Wal Mart

Contents
Sr. No Title Page No

1 Acknowledgement 1
2 Executive Summary 2
3 Introduction to Wal Mart Inc 3
4 Global Spanning and Areas of Activity 4
5 Vision & Mission Statements 5
6 Basic OB Model & Explanation 6-7
7 Organizational Structure 8-11
8 Product Lines & Divisions 12-13
9 Revised BCG Matrix Model of Wal Mart Inc 14
10 Organizational Resources 15
11 Financial outlook of Wal Mart Inc in 2006 16-20

12 Leadership in Wal-Mart Inc and 21st Century 21-31
13 Organizational Environment 32
14 PEST Analysis 33
15 Porter Model of Wal Mart Inc 34
16 Organizational Analysis 35
17 SWOT Analysis and Matrix + TOWS Matrix 36
18 Culture at Wal Mart Inc 37
19 Values, Norms, Rules, Believes 38-40
20 Customer Satisfaction+ Porter Generic Competitive Strategy 41-42
Model
21 Pricing Philosophy and Strategy at Wal Mart Inc 43-45
22 Model Size of Business 46
23 Social Responsibility and Environment Friendly Measures 47-48
24 Motivation at Wal Mart Inc 49
25 Global Ethics and Ethics Statement 50
26 Industrial Life Cycle and Model 51
Faisalabad Institute Of Textile and Fashion Design 1

Acknowledgement
“In the name of Allah the most merciful, the most gracious”
“Of Man‘s First Disobedience and fruit of that forbidden Tree whose
mortal taste brought death into the World and To justify God ‘s Ways
to Man.”
Unfathomable appreciations and reverences to Prof. Rasheed Khalid, my

worthy teacher who did assign this project never attempted by any one
of my classmates earlier. It is because of the research article that
I took a chance of sharpening my professional and educational skills
as well.
The enlightened guidance and directions of my worthy teacher always
provided me with a cushion of solutions and development in my
Project. I am not going to forget my benevolent parents as well whose
prayers served as candle for me in the gloomy and darkened
thoroughfares of my personal, academic and professional life.
Countless gratitude to my esteemed Professor and my parents for their
cooperation. Last but not least, I am cordially thankful to Muhammad
Imran Khalid,Abid Hussain and Saadat Hassan, my class fellows, who
incorporated me a lot that I could complete my project which perhaps
not possible to realize without their benevolence.

Executive Summary
This project is a very small effort to go deep into some implications of Wal Mart Inc, an organization
with an indelible name in the world global business in this age. Right from the point of establishment of
Wal Mart by Sam Watson up till the point at which it stand today, the company has never deviated from
its vision of customer service, value of associates and respect for common individuals. Values, some
core values that have be com an integral part of the environment of Wal Mart have briefly been
discussed with a short touch to Sun Down Rule and Ten Feet Rule at Wal Mart.
Financial aspects of Wal has been showed in the project and 2006 Financial Reports are included
herewith for validity of data and to reinforce the my own substantiations that are showing an handsome
rise in company profit up to 11 % as compared to last year sales.Moreover,Industrial analysis,
motivation factors, SWOT analysis, Marketing and pricing strategies, contribution and reinforcement of
Wal Mart in its communities, its historic back ground, existing condition I Asia pacific, North America
and Europe along with problem statement, all these factors have been discussed in order to have a clear
picture of the company, its environment, its attitude towards the employees, its corporate value and
areas of facility throughout the globe.

Introduction of Wal- Mart Stores as a Global Organization
Perspective.
Wal-Mart became an international company in 1991 when a SAM'S Club opened near Mexico City. Just
two years later, Wal-Mart International was created to oversee the growing opportunities for the
company worldwide. Since then, the International segment has enjoyed rapid growth and consumer
acceptance.
Today, customers at more than 2,660 units in fourteen countries prove Wal-Mart's Every Day Low Price
promise is a message clearly understood in any language. Wal-Mart International employs more than
500,000 associates in Argentina, Brazil, Canada, China, Costa Rica, El Salvador, Germany, Guatemala,
Honduras, Japan, Mexico, Nicaragua, South Korea, Puerto Rico and the United Kingdom.
Developing Opportunities.
Our global expansion has been achieved through a combination of building new stores from the ground
up and a series of acquisitions where our customers want to see us. These strategies have given the
company excellent market penetration and positioned the company for future development. The
company sees its development throughout North America, Latin America, Asia and Europe as a solid
foundation with many promising areas for further growth.
Strength from Monetary Point Of View.
While store development and expansion has experienced significant growth, it is not the only measure
of success. The division has posted impressive financial results as well. Wal-Mart International
announced that 2006 fiscal year end sales reached $62.7 billion, an 11.4 percent increase over the
previous year, and that operating profit rose to $3.3 billion, an increase of 11.4 percent over the prior
year.
International Area of Activity with Local Cultural Involvement.
Despite obvious cultural and business challenges, Wal-Mart International has experienced success
because of its ability to transport the company's unique culture and effective retailing concepts to each
new country. The division makes a concerted effort to adapt to local cultures and become involved in
the local community. Associates respond to customer needs, merchandise preferences and local
suppliers. By serving each hometown in the same way, Wal-Mart International has realized significant
growth with potential for much greater development worldwide.
Wal Mart & 2006
In 2006, Wal-Mart International plans to open 220 to 230 units in existing markets. Relocations or
expansion of existing stores will account for approximately 35 of these units, while the remainder will
represent new operating units for the company.

Wal-Mart International Spanning over
Globe:-
Currently Wal Mart is enjoying its global expansion up to 15 North American, Latin American, Asian to
a little extent) and European countries with 800 of its stores only in the state of Mexico. And in the
coming annals of 21st century, the company has extensive plan and macro strategies that are entirely
customer oriented with ease and compose access to daily life needs and necessities with the
transportation of unique company culture and ability to adapt to local cultures and involved in local
communities.
Wal-Mart International
Argentina
Brazil
Canada
China
Costa Rica
El Salvador
Germany
Guatemala
Honduras
Japan
Mexico
Nicaragua
Puerto Rico
United Kingdom

Mission of the Company
The reason of Existence of Wal Mart clearly shows its commitment for the individual around the
world i.e.,
“To improve the quality of life for every day people around the
world”
Substantiation from the Founder
Mr. Lee Scot the CEO of Wal-Mart did himself exposes the concern of the company that clearly reflects
the customer oriented nature of Wal Mart. In one of his statements in his biography, he said:-
The secret of successful retailing is to give your customers what they want," Sam wrote in his
autobiography. "And really, if you think about it from the point of view of the
customer, you want everything: a wide assortment of good quality merchandise; the
lowest possible prices; guaranteed satisfaction with what you buy; friendly,
knowledgeable service; convenient hours; free parking; a pleasant shopping
experience.

Mission Statement
“Our 1st responsibility is to provide all consumers best products and services with guaranteed
satisfaction under one roof.Wal Mart provide a wide array of products like
toyes,elecxtronics,groceiries,jewellery,ladies,men and children apparel and hard goods at
reasonable pricess.We will continue to offer scholarships to deserving high school graduates in
hopes of providing students well deserved education”
Goals and Objectives
The basic goal and objective of Wal Mart is to serve our customers and associates with
compassion & integrity. Our emphasis is on our associates, children, families, the local
communities and other local programs that improve the quality of life in our communities.

