Chris Ruediger (CR)
Timothy Meyer (TM)
William Goeing (WG)
Slawomir Putylo (SP)
November 18, 2013
This paper is dedicated to Walmart Stores, Inc, the largest retailer and one of the largest companies in the world today. Walmart has been a very successful type of business lead by strong leaders who were able to take company and transform it to a firm with strong values and ethics. Unfortunately, like every business, the company has its strengths and weaknesses. The purpose of this paper is to look at the company closely as a whole from internal and external point of view, conduct analysis, identified those strengths and weaknesses, in both operation and financial aspects, to create a business level strategy that the company could take an advantage of in the future. History
Walmart is the largest American retail corporation and the second largest public corporation in the world based on revenue. It was established by Sam Walton in 1962 in Rogers, Arkansas. The main strategy of the owner was to provide the lowest prices anytime and anywhere. In 1970, the company success was so big that the owner decided to make it national. The same year, the company became officially a public traded company. The stock was priced at $16.50 per share. Two years later, Walmart was listed on New York Stock Exchange with 51 stores nationwide and $78 million in sales. In 1980, Walmart set a record by reaching $1 billion in sales faster than any other company before in the history. In1987, the company installed the largest privet satellite communication system in the United States. Three years later, it was recognized as the largest retailer in the nation. “In 1991, Walmart opened the first store in Mexico, in 1994 in Canada, in 1996 in China, in 1999 the expended into the United Kingdom, in 2002 it established its position in Japan, and in 2009 in Chile” (“History Timeline”). By 1997, the annual sales grew to over $100 billion. Five years later, it took the first place on the list of Fortune 500 companies. Currently, “the company employs over 2.2 million people in over 10,000 locations located in 27 countries around the globe” (“History Timeline”). Mission and Major Goals
Walmart’s mission is to “save people money so they can live better”. Walmart understands that in order to accomplish that mission it needs to create a good relationship with its customers and communities” (“Our People”, para 1). That is the reason why Walmart is investing in diversified work force. Walmart believes it will gain a significant advantage when connecting with different people and cultures around the world. Unfortunately, the way the mission is structured is poor. “A good mission statement should have 7 components that touch on products and services, markets, technology, concern for survival, philosophy, concern for public image and employees. What’s more, Walmarts’ mission statement doesn’t mention anything about values and only relates to costumer and self-concept which makes it more of a slogan rather than a mission statement” (Ovidijus, para 3) Major Goals
“Walmart has three major goals. They are:
To be supplied 100% by renewable energy
To create zero waste
To sell products that sustain people and the environment
Walmart believes that by striving to accomplish those three goals it has the potential not only to save money by providing goods at lower costs, but also, to “ensure a better world for generations to come”(“Our Three Sustainable…”, para 1). Business Strategies (TM)
The original business strategy for Walmart, offering lower prices than the competition, and earning profits through volume of units sold has remained consistent throughout its 51 year existence. Throughout its history, Walmart has continued to use the lowest cost structure possible to gain a competitive advantage by charging the lowest prices of any...
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