2. Introduction
• Walmart Inc. formerly known as Wal-Mart Store, Inc.
• Walmart is an American multinational retail corporation that
operates a chain of hypermarkets, discount department
stores, and grocery stores.
• As of October 31, 2018, Walmart has 11,277 stores and clubs
in 27 countries, operating under 55 different names.
• Each week, Walmart serves nearly 270 million customers.
• Walmart is the world's largest company by revenue—over
US$500 billion, according to Fortune Global 500 list in 2018.
• Walmart employs over 2.2 million associates worldwide, and
continues to be the leader in sustainability and employment
opportunity.
3. Founding Stories
• Sam Walton, the legendary founder of Walmart, opened his
first retail store in 1950 in Bentonville, Arkansas.
• Walmart’s business is the result of Sam Walton’s visionary
leadership for great value and great customer service.
• Mr. Sam believed in leadership through service, and
leadership depends on willing service was the principle on
which Walmart was built.
• Walmart’s history is tied to the story of Sam Walton himself,
and the principles have drove the decisions the company has
made for the past 50 years.
4. The History of Walmart
• Sam Walton was born in year 1918 in Kingfisher, Oklahoma.
• He joined the military at the age of 24 in year 1942, and
married to Helen Robson in year 1943.
• Sam and Helen moved to Iowa when he ended his military
service in year 1945, and then to Newport, Arkansas. He
gained his retail experience during this time, and operating
his own variety store.
• Walton left Newport for Bentonville in year 1950, and
opened Walton’s 5&10 on the downtown square.
• Sam opened the first Walmart in Rogers, Arkansas, at the age
of 44 in year 1962.
5. The Success Story and Accomplishments
• Walmart went public in year 1970.
• Sam credited the rapid growth of low costs attraction, and his
associates who give customers the great shopping experience
that would keep them coming back.
• He made them partners in the success of the company, and
firmly believed that this partnership was what made Walmart
great.
• Apart from bringing new approaches and technologies to
retail, he also experimented with new store formats such as
Sam’s Club and Walmart Supercenter, and even making the
decision to take Walmart into Mexico.
6. The Legacy
• Mr. Sam earned the Presidential Medal of Freedom, awarded
by President George H.W. Bush in year 1992.
• He died in year 1992, shortly after receiving the Medal of
Freedom.
• Walmart remains a leader in the retail industry, and
committed to business expansion and communities
improvement to better serve their customers.
7. Timeline and Milestones
1960s - Retail Revolution
• Sam Walton’s strategy is built on an unshakeable foundation
- the lowest prices anytime, anywhere.
1970s - Walmart Goes National
• Mr Sam begins to take Walmart national, providing his
vision’s widespread appeal.
1980s - Decade of Firsts
• The first Sam’s Club and Walmart Supercenter open, serving
small business and individuals, and combining a supermarket
with general merchandize respectively.
8. .....Timeline and Milestones
1990s - America’s Top Retailer
• Walmart is the nation’s No. 1 retailer. Everyday Low Prices
goes international.
2000s - New Millennium
• Walmart enters the new millennium dedicated to offering
customers a seamless shopping experience (online, in a store,
on a mobile device).
2010s - People-Led and Tech-Empowered
• Walmart commits to serving customers in a changing retail
environment, leveraging both associates and technology to
make it happen.
9. …..Timeline and Milestones
Present - Leading the Future of Retail
• In year 2018, the company changes the legal name from Wal-
Mart Stores, Inc. to Walmart, Inc.
• Walmart announces plans to increase wage rate for all US
hourly associates to $11, expand maternity and parental
leave benefits, and provide one-time cash bonus for eligible
associates.
• Walmart continues to pave the way in retail innovation,
benefiting customers and associates by leveraging new
technology and learning from its expanding family of brands.
11. …..History of Walmart Logo
• The company’s logo features the word “Walmart” spelled out
in all lowercase letters, accented on the end by a yellow
sunburst refers to as “the spark”.
• The spark is a symbol for innovation and inspiration - both
things that have driven the company forward over the years.
