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Wal-Mart 1
Running Head: Wal-Mart
Analysis of Wal-Mart
Wal-Mart 2
Company History
Wal-Mart is one of the biggest and popular globally operating business organizations in
retail industry. In 1960, Sam Walton had developed a goal of achieving highest sales by keeping
the prices as low as possible in comparison to its competitors. Thus, he started Wal-Mart in 1962
as the first discount store in Rogers, Ark (Dyer, Dalzell & Olegario, 2004, p. 315). It was
considered as a retail revolution. As time gone, Wal-Mart expanded across the state of Arkansas
and by 1967 the total number of stores was 24 with the sales of $12.7 million (Ferrell, Fraedrich
& Ferrell, 2009, p. 294). Moreover, the growth of the company had touched heights and in 1968,
Wal-Mart had tapped outside of Arkansas (Wal-Mart 2012 Annual Report, 2013).
The decade of 70’s brought lots of opportunities for Wal-Mart. In had become a
publically traded company in 1970 with dole its first stock at $16.50. At the next move, in 1971,
company opened its first distribution center in Bentonville, Ark. In 1972 Wal-Mart was listed in
New York stock exchange. In this year, the recorded sale of Wal-Mart was $78 million, with 51
stores (History Timeline, 2012). In 1973, it entered Tennessee and in 1974 in Kentucky and
Mississippi for business expansion beyond national boundaries (Hitt, Ireland, Hoskisson, 2009,
p. 357).
In 1975, Sam Walton launched Wal-Mart cheer by inspiring from a Korean
manufacturing facility. Till 1979, Wal-Mart had entered in 11 states and number of stores
reached by 276 with $1 billion sales. Company had 21000 associates. Moreover, company also
established Wal-Mart foundation in 1979 (History Timeline, 2012; Hitt, Ireland, Hoskisson,
2009, p. 357).
The decade of 80s known as “Firsts”, because in 1980 company opened its first Sam's
Club and its first Supercenter. Further 1983, in Midwest City, Okla, the first Sam’s club opened
Wal-Mart 3
and implemented a computerized point of sale systems by replacing manual system. In 1987, its
private satellite communication system had installed, which was the largest system in USA. In
1988 it opened its first supercenter in Washington, Mo. (History Timeline, 2012). At the end of
this era, it had captured retail market of 26 states (Hitt, Ireland, Hoskisson, 2009, p. 357).
In the decade of 1990s it has become top retailer of America and company had become
popular in international market. In 1991 company went global through joint venture strategy with
Cifra and open it Sam’s Club in Mexico. In 1992, Sam received a Medal of Freedom and stated
the mission of the company to save money of people and provide them a quality life. Now Wal-
Mart had 1928 stores and clubs with 371000 associates (History Timeline, 2012). Now, 1993
was the time of celebration and firm enjoyed first sales week of $1 billion. In 1996 company
entered into Asian retail market and opened its store in China. In 1997, yearly sales of the
company were estimated $100 billion. In 1999, company acquired ASDA and entered in UK.
Further, in the new millennium, company dedicated to provide an astonishing shopping
experience to customers, through online or mobile device through wlamart.com. Now company
employed more than 1.1 million people with 3989 stores in global market. In 2002, it achieved
top position in Fortune 500 ranking and considered as America’s largest company. In 2005,
company had also fulfilled it social responsibilities and contribute $18 million for disaster relief.
In 2005, it had also made commitment for waste recycling, go green, environmental
sustainability and renewable energy. In addition, in 2006, company has launched $4 generic-drug
prescription program and site to store service in 2007, so that consumer can shop from online site
and collect merchandise form stores. In 2009, Wal-Mart has achieved annual sales of $400
billion. In 2010, company has entered in India through a joint venture, Bharti Wal-mart. In 2011,
in Arkansas, company’s Express store has introduced.
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Company Background
Wal-Mart stores Inc. operates in retail industry, which offers products through discount
stores, neighborhood markets, supercenters neighborhood markets and warehouse membership
of Sam’ club in the United States as well as walmart.com. Presently, S. Robson Walton is the
chairman and Mike Duke is the president and CEO of the company (Wal-Mart 2012 Annual
Report, 2013). Company has mission of saving money of people, so that they can live better.
Company’s goal is to offer a luxury products and services to common people, so that they can
enjoy a lavish life and raise their standard in the society (Global Sustainability Report, 2010).
Wal-Mart is committed to provide the low price product every day.
In 2012, company has celebrated 50 years of its success for saving money of people and
offering them better lives. Presently, company has around 2.2 million employees all over the
world, who serve more than 200 million customers per week through 10, 000 stores (Wal-Mart
2012 Annual Report, 2013). All the employees of Wal-Mart are well trained and skilled to sever
the customers with a friendly behavior, so that they can buy best product as per their needs and
budget.
Currently Wal-Mart has several store brands such as Sam's Choice, Great Value, Ol' Roy,
Dr Thunder, Parent’s Chaucer, Equate, etc. and its product range includes office supplies,
Apparel, home line, magazines, food, alcoholic products like wine, etc. Thus, the product range
of the company is large enough in comparison of the competitors (Wal-Mart 2012 Annual
Report, 2013). The IT infrastructure and communication system of Wal-Mart is also very strong
and large. As company operates all over the world, it follows a combination of matrix and
divisional organizational structure to manage the activities of different divisions and...