Wal-Mart's Organizational Culture
Wal-Mart Culture
Introduction
There are a number of organizational behavior concepts that affect the success or failure of any organization; a few examples would be communication, motivation and decision making. Every organization has its’ own organizational culture which defines the organizational behaviors that it believes to be most important. An organization’s values, mission statement, goals and philosophy all make up the organizations culture. An example of an extremely successful company with a very strong organizational culture is Wal-Mart.
History
Sam Walton opened the first Wal-Mart store in 1962 in Rogers, Arkansas. Ten years and fifteen stores later, Wal-Mart stock was offered for the first time on the New York Stock Exchange. Eleven years later, in 1983, the first Sam’s Club member-warehouse store opened, and in 1988 the first Wal-Mart Supercenter opened, which had a complete grocery store and 36 departments of general merchandise. By 1989, there were 1,402 Wal-Mart stores and 123 Sam’s Club’s, and their sales had grown from $1 billion in 1980 to $26 billion. Today, forty-two years after the opening of that first Wal-Mart store, there are over 7,390 stores and clubs that employ more than 2 million associates. Wal-Mart stock has split eleven times, and their net sales are over $345 billion a year. (See chart next page) (walmartstores.com-7603) How did Sam do it?
In the 1950’s, before Sam Walton opened the first Wal-Mart store, he own several small five and dime stores. These stores faced very stiff competition from regional discount stores. This competition led Mr. Walton to travel around the country studying everything he could about discount retailing. During his travels he became convinced that American consumers wanted a new type of store. He believed this new type of store was one that would provide a wide assortment of quality merchandise at the lowest possible prices; guaranteed satisfaction; friendly knowledgeable service;
Introduction
There are a number of organizational behavior concepts that affect the success or failure of any organization; a few examples would be communication, motivation and decision making. Every organization has its’ own organizational culture which defines the organizational behaviors that it believes to be most important. An organization’s values, mission statement, goals and philosophy all make up the organizations culture. An example of an extremely successful company with a very strong organizational culture is Wal-Mart.
History
Sam Walton opened the first Wal-Mart store in 1962 in Rogers, Arkansas. Ten years and fifteen stores later, Wal-Mart stock was offered for the first time on the New York Stock Exchange. Eleven years later, in 1983, the first Sam’s Club member-warehouse store opened, and in 1988 the first Wal-Mart Supercenter opened, which had a complete grocery store and 36 departments of general merchandise. By 1989, there were 1,402 Wal-Mart stores and 123 Sam’s Club’s, and their sales had grown from $1 billion in 1980 to $26 billion. Today, forty-two years after the opening of that first Wal-Mart store, there are over 7,390 stores and clubs that employ more than 2 million associates. Wal-Mart stock has split eleven times, and their net sales are over $345 billion a year. (See chart next page) (walmartstores.com-7603) How did Sam do it?
In the 1950’s, before Sam Walton opened the first Wal-Mart store, he own several small five and dime stores. These stores faced very stiff competition from regional discount stores. This competition led Mr. Walton to travel around the country studying everything he could about discount retailing. During his travels he became convinced that American consumers wanted a new type of store. He believed this new type of store was one that would provide a wide assortment of quality merchandise at the lowest possible prices; guaranteed satisfaction; friendly knowledgeable service;
References: Barbaro, M. and Dash E. Wal-Mart takes back door to enter banking. Reclaimdemocracy.org (June 21, 2007) Retrieved from the World Wide Web at http://www.reclaimdemocracy.org/walmart/2007/bank_back_door.php on 9/9/08. Day, Kathleen Wal-Mart sets $4 price for many generic drugs Washington Post (September 22, 2006) Retrieved from the World Wide Web at http:/www.washingtonpost.com/wp- dyn/content/article/2006/09/21/AR2006092100400.html on 9/9/08 Kaiser, H