Basic OB Model and Explanation:-

OB Model Explanation
Yoko, Store Manager
"My personal goal is to strive for excellence. No matter what I do in my job or in life, I always
make sure I strive for excellence."
The statement of an employee of Wal Mart can very well expose the extent of organizational
commitment that Wal Mart employees possess and feel it necessary for their self actualization. More
over, Wal Mart insures more than 950,000 associates and their families and accordingly we can estimate
their level of contribution.
As in all things, in our people practices, we take to heart our core belief to strive for excellence. That
means constantly looking for ways to improve, whether it's connecting executive compensation to
diversity goals or improving the supplier application process. Improving these vital relationships are key
to a better Wal-Mart and a better world.
The corporate culture of Wal-Mart is one of the biggest contributing factors that make it one of the
world's most admired companies. When Sam Walton founded the company, he instilled in his people
and his business a belief system that is still very much in place today.
From the three basic beliefs to the sundown rule, we respect our customers, Associates and suppliers
and strive to treat them as we ourselves want to be treated. In building and nurturing these
relationships, as well as serving the communities where we live, we've helped build a better business-
one committed to excellence.

Organizational Structure
Aida Alvarez
• Former Administrator of the
U.S. Small Business
Administration and a
member of President
Clinton's Cabinet from 1997
to 2001
• The founding Director of the
Office of Federal Housing
Enterprise Oversight
• The financial regulator of
Fannie Mae and Freddie
Mac, from 1993 to 1997
• A director for UnionBanCal
Corporation
• A member of the diversity
advisory board for Deloitte
& Touche LLP
• Aida joined the board June

of 2006
James W. Breyer
• The Managing Partner of
Accel Partners
• Jim joined the Board in

2001
M. Michele Burns

• Chairman and Chief
Executive Officer of Mercer
Human Resource Consulting
• A director for Cisco Systems,
Inc.
• Michele joined the Board in

2003
James Cash, Jr., Ph.D.

• Retired James E.
Robison Professor of
Business
Administration at
Harvard Business
School
• Former Senior
Associate Dean and
Chairman of HBS
Publishing
• A director of The
Chubb Corporation,
General Electric
Company, Phase
Forward Inc., and
Microsoft Corporation
• James joined the board

June of 2006
Roger C. Corbett
• Retired CEO and Group
Managing Director of
Woolworths Limited, a retail
company in Australia
• A director of John Fairfax
Holdings, Ltd. and the
Reserve Bank of Australia.
• Roger joined Wal-Mart's

Board in November 2006
Douglas N. Daft
• Retired Chairman of the
Board and CEO of The
Coca-Cola Company
• A director of The McGraw
Hill Companies, Inc.
• Doug joined Wal-Mart's

Board in January 2005

David D. Glass
• David is the former
President and CEO of Wal-
Mart Stores, Inc.
• David has been on the

Board since 1977
Roland A. Hernandez
• Retired Chairman and CEO
of Telemundo Group, Inc.
• A director of Lehman
Brothers Holdings, Inc.,
MGM Mirage, The Ryland
Group, Inc., and Vail
Resorts, Inc.
• Roland joined the Board in

1998
H. Lee Scott, Jr
• President and CEO of Wal-
Mart Stores, Inc.
• Lee has been a member of the

Board since 1999
Jack C. Shewmaker
• The President of J-COM, Inc.
and a rancher in Bentonville
• Jack is a retired Vice
Chairman of Wal-Mart Stores,
Inc.
• Jack has been a member of the

Board since 1977
Jim C. Walton

• Chairman of the board and
CEO of Arvest Bank Group,
Inc.
• Chairman of the board of
Community Publishers, Inc.
• Jim joined the Board in

September 2005
S. Robson Walton
• Wal-Mart's Chairman of the
Board
• Rob has been a member of

the Board since 1978
Christopher J. Williams
• Chairman and CEO of The
Williams Capital Group, L.P.
• Chairman and CEO of
Williams Capital
Management, LLC
• Chris has been a member of

the Board since 2004
Linda S.Wolf
• Former chairman of the
board and CEO of Leo
Burnett Worldwide, Inc., a
division of Publicis Groupe
S.A.
• A trustee for investment
companies advised by the
Janus Capital Group, Inc.
• Linda been a member of the

Board since 2005

Product lines& Divisions
Wal-Mart Stores
Our Wal-Mart stores are the flagship retail division of Wal-Mart Stores, Inc. We are a national discount
retailer offering a wide variety of general merchandise.
Super centers
The growing demand for one-stop shopping led to Wal-Mart's decision to build full-line grocery
department into many of its new stores.
Neighborhood Markets
Neighborhood Markets offer a convenient shopping experience for customers who need groceries,
pharmaceuticals and general merchandise.
SAM'S CLUBS
SAM'S CLUB is the nation's leading members-only warehouse club with locations across the country.
Wal-Mart International
Today, customers in more than 15 international markets prove Wal-Mart's Every Day Low Price
promise is a message clearly understood in any language
Walmart.com
Walmart.com is passionate about combining the best of two great worlds - technology and world-class
retailing - to give customers a great online shopping experience.

I’m smiling because
There is more selection
At Wal-Mart than
Ever before.
1
– Stephanie, customer and associate
Wal-Mart Pharmacy
At Wal-Mart Pharmacy, we pride ourselves on delivering the best customer service possible.
Wal-Mart Optical
The Wal-Mart Optical Department is one of the fastest growing areas in the company and provides
customers with superior goods and services at low prices you can afford.
TLE
The Tire & Lube Express Division (TLE) prides itself on providing superior customer service and offers
fast, accurate and dependable tire and lube service.
Wal-Mart Vacations
Wal-Mart Vacations offers "Always Low Prices" on cruises, vacation packages, car rental and hotel
discounts, select theme park tickets and resorts.

Alaska Bush Shopper
If you're in Alaska and far from a Wal-Mart store, order items and have them shipped to you through
our Alaska Bush Department.
Wal-Mart Used Fixture Auctions

Find out how to purchase used fixtures and equipment.
Explanation. The company has huge volume of various merchandises being

manufactured at its own vertically integrated plants.Wal Mart is quite in usage of
technology and value addition daily life items at reasonable process.Inspite of all the
foresaid factors, company is getting profit increase 11% to 13% every year.

Organizational Resources
Human Resource
Wal-Mart International employs more than 500,000 associates in Argentina, Brazil, Canada, China,
Costa Rica, El Salvador, Germany, Guatemala, Honduras, Japan, Mexico, Nicaragua, South Korea,
Puerto Rico and the United Kingdom.
Physical Resources
Today, customers at more than 2,660 units in fourteen countries prove Wal-Mart's Every
Day Low Price promise is a message clearly understood in any language.
Financial Resources
While store development and expansion has experienced significant growth, it is not the
only measure of success. The division has posted impressive financial results as well.
Wal-Mart International announced that 2006 fiscal year end sales reached $62.7 billion,
an 11.4 percent increase over the previous year, and that operating profit rose to $3.3
billion, an increase of 11.4 percent over the prior year.

