Walmart business module

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Transcript of Walmart business module

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History Purpose

Products

Services

Global Footprint/Presence

Employees and Culture Turnover

Competitors

Challenges

Organization Structure and Control

SWOT Analysis

Future Outlook

Conclusion

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Wal-Mart Stores, Inc., branded as Wal-mart , is an American multinationalretail corporation that runs chains of large discount department storesand warehouse stores across the globe.

Wal-mart was started by Sam Walton in 1962 with a clear vision ofproviding products a best low prices.

Head Quartered at Bentonville, Arkansas , the company is the world'ssecond largest public corporation, according to the Fortune Global 500 listin 2013, the biggest private employer in the world with over two millionemployees, and is the largest retailer in the world.

 Wal-mart remains a family-owned business, as the company is controlledby the Walton family, who own over 50 percent of Wal-mart.

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Wal-Mart is world’s largest retail chain helping people around the world save moneyand live better - anytime and anywhere - in retail stores, online and through their

mobile devices.

Mission statement

WAL-MART mission is to “serve our Associates and customers with compassion andintegrity. Our emphasis is on our Associates, children, families, the local

community and other local programs that improve the quality of life in our

communities.” 

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PRODUCTS

CLOTHINGSHOES

GROCERIES

AUTOMOTIVE

BOOKSHOUSEWARES

ART & CRAFT

ELECTRONICS

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• Electronics

• Books, Jewellery etcRetail goods

• Store kiosk

• Corporate WebsitePhoto Services

• Customers prescriptions for a mere $4

• Pickup in-store or mail order servicesPharmacy

• Family Talk Wireless service (T-Mobile)

Wireless Service• Money transfer services through Money gram

• Cards/Debit cards, bill payment, cheque cashing and printingFinancial Services

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Today Wal-Mart operates 11,000 stores under 69

formats across 27 countries.

Wal-Mart also operates 10 e-commerce sites in 10

countries.

Wal-Mart effectively used joint ventures andacquisitions to enter foreign Markets.

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Wal-Mart is the World’s largest private employer 

Wal-Mart employs 2.2 million associates worldwide

Approx.1.4 million in US alone of which 57% is the women workforce

Being the World’s largest retailer, it is really a challenge to maintain auniform culture.

WAL-MART employees follows below values worldwide: Customer Service Integrity

Respect for individual Excellence

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USA: Kmart, Target, Shopko, Meijer

Canada: Real Canadian Superstore

Mexico: Commercial Mexciana, Soriano

EU: Aldi, Metro (Germany), Asda (UK)

China: Sun Art Group, China Resource Enterprise (China)

India: Future Group Stores, Reliance Stores

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Other Formats:

Costco, BJ’s wholesale club are competitors of Wal-Mart's SamClub division

Winco is considered serious competitor in grocery segment

Family Dollar & Dollar General have been successful against Wal-Mart (“Pennies n Cents” started in ‘04) in home consumer sales.

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Resistance from Local CommunityAllegations of predatory pricing and supplier

issues

Low Wages

Poor Working conditions

Allegations of wrongful termination◦ Employees using prescription drugs

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Health insurance Labour union opposition

Poorly-run and understaffedstores

Imports and globalization

Overseas labour concerns

Allegations of bribery and cover

up in Mexico Taxes

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Divisionalstructure at top

level

Each division isautonomous having

functional workforce.

Self reliant capable offulfilling customer

demand and changing asper businessrequirement

Matrix structureat store level

Each Wal-Mart store hasthe same job categories,

 job descriptions andmanagement hierarchy.

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Bureaucraticcontrol

Uses authority, hierarchy,

rules and standards toguide the performance

of tasks of workers.

Market control

Use of pricingmechanisms to regulate

the activities inorganization as though

they were economictransactions.

Clan control

Initiative that employeesshare the values, goalsand expectations of the

company and actaccordingly.

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Strengths

Scale of operations

Competence ininformation systems

Wide range of products

Cost leadership strategy

International operations

Weaknesses

Labour related lawsuits

High employeeturnover

Little differentiation

Negative publicity

Understaffing

Opportunities

Retail market growth inemerging markets

Rising acceptance of

own label productsTrend toward healthy

eating

Online shopping growth

Threats

Increasing competitionfrom brick and mortarand online competitors

Increasing resistancefrom local communities

Rising commodityprices

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Fiscal 2014 capital plan will range from $12.0 to $13.0 billion

Add approximately 125 supercentres

Sam’s  Club will leverage efficiencies to add more new clubs and

remodels next year in it’s approximately $1.0 billion allocation

Capital expenditure budget will cover growth for new stores,logistics and supply chain expansion, investments to drive

productivity and reduce expenses, and global e-commerce

expansion

Grow total company sales 5 to 7 percent in fiscal 2014

Increase retail square footage by 3 to 4 percent next year, which

would add another 36 to 40 million square feet around the world

Continue to invest in organic growth across its markets

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Expenditures will range from $4.5 to$5.0 billion in fiscal 2014

New stores are expected to add

between 20 and 22 million square

feet next year, in line with thecurrent fiscal year projection of 21

to 23 million square feet

Allocating 60 percent of the funding

to developing their higher growthmarkets and 40 percent to

developed markets

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Wal-Mart is the number One Retailer in U.S and top of the fortune 500listing. Wal-Mart is Expanding Every Year

Each week, more than 245 million customers and members visit our

11,000 stores under 69 banners in 27 countries and e-commerce websites

in 10 countries

Wal-Mart clearly manages its philosophy of Low prices at all times acrossglobe.

Wal-Mart effectively used joint ventures and acquisitions as a basis to

enter foreign markets

Mexico, China, Brazil are the best emerging markets

Wal-Mart is moving aggressively towards online and digital selling.

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