Walmart's Statement of Ethics
Sam Walton set a solid foundation of values that are still practiced today. "Personal and moral integrity is one of our basic fundamentals and it has to start with each of us," words straight from Sam Walton's mouth. Walton was very value-based and founded Walmart in that same manner.
In its 2013 Global Responsibility Report, Walmart said it has a responsibility to lead and an opportunity to make a difference on “the big issues that matter to us all.” The company further noted that it is “committed to using our size and scale to help the world live better.”
Walmart has implemented a number of initiatives, which focus on four key areas:
1. Social responsibility – Promoting women’s economic empowerment, giving more Americans access to healthy food and helping relieve hunger
2. Local responsibility – Making microloans, implementing school nutrition programs, assisting with disaster relief and promoting local farming
3. Environmental responsibility – Reducing energy use and plastic shopping bag waste, eliminating landfill waste and requiring stricter product sustainability guidelines
4. Company responsibility – Stakeholder engagement, promoting basic values, worker safety, corporate compliance and governance
In each of these areas, Walmart cites a number of pledges and successes:
Giving: The Walmart Foundation and Walmart exceeded $1 billion in charitable contributions worldwide.
Women’s empowerment: Walmart and the Walmart Foundation are providing training and career opportunities for nearly 1 million women worldwide.
U.S. manufacturing: Walmart has committed to purchasing an additional $50 billion in U.S.-produced goods over the next 10 years.
Energy efficiency: Renewable energy sources account for 21% of Walmart’s electricity worldwide.
Veterans: The company plans to hire more than 100,000 U.S. veterans over the next five years.
Diversity: Women account for almost 28% of Walmart’s corporate officers, about double the average for Fortune 500 companies.
Wednesday, July 1, 2015
Monday, June 29, 2015
Chapter 9 - Executing Strategy through Organizational Design
The three major forms of business in the United States are sole proprietorship's, partnerships, and corporations. Sole proprietorships have one owner. Partnerships are a legal form of business where two or more partners share ownership of a firm. A corporation is a legal form of ownership where shares of ownership are publicly traded in stock markets and management is performed by professional executives. Sam Walton, the founder of Walmart, opened the very first Walmart July 2, 1962. It was not until 1969 that the company officially incorporated as Walmart Stores, Inc. In 1970, Walmart became a publicly traded company and sold it's first share at $16.50.
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June 29, 2015 04:01 PM Pricing delayed 20 minutes
Chapter 8 - Selecting Corporate-Level Strategies
When I think of Walmart, I automatically think of cost savings and a one stop shop. At Walmart I can get my necessary groceries, a card for Father's day, shampoo, and a good scented candle for the living room. Walmart practices a combination strategy of overall cost leadership and differentiation. Walmart accomplishes differentiation by having a wider variety of products than their competitors. Walmart's transportation, logistics, and information systems lower their costs as well. Walmart utilizes economies of scale by buying all their products in bulk to maximize production. Walmart's successful overall cost leadership/differentiation strategy leads to high entry barriers for competitors. It also makes it hard for substitute products to enter the market. Walmart also has bargaining power with their suppliers. They changed their competitive challenge from retailing to transportation logistics and communication industries to play to their strengths. Walmart has avoided the pitfalls of the overall cost leadership/differentiation strategy by not getting "stuck in the middle" and properly calculating future revenues and expenses.
Wednesday, June 17, 2015
Chapter 7 - Competing in International Markets
Walmart has been successful operating stores in different countries. As you can see in the above image, Walmart has entered the global markets via joint ventures, acquisitions, new opening, and wholly owned subsidiary. Going global was necessary for Walmart's growth and survival. Walmart had already saturated the domestic markets. The United States accounts for just 4% of the world's population so going global and reaching the other 96% of the markets in the world would be huge for Walmart. Walmart had no choice but to pursue globalization aggressively to meet its competition.
