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Analysis of Wal-Mart Organization - Essay Example

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Wal-Mart Stores is a multinational corporation that operates in fifteen different countries with approximately 8,500 stores. Currently, it is the world’s largest public corporation as measured by revenue. In 2010, the company made $421 billion from its warehouse retailers…
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Analysis of Wal-Mart Organization
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Download file to see previous pages These numbers were hardly predictable from Wal-Mart’s humble beginnings in 1962, when it was founded by entrepreneur Sam Walton. Walton opened a store called the Wal-Mart Discount City in Rogers, Arkansas (Frank, 2006). However, within five years, the company opened up an additional 23 stores throughout the state of Arkansas. By 1968, the stores had moved out of state to Missouri and Oklahoma. From there, Walton incorporated his business as Wal-Mart Stores, which still serves as the company’s namesake, and in 1970, the company went public (Frank, 2006). Despite Wal-Mart’s tremendous growth since its inception in Rogers, Arkansas, the company maintains that it is committed to the same values and purpose that Sam Walton believed in when he opened his first location. Wal-Mart claims to abide by Walton’s credo, which is, “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” (Walmart). This focus on lowering the cost of living for all people, with equal economic access to the company’s products as a means to improving the quality of life represents a significant part of the company’s mission. “Saving people money to help them live better was the goal that Sam Walton envisioned when he opened the doors to the first Walmart” (Walmart). ...
Food prices are nearly 14% lower in markets where Wal-Mart competes, which means that it is employing its cost leadership in a way that is detrimental to other food suppliers who cannot meet the price offerings of Wal-Mart. Because Wal-Mart is special in its ability to use its large buying power to negotiate deals and acquire cheaply-produced goods from foreign countries, its cost leadership is a core competency. Wal-Mart owns a sizable 30% of the consumer staples market in the United States (Hwang, 2003). Another core competency of Wal-Mart is its use of information technology in support of its international logistics system (Marketing Teacher, 2011). Wal-Mart is special because, for the most part, it is the only multinational retailer based out of the United States. In order to manage the efficient allocation of resources within the organization, Wal-Mart recognizes the need to supply its leaders with the right information in order to make competent decisions. By leveraging information technology, it can measure how individual products perform in different countries with a single glance. This technology also adds value to the process of procurement, which is the process of obtaining goods and services from preparation and processing of a requisition through to receipt and approval of the invoice for payment. In terms of weaknesses, Wal-Mart is a very broad company with a wide variety of interests throughout a vast number of small community markets. Within those stores, Wal-Mart offers a wide range of products, which includes groceries, car services, sports equipment, and so on. Despite providing convenience to its customers, this broadness holds ...Download file to see next pagesRead More
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