Financial Summary of Wal -MART
Fiscal Year Ended January 31, 2006 2005 2004
(Dollar amounts in millions except per share data)
Operating Results 2004, 2005,2006
Net sales $312,427 $285,222 $256,329
Net sales increase 9.5% 11.3% 11.6%
Comparative store sales increase in the United States (1) 3% 3% 4%
Cost of sales $240,391 $219,793 $198,747
Operating, selling, general and administrative expenses 56,733 51,248 44,909
Interest expense, net 1,172 986 832
Effective tax rate 33.4% 34.7% 36.1%
Income from continuing operations $ 11,231 $ 10,267 $ 8,861
Net income 11,231 10,267 9,054
Per share of common stock:
Income from continuing operations, diluted $ 2.68 $ 2.41 $ 2.03

Net income, diluted 2.68 2.41 2.07
Dividends 0.60 0.52 0.36
Financial Position 2004,2005,2006
Current assets of continuing operations $ 43,824 $ 38,854 $ 34,421
Inventories 32,191 29,762 26,612
Property, equipment and capital lease assets, net 79,290 68,118 59,023
Total assets of continuing operations 138,187 120,154 105,405
Current liabilities of continuing operations 48,826 43,182 37,840
Long-term debt 26,429 20,087 17,102
Long-term obligations under capital leases 3,742 3,171 2,997
Shareholders’ equity 53,171 49,396 43,623
Financial Ratios 2004,2005,2006
Current ratio 0.9 0.9 0.9
Return on assets (2) 8.9% 9.3% 9.2%
Return on shareholders’ equity (3) 22.5% 22.6% 21.3%
Main stores in the United States 1,209 1,353 1,478
Super centers in the United States 1,980 1,713 1,471

SAM’S Clubs in the United States 567 551 538
Neighborhood Markets in the United States 100 85 64
Units outside the United States 2,285 1,587 1,355
(1) Comparative store sales are considered to be sales at stores that were open as of February 1 of the
prior fiscal year and have not been expanded or relocated since that date.
(2) Income from continuing operations before minority interest divided by average total assets.
(3) Income from continuing operations before minority interest divided by average shareholders’ equity.
Financial information for all years has been restated to reflect the sale of McLane Company, Inc.
(“McLane”) that occurred in fiscal 2004. McLane is presented as a discontinued operation. All years
have been restated for the fiscal 2004 adoption of the expense recognition provisions of Statement of
Financial Accounting
Notes to Consolidated Financial Statements

WAL -MART
The Company had trade letters of credit outstanding totaling $2.6 billion at January 31, 2006 and 2005.
At January 31, 2006 and 2005, the Company had standby letters of credit outstanding totaling $2.3
billion and $2.0 billion, respectively. These letters of credit were issued primarily for the purchase of
inventory and insurance.
FINANCIAL INSTRUMENTS
The Company uses derivative financial instruments for hedging and non-trading purposes to manage its
exposure to interest and foreign exchange rates. Use of derivative financial instruments in hedging
programs subjects the Company to certain risks, such as market and credit risks. Market risk represents
the possibility that the value of the derivative instrument will change. In a hedging relationship, the
change in the value of the derivative is offset to a great extent by the change in the value of the
underlying hedged item. Credit risk related to derivatives represents the possibility that the counterparty
will not fulfill the terms of the contract.
The notional, or contractual, amount of the Company’s derivative financial instruments is used to
measure interest to be paid or received and does not represent the Company’s exposure due to credit
risk. Credit risk is monitored through established approval procedures, including setting concentration
limits by counterparty, reviewing credit ratings and requiring collateral (generally cash) when

appropriate. The majority of the Company’s transactions are with counterparties rated “AA-” or better
by nationally recognized credit rating agencies.
Fair Value Instruments
The Company enters into interest rate swaps to minimize the risks and costs associated with its
financing activities. Under the swap agreements, the Company pays variable-rate interest and receives
fixed-rate interest payments periodically over the life of the instruments. The notional amounts are used
to measure interest to be paid or received and do not represent the exposure due to credit loss. All of the
company’s interest rate swaps that receive fixed interest rate payments and pay variable interest rate
payments are designated as fair value hedges. As the specific terms and notional amounts of the
derivative instruments exactly match those of the instruments being hedged, the derivative instruments
were assumed to be perfect hedges and all changes in fair value of the hedges were recorded on the
balance sheet with no net impact on the income statement.
Net Investment Instruments
At January 31, 2006, the Company is party to cross-currency interest rate swaps that hedge its net
investments in the United Kingdom and Japan. The agreements are contracts to exchange fixed-rate
payments in one currency for fixed-rate payments in another currency. The Company also has
outstanding approximately £2.0 billion of debt that is designated as a hedge of the Company’s net
investment in the United Kingdom and ¥87.1 billion of debt that is designated as a hedge of the
Company’s net investment in Japan. All changes in the fair value of these instruments are recorded in
other comprehensive income, offsetting the foreign currency translation adjustment that is also recorded
in other comprehensive income.
Cash Flow Instruments
The Company is party to a cross-currency interest rate swap to hedge the foreign currency risk of certain
foreign-denominated debt. The swap is designated as a cash flow hedge of foreign currency exchange
risk. The agreement is a contract to exchange fixed-rate payments in one currency for fixed-rate
payments in another currency. Changes in the foreign currency spot exchange rate result in

reclassification of amounts from other accumulated comprehensive income to earnings to offset
transaction gains or losses on foreign-denominated debt. The instrument matures in fiscal 2007.
The Company expects that the amount of gain or loss existing in other accumulated comprehensive
income to be reclassified into earnings within the next 12 months will not be significant.

Organizational Leadership
Twenty First Century Leadership
Presented by Lee Scott
October 24, 2005
Thank you for joining me this morning and for giving me an opportunity to share some Perspective on
our business and the significant opportunities we have ahead of us. Wal-Mart started as one man’s
dream 43 years ago, a courageous vision brought to life as we speak, by more than one million
Associates serving over 100 million customers every week. Sam Walton’s goal was
simple, and yet when you think about it, radical: He wanted to help the people living in small towns and
rural America enjoy a similar quality of life as those who lived in the big cities. While retailers were
rushing to the suburbs, Sam Walton built a business serving these overlooked and under-appreciated
customers.
He knew intuitively this was right for the country, but also that there was a big business opportunity to
provide this kind of value and service. Sam Walton’s dream to serve the under-served changed the
world. His method was to go where other businesses feared to go. The other retailers of that time were
convinced they wouldn’t make money in small town America. In other words, we didn’t get where we
are today by being like everyone else and driving the middle of the road. We became Wal-Mart by being
different, radically different. Even with this great beginning, we have received our share of criticism
over numerous issues, not the least of which is our size.
To better understand our critics and Wal-Mart’s impact on the world and society, we spent a year
meeting with and listening to customers, Associates, citizen groups, government leaders, non-profit and
non-government organizations, and other concerned individuals. You might be surprised about what we
heard. Many of these individuals and groups see things differently than we do, but they also have ideas.
In fact many of our most vocal critics do not want us to stop doing business, but they feel business needs
to change, not just our company, but all companies. We didn’t send a delegation or committee to meet
with our critics. I met with them, so did Mike Duke, John Menzer, Doug Degn, John Fleming, Doug
McMillon, Claire Watts, Eduardo Castro Wright, Rollin Ford, Tom Schoewe, Susan Chambers,
Lawrence Jackson and others. Mostly we listened. And asked questions and listened some more.
You know, we are in uncharted territory as a business. You won’t find any case studies at the Harvard
Business School highlighting answers for companies of our size and scope. If we were a country, we
would be the 20th largest in the world. If Wal-Mart were a city, we would be the fifth largest in

