Executive Summary- Wal-Mart Essay Example | Topics and Well Written Essays - 1500 words

Executive Summary- Wal-Mart - Essay ExampleSam Waltons key growth strategy for Wal-Mart was to light stores in dislocated rural areas and small towns typically with populations of 5,000 to 25,000 that all the other major discount chains were ignoring and provide them with goods and service at competitive prices. This way Wal-Mart was able to knock into the market segment that previously had to drive up to four hours away to the cities to do their shopping. However, this preference for rural areas meant that Wal-Mart had to terminusure a more costly statistical distribution channel than its competitors. To mitigate against this weakness, Sam Walton took the company public in 1972 to raise the capital required for Wal-Mart to build its own warehouses to serve its boondocks stores (Bradley & Ghemawat, 2002) and thus demoralise its cost of goods sold.In the 80s Wal-Mart finally came of age. It opened its now phenomenal Sams Club members-warehouse store in 1983, its first Supercenter in 1988, and by the end of that decade it had revenues in excess of US $26 billion from 1,402 Wal-Mart stores and 123 Sams Clubs.Company key factsPresently, Wal-Mart operates in three business segments Wal-Mart and Sams Club in the United States, and Wal-Mart International in 14 countries and Puerto Rico. Its retail stores are organized under 53 different banners across the world. It has a custody of 2.1 million associates worldwide who serve customers and members more than 200 million times per week. In the fiscal year 2010 the company achieved sales of US $405 billion. (Walmartstores.com About Us, 2011). Products and services Wal-Mart U.S. is a one-stop shop. It has divided its business into six strategic merchandise units across its various store formats namely grocery, entertainment, hardlines, apparel, health and wellness and home merchandise. Within these merchandise units there is an array of products and services to be found. In addition to that, Wal-Mart U.S. segment als o offers financial services and products, markets lines of merchandise under its private-label store brands such as Parents Choice, Great Value, No Boundaries, and so forth and also markets lines of merchandise under licensed brands such as Disney, Black & Decker, Just My Size etc. (Wal Mart Stores Inc (WMT.N) Company Profile Reuters.com, 2011). Sams Club also offers its membership a collection of products and services online at www.samsclub.com. Companys great deal statement and purpose Wal-Mart has continued to embody within its corporate culture the vision of its founder, Sam Walton, who came up with the organizations purpose If we work together, well set out the cost of living for everyonewell give the world an opportunity to see what its like to save and have a better life.(Farfan, n.d.). This belief has been engrained into the organization finished unique sets of best practices that are carried out daily within Wal-Mart. For example managers are encouraged to be open and accessible to all employees through the open door policy, questions from anyone supplier, customer or employee need to be answered on the same day (the sundown rule), and associates must make eye contact, greet and offer serve well to customers who come within a ten feet radius (the 10 foot rule). The open door policy makes Wal-Marts associates to feel appreciated and thus increases their commitment to better customer service. The sundown rule ensures that there is a quick turnaround of solutions to solve any