Marked it’s 25th anniversary with 1,198 stores and 200,000 associates
1990’s
•Walmart Visitor Center opened in Bentonville, AR
•Sam Walton passed away at the age of 74
•Walmart goes international in Mexico
•2,234 stores and 1,140,000 associates becoming worlds largest private employer
The Walmart History 2000’s
• The 3,000th international store opens in Brazil
• Walmart expands its $4 generic prescription program
• Walmart brings commitment to environmental sustainability
• Over 6,200 facilities around the world. Over 1.6 million associates
Structure of Walmart
Executive
Business Unit Leaders
Business Unit Senior Staff
Department Heads/Managers
Individual Managers
Walmart cultureRecycle--each store participates domestic and
international
More on Walmart Culture
Three Basic Beliefs--everyone should practice daily
• Respect for the individual
• Strive for Excellence
• Service to the customer
Sundown Rule—management should get back with an associate or customer with in twenty four hours on any question that can not be answered immediately
The Backroom Change Process
was started to improve the level of customer service in the store. Department managers will now be available more frequently on the sales floor to focus primarily on the merchandising and customer service. Walmart wants to provide products on the sales floor in a timely manner so no one has to wait till the products get back in stock. This will help improve the customer shopping experience.
Leadership actions throughout the process
• Executive leadership provided with training webinars that cascaded down to store business unit leaders
• Store business unit leaders communicate process with remaining store management
• Training classes provided to department managers and all effected associates
• Talking points provided for associate meetings• Order necessary supplies and communicate with resources• Pilot the process in a select group of stores• Select one department manager within the store to champion the process
first
Strategies for
Overcoming Resistance• Daily communication meetings • Select a department manager to
champion the process• Enforcement of attendance policy• Analysis meetings• Updates on sales, customer
service surveys and inventory levels provided
Sustaining the Change• New process added to daily
routine and responsibilities• Continuation of analysis meetings• Becomes a future checklist for the
Market Manager tour• Unannounced store visits
reviewing the process
Effectiveness of the change process
Successes• Pilot program• Communication plan• Department manager champion
• Slight improvement in customer experience surveys
Opportunities• Associates reverting back to the
old way of doing things• Did not account for the holiday
season in the implementation timeline
• Did not impact sales as expected• Inventory level too high
Walmart response to innovation and change
• Walmart is great at recognizing the need for innovation and change. The company steadily forecast years away implementing small stages in the process gradually. Walmart invest the resources and time piloting new process to increase their sustainability.
As Walmart continues to grow, in my opinion, it will be essential to allow stores increased flexibility to meet the demands of their local communities in order to deliver on our mission to save customers money so they can live better.