America. People expect a lot of us, and they have a right to. Due to our size and scope, we are uniquely
positioned to have great success and impact in
The world, perhaps like no company before us. After a year of listening, the time has come to speak, to
better define who we are in the world, and what leadership means for Wal-Mart in the 21st century.
Nothing brought this home more clearly than Hurricane Katrina. Katrina was a key personal moment for
me. When Katrina hit last month, the world saw pictures of great suffering and misery. At Wal-Mart, we
didn’t watch it, we experienced it. Some of our stores and clubs were under water. Associates lost their
savings, their homes, and in a few cases, their lives. I spent time with a few of them in the Houston
Astrodome. I saw the pain, the difficulty, and the tears. But I saw something else. I saw a company
utilize its people resources and scale to make a big and positive difference in people’s lives. I saw how
Jessica Lewis, the co-manager of our Waveland, Mississippi store, worked to help those in her
community.
When the flood surge swept through the store, it was a shambles. That night, though it was dark and
flooded, she took a bulldozer and cleared a path into and through that store, and began finding every dry
item she could to give to neighbors who needed shoes, socks, food, and water. She didn’t call the Home
Office and ask permission. She just did the right thing. Just like thousands of our Associates who also
did the right thing, a trait I am proud to say is bred in our culture. During this time, we were asked by
governments, relief agencies and communities to help. And look what happened. We were showered
with gratitude, kindness, and acknowledgments. This was Wal-Mart at its best. Katrina asked this
critical question, and I want to ask it of you: What would it take for Wal-Mart to be that company, at our
best, all the time? What if we used our size and resources to make this country and this earth an even
better place for all of us: customers, Associates, our children, and generations unborn? What would that
mean? Could we do it? Is this consistent with our business model? What if the very things that many
people criticize us for – our size and reach – became a trusted friend and ally to all, just as it did in
Katrina?
Thankfully Katrinas don’t come around very often, but the world needs help all the time. People and the
environment are being pushed to the limits. I don’t need to tell you how hard our customers work, and
how hard it is to make ends meet. EDLP is not a catchphrase; it is a commitment to our customers – and
one they count on. In the group meetings I referenced earlier, we talked about jobs, healthcare,
community involvement, product sourcing, diversity, environmental impact: all the issues that we’ve
been dealing with historically from a defensive posture. What became clear is that in order to build a
21st century company, we need to view these same issues in a different light. In fact, they represent
gateways for Wal-Mart in becoming the most competitive and innovative company in the world.
Remember what I said earlier about Sam Walton? He had the courage and foresight to take on the
hardest tasks in retailing instead of the easiest, and look what we were able to accomplish. Let me
address each of these opportunities one by one, starting with the environment:

Rob Waltom ( Brother of the founder of Wal Mart
ENVIRONMENT
Frankly, I thought the environment was the least relevant. We are recycling responsibly and we are not
wasteful -- so a Wal-Mart environment program sounded more like a public relations campaign than
substance to me. But we kept talking, and as I learned more a light bulb came on for me … and that’s a
compact fluorescent light bulb! We should view the environment as Katrina in slow motion.
Environmental loss threatens our health and the health of the natural systems we depend on. The
challenges include:
• Increasing greenhouse gases that are contributing to climatic change and weather related
disasters.
• Increasing air pollution which is leading to more asthma and other respiratory diseases in our
communities.
• Water pollution which is increasing while safe fresh water supplies are shrinking; water-borne
diseases causes millions of death each year, mostly among children.
• Destruction of critical habitat, causing unprecedented threat to the diversity of life, the natural
world and us. And that’s just to name a few.
As one of the largest companies in the world, with an expanding global presence, environmental
problems are OUR problems. The supply of natural products (fish, food, water) can only be sustained if
the ecosystems that provide them are sustained and protected. There are not two worlds out there, a
Wal-Mart world and some other world.
That’s what we saw with Katrina: Our Associates, customers and suppliers occupy the same towns, our
children go to the same schools, and we all breathe the same air. These challenges threaten all of us in
the broader sense, but they also represent threats to the continued success of our business. During
Katrina, I was reminded of the vision and innovation of Sam Walton. We became who we are by serving
the underserved. The smart folks predicted we’d lose our shirt with a discount store in a small town.
There is another crowd of smart people who think that if a company addresses the environment, it will
lose its shirt. I believe they are wrong.

I believe, in fact, that being a good steward of the environment and in our communities, and being an
efficient and profitable business, are not mutually exclusive. In fact they are one in the same. And I can
show you why. Our environmental goals at Wal-Mart are simple and straightforward:
1. To be supplied 100 percent by renewable energy.

2. To create zero waste.
3. To sell products that sustains our resources and environment.
These goals are both ambitious and inspirational, and I’m not sure how to achieve them...at least not yet.
This obviously will take some time. But we do know the way. There is a simple rule about the
environment. If there is waste or pollution, someone along the line pays for it. For example, if our trucks
are inefficient from a fuel standpoint, we’ll pay for that at the diesel pump. If the dumpsters behind our
stores fill up with trash, you can be assured that we paid someone to send that trash to us, and we will
pay someone to take it away.
You know, in the last 43 years our Wal-Mart Associates have become some of the most productive retail
workers in the world. Why not spend the next four decades making our trucks, refrigerators, stores,
lighting, packaging, shipping – every aspect of our business -- the most productive in the world? This
will be good for the environment, it will save us money, and in some cases, it will actually add profits to
our bottom line.
Who better than Wal-Mart to make a kilowatt of electricity go twice as far or a gallon of diesel take our
trucks twice the distance? Or three times? Who better than Wal-Mart to stretch our energy and material
dollars farther than anyone ever has? To help lower our energy bills and gas prices for years to come?
We didn’t just get needed goods to Katrina victims -- we did it less expensively than anyone. The
environment is begging for EDLC…..for the Wal-Mart business model. And if we do that, everyone will
benefit.
Let me give you some specific examples that have a direct tie to our business:
TRUCKS
We have one of the largest private fleets in the U.S. At today’s prices, if we improve our fleet fuel
mileage by just one mile per gallon, we can save over 52 million dollars a year. We will increase our
fleet efficiency by 25 percent over the next 3 years and double it within ten years. If implemented across
our entire fleet by 2015, this would amount to savings of more than 310 million dollars a year. Compare
that to doing nothing. By being the leader, we will not only change OUR fleet, but eventually change
trucks everywhere in the world. We will do ourselves a big favor, clean the air for our children, create
new jobs, improve U.S. productivity, positively impact our country’s energy security, and more.
STORE
There is a technological revolution going on out there with respect to buildings, heating, cooling,
compressors, lighting, refrigeration and more. Wal-Mart has always been a technological leader. And
we are going to do it again with our stores. We want to eliminate 30 percent of the energy used by our
stores.
When we opened our McKinney, Texas store, we experimented with what we think we can do. There
are solar panels generating electricity for the store, shredded tires for mulch, heating supplied by used

