Or
A Corporate Beast
Introduction
• Introduction to Wal-Mart
• History of Wal-Mart
• The Road to Success - Corporate Strategy
• The Criticism and the Challenges
• Wal-Mart’s PR strategy
• The Road ahead
Wal-Mart – An Introduction
• American public corporation that runs a chain of large,
discount department stores
List of Assets
In U.S.A.-
• Wal-Mart Stores Division U.S. (3,900)
• Wal-Mart Discount Stores (1,033)
• Wal-Mart Super centers (2,349)
• Wal-Mart Neighborhood Markets (124)
• Sam’s Clubs(585)
Internationally-
• Stores in 14 countries outside U.S. (2980)
• Joint venture with Bharti Enterprises to enter India(2006)
History of Wal-Mart
• Sam Walton - The man behind it all
• Born in a farmer’s family in Kingfisher,
Oklahoma on March 29, 1918
• Graduated from the University of Missouri
in 1940.
• First job – at JC Penney at $ 75 a month
• Gave up job and opened his first store
in Arkansas in 1950- Walton’s 5 & dime
• 11 stores by 1962. Opened 1st Wal-Mart
At the opening, Walton stated,
"Each Wal-Mart store should reflect the values
of its customers and support the vision they hold for their community."
History of Wal-Mart (contd..)
• Opportunities in small towns along with innovative practices
like self service
• By 1969, Walton had established 18 Wal-Mart stores,
reporting an annual sale of $44 million
• Commenting on the growth of Wal-Mart, Walton said:
“When we arrived in these small towns offering low prices every day,
customer satisfaction guaranteed, and hours that were realistic for
the way people wanted to shop, we passed right by that old variety
store competition, with its 45 percent mark ups, limited selection and
limited hours.”
• Focus on overseas expansion in 90’s
• In 2000, H. Lee Scott became President and CEO, and Wal-
Mart's sales increased to $165 billion
• Wrote an autobiography –
“Sam Walton Made in America-My Story”
• Walton’s practices-
# Consistently stock the shelves with a wide range of
goods at low prices
# Discount merchandising-
- Buy wholesale goods from the lowest priced supplier
- Pass on the savings to the customer
The Corporate Strategy (contd..)
Strategic Goals
Three successful elements of strategy formulation and a
fourth element, where the strategy is implemented
successfully
Sam Walton - "I pay low wages. I can take advantage of that. We're
going to be successful, but the basis is a very low-wage, low-
benefit model of employment.“
“I think they are going to have a tough time suddenly overcoming the
perceptions of some people. It is going to be a tough sell on their
part.” - Larry Bevington, Chairman, Save our Community
The Wal-Mart Reaction
Wal-Mart does wake up…But is it too late??
“For too long others have had free rein to say things about
our company that just aren’t true. We’ve decided it’s time to
draw our own line in the sand.”
- Lee Scott, CEO, Wal-Mart Inc.