journey of walmart by kartik parashar
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If we work together, we'll lower the cost of living for everyone...we'll give the world an opportunity to see what it's like to save and have a better life.
PRESENTATION ON JOURNEY OF WALMART
PREPARED BY: KARTIK PARASHARMASTER OF BUSINESS ADMINISTRATION
WALMART Inc.: AN INTRODUCTIONWal-Mart Stores, Inc.doing business asWalmart, is an Americanmultinationalretailcorporationthat operates a chain ofhypermarkets,discount department storesandgrocery stores.
Headquartered inBentonville, Arkansas, the company was founded bySam Waltonin 1962 andincorporatedon October 31, 1969.
As of October 31, 2016, Walmart has 11,593 stores and clubs in 28countries, under a total of 63banners.
The company operates under the Walmart name in theUnited StatesandCanada. It operates asWalmart de Mxico y Centroamricain Mexico and Central America, asAsdain the United Kingdom, asSeiyuin Japan, and as Best Price in India. It has wholly owned operations in Argentina, Brazil, and Canada. It also owns and operates theSam's Clubretail warehouses
OVERVIEW OF WALMARTTRADING NAMEWALMARTLOGOTYPEPUBLICTRADED ASNYSE, DJIA, S&P 100, S&P 500FOUNDED2 JULY 1962FOUNDERSAM WALTONHEARQUARTERBENTONVILLE, ARKANSASNO. OF LOCATIONS11,593 (31.10.2016)AREA SERVEDWORLDWIDEOWNERWALTON FAMILY (51%)NET INCOMEUS$ 14.694 BILLION
HISTORY OF WALMARTWalmart as we know it today evolved from Sam Waltons goals for great value and great customer service. Mr. Sam, as he was known, believed in leadership through service. This belief that true leadership depends on willing service was the principle on which Walmart was built, and drove the decisions the company has made for the past 50 years.
So much of Walmarts history is tied to the story of Sam Walton himself, and so much of our future will be rooted in Mr. Sams principles.
THE ROAD TO WALMART
Sam Walton was born in 1918 in Kingfisher, Oklahoma.
In 1942, at the age of 24, he joined the military. He married Helen Robson in 1943. When his military service ended in 1945, Sam and Helen moved to Iowa and then to Newport, Arkansas. During this time, Sam gained early retail experience, eventually operating his own variety store.
In 1950, the Waltons left Newport for Bentonville, where Sam opened Waltons 5&10 on the downtown square. They chose Bentonville because Helen wanted small-town living, and Sam could take advantage of the different hunting seasons that living at the corner of four states had to offer.
Inspired by the early success of his dime store, and driven to bring even greater opportunity and value to his customers, Sam opened the first Walmart in 1962 at the age of 44 in Rogers, Arkansas.
BUILDING AN EMPIREIn 1962 Walton opened his first Wal-Mart store in Rogers, Arkansas. Success was swift. By 1976 Wal-Mart was a publicly traded company with share value north of $176 million. By the early 1990s, Wal-Marts stock worth had jumped to $45 billion. In 1991 Wal-Mart surpassed Sears, Roebuck & Company to become the countrys largest retailer.
Even in the grips of a recession, Waltons stores proved successful. In 1991, as the country was mired in an economic downturn, Wal-Mart increased sales by more than 40 %.
But that success also made Wal-Mart a target, especially for small-town merchants and other residents who argued the giant chain was wiping out a communitys smaller stores and downtown retail. Walton, however, tried to meet those fears head-on, promising jobs and donations to local charities, which the company often delivered in some fashion.
FINAL YEARSIn 1985Forbesmagazine named Walton the wealthiest man in the United States, a declaration that seemed to irritate the businessman more than anything else. All that hullabaloo about somebodys net worth is just stupid, and its made my life a lot more complex and difficult, he said.
Over that last several years of his life, Walton suffered from two types of cancer: hairy-cell leukemia and bone marrow cancer. He died of the latter on April 5, 1992, at the University of Arkansas Medical Sciences Hospital in Little Rock, Arkansas.
Just a month before his death, Walton was honored by President George H.W. Bush with the Presidential Medal of Freedom.
SWOT ANALYSIS OF WALMART
BUSINESS STRATEGIES OF WALMARTThere are 3 generic business strategies and they consist of the Focus strategy, the Differentiation strategy, and Overall Cost leadership.Focus strategyIt is usually defined as focusing on offering products and services to a particular market segment or buyer group, within a segment of a product line, and/ or to a specific geographic market.