• It marks the sixth version of the company’s logo, and was
reportedly designed to make shopping at the store more
attractive to higher income families.
13. Interesting fact about Walmart
• If Walmart were a country, its sales would rank it 25th in the
world GDP for year 2017. (Malaysia rank will drop from #37 to
#38)
• Walmart sold 1 billion pounds of banana each year - the most
popular item
• 60 millions items sold by Walmart eCommerce
• Walmart Supply 14.5% of all food purchased in USA in 2016
• Walmart acquire Jet.com at U$3 billion (2016) and Flipkart at
U$16 billion (2018) to boost the ecommerce business
• Only 15% of store in U.S are leased, the rest Walmart owned. This
turn Walmart one of the largest real estate company
• Rank#107 ‘like’ fan page in facebook
14. World Position (World’s Largest Public
Companies 2018 by Forbes)
Rank Company Country Sales Profits Assets Market Value
#24 Walmart United States $500.3 B $9.9 B $204.5 B $246.2 B
#189 Costco Wholesale United States $136 B $3 B $38.7 B $85.9 B
#242 Target United States $71.9 B $2.9 B $39 B $37.6 B
#53 Amazon.com United States $193.2 B $3.9 B $126.4 B $777.8 B
#81 Alibaba China $37.9 B $9.6 B $114 B $499.4 B
#897 eBay United States $10 B $-1.6 B $24.6 B $38 B
#8 Apple United States $247.5 B $53.3 B $367.5 B $926.9 B
#14 Samsung Electronics South Korea $224.6 B $41 B $293.2 B $325.9 B
#11 Royal Dutch Shell Netherlands $321.8 B $15.2 B $410.7 B $306.5 B
#13 ExxonMobil United States $230.1 B $20.4 B $348.8 B $344.1 B
#12 Toyota Motor Japan $265.2 B $22.5 B $473 B $200.7 B
#16 Volkswagen Group Germany $272 B $13.1 B $531.4 B $101.4 B
#17 HSBC Holdings United Kingdom $63.2 B $10.8 B $2,652.1 B $200.3 B
#49 Intel United States $64 B $11.1 B $128.6 B $254.8 B
#86 Sony Japan $77.1 B $4.4 B $179.3 B $59.9 B
15. Corporate Background - Core Business
• Grocery - full line. eg, meat, bakery, food, alcoholic, beverage, floral,
beauty aids, baby product, household chemical, and pet supplies
• Health and wellness include pharmacy, optical services, clinical
services, drugs and medical product
• General merchandise
• Entertainment (eg electronics, cameras, photo processing
services, wireless, movie, music, video games and books)
• Hardlines (eg stationery, automotive, hardware and paint,
sporting goods, outdoor living and horticulture)
• Apparel (eg apparel for women, girls, men, boys and infants,
shoes, jewelry and accessories)
• Home / Seasonable (eg home furnishing, housewares, small
appliance, bedding, home decor, toys)
16. Corporate Background - Other Business
• Fuel (Gas Station)
• Financial Service - Money order, prepaid card, money transfer
17. Corporate Structure
Walmart
U.S.
Operate retail store in 50
states in US, Washington D.C.
and in Puerto Rico
4761 Stores
Contribute
64% of Group
Revenue
Walmart
International
Operate retain store over 27
countries outside US
6,360 Stores
Contribute
24% of Group
Revenue
Sam’s Club Operate warehouse clubs in 44
states in the U.S and in Puerto
Rico
597 stores
Contribute
12% of Group
Revenue
18. Walmart U.S. Business Structure
Supercenter
> 3,500 stores
>632k sf
Average 178k sf
Combine grocery store with
fresh produce, bakery, deli
and dairy products
with electronics, apparel,
toys and home furnishings.
Discount Store
> 400 stores
> 41ksf
Average 105k sf
Electronics, apparel, toys,
home furnishings, health
and beauty aids, hardware
Neighborhood market or
small format
> 800 stores
> 30ksf
Average 42k sf
groceries and merchandise.
fresh produce, dairy
products, deli items,
household supplies, health
and pharmacy.
eCommerce
Walmart.com, Jet.com,
Hayneedle.com, shoes.com,
Moosejaw.com,
modcloth.com,
bonobos.com
Walmart U.S.