Chapter 6 - Competitive and Cooperative Moves
Walmart's Competitive Advantage:
Growth & Expansion - Walmart's growth in the 1970s, drove Kmart and many other retailers into bankruptcy. While the threat of Walmart's growth was apparent to some observers, Kmart executives failed to respond. Competition with Walmart later drove Kmart to bankruptcy. Growth was a huge competitive advantage in the seventies and still is today. Today, Walmart operates over 11,000 retail units under 65 banners in 28 countries. Walmart employs over 2.2 million associates around the world - 1.3 million in the United States alone.
http://corporate.walmart.com/our-story/our-business/locations/
Low-Cost Leadership - Walmart is known for their low prices. When the economy is slow, consumers are cautious about spending, and shop at Walmart because it has so many low-cost items. Also, if you find a product at a cheaper price at one of Walmart's competitors, Walmart will price match that item so that no one will beat their prices. Walmart is so confident in their prices, they have created an application (app) for smartphones. The app allows customers to scan their receipts and the app will search local competitors and if it finds a competitor selling something you bought at a cheaper price, Walmart will give the difference back.
https://savingscatcher.walmart.com/
Differentiation Strategy - Walmart uses differentiation strategy to succeed by creating a product or service unique to customers. The products are marketed in a way that their customers feel this product is exclusively offered at Walmart. Walmart accomplishes this by offering unique warranties and brand image.
Joint Ventures:
In 1991, through a joint venture Walmart went global, opening a Sam's Club in Mexico. A joint venture is a cooperative arrangement that involves two or more organizations, each contributing to the creation of a new entity. Since then, Walmart has had several more joint ventures around the world.
Growth & Expansion - Walmart's growth in the 1970s, drove Kmart and many other retailers into bankruptcy. While the threat of Walmart's growth was apparent to some observers, Kmart executives failed to respond. Competition with Walmart later drove Kmart to bankruptcy. Growth was a huge competitive advantage in the seventies and still is today. Today, Walmart operates over 11,000 retail units under 65 banners in 28 countries. Walmart employs over 2.2 million associates around the world - 1.3 million in the United States alone.
http://corporate.walmart.com/our-story/our-business/locations/
Low-Cost Leadership - Walmart is known for their low prices. When the economy is slow, consumers are cautious about spending, and shop at Walmart because it has so many low-cost items. Also, if you find a product at a cheaper price at one of Walmart's competitors, Walmart will price match that item so that no one will beat their prices. Walmart is so confident in their prices, they have created an application (app) for smartphones. The app allows customers to scan their receipts and the app will search local competitors and if it finds a competitor selling something you bought at a cheaper price, Walmart will give the difference back.
https://savingscatcher.walmart.com/
Differentiation Strategy - Walmart uses differentiation strategy to succeed by creating a product or service unique to customers. The products are marketed in a way that their customers feel this product is exclusively offered at Walmart. Walmart accomplishes this by offering unique warranties and brand image.
Joint Ventures:
In 1991, through a joint venture Walmart went global, opening a Sam's Club in Mexico. A joint venture is a cooperative arrangement that involves two or more organizations, each contributing to the creation of a new entity. Since then, Walmart has had several more joint ventures around the world.
Chapter 5 - Selecting Business-Level Strategies
Walmart is known for their low prices on hundreds of products. Walmart has this awesome marketing/sales promotion they have been doing for several years now called price match. Walmart will price match all of their customers if they are selling a particular product cheaper than them. In conjunction with the price match promotion, they have a phone application (app) you can download on your smart phone called Walmart's Saving Catcher. You simply download the app and you can take a picture of the barcode that is on your Walmart receipt and the app will search competitors around you like CVS, Target, Publix, ect. and if it finds a competitor has a better price on anything you bought, Walmart will give you the difference back. This is a pretty awesome app, I have been using it for about 6 months now. After all that being said, Walmart definitely fits the term cost leadership. Cost leadership is a generic strategy that offers products or services with acceptable quality and features to a broad set of customers at a low price. For as long as I can remember, I have seen Walmart ads on television about Walmart slashing prices or rollback prices.
