This website uses cookies to ensure you have the best experience. Learn more

Introduction Walmart Essay

1701 words - 7 pages

In the late 1940s, when Sam Walton was franchising a Ben Franklin’s variety store in Newport, Ark., he had a simple but momentous idea. Like any retailer, Walton was always looking for deals from suppliers. Typically, though, a retailer who managed to get a bargain from a wholesaler would leave his store prices unchanged and pocket the extra money. Walton, by contrast, realized he could do better by passing on the savings to his customers and earning his profits through volume. This insight would form a cornerstone of Walton’s business strategy when he launched Wal-Mart in 1962.

Walton understood that a major requirement for keeping costs down was controlling the payroll. He said, ...view middle of the document...

Technology, in particular, put the company ahead of its competitors. Already by the 1970s, Wal-Mart was using computers to link its stores and warehouses. Sales data allowed Wal-Mart to keep track of specific items and reduce inventory miscalculations. Only years later would Kmart realize how far it had fallen behind. Throughout Walton’s career, a focus on innovation of this sort would make Wal-Mart a consistent leader in efficiency.

As Wal-Mart continued its rapid growth, it also made its first acquisition of other retail chains. In 1977, it purchased sixteen Mohr-Value stores in Michigan and Illinois and acquired Hutcheson Shoe Company the following year. By the end of the 1970s, Wal-Mart had expanded into a number of different services in its stores—selling pharmaceuticals, adding auto service centers, and introducing jewelry divisions. Such diversification quickly proved fruitful, as the company announced in 1979 that, for the first time, annual sales had reached more than $1 billion. As its stock continued to rise—splitting in 1980 and again in 1982—Wal-Mart built dozens of new outlets across the United States.

In 1983, Wal-Mart introduced several innovative changes and also opened its first Sam’s Clubs, wholesale stores that offered members the opportunity to purchase goods in bulk. s its stock soared to more than eighty dollars per share in late 1983, Wal-Mart acquired Woolco Stores, initiated its “People Greeter” program, and established one-hour photo labs within its outlets. By 1984, Wal-Mart had become a leader in the retail industry, and to celebrate the company meeting its fourth-quarter goals for the previous year, Walton fulfilled a promise made to shareholders by hula-dancing on Wall Street. He named David Glass as company president that same year. Under Glass’s leadership, Wal-Mart entered its most expansive and profitable period. Glass, who would be named Chief Executive Officer (CEO) in 1988, began a new phase in the company’s history, launching a massive expansion program resulting in hundreds of new stores over the next decade.

In 1988, the first Wal-Mart Supercenter opened, offering twenty-four-hour shopping, groceries, and, eventually, banking, gas stations, and McDonald’s fast food. By 1990, Wal-Mart sales had surpassed rivals such as Kmart and Target. In 1991, the company made its first foray into the international market, opening Club Aurrera in Mexico City. This would become the next phase of Wal-Mart’s strategy for success: expansion into foreign markets such as Europe, Asia, and South America. In 1996, the company gained access to lucrative emerging markets in China and South Korea.

By the late 1990s, Wal-Mart had become the target of critics who charged that the company’s aggressive tactics hurt small businesses. Complaints also came from major manufacturers such as Rubbermaid, which claimed that Wal-Mart unfairly negotiated prices. In 2004, the company faced the largest class action suit in...

Other Essays Like Introduction Walmart

Strategy and Planning Essay

1315 words - 6 pages , 2009). Strategic, Tactical, & Operational Management Security Model Kinicki, A. & Williams, B.K. (2016). Management: A practical introduction (7th ed.). New York City, NY: McGraw-Hill Brown, Ross N, Kilgore, Michael A, Blinn, Charles R, Coggins, Jay S, (August, 2012). State Timber Sale Programs, Policies, and Procedures: A National Assessment Walmart Standing Plan (2014) Management https Retrieved from ://'s+standing+plans&source

Organizational Behavior Essay

3989 words - 16 pages the position as CEO of Walmart may be a difficult job. However, when incorporated properly, the values from Starbucks will excel with Walmart Corporation. By being receptive to the opinions of others, Schultz was able to successfully overcome obstacles and hard decisions during his time with Starbucks. In conclusion, Schultz embodies many different qualities of being a successful leader and thrives with his team of hardworking employees. His

Wal Mart Financial Analyis

2151 words - 9 pages Introduction Sam Walton had a vision of providing an assortment of merchandise at affordable prices and in 1962 his vision became a reality. He opened his first Walmart store in Roger’s Ark. By 1962, he incorporated Walmart to Wal-Mart Stores Inc and one year later, began to publicly trade. Within the first 10years of business, they were the largest retail store with 51 locations and an excess of $1billion in annual sales. Wal-Mart operates a

Compensation and Rewards

5902 words - 24 pages Abstract Walmart, the world’s largest retailer, is now embarking on it journey to gain a competitive advantage in the marketplace by attracting and retaining human capital and increasing employee satisfaction and motivation. Founded in 1962, as a traditional retail store in Bentonville Arkansas, Walmart has grown from a basic general store managed by its founder, Sam Walton, to establishing 8,000 retail stores worldwide. Not growing