19. Walmart International Business Structure
Wholly-Owned
Argentina
Brazil
Canada
Chile
China
India
Japan
United Kingdom
Partnership
Botswana (Africa)
Ghana (Africa)
Kenya (Africa)
Lesotho (Africa)
Malawi (Africa)
Mozambique (Africa)
Namibia (Africa)
Nigeria (Africa)
South Africa (Africa)
Swaziland (Africa)
Tanzania (Africa)
Uganda (Africa)
Zambia (Africa)
Costa Rica (Central America)
EI Salvador (Central America)
Guatemala (Central America)
Honduras (Central America)
Nicaragua (Central America)
Mexico
Cover 27 Countries
Store
Supercenter
Supermarket
Hypermarket
Warehouse
Club
Cash & Carry
185ksf
2.4ksf
Store Type and Size Global Footprint
Country Outlet
Argentina 106
Brazil 465
Canada 410
Chile 378
China 443
Indian 20
Japan 336
UK 642
Africa 424
Mexico 2,358
Central America 778
Total 6,360
20. Sam’s Club Business Structure
• Membership only warehouse club.
• The warehouse club average 134ksf, total of 597 store in U.S.
• Provide Grocery and consumable, Fuel, Home and Apparel.
Technology, office and entertainment product, health and
wellness service. Sam’s Club also offers specialty services,
including travel, auto buying, tire and battery centers
• 2 type of membership – Plus (U$100 p.a.) and Club (U$45p.a.).
Plus entitle cash reward and free shipping.
Lower profit margin of product but gain income from
membership.
21. Organizational Structure
• Hierarchical functional organizational structure
• Two features: hierarchy and function-based definition.
• The hierarchy feature enable vertical lines of command and
authority throughout the organizational structure. Directives
and mandates coming from top management are
implemented through middle managers down to the rank-
and-file employees in Walmart stores.
• Function-based definition feature of the company’s corporate
structure involves groups of employees fulfilling certain
functions. For example, HR, IT, Marketing.
23. Organizational Culture
Walmart’s organizational culture has four main components. These components guide
employees’ behaviors, which determine organizational capacities to add value in the
provision of retail service and related services to consumers. The cultural components are
also identified as Walmart’s beliefs:
1. Service to customers
2. Respect for the individual
3. Strive for excellence
4. Action with integrity
In terms of service to customers, the company prioritizes customers in its operations.
Walmart also recognizes the contributions of each employee to the success of the business.
In addition, the firm strives for excellence in the performance of individual workers, teams,
and the entire organization. In terms of maintaining integrity, Walmart promotes the virtues of
honesty, fairness, and impartiality in decision-making processes.
24. Vision of Walmart
• Started with a vision of “To be the best retailer in the hearts and
minds of consumers and employees” and it has already been
achieved
• Walmart has also greatly influenced the minds of consumers and
employees in terms of financial benefits
• In 2017 investment community meeting, new vision "Be THE
destination for customers to save money, no matter how they
want to shop" is officially articulated
• The change in the corporate vision reflects strategic changes that
Walmart implements in response to changes in the competitive
landscape and the overall condition of the retail industry.
25. Mission of Walmart
• WalMart’s slogan was their mission statement “We save
people money so they can live better”, originated from the
founder Sam Walton
• Walmart sells commodities at reduced prices, and this helps
customers to save money.
• The mission is synonymous to the company’s slogan, “Save
money. Live better.”
