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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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