Innovation Management: the Key Strategy of Success

1018 words - 5 pages Introduction According to Joseph Schumpeter, creative destruction describes the "process of industrial mutation that incessantly revolutionizes the economic structure from within, incessantly destroying the old one, incessantly creating a new one"(Schumpeter, 1942). This argues that in the economics development process, the new products will eventually take place of the out-of-dated ones, for the single company and even the whole society. To

An Introduction to Sunflower Seed Germination

562 words - 3 pages Sunflower Seed Germination INTRODUCTION The purpose of this experiment is to apply investigative principles in designing an experiment comparing the germination success of sunflower seeds. I will take sunflower seeds sold as bird food and sunflower seeds sold at a nursery and compare the germination and growth process of the seeds. Because sunflower seeds from a nursery are more expensive than those from a pet store, this experiment will

Wal-Mart Case Study

3150 words - 13 pages Wal-Mart Webster University Wal-Mart Introduction Wal-Mart Stores, Inc. branded as Walmart since 2008 and Wal-Mart before then, is an American public multinational corporation that runs chains of large discount department stores and warehouse stores. The company was the world's largest public corporation in 2010 by revenue. The company was founded by Sam Walton in 1962, incorporated on October 31, 1969, and publicly traded on

Environmental Factors Paper

1981 words - 8 pages Strategy: Growth with Improved ROI. Retrieved from Armstrong, G., & Kotler, P. (2009). Marketing: An Introduction (9th ed.). Upper Saddle River, NJ: Pearson Education. Kotler, P., & Keller, K. (2009). «Marketing Management» (13th ed.). Upper Saddle River, NJ: Prentice-Hall. U.S. Department of Justice. (2011). The Foreign Corrupt Practices Act. Retrieved from

Product Diversification

2531 words - 11 pages decisions. When a company diversifies its product range, it can be advantageous for customers as well as  for the company itself. WalMart has indeed understood this and has in the past years developed ‘’SuperCenters’’, which  are bigger stores with a wider range of products in the food section. “It is a wonderful thing because it can be a one stop shop and you don’t have to run around because you can find it all in one place”, says an interviewed

Organizational Behaviour

898 words - 4 pages INTRODUCTION Asda had its modest beginnings in 1920 by a group of dairy farmers in Yorkshire County for a means to sell milk. Before going public in 1949 Asda expanded by acquiring and diversifying into bakeries, meat processing plans, and non-food businesses. Asda Stores Ltd. business philosophy was to always have the customer in mind and therefore have low prices goods. With this notion Asda started setting stores in suburbs and

Business Studies

1034 words - 5 pages . Safeway Plc Introduction As a component part of my ASVCE course in Business Studies, I have to investigate various forms of business enterprise and write a detailed report on one medium-sized or large business. In assembling this report, I will be investigating, and analysing the following aspects of my chosen "case study", which is Safeway Plc, illustrating "Business at work"...> Objectives of the organisation.> The organisation and structure

Related Papers

Global Business Walmart Essay

4366 words - 18 pages 1 INTRODUCTION TO WALMART 1.1 Overview “Wal-Mart Stores, Inc., branded as Walmart, is an American multinational retail corporation that runs chains of large discount department stores and warehouse stores. The company is the world’s third largest public corporation, according to the Fortune Global 500 list in 2012, the biggest private employer in the world with over two million employees, and is the largest retailer in the world. Walmart

Walmart In South Africa Essay

742 words - 3 pages Walmart’s African Expansion Case Study 2 Case Study Author: Karen Robson, Stefanie Beninger Presented to: Dr. Doreen Sams Analyst Name: Joe Slade Date Submitted: September 28, 2014 Contents Introduction 1 The Eclectic Paradigm and African Expansion 2 Conclusion 3 References: 4 Introduction Walmart had humble beginnings. The first store was opened in Rogers Arkansas in 1962 by Sam Walton. Sam Walton wanted to

Wal Mart Case Study

4311 words - 18 pages [;’p// Walmart Case Study: Half a Century of Supply Chain Management SCM 607 Dr. John Wu March 15, 2014 Table of Contents INTRODUCTION 4 BACKGROUND OF THE COMPANY 4 GOALS AND OBJECTIVES 5 KEY ISSUES 6 EXTERNAL ANALYSIS 7 Economy 8 Customer Behavior 8 Technology 8 Politics & Legal Aspects 8 INTERNAL ANALYSIS 9 Company Culture 9 Operations 9 Purchasing & Suppliers 10 Inventory 10 Logistics 10 SWOT

Changing Landscape Essay

1392 words - 6 pages Analyze the changing landscape of the health care system. Yvette Thompson HCS/490 Veronica coleman Analyze the changing landscape of the health care system. Yvette Thompson HCS/490 Veronica coleman 2016 2016 Introduction I decided to research Walmart as my local retail and grocery store since I am a consumer in buying my household supplies, grocery shopping and quick physical exam and all within reasonable amounts, as well as