26. Policies, Principles and Procedures
• Open Door Policy - Managers' doors are open to employees at all levels
• Sundown Rule - Answering employee, customer, and supplier questions
on the same day the questions are received
• Grass Roots Process - Capturing suggestions and ideas from the sales
floor and front lines
• 3 Basic Beliefs & Values - Respect for the Individual, Service to our
Customers, Striving for Excellence
• 10-Foot Rule - Making eye contact, greeting, and offering help to
customers who come within 10 feet
• Servant Leadership - Leaders are in service to their team
• Walmart Cheer - An actual structured chant that was created by
founder Sam Walton to lift morale everyday
27. Values of Walmart
• Customer First
• Frontline Focused
• Innovative & Agile
• Listen
• Lead by Example
• Inclusive
• High Performance
• Accountable
• Strategic
• Honesty, Fairness, Courage
28. Corporate Strategy
• Strategy adopted by Walmart is Cost leadership generic
strategy, which focuses on achieving low costs
• Walmart has very firm policy to maintain the low cost
• This strategy is directly linked to the corporate vision and
mission
• Everyday Low Price (EDLP) strategy promises customers a
low price without the need to wait for sales event.
• EDLP saves the store efforts to organize sale events and mark
down prices, and most important to generate shopper loyalty
29. Corporate Strategy
• Lead on price
• Walmart helps families save money so they can live
better
• Use their size and scale to provide access to goods at
everyday low prices
• Invest to differentiate on access
• Be competitive on assortment
• Deliver a great experience
30. Corporate Strategy
• Technology is intensively used in Walmart
• e-Commerce
• Inventory control
• Logistic control
• Store operations including price tags, self checkout,
mobile payment
• Customer relationship management
• The use of technology make them most efficient and cost
efficient and then they can pass down the cost saving to
the customers
31. Organization Design
A process involving decisions about six key elements:
1. Work specialization
2. Departmentalization
3. Chain of command
4. Span of control
5. Centralization and decentralization
6. Formalization
32. Work Specialization
• The degree to which in the organization are
divided into separate jobs with each steps
completed by a different person
• The jobs are clearly defined for each positions in
Walmart according to their position
• Each Walmart store has the same job categories,
job descriptions and management hierarchy
• At the bottom of the ladder, the primary entry
level hourly positions
• The top store position is Store Manager or
General Manager in Sam's Clubs
• Work specialization enable Walmart to have high
efficiency so can keep the EDLP strategy
Walmart’s store hierarchy
33. Departmentalization
• Walmart has matrix departmentalization
• At corporate level, the jobs are grouped
based on functional such as finance, HR,
product development, IT, legal etc
• Walmart has divided the geographical
areas into districts. Each district has a
District Manager who oversees all the
stores within that district, which a top
manager at each store
• Each department inside a store handles
different types of products to satisfy
variety of customer. A manager of each
department oversee the department
34. Chain of Command
• Chain of Command - Continuous line of authority that extends
from upper levels of an organization to the lowest levels of the
organization and clarifies who report to whom
• Walmart’s organizational structure is hierarchical and
functional
• Hierarchy is the vertical line of command and authority. Every
employee, except the CEO, has a superior
• Directives from the top management are implemented by
middle managers, then to the employees in their stores
• The clear chain of command makes every employees clear
about their responsibilities and duties, from high to bottom
35. Span of Control
• The number of employees who can be effectively and
efficiently supervised by a manager
• Span of control is narrow as Walmart has management team
that decide how merchandise gets priced, how items are
shipped and managed
36. Centralization and decentralization
The scale of Wal-
Mart is very big
and a lot of
managers cannot
make decisions.
Many decisions
must be made by
CEO to
standardize
across all stores
37. Formalization
• Process of creating a formalized structure and includes the
maintenance of that formal structure over time
• Walmart has high formalization
• Procedures, rules, roles and responsibilities for the individual
employees, organizational units, groups, teams and the
organization as a whole are officially written
• The formalization helps to develop standardize processes,
relationships, and operating procedures, alignment to the
centralization of the organization
• High formalization makes employees do their work orderly,
and is good for managing
38. Summary
• Walmart is still a powerful global company and won't lose out
in the market anytime soon
• Walmart has a good and strong foundation with a good vision
from founder and corporate culture
• By using technology and innovation, Walmart is excelling in
the global market
• Although Walmart do has its weakness and challenges, but
with the right strategies and adherence strongly to its
founding principles, the company will continue to succeed
and grow in the years to come