cooking and motor oil, mature trees shading our buildings, and wind turbines. Our customers flocked to
it and the store manager is enjoying nearly 10 percent energy efficiency gains versus a “normal” Super
Center located a couple of miles down the road.
While that is not enough to cover the cost of building the store, we are learning, and with our scale that
will pay off as we introduce these technologies in new stores and clubs. Increasing our efficiency in
energy not only reduces dependence on oil and saves money; it also avoids GREENHOUSE GAS
emissions. We are looking at innovative ways to reduce our greenhouse gas emissions. This used to be
controversial, but the science is in and it is overwhelming. Climate change doesn’t cause hurricanes, but
hot ocean water makes them more powerful. Climate change doesn’t cause rainfall, but it can increase
the frequency and severity of heavy flooding.
Climate change doesn’t cause droughts, but it makes droughts longer. We believe every company has a
responsibility to reduce greenhouse gases as quickly as it can. Wal-Mart can help restore balance to
climate systems, reduce greenhouse gases, save money for our customers, and reduce dependence on oil,
and we are committed to the following:
1. Aggressively investing approximately $500 million annually in technologies and innovation to

do the following:
a. Reducing greenhouse gases at our existing store, club and DC base around the world by
20 percent over the next 7 years.
b. Designing and opening a viable prototype that is 25-30 percent more efficient and will
produce up to 30 percent fewer greenhouse gas emissions within the next 4 years.
c. Increasing our fleet efficiency by 25 percent in the next 3 years, and doubling efficiency
in the next 10 years.
d. Sharing all learnings in technology with the world, including our competitors (the more
people who can utilize this type of technology the larger the market and more we can
save our customers)
2. Aggressively pursuing regulatory and policy change that will create incentives for utilities to
invest in energy efficiency and low or no greenhouse gas sources of electricity, and to reduce
barriers to integrating these sources into the power grid.
3. Assisting in the design and support of a green company program in China, where Wal-Mart
would show preference to those suppliers and their factories involved in such a program.
4. Initiating a program here in the U.S. over the next 18 months that would show preference to
suppliers who set their own goals and aggressively reduce their own emissions.
5.
These commitments are a first step. To address climate change we need to cut emissions worldwide. We
know that these commitments won’t even maintain our fast growing company’s overall emissions at
current levels. There is more to do and we are committed to doing our part.
WASTE
Reduction of waste is our second goal and represents one of our most visible opportunities. Think about
it….if we throw it away, we had to buy it first. So we pay twice, once to get it, once to have it taken
away. What if we reverse that cycle? What if our suppliers send us less, and everything they send us has
value as a recycled product? No waste, and we get paid instead.

We are already doing this with existing equipment utilizing a new process called “sandwich balers” at
99 SAMS CLUBS and 548 Wal-Mart stores. Through this process, we are now recycling plastic we
used to throw away. If all stores and clubs were on this program it would have added $28 million to the
bottom line this year. This means working with our 60,000-plus suppliers and educating them. If it has
to be thrown away, we don’t want it. We intend to reach the point in the near future where there will be
no dumpsters at our stores, and no landfills with Wal-Mart throwaways. To do that, we have to address
Packaging.
Have you ever noticed that when you’ve taken the item out of the package you’ve got more packaging
than item? We want to ensure that our goods come in the right size package, and we want to ensure that
the materials in that packaging are made from renewable or recyclable materials that can make future
packages. Pretty simple, really, and it saves us a lot of money.
Our packaging team, for example, worked with our packaging supplier to reduce excessive packaging
on some of our private-label Kid Connection toy products. By making the packaging just a little bit
smaller on one private brand of toys, we will use 497 fewer containers and generate freight savings of
more than $2.4 million per year. Additionally, we’ll save more than 38-hundred trees and more than a
thousand barrels of oil. Again, think about this with Wal-Mart’s scale in mind: this represents ONE
relatively simple package change on ONE private toy brand. We believe that Wal-Mart can significantly
reduce the amount of waste going to landfills in our communities, and reduce costs through increased
recycling of the remaining material. We are committed to:
1. Reducing our solid waste from U.S. stores and clubs by 25 percent in the next 3 years.
2. Working with suppliers to create less packaging overall, increase product packaging recycling and
increase use of post-consumer material.
3. Replacing PVC packaging for our private brands with alternatives that are more sustainable and
recyclable within the next 2 years.
PRODUCTS
After energy and waste, our third goal is built around the products we sell. Customers should not have to
make trade-offs when they purchase products at our stores. You should not need a greater income for
access to seafood, cotton, forest or paper products that are safe for your family or produced in a
sustainable way. Let’s take cotton as an example. Did you know that a large percent of the 5 billion
pounds of pesticides used every year are used on cotton? Those toxins don’t stop at the field, but can
leach into the waterways, and may eventually find their way into animals, food, and children. SAM’S
CLUB introduced a yoga outfit made of organic cotton. It sold 190,000 units at 290 clubs in 10 weeks.
We gave our customers something they wanted, but something they might not could have afforded at
specialty stores. They snapped it up, and in the process eliminated two jumbo jets full of pesticides.
The first organic product for Wal-Mart will be a baby George organic offering. Wal- Mart operations in
the United Kingdom, Germany and Japan, along with the United States, are working to develop products
that will be available next summer and priced like similar baby products.
These opportunities are not limited to apparel; we are looking for opportunities in other product
categories such as paper, food, fisheries and electronics. For example, in the area of SEAFOOD, we will

certify all shrimp farms supplying Wal-Mart in the U.S. according to environmental and socio economic
best practice standards through third party accreditation. It’s better for our customers, it’s better for the
world and it’s better for our company.
Now, while I have spent the past few minutes talking about our environmental impact and commitment,
I don’t want to leave you today without speaking about the other key areas I mentioned earlier:
PRODUCT SOURCING, HEALTHCARE, WAGES, COMMUNITY INVOLVEMENT AND
DIVERSITY.
PRODUCT SOURCING
In terms of product sourcing, we appreciate our impact and role as one of the largest purchasers of
goods in the world. We have certainly made progress in helping our suppliers, whose factories make
goods for our stores, support their workers by treating them properly, wherever they are located. In fact,
we cease doing business with supplier factories if they fail to meet our ethical standards. But there is
more we can do in this area. We are committed to further increasing our engagement concerning
supplier factory conditions and becoming more transparent in this important area. For example:
1. We are currently reorganizing our global sourcing organization to separate the factory
certification function from our buying organization so that these two organizations can focus
completely on their respective missions.
2. We will continue to deepen our engagement and collaboration with industry, governments and
leading community organizations on our sourcing practices in developing countries.
3. We will continue our work with other multi-national companies to create a more proactive
structure for enforcing and rewarding positive business practices, with a proposed plan to be
announced within 12 months.
4. In the interest of enhanced transparency, we are working towards an independent monitoring
program to validate and provide additional credibility to our factory certification program.
HEALTHCARE
Healthcare is another key area for us and our nation, and we take seriously our role in making quality
healthcare options more affordable and accessible to those who depend on us every day. We are
committed to creating innovative programs for our own Associates, and for our customers in the
thousands of communities we serve. In addition, we are keen to play our part in developing solutions to
the broader challenges with our national health care system. We will start by taking care of our own.
Focusing on our Associates we will:

