Executive Summary- Wal-Mart Essay Example | Topics and Well Written Essays - 1500 words

Executive Summary- Wal-Mart - Essay ExampleSam Waltons key growth strategy for Wal-Mart was to string out stores in isolated rural argonas and sm exclusively towns typically with populations of 5,000 to 25,000 that all the other major discount imprisonment were ignoring and provide them with goods and services at competitive prices. This way Wal-Mart was able to tap into the market segment that antecedently had to drive up to four hours away to the cities to do their shopping. However, this preference for rural areas meant that Wal-Mart had to endure a more costly distribution channel than its competitors. To mitigate against this weakness, Sam Walton took the company public in 1972 to raise the crown required for Wal-Mart to build its own warehouses to serve its boondocks stores (Bradley & Ghemawat, 2002) and thus lower its cost of goods sold.In the 80s Wal-Mart in the long run came of age. It opened its now phenomenal Sams Club members-warehouse store in 1983, its first Superc enter in 1988, and by the end of that decade it had revenues in excess of US $26 billion from 1,402 Wal-Mart stores and 123 Sams Clubs.Company key factsPresently, Wal-Mart operates in three concern segments Wal-Mart and Sams Club in the joined States, and Wal-Mart International in 14 countries and Puerto Rico. Its retail stores are organized under 53 different banners crosswise the world. It has a workforce of 2.1 million associates worldwide who serve customers and members more than 200 million times per week. In the fiscal year 2010 the company achieved sales of US $405 billion. (Walmartstores.com About Us, 2011). Products and services Wal-Mart U.S. is a one-stop shop. It has divided its business into six strategic merchandise units across its various store formats namely grocery, entertainment, hardlines, apparel, health and wellness and property merchandise. Within these merchandise units there is an array of products and services to be found. In addition to that, Wal-Mart U.S . segment a comparable offers financial services and products, markets lines of merchandise under its private-label store brands such as Parents Choice, ample Value, No Boundaries, etc. and also markets lines of merchandise under licensed brands such as Disney, Black & Decker, skilful My Size etc. (Wal Mart Stores Inc (WMT.N) Company Profile Reuters.com, 2011). Sams Club also offers its membership a collection of products and services online at www.samsclub.com. Companys vision statement and function Wal-Mart has proceed to embody within its corporate culture the vision of its founder, Sam Walton, who came up with the organizations purpose If we work together, well lower the cost of living for everyonewell give the world an opportunity to see what its like to save and have a better life.(Farfan, n.d.). This belief has been engrained into the organization through unique sets of best practices that are carried out daily within Wal-Mart. For example managers are encouraged to be open and accessible to all employees through the open door policy, questions from anyone supplier, customer or employee need to be answered on the same mean solar day (the sundown rule), and associates must make eye contact, greet and offer help to customers who come within a ten feet radius (the 10 foot rule). The open door policy makes Wal-Marts associates to feel apprehended and thus increases their commitment to better customer service. The sundown rule ensures that there is a quick retrogression of solutions to solve any