wal mart english

8/4/2019 Wal Mart English

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Shi wen Li

Moiss Snchez

Sinuh Ramrez Rojas


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Outline

Introduction of Wal-mart

SWOT analysis

PESTEL analysis


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Wal-Marts Introduction

the largest retail chain in the world (A familycompany, established by Sam Walton)

It has branches in 14 countries. (USA, Canada,

China,Mexico and so on) Always Low Price policy (Unique Selling Proposition) Value Proposition: "Offering our customers quality

merchandise, assortment, good service and, mostimportantly, everyday low prices

3 basic principles: Respect for the Individual,Customer Service and Striving for excellence.


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History

1962 - Sam Walton (founder) opened his first storein Arkansas.

1969 - the company is officially under the nameWal-Mart Stores Inc. and the next year the stockmarket opens.

1979 - First company to reach $ 1 billion in sales insuch a short amount of time, closed the decadewith 276 stores, 21 000 employees operating in 11states.

1198 to 1987-89 stores, sales of $ 15.9 billion and200 000 employees. Complete the "Wal-MartSatellite Network", via satellite communicationssystem of the United States largest communicatingto all areas of operation headquarters, and begins

to implement the bar code to sell their products.


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1991 expansion to international market

1995 - more than 2500 stores worldwide sales of $93.6 billion, 675 000 employees and a presence inCanada, Mexico, China, Argentina and.

1999-largest employer in the world with 1.14million employees, with more than 2500 stores

worldwide sales of over $ 105 billion and apresence in over 10 countries.

2005 - Increased concern for the environment andbegins to launch the first green store.


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SWOT-Strengths Largest Communication systems in the world.

Large inventory turnover which leads to increased the Gross MarginReturn on Inventory Investment

Constant communication with suppliers to generate automaticreplenishment.

Support in some areas of the business by companies like Oracle andSAP.

Control of all the logistics to know what's going on with products fromthe moment they leave the factory of the supplier until they are sold.Support from the world's largest suppliers to implement newtechnology (Gillette, eg Radio frecuency identification).


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Weakness

Their SMART system is prone to human error andtheft which affects the control of accounts.

Some people owners of SMES and small townsdoesnt like walmart because it destroyed theirbusinesses and their hard work of almost all theirlives

By keeping secret their systems any restructuring isin charge of them so they can take longer.


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Oportunities

Install RFID theft which would reduce robery andpayroll, plus it would help all logistics processes.

RETAIL LINK That is almost accurate and does nothave the lag of a day which providers would knowthey are selling at the right time.

Make the purchase process faster and more pleasantfor the customer through the implementation ofRFID.


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Treaths

Many small suppliers in the chain are separatedbecause Wal-Mart required to implement RFIDwhich will increase the cost to them.

That there are campaigns against buying orconsuming in the walmart stores


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PESTEL-Technological

(IT) The one in charge of the area is the Vice

President of Systems Mara del Carmen

Valencia Martinez, who spent 20 yearsworking in the company.They manage many systems, most createdby them in America. Besides working with

Oracle and SAP in some areas such asfinance and databases.


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Software used:

SMART Sistema de MercaderasAplicado a la Venta de Menudeo

ICP Procesos en Club

GDM Gestin de Mercancas.

GDS Sistema Global de Distribucin.

Store Flow

Retail Link


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All these programs work together andare compatible with each other to

provide accurate information at theright time. They handle the sameexcept that SMART is aimed at Wal-

Mart and Superama; ICP Sam's andGDM Suburbia.


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RFID (Radio Frecuency

Identification A chip suppliers must to put all their items,

this technology is not new and that since

the war it was used, however, Walmart isthe string that is beginning to deploy itsindustry, it can store more information,establish buying patterns, the location of

the product and send automatic reports tothe distribution center.


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Retail Link or Decission

Support System Created by Wal-Mart, for suppliers called Retail Link for

buyers call decission Support System.

You can access your invoices, scorecards, GMROII,

consumer behavior, sales forecasts, inventory andturnover, profit margins, sales per store, the distributionof purchase orders, service level, delivery time andexchange electronic purchase orders and vouchers.

It is important to mention that Retail Link is a day lag,however, their updates are faster compared with thesystems used by the competition.

This information is provided by reports generated inExcel.


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Value Proposition

"Offering our customers qualitymerchandise, assortment, good

service and, most importantly,everyday low prices"


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Conclusion

The strategy of Wal-Mart is the traditionalstrategy of any retailer of large volumes: aphenomenal power to negotiate prices andpayment terms. What distinguishes a Wal-Martare very wide shoulders that allow you to exertfierce pressure on suppliers.Wal-Mart has aclear purchasing policyr: "buy your product at X

dollars. The price is not negotiable. Take it orleave it."

wal mart english

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