walmart
TRANSCRIPT
(1) OVERVIEW OF WAL-MART
(2) HISTORY
(3) BCG
(4) THEIR MISSION AND VISION STATEMENT
(5) NEW MISSION AND VISION STATEMENT
(6) EXTERNAL OPPORTUNITIES AND THREATS
(7) INTERNAL STRENGTHS AND WEAKNESS
1. There are 4 different segments2. Wal-Mart Stores- sales amounted to 64.3%
1. Discount Stores- 1,568 U.S2. Supercenters- 1,258 U.S3. Neighborhood Markets- 49 stores U.S
3. Sam’s Club- sales amounted to 13.0%1. 525 stores U.S2. Is a member only, cash and carry operations
4. International- sales amounted to 16.7%1. Discount stores- 942 Sam’s Clubs- 712. Supercenters- 238 Neighborhood Market- 37
5. Other- amounted to 6.1%1. McLane is the nation’s largest distributor of food and
merchandise to convenience stores
OVERVIEW
1. In 1945 Sam Walton opened the first Ben Franklin franchise in Newport Arkansas and operated them with his wife, Helen and brother, Bud.
2. These were small chains that were very successful.
3. In November of 1962 Wal-Mart was opened.
4. Wasn’t until mid 1970’s that Wal-Mart began to grow.
1. 1st IPO in 1970. 2. Then 100 shares were
worth $1,650 dollars and now the same 100 shares are worth more than $6 million dollars.
3. In 1999 named #1 stock on the Dow.
1. 1987 1. 2 new concept
implemented
1. Hypermarkets, which sell everything including food
2. Supercenters which are scaled down supermarkets
2. Also David Glass named new CEO of Wal-Mart
1. In 1992 Sam Walton Died and in 1996 Bud Walton died. 1. In 1995 Wal-Mart’s
Annual Report was dedicated to Bud.
2. New president and CEO H. Lee Scott states that “While our history is rich with success, there’s no question that our best years are yet to come.”
IMPORTANT PEOPLE
1. CO-FOUNDERS, SAM AND JAMES “BUD” WALTON STARTED 1ST WAL-MART IN ROGERS, ARKANSAS, 1962
2. DAVID GLASS WAS NAMED PRESIDENT 1984, IN 1988 HE BECAME CHIEF EXECUTIVE OFFICER
3. S. ROBSON WALTON NAMED CHAIRMAN OF THE BOARD IN 19924. PRESIDENT AND CEO IN 2000- H.LEE SCOTT5. VICE PRESIDENT- LAURA PHILIPS
1) They don’t have a formal mission statement2) They are most interested in the customers needs3) The culture consists of
1) Respect for the individual2) Service to our customers3) Strive for excellence
4) If they did have a formal mission statement it 5) would be, 6) “To provide quality products at an everyday low 7) price and with extended Customer service…
always.”
"The secret of successful retailing is to give your customers what they want. And really, if you think about it from your point of view as a customer, you want everything: as• A wide assortment of good-quality
merchandise; the lowest possible prices• Guaranteed satisfaction with what you buy;
friendly, knowledgeable service; • Convenient hours; free parking; a pleasant
shopping experience." - Sam Walton (1918-1992)
1. Their mission is to provide goods and services for their customers at everyday low prices.
2. With their innovative technology they strive to have merchandise ranging from food, clothes, music, etc, on hand 24 hours a day 7 days a week.
3. They are committed to the growth of Wal-Mart and challenge thereselfs to be better.
4. They strive to have the best, be the best, and provide quality and assurance to their customers
5. Their employees are a huge asset to their company, and they would not be the without them.
6) They have a huge impact on what their company was, what it is, and what it will be.
7) They also feel it is important to give generously to those who are less fortunate than others, which is why Wal-Mart donates thousands of dollars a year to different organizations.
• Our Mission is to provide good quality and services to our customers while remaining the market leader and striving daily to be the most admired company.
DIVISIONS OF WAL-MART
McLane’sNeighborhood
MarketsInternational Sam’s ClubSupercentersDistribution Centers
Nations largest distributor of food and merchandise to convenience stores.
In 2003 was sold to Berkshire Hathaway, Inc. so Wal-Mart could focus on core retail business.
Began in 1998 Located in market with
Wal-Mart Supercenters Offers customer
groceries, pharmaceuticals & general merchandise.
Provides 28,000 items to customers.
Wal-Mart expanded so that customers everywhere would associate its name with low cost, best value, greatest selection of quality merchandise and highest standards of customer service.
Wal-Mart focused on Global Positioning.
1) Membership-only, cash-and-carry operations.
2) Financial service credit card program (Discover Card) available at all clubs.
3) Annual membership fee is $35; the Elite Membership is $100.
1) Elite membership has additional benefits like automotive service contracts, roadside assistance, home improvement, auto brokering and pharmacy discounts.
4) Bulk displays and name brand
merchandise.
U.S. Totals 1568 1258 525 49
Grand Totals 2510 1496 596 86
OpportunitiesAgreement with Berkshire Hathaway, Inc.
acquired McLane Company, Inc.Fortune’s number one Most Admired Company and
largest company in nationWorld’s largest private satellite communication
systemsRon Brown Corporate Leadership Award
Threats“Buy American” policyTargetA solution to the monopoly that Wal-Mart has
created
Strengths Stores in all 50 states New concepts:
Hypermarkets, supermarkets Wide variety of merchandise Nationally advertised merchandise Limited lines of merchandise – made in USA Point-of-sale bar code scanning Great employee benefits
Weaknesses No formal mission statement Management resisted putting women on board
of directors Hiring illegal minorities to clean Growth for employees only in division
SWOTIncrease the amount of hypermarkets, supermarkets in 50 states as well as connect to the private satellite systems(S2, SO)
Create mission statements for all of the acquired companies and the different divisions of Wal-Mart (O1, W1)
Use the Most Admired Company award as leverageto advertise the wide variety of merchandise (S3, O2)
Use the Buy American policy to advertise nationally how American Wal-Mart is (S3, T1)
Increase minority sales through buying minority products and selling them in discount stores (T1, W3)
Use point-of-sale bar code scanning as leverage over competitors like Target (S5, T2)
Offer more merchandise that is not apart of the "Buy American" policy to attract more customers (S3, T1)
Find a solution to the monopoly that has been created and come up with a new concept to beat the problem. (S2, T3)
DIFFERENT STRATEGIES
Add more hypermarkets and supermarkets to establish more growth.
Buy products from other countries to have more of a variety of merchandise and better quality merchandise for customers.
IMPLEMENTATION
Begin adding more hypermarkets to towns with populations large enough to support them.
Increase the amount of hypermarkets by one in every state (50 stores).
Increase revenue by Debt Financing per EPS/EBIT analysis
