Wal-Mart Stores, Inc. is the largest retailer in the world, the world’s second-largest company after ExxonMobil and the nation’s largest nongovernmental employer. Wal-Mart Stores, Inc. operates retail stores in various retailing formats in all 50 states in the United States. The Company's mass merchandising operations serve its customers primarily through the operation of three segments. The Wal-Mart Stores segment includes its discount stores, Supercenters, and Neighborhood Markets in the United States. The Sam’s club segment includes the warehouse membership clubs in the United States. The Company's subsidiary, McLane Company, Inc. provides products and distribution services to retail industry and institutional foodservice customers. It is now has more than 4,700 stores including some 1,475 discount stores, 1,750 combination discount and grocery stores and 538 membership-only warehouse stores (SAM’S CLUB) (Bianco, 2003). With net income of approximately US$8 billion on sales of US$247 billion (“Income Statement”, 2004), Wal-Mart was the subject of countless newspaper features and journal articles praising its dominance and success. Nearly 75% of its stores are in the United States (“Wal-Mart International Operations”, 2004), but Wal-Mart is expanding internationally. The International segment includes all of its operations in Asia, Europe, and South America which are comprised of Argentina, Brazil, Mexico, Canada, China, Germany, Japan, Korea, Puerto Rico, and United Kingdom (“About Wal-Mart” 2004). Organizational Culture
Wal-Mart satisfy itself on its strong culture, with various references to Sam Walton’s personal life story, the history of the company and how Walton’s personal values become core beliefs for the company. Wal-Mart public information showed that its customer-focused culture shoot from the company’s pursuit of low prices products and authentic customer service. Walton had three basic beliefs on which the company was build which are respect for the individual, service to customers, and strive for excellence. In addition, there were two key rules that supported these three basic beliefs: the Sundown Rule (attending to requests the same day they were received); and the Ten-foot Rule (offering greetings whenever one was within 10 feet of a customer) (“The Wal-Mart Culture”, 2004). This Walton’s philosophy leads Wal-Mart different from the rivals with aggressive hospitality - striving to be the most friendly, giving better service over what customers expected, and generally exceeding customers’ expectations. Moreover, Wal-Mart good concept also involved stores offering customers a variety of name-brand goods at deep discounts that were part of an everyday-low-prices strategy.
"Our mission is to enhance and integrate our supplier diversity programs into all of our procurement practices and to be an advocate for minority- and women-owned businesses." VISION STATEMENT
To be the "Worldwide leader in retail."
Saving people money to help them live better was the goal that Sam Walton envisioned when he opened the doors to the first Wal-Mart. It’s the focus that underlies everything we do at Wal-Mart. And for the millions of customers who shop in our stores and clubs around the world each week, it means a lot. FACTS OF THE CASE
In 1962 Sam Walton opens his first Wal-Mart in Rogers, Arkansas. His low price approach to retail soon became a model that all Wal-Mart stores would follow. "Sell brand merchandise at low prices." Interesting enough, 1962 was the same birth year for Kmart, Target and Wal-Mart. Sam Walton, founder of Wal-Mart wanted to take advantage of the opportunity and establish a discount retail company. In the beginning the stores were started in the small towns in the south. During that time period it was considered as the least successful retailer, however it has outgrown most of its competition. Sam’s mission was to have...