2. Differentiation StrategyThe Differentiation strategy is defined as offering a product or service that is perceived as unique in the marketplace. Walmart's business strategy is over all cost leadership, offering their customer great quality product & services at lower price then their competitors.
Contd3. OVERALL COST LEADERSHIPOverall Cost Leadership is defined as offering the same or better quality product or service at a price that is less than what any of the competition is able to do. In achieving this goal it relies on a Supply Chain Management, that ensures products are available to the customers when they it. The items offered are broken down into products and services, products would be privately labelled brands such as, George, Metro 7, Mainstays and other licensed brands from Disney and Mary-Kate and Ashley. Services would be that they offer home goods, beauty supplies and seasonal items.
TIMELINE OF WALMART1960s: Retail RevolutionSam Walton's strategy was built on an unshakeable foundation: The Lowest Prices Anytime, Anywhere.
1962On July 2, 1962, Sam Walton opened the first Walmart store in Rogers, Ark.
1967The Walton family owned 24 stores, ringing up $12.7 million in sales.
1969The company officially incorporated as Wal-Mart Stores, Inc.
1970s: Walmart Goes National
In the 1970s, a decade of incredible growth, "Mr. Sam" began to take Walmart national, providing his vision's widespread appeal.
1970Walmart became a publicly traded company. The first stock was sold at $16.50 per share.
1971The first distribution center and Home Office opened in Bentonville, Ark.1972Walmart was listed on the New York Stock Exchange (WMT). With 51 stores, Walmart recorded sales of $78 million.
1975Inspired by a visit to a Korean manufacturing facility, Sam Walton introduced the Walmart cheer.
1979The Walmart Foundation was established.
1980s: Decade of Firsts
In the 1980s, the first Sam's Club opened, serving small businesses and individuals, and the first Walmart Supercenter opened, combining a supermarket with general merchandise.The Walton family established theWalton Family Foundation.Walmart reached $1 billion in annual sales, faster than any other company at that time. Walmart had 276 stores and employed 21,000 associates.1983The first Sams Club opened in Midwest City, Okla.Walmart replaced cash registers with computerized point-of-sale systems, enabling fast and accurate checkout.1984Sam Walton did the hula on Wall Street, making good on a promise to associates after the company achieved a pre-tax profit of 8% for the previous fiscal year.1987The company installed the largest private satellite communication system in the U.S., linking the company's operations through voice, data and video communication.
.1988The first Walmart Supercenter opened in Washington, Mo., combining general merchandise and a full-scale supermarket to provide one-stop shopping convenience.David Glass was named CEO.1990s: America's Top RetailerBy 1990, Walmart was the nation's number-one retailer. As the Walmart Supercenter redefined convenience and one-stop shopping, Every Day Low Prices went international.1991Through a joint venture with Cifra, a Mexican retail company, Walmart went global, opening a Sams Club in Mexico City.1992While receiving the Medal of Freedom, Sam Walton articulated the companys mission of saving people money so they can live better, shortly before passing away at age 74.Rob Walton became chairman of the board.Walmart employed 371,000 associates in 1,928 stores and clubs.
.1993Walmart celebrated its first $1 billion sales week.1994Walmart expanded into Canada with the purchase of 122 Woolco stores.1996Walmart opened its first stores in China.1997The company celebrated its first $100 billion sales year.1998The Neighbourhood Market format was introduced with three stores in Arkansas.
Walmart entered the United Kingdom with the acquisition of ASDA.
2000`s New MillenniumWalmart entered the new millennium dedicated to offering customers a seamless shopping experience, whether they are online, in a store or on a mobile device.2000H. Lee Scott, Jr. succeeded David Glass as CEO.Walmart.com was founded, allowing U.S. customers to shop online.Walmart employed more than 1.1 million associates in 3,989 stores and clubs worldwide.2002For the first time, Walmart topped the Fortune 500 ranking of America's largest companies.Walmart entered the Japanese market through its investment in Seiyu.
CNTD.Walmart took a leading role in disaster relief, contributing $18 million and 2,450 truckloads of supplies to victims of hurricanes Katrina and Rita.Walmart made a major commitment to environmental sustainability, announcing goals to create zero waste, use only renewable energy and sell products that sustain people and the environment.
2006Walmart introduced its $4 generic-drug prescription program.
2007Walmart.com launched Site to Store service, enabling customers to make a purchase online and pick up merchandise in stores.Walmart.com launched Site to Store service, enabli