Walmart - Research Paper Example

Download file to see previous pages Thus, the legacy of Wal-Mart began with this legendary entrepreneur and former military veteran Sam Moore Walton. He opened his first store in 1962 in Rogers, Arkansas. Wal-Mart grew significantly in the 1970s (Murphy, 2008). The first Wal-Mart distribution and official Wal-Mart Home Office opened in Bentonville, Arkansas in 1971. Forbes magazine ranked Wal-Mart number one among competitors for the eighth year straight in 1983. Walton had invested 345% of the capital just to open the first Wal-Mart store. On April 5, 1992, Sam Walton passed away. Just before his passing President George H.W. Bush presented him with the Medal of Freedom during a ceremony at Wal-Mart headquarters, this award is the nation’s highest civilian honor (Soderquist, 2005). International success Ever since then, Wal-Mart grew to twenty four stores in Arkansas, and had already reached up to $12.6 in sales. By 1968, Wal-Mart had opened its stores outside Arkansas in Missouri, Oklahoma, Claremore and Sikeston. To this date Wal-Mart International Operations expand a cross twenty six markets. However, it was soon known as the top most retailing outlet in the world. Wal-Mart had seen immense growth ever since it was opened. The strategies and the milestone were right on the track of perfection. The history of Wal-Mart is the perfect example to learn how to manage growth without losing sight of your values. Wal-Mart stock was offered for the first time in New York Stock Exchange in 1972 (Frank, 2006). With this infusion of capital, Wal-Mart grew to about 276 stores in 11 states within a decade. By the 1980’s, the Sam’s Club members-warehouse store was opened. Then the first Supercenter was opened in 1988, which features a complete grocery and 36 departments of general merchandise. The sales had grown immensely from $1 billion to $26 billion only in 1980. In the 21st century, there are 10, 185 Wal-Mart stores throughout the globe in 27 countries, 2.2 million associates employed and more than 176 million customers a year. Internal and External analysis Walton knew that the major factor that has to be controlled is the payroll. If he wanted to continue keeping the costs down, he had to clearly look into the payrolls and the recruitment. Walton wrote in his autobiography, "No matter how you slice it in the retail business, payroll is one of the most important parts of overhead, and overhead is one of the most crucial things you have to fight to maintain your profit margin." The way Walton controlled the payrolls was to hire as less people as he could, and pay them more than he had to for that job (Robert, 2005). Because of this unique approach, Walton was always opposed by the unions and he had to fight them. He wanted to give the best life to all the Americans whether benefiting them with low priced goods or whether by employing them on a pay above average. His employees nevertheless accepted this and loves working with Walton. Even when Wal-Mart reached other countries, Walton used to travel country to country to keep in touch with his employees. He also gave his employees a stake at the company. He introduced a profit sharing plan that allowed the employees to put in a certain percentage of their wage in the stock purchase. As a truck driver stated that Walton told him 'If you'll just stay with me for twenty years, I guarantee you'll have $100,000 in profit sharing' … ...Download file to see next pagesRead More