1. Bring insurance within reach of all Associates - by introducing a new value option plan January
1, 2006, with insurance coverage of $23 a month and kids covered for less than 50 cents per
day….no matter how many children.
2. Offer this plan for $11 a month, with children covered for less than 30 cents per day in some
markets -- and we are working to offer these savings nationally.
3. Increase the choice of plans and benefits offered, allowing us to better meet the needs of our
diverse population.
4. Provide the tools, education and incentives for Associates to take more personal responsibility
for their own health care spending and their own lifestyle choices. For our communities – both
our Associates and our customers – we will:
5. Establish basic health care clinics in our stores that bring greater convenience, access and price
transparency.
6. Leverage our scale and SAM’S CLUB membership base to make healthcare insurance products
more accessible to our small business customers and their employees.
To fulfill our commitment to being a leading employer in this country we will:

7. Thoughtfully apply our knowledge and resources to make real progress in reforming the health
care system in America. We want to drive out as much as 25 percent of the cost in the healthcare
system through leading a coalition of business, government and industry leaders in applying
standards and technologies for efficiency.
WAGES
Similar to healthcare, our wage structure is another area that our critics have targeted. Last year we
earned $10 billion in profits, so our critics argue that we should pay more to our Associates. But I ask
anyone to do the math. Even slight overall adjustments to wages eliminate our thin profit margin.
Because we are so big, people forget that we have to compete. There are excellent retail competitors in
every category we serve. When we look at our wages and benefits -- and theirs -- we almost always pay
better, but that is also often overlooked or ignored in the public debate about Wal-Mart.
Be assured, we believe passionately in taking care of those whom we serve – our Associates and
working families. We are committed to paying competitively in every market, for both full and part-time
positions. While we have made progress here recently, there is room for further improvement and our
People group is now working on a process to bring better and more consistent standards to the pay rate
review process at the local level.
In the broader sense, there are global market forces at work flattening pay scales in the world. We are
involved in that global market place and we believe it’s important to address the near and long term
challenges our customers and Associates face. For example, the U.S. minimum wage of $5.15 an hour
has not been raised in nearly a decade and we believe it is out of date with the times. We can see first-
hand at Wal-Mart how many of our customers are struggling to get by. We have seen an increase in
spending on the 1st and the 15th of each month and less spending at the end of the month, letting us
know that our customers simply don’t have the money to buy basic necessities between pay checks.

Given increasing gas prices and other economic pressures on our customers, the challenges will
continue for many of them to support themselves and their families.
While it is unusual for us to take a public position on a public policy issue of this kind, we simply
believe it is time for Congress to take a responsible look at the minimum wage and other legislation that
may help working families.
COMMUNITIES
I’m smiling because
Wal-Mart makes a
real difference in
my community.
– James Sexton, Mayor, Evergreen Park, IL
Wal-Mart is likewise committed to our communities, and we have a strong legacy in this area. We
believe that community membership is a privilege and that we have an obligation to help sustain the
communities that rely on us. Thus we are committed to the following:
1. We will engage in a community dialogue process that will include business unit leaders from
operations, realty, store design, and construction.
2. We will test this process in 3 markets over the next 12 months. The goal is to improve our
existing community engagement process to find mutually beneficial partnerships with the
communities we serve.
3. To better understand and address local needs, we are opening local Corporate Affairs offices in
many metro markets.

4. We will continue to build “stores of the community” that use locally relevant store designs and
blend with local architecture.
5. We will adopt a sitting and construction policy in the next 12 months that addresses
environmental, social and historical considerations.
DIVERSITY
Finally, on the subject of diversity, we have made great strides in

this area over the past year – both in terms of program substance
and measurement -- and I hope we can make similar strides in the
key business areas I have just discussed.
As part of our continuing efforts to become a leader in diversity we

will:
1. Continue to ensure that our hiring represents the diversity of our communities, and grow the
percentage of women and minorities in our management ranks.
2. Increase outreach to colleges and universities with large diverse enrollments.
3. Continue to hold officers financially accountable by tying officer incentive bonuses to the
achievement of diversity goals, including mentoring and participation in diverse organizations.
4. Increase amount of business we do with minority companies using our size and leverage to
create companies of significant size and stature.
5. It is important that we be a company that is much more transparent with respect to our
employment data. To that end, we will release information on the gender and racial make up of
our workforce on a regular basis.
You know, as I close, I hope you have a sense that this is a company on the move and, like Sam Walton,
we are going to have the courage to lead and do what is right. Whether the environment, product
sourcing, healthcare and wages, community involvement or diversity, we are investing in the future. We
are a large company. For Wal-Mart to be successful and continue to grow, we must operate in a world
that is healthy and successful. Of course, we are acutely aware that we have a business to run, and run it
we will. At the same time, we believe that these initiatives and many more to come will make us a more
competitive and innovative company, and one that is more relevant to our customers.
Again, for us there is virtually no distinction between being a responsible citizen and a successful
business….they are one in the same for Wal-Mart today. You may also be wondering to yourself, what
is my individual role in all this….what do you want me to do….as a store manager or co-manager, as a
merchant, a truck driver or a Home Office Associate?
For now, I would just ask that you give some serious thought to what I’ve talked about today. I
appreciate the fact that this is not a typical “call to action” where we are asking you to go do something
by the end of the day or end of the week. Instead, please think about where you as an individual Wal-
Mart Associate, and where your store, club or work department can participate and make a contribution
as we go forward in these areas.

I would also ask for your patience as, despite our best intentions, I’m sure we’re going to make some
mistakes along the way. Things will go wrong. Some Associates may have trouble making the
adjustment…some of you may be uncomfortable juggling the old with the new.
So again I ask: what would it take for Wal-Mart to be that company -- the one we were after Katrina…at
our best…all the time?
We have an aggressive vision. With courage and commitment to change, we will be at our best and
remain true to the legacy of the company Sam Walton founded some 43 Years ago.
Thank you.

