Walmart Case Study

Wal-Mart is one of the most successful retail stores in America, they gross over $1.15 million in profit in a single year. Wal-Mart has strived to be number one in retail since the first store opened in 1962 in Rogers, Arkansas by Mr. Sam Walton. He had a vision of understanding what consumers wanted out of a retail store. He knew that customers wanted quality items at a discounted price. Before opening his store Sam Walton traveled the country to study the new retailing concept and was convinced that his store was the wave of the future. 2. Mr. Walton wrote in his autobiography that “The secret of successful retailing is to give your customers what they want,” he also said that “ you love it when you visit a store that somehow exceeds your expectations, and you hate it when a store inconveniences you, or gives you a hard time, or pretends you’re invisible.”

Mr. Walton and Wal-Mart started to expand to only have the funds to open up 15 other stores while there rival K-Mart expanded across the country. Wal-Mart got there first big break in 1970 when stock was offered with the New York Stock Exchange. By the end of the decade they grew to open 276 stores and grew to 11 states. In the 1980’s Wal-Mart was one of the most successful retailers in America. There sales grew from $1 billion to $26 billion by the end of the 80’s.

Wal-Mart was growing in size, and growing with technology. 4. Wal-Mart invented the practice of sharing sales data via computer with major suppliers, one of there biggest suppliers was with Proctor & Gamble. Every time a Proctor & Gamble item is rung up Wal-Mart data warehouse takes note and knows when it is time to replenish a certain item. With this going on Wal-Mart rarely ran out of popular items due to this new technology. Wal-Mart also wanted to improve on the way shoppers shopped, so they invented the Wal-Mart Supercenters. They wanted shopper to only have to make one stop when shopping so they developed a super center with everything in it. 4. In 1998 they opened the store offering a variety of products, which include fresh produce, deli foods, fresh meat and dairy items, health and beauty aids, one-hour photo and traditional photo, drive-through pharmacies, and household chemicals. The super centers are opened 24 hours a day to maintain the convenience to every person. They were also designed to save customers time and money and maintain the signature Every Day Low Prices.

4. With all Wal-Mart has accomplished in American, they had a vision outside of the country and in 1991 almost 30 years after opening the first Wal-Mart, a Sam’s Club near Mexico City was opened. With the success of Wal-Mart in Mexico City they decided to open more stores international and strive for the same excellence they have had in the U.S.

One of the main questions is what makes a good international store? Wal-Mart international has strived to maintain every expect of opening a good international store so they wont interfere with the rules and regulations of others countries. They have always been a valued based ethically company and always trying to maintain 3 main values:

1. Respect for the individual

2. Service to the customer

3. Strive for excellence

Mr. Walton and his international team did a lot of research on what makes a good international company, and what made other company’s fail when going international. One of the main reasons many company’s fail when going international is because many of the international company’s act unethical and because of this they started the “Vision Statement” and the “Global Ethical Principle.”

4. The “Vision Statement” was developed to promote the ownership of Wal-Mart and to established that they were an ethical company so on June 1, 2004 the Global Statement of Ethics was developed to help other countries see that they had moral values and was only looking out for the best interest of the customers. They then opened the office of “Global Ethical Principles” on June 4, 2004 it was added to assist the associates and suppliers with making the right decision and doing the right thing, they go as followed:

1. Follow the law at all times

2. Be honest and fair

3. Never manipulate, misrepresent, abuse or conceal information

4. Avoid conflicts of interest between work and personal affairs

5. Never discriminate against anyone

6.Never act unethically-even if someone else instructs you to do so

7.Never ask someone t act