In order to understand why Walmart has been so successful in implementing their strategies, you have to first understand the man behind the vision. Sam Walton came from humble beginnings. Sam grew up on a farm and because his father learned that there was not enough profit in being a farmer he decided to pursue a career in the mortgage. He grew up during the Great Depression and was responsible for financially contributing ranging from selling bottled milk and newspapers to magazine subscriptions. Sam Walton graduated from the University of Missouri with an economics degree in 1940. His first job was as a management trainee at Penny’s. Here he learned the basics of business management. His stay at Penny’s was short lived as he was called to active duty for World War II.
Once the war ended, he purchased a franchise and opened a Ben Franklin retail variety store in Newport, Arkansas. Soon after he opened his own store called Walton’s 5 and 10 and operated it as Ben Franklin affiliated store. Shortly thereafter, Walton became the largest Ben Franklin franchise owner, with nine stores. He became concerned about the competitive threat that discount stores were having on variety stores and so he decided to study the changes in retail stores and there trends. He wanted to develop a discount store of his own. He had a strong desire to offer significantly discounted prices in order to expand sales volume in order to increase overall profits. On July 2, 1962, Sam Walton started his own discount store in Rogers, Arkansas. It was hugely successful and Walton wanted to expand into smaller markets and get the talent he needed to grow the company. Analyze the company’s mission and vision statements against the performance of the organization. Then, evaluate how well the company lives out its mission and vision statement. Provide support from the organization’s performance in your evaluation. Walton was always an effective visionary leader and learned from the success and failures of others. He knew that he wanted to create an empire that would reshape the way people lived. He is known as the “entrepreneur of the century” and a genuine American folk hero. The company has grown from 44.2 million dollar in sales in 1970 to 400 billion in sales in 2010, the company’s mission and vision are a reality. The mission and vision of Walmart is Wal-Mart’s mission statement is, “We save people money so they can live better.” The company’s vision statement is “to become the worldwide leader in retailing.” When we look at the overall success of this organization we realize that Wal- Mart is saving people money so that so they can live better lives. “From its earliest days and continuing to the present, top executives at Wal-Mart had vigorously and successfully pursued a low cost leadership strategy. This strategy has allowed the company to achieve the following: * 1967 - 24 stores totaling 12.7 million in sales
* 1970 - Walmart becomes a publicly traded company
* 1972 - 51 stores totaling sales of 78 million
* 1980 - Walmart reaches 1billion in annual sales
* 1983 - Walmart opens the first Sam’s Club
* 1988 - Walmart opens the first supercenter which incorporates general merchandising and a full scale supermarket * 1991 - Walmart expands internationally
* 1993 - Walmart experiences it first 1 billion in sales in 1 week * 1996 - Walmart opens in China
* 2009- Walmart exceeds 400 billion in sales
* 2011- Walmart reaches over 10,000 retail unit centers
According to the above information, Walmart has done a tremendous job in becoming the leader in the retail industry. No other company can compare to the growth, sales and sustainability of the organization. Once, Kmart was a competitor, however, they filed bankruptcy and slowly began disappear on January 22, 2002....