I. CURRENT SITUATION
A. CURRENT FUNCTIONALITY
Wal-Mart may be the world's number 1 retailer, using more than 4, 800 stores, which includes 1, 475 discount retailers, 1, 750 combination discount and grocery stores (Wal-Mart Supercenters in the US and ASDA in the UK) and 540 warehouse stores (SAM's Club).
Almost 75% of its stores are in the US, but Wal-Mart is increasing internationally. Wal-Mart is the best retail canada and Mexico. The company as well owns practically 38% of Japanese superstore chain SEIYU.
Wal-Mart generated a solid efficiency for the fiscal yr 2004 ended January 31th. Here are some important numbers:
Г Net sales increased via 229. six billion to 256. several billion (+ 11. 6%).
Г Total asset enhance 10. seven percent to 104. 9 billion dollars.
Г When compared with fiscal year 2003, Wal-Mart stores section experience a 9. 1% increase in operating profit and a 10. 9% increase in product sales in financial year 2004
Г Home-based expansion lead from the addition of 139 new price cut stores, Supercenters and Neighborhood markets, along with 130 conversion and/or new house purchase from Low cost stores to Supecenters.
Г Internationally, Wal-Mart added 83 units net of clothings. Worldwide total area increased about 46 mil per square or *%.
B. TACTICAL POSTURE
1 . Mission
Wal-Mart mission declaration is:
" To give ordinary folk the chance to buy the same task as abundant people. "
Sam Walton built Wal-Mart on the revolutionary philosophies of excellence on the workplace, customer service and always having the lowest price. 3 of the basic philosophy of the company are:
1) Respect intended for the individual
2) Service to our customers
3) Strive for brilliance
Wal-Mart strives to constantly do the right things in the right way. The company will not accept the idea that organization as usual can be ever appropriate, and Wal-Mart mission should be to ensure that continuous change remains to be a vital part of the company tradition itself.
installment payments on your Objectives
Г Remain an innovator and set higher standard for quite some time to come.
Г Still deliver top quality product at outstanding worth.
Г Attract Associate to serve a progressively more diverse customer base.
Г Recruit and promote from all segment of society and provide a work environment in which people can do well based on their own merits.
Г Keeping tempo with the regular changes in the regulatory environment.
a few. Strategies
Г Committing to expand by increasing the standard of living because of their customers all over the world.
Г Providing a broad choice of quality products and solutions at Every Working day Low Prices (EDLP) pricing approach.
Г Committing to place a large amount of emphasis on that s buyers ( what they want, when they need it and at what value... )
Г Fostering a culture that advantages and embraces mutual esteem, integrity and variety.
Г Building mutually profitable relationship with suppliers.
Г Continuing to expand country wide and internationally.
Sam Walton released 15 rules intended for building a effective business. They are:
1) Agree to your business
2) Share your profits with all your Associates, and treat these people as partners.
3) Inspire your partners. Money and ownership alone are not enough.
4) Talk everything the possibly can to your partners.
5) Appreciate everything your Acquaintances do for the business.
6) Celebrate your successes and find some wit in your failures.
7) Tune in to everyone in the company. And figure out ways to get them talking.
8) Go beyond your customers' expectations.
9) Control your expenses a lot better than your competition.
10) Swim upstream. Go the other method. Ignore the regular wisdom.
Wal-Mart has also a " No Solicitation and Distribution policy" (inside all their stores, golf clubs, distribution centers and other facilities) and a " Clients satisfaction certain by restoration, refund or perhaps exchange Policy".
II. CASE ISSUES
Firm Image (CI#1): Wal-Mart has been the subject greater than 24 grievances to the...
Referrals: Wal-Mart Annual Report 2005
Diverse Articles on Wal-Mart
Wal-Mart Financial Analysis
Diverse Articles on The Economist