Organizational Environment
External environment
The external environment of an organization mainly consists of the macro environment and industry
environment. As for as, macro environment is concern following are the factors effecting the Wal Mart
company. External environment of any company includes two types of environment
Which are-
1- INDUSTRY ENVIRONMENT
2- MACRO ENVIRONMENT
Industry Environment
Mainly following factors can influence industry environment of the Wal Mart Internationals.
• Threat of new entrants

• Bargaining power of buyer
• Bargaining power of supplier
• Rivalry among competitors
• Substitutability
Threat of new entrant Low
As for as threat of the new entrant in the market is concerned, it is the very low because
the Wal Mart company is using capital-intensive technique & it has highly acquired the
market. As capital requirement is much important so new entrants cannot bear such high
cost of entering& maintaining them selves in the market.
Rivalry among competitors High
As our company is working globally, there are many companies is the market which are searching for
market share. So Wal Mart Company is facing high competition not only locally but also globally
He under mentioned are the main competitors:-
• Sears
• Kmart’s
• Target
• J.C Penny
• K Mart
• Sara Lee

Substitutability High
Substitutability for our company as a store is high because there are number of products that touch the
daily routine life of majority of our valued customers throughout the world. And our customers rely on
us.
Bargaining power of buyer Low
Bargaining power of the buyer is high because there are many small and medium size stores where
people can have their daily life needs at an effective cost.
Bargaining power of the supplier Low

Bargaining power of the supplier is low because Wal Mart has its own preferred concentrators&
manufacturers & suppliers of various items that have history in their relationship with Wal Mart.
Macro Environment
Political forces High
Legal & political forces are much important for each & every industry. So such forces can highly
influence any company. They may be favorable for the company but mostly political forces are a threat
for the existence of any company. Wal Mart operates globally the risk is higher because there is war
between Wal Mart and Kmart.
Technological Forces Medium
Technology plays a major role in Wal Mart operational activities; it induces for quality using modern
plants through change of technology. We have to adopt changes in our plants according to new
technology so the threat from technologic forces is medium for our company. Only in the field of
Information technology, Wal Mart is accordingly changing its Supply Chain Management Approaches
so as to remain market leader in Latin & North America, Asia Pacific and Africa
Social Forces High
Social forces of any country show how the values, needs and culture of that country’s people can effect
the organization. In case of coca cola Company, the social forces are high because Wal Mart is
operating in 15 countries with 2660 stores at easy access locations and they are providing high quality
item at low price and creating sense of ownership in the valued customers.

Wal Mart works according to its strategy to give preference to its associates and customers through
social services, concepts of informal organizations and providing various medical and environmental
facilities.
Economic Forces Medium
Economic forces of any country can affect the availability, production and distribution of resources
among competing users. Overall economic condition in the world is stable except in Middle East and
Asia. Because in serve regions there is the condition of inflation. Wal Mart has achieved its high growth
rate even of such forces such as performance in Asia and Latin America.Increaseing demand and drastic
upliftment of revenue of Walk Mart in 2006 as compared to that of 2005 is much higher almost 23%
increase in sales and 11% increase in Operating profit. These factors show that economic powers for
Wal Mart are not too high although they are affecting world business day by day.

Porter’s Model
Macro
Environment
Political Legal
Forces (High) Economic Forces
Medium
Industry
Environment
Bargaining
Threat of New
Power of
Entrants (Low)
Buyers (Low)
Bargaining
Rivalry among
Power of
the Competitors
Suppliers
( High)
( Low)
Threat of
Industry Life Cycle
Substitute
Products( Medium
)
Social Forces Technological Forces

( High) (High)

INDUSTRY ANALYSIS
At this time competition among beverages industry is growing due to advancement to technology, R&D,
awareness of public. Industry is improving and enjoying profit due to brand innovations as in case of
coca cola such as diet vanilla coke, Cherry coke & also in case of beverages of other companies.
During year 2003, the number of beverages sold has increased considerably because of stable economic
conditions in U.S.A, Europe, and Middle East. Industry has enjoyed better profit margin .The turnover
of industry has increased because the company started sales promotion through media. Brand loyalty has
been developed due to sponsorship of beverages industry. The brand loyalty has been developed due to
the after sales services & their effective distribution network. Due to the brand loyalty of people, coca
cola is giving value to their customers by adopting the strategy of “Putting people first” around the
world. The company has always strived to deliver the goods & services in order to meet the
requirements of customers. The Company is continuously modernizing its plants to fulfill the higher
level of quality& changing needs of customers.

SWOT Analysis
Strengths:-
• LDPE technique to offer item at very low prices
• Extremely customer oriented.
• Sam’s Club customers are able to purchase in bulk
• One stop shopping at Super Centers
• Satisfaction guaranteed programs promoting customer good will
• Wal Mart can buy from local merchants when possible
• Stock ownership and profit sharing with employees
• Self actualization of employees
• Strong community involvement
• Strong affiliation of associates
• Availability and accessibility for ease in shopping as consumer want ease of shopping
• Latest technology having ability to adapt occurring changes
• Hugh financial resources to span the business over the globe
Weaknesses
• Membership restriction for only Sam’s clubs

• Poor performing employees are kept at hand
• Old fashioned and orthodox store policies
• No special involvement of minorities and women in top management positions
Opportunities
• Should promote E Shopping as an effective tool to access the new markets

• Customers want ease of shopping

• Dollar value is increasing
• Wide Asian market still need Wal Mart Input
• Retail sales expected to increase
• Environment conscious consumers
• European market is not sufficiently tape by Wal- Mart
Threats
• Rules and regulations of Wal mart Pharmacies

• Small town don’t want entry of Wal mart
• Bad Media exposure for Kathie Lee Brand
• Variety of competition national, local and international
• Substitute products are more easily available because of intense competition.

S.W.O.T PORTFOLIO FRAMEWORK
Competitive status of the Corporation Business Units
STRONG AVERAGE WEEK

S Compartment - A Compartment - D Compartment - G
T 1. Internal Growth 1. Mergers 1. Turnaround
A 2. Vertical Integration 2. Horizontal Integration 2. Divestment
T Abundant of related Business 3. Strategic Alliance
3. Mergers
U Opportunities 4. Horizontal Integration
S
O
F
Moderate Compartment - B Compartment - E Compartment - H
E Opportunities/
X 1. Vertical Integration 1. Stability 1. Turnaround
Threats of related Business 2. Mergers 2. Diversment
T 3. Horizontal Integration
E 2. Horizontal related
E Diversification 4. Strategic Alliance
R N 5. Diversment
N V
A I
Critical Compartment - C Compartment - F Compartment - I
L R
Threats 1. Horizontal related 1. Diversment
O 1. Liquidation
Diversification 2. Horizontal related
N Diversification
2. Conglomerate
M 3. Vertical Integration 3. Horizontal Unrelated
E of Business Diversification
N 4. Diversment 4. Stability
T

S.W.O.T (TOWS) MATRIX
Strength Weakness
Internal
Facts • oriented
LDPE technique to offer
Customer
item
Employee self at very low prices
actualization
Membership
Strong•community
Extremely customer
development
oriented.
• Sam’s Club customers are Super centre offers
able to purchase in bulk On hand keeping of
External • One stop shopping at poor employee
Facts Super Centers
Opportunities S.O.• Strategies
Leads in I*T
• Self Actualization of old fashioned stores
employees policies
• Strong communityt
Opportunities W.O Strategies
Consumer wants ease in