Walmart's Savings Catcher
Walmart's Savings Catcher
Wednesday, June 10, 2015
Chapter 4 - Managing Firm Resources - SWOT Analysis
Walmart
Chapter 4 Definitions and Examples:
Tangible resources - Resources that can be readily seen, touched, and quantified. Physical assets such as Walmart's property, warehouse, equipment, products, as well as cash.
Intangible resources - Resources that are difficult to see, touch, or quantify. Walmart's intangible resources include, employees knowledge and skills, a firm's reputation, and a firm's culture, as well as patents or copyrights Walmart may have.
Distinctive competence - A set of activities that an organization performs especially well. For example, Walmart is exceptionally well at customer service. From my personal experience, everytime I go to Walmart someone always greets me as I walk in, someone will make sure I find everything I need/help me find what I need, and during check out they asked if I found everything alright. This is just one example of Walmart's unconditional customer service capabilities.
Marketing Mix - also known as the four Ps of marketing - Product, Price, Place, Promotion.
Walmart has a wide range of products; from kids toys to lawn care products to groceries. Walmart is your one stop shop for anything you could possibly need. Walmarts prices are unbeatable. Walmart will price match or beat all of their competitors prices. Walmarts place would be the location of Walmart stores and/or their warehouses. Walmarts promotion consists of their marketing strategy such as commercials on television and advertising in newspapers.
Patents - Legal decrees that protect inventions from direct imitation for a limited time frame.
Trademarks - Phrases, pictures, names, or symbols used to identify a particular organization.
Copyrights - Provides exclusive rights to the creators of original artistic works such as books, movies, songs, and screenplays.
Trade secrets - Refer to formulas, practices, and designs that are central to a firm's business and remain unknown to competitors.
Walmart's SWOT Analysis:
Strengths - low prices, large selection of products, exceptional customer service/satisfaction, strong market presence, good supply chain.
Weaknesses - low global presence, behind rivals in e-commerce, brand image has weak reputation.
Opportunities - Global expansion, increasing online sales, strategic alliances - acquiring rivals firms.
Threats - Intense competition, laws and regulations - trade policies, cultural barriers, current economy, slow market growth.
Chapter 4 Definitions and Examples:
Tangible resources - Resources that can be readily seen, touched, and quantified. Physical assets such as Walmart's property, warehouse, equipment, products, as well as cash.
Intangible resources - Resources that are difficult to see, touch, or quantify. Walmart's intangible resources include, employees knowledge and skills, a firm's reputation, and a firm's culture, as well as patents or copyrights Walmart may have.
Distinctive competence - A set of activities that an organization performs especially well. For example, Walmart is exceptionally well at customer service. From my personal experience, everytime I go to Walmart someone always greets me as I walk in, someone will make sure I find everything I need/help me find what I need, and during check out they asked if I found everything alright. This is just one example of Walmart's unconditional customer service capabilities.
Marketing Mix - also known as the four Ps of marketing - Product, Price, Place, Promotion.
Walmart has a wide range of products; from kids toys to lawn care products to groceries. Walmart is your one stop shop for anything you could possibly need. Walmarts prices are unbeatable. Walmart will price match or beat all of their competitors prices. Walmarts place would be the location of Walmart stores and/or their warehouses. Walmarts promotion consists of their marketing strategy such as commercials on television and advertising in newspapers.
Patents - Legal decrees that protect inventions from direct imitation for a limited time frame.
Trademarks - Phrases, pictures, names, or symbols used to identify a particular organization.
Copyrights - Provides exclusive rights to the creators of original artistic works such as books, movies, songs, and screenplays.
Trade secrets - Refer to formulas, practices, and designs that are central to a firm's business and remain unknown to competitors.
Walmart's SWOT Analysis:
Strengths - low prices, large selection of products, exceptional customer service/satisfaction, strong market presence, good supply chain.
Weaknesses - low global presence, behind rivals in e-commerce, brand image has weak reputation.
Opportunities - Global expansion, increasing online sales, strategic alliances - acquiring rivals firms.
Threats - Intense competition, laws and regulations - trade policies, cultural barriers, current economy, slow market growth.
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