Membership
shopping
Internet shopping
Super centre offers
Dollar value increasing On hand keeping of
Similar shopping poor employee
patterns old-fashioned stores
Environment conscious policies
consumer Consumer wants
Elderly population ease in shopping
growing Internet shopping
Asian market Dollar value
increasing
Threats S.T. Strategies W.T. Strategies
• Regulation of • LDPE On hand keeping of poor

technique to employee
Wal Mart offer item at old fashioned stores policies
Pharmacies very low • Consumer
• Small d not prices
wants ease in
• Extremely
want Wal customer shopping
Mart oriented.
• Bad Media • Sam’s Club
• Regulation of
exposure of customer Wal Mart
Kathe Lie Brand Regulation Pharmacies
• Competition of Wal • Small d not

Culture of the Organization
Wal-Ma Lee Scoot made a note speech to shareholders, associates, managers and company leaders at
Wal-Mart Stores Inc.'s 36th annual shareholders meeting on Friday, June 2, 2006, CEO Lee Scott
described Wal-Mart's ongoing transformation as delivering results for the company and the customers
and the communities Wal-Mart serves. Calling the transformation plan "Wal-Mart Out in Front," Scott
pledged to continue implementing changes that have driven growth and efficiency at Wal-Mart this
year.
"Wal-Mart is undergoing a transformation. And it's real," Scott said in prepared remarks. "We are
changing more rapidly and profoundly than we ever have. We're building stronger relationships with the
working families who are our associates and customers. And the changes we are making are delivering
results for our company."
Scott said sales per square foot at the new, urban Evergreen Park store, just outside of Chicago, are 25
percent above sales at other stores in the area. He also pointed out that at the new Plano, Texas,
experimental Supercenter, gross profit per linear foot is 24 percent higher than the average store. In the
coming months, Wal-Mart will build more experimental stores to help the company broaden its appeal
to Hispanic customers, rural customers and Baby Boomers. Scott also revealed new figures that show
Wal-Mart now has more than 176 million customer visits worldwide each week.
"Wal-Mart Out in Front" is a reflection of the company's commitment to its continuing transformation.
In his speech, Scott outlined the five pillars of the plan the company has been implementing:
• Broadening Wal-Mart's appeal to all customers

• Becoming an even better place to work
• Improving business operations and efficiency
• Driving growth in the company's international business
• Making unique contributions to the community
During the speech, Scott recognized Trent Ward, a Wal-Mart associate from Kenner, Louisiana who
came to the aid of Hurricane Katrina victims. Scott asked Ward to stand on behalf of all the Wal-Mart
associates who took similarly heroic actions, donated relief supplies or helped storm victims in the hours
and days immediately following the disaster.
Scott concluded his remarks by speaking directly to company associates, saying: "Wal-Mart is out in
front. And you are making a difference -- a real difference -- for our customers, for our company, and
for the communities we serve."
"Wal-Mart Out in Front," is a nod to a famous piece of advice from Sam Walton, who said, "You can't
just keep doing what works one time. Everything around you is always changing. To succeed, stay out
in front of that change."

Norms and Roles of Wal Mart that define its values
A sense of urgency, a respect for others' time, and the desire to exceed our customers' expectations are
all factors that make the Sundown Rule such a vital part of our culture.
Observing the Sundown Rule means we strive to answer requests by the close of business on the day we
receive them. Whether it's a request from a store across the country or a call from down the hall, every
request gets same-day service. It's a rule we take seriously.
For example, one Sunday morning, Jeff, a pharmacist at a Wal-Mart store in Harrison, Arkansas,
received a call at home. He learned that one of his diabetic pharmacy customers had accidentally
dropped her insulin down her garbage disposal. Knowing that a diabetic without insulin could be in
grave danger, Jeff immediately rushed to the store, opened the pharmacy, and filled the customer's
insulin prescription. This is just one of many ways our associates honor the Sundown Rule every day.
The Sundown Rule was Sam Walton's twist on the adage "Why put off until tomorrow what you can do
today?" That rule remains an important part of our culture and is one reason our associates are so well-
known for their customer service.
Our associates understand that our customers live in a busy world. The Sundown Rule is just one way
we demonstrate to our customers that we care.

One of our secrets to customer service is the 10-foot rule, handed down to us by our founder, Sam
Walton. During his many store visits, he encouraged associates to take a pledge with him: "I want you to
promise that whenever you come within 10 feet of a customer, you will look him in the eye, greet him,
and ask him if you can help him."
This pledge is what we call our "10-foot attitude," and it was something Sam had practiced since
childhood. He was always ambitious and competitive, and by the time he reached college at the
University of Missouri in Columbia, Sam had decided he wanted to be president of the university
student body.
In his words, "I learned early on that one of the secrets to campus leadership was the simplest thing of
all: speak to people coming down the sidewalk before they speak to you. ... I would always look ahead
and speak to the person coming toward me. If I knew them, I would call them by name, but even if I
didn't I would still speak to them. Before long, I probably knew more students than anybody in the
university, and they recognized me and considered me their friend. I ran for every office that came
along."
Not only was Sam elected to just about all of those offices, but he also carried that philosophy into the
world of retail, where you can see our associates worldwide practice it every day.

The three guiding principles Sam Walton founded his company upon in 1962 are still the beliefs we
follow today. They are fundamental to our success and still just as relevant to our business as when they
were first put into practice:
Respect the Individual

"Our people make the difference" is not a meaningless slogan it's a reality at Wal-Mart. We are a group
of dedicated, hardworking, ordinary people who have teamed up to accomplish extraordinary things. We
have very different backgrounds and different beliefs, but we do believe that every individual deserves
to be treated with respect and dignity.
Service to Our Customers
We're nothing without our customers. We make sure their hard-earned dollars stretch further by offering
quality merchandise at the lowest prices and with the best customer service possible.
Strive for Excellence
New ideas and goals make us reach further than ever before. We try to find innovative ways to push our
boundaries and constantly improve. Sam Walton was never satisfied that prices were as low as they
could be or that our products' quality was as high as customers deserved. He believed in striving for
excellence before it became fashionable.
We're proud of our accomplishments, but rather than getting complacent in our success, we embrace the
challenge to do even more.

Exceeding Customer Satisfaction + expectation Wal Mart
We receive letters daily from customers praising individual associates for providing exceptional service.
Sometimes customers write to express their appreciation for services as simple as a smile, an associate
remembering their name, or someone carrying out their purchases for them.
Other times they write of incidents that seem heroic. For instance, Sheila risked her own safety when
she jumped in front of a car to prevent a little boy from being struck, Phylis administered CPR to a
customer who had suffered a heart attack in her store, Joyce threw a plate on the floor to assure a young
mother that a set of dishes truly was unbreakable, and Annette gave up the Power Ranger she had on
layaway for her own son so a customer's son could have his birthday wish.
Years ago, our founder, Sam Walton, challenged all our associates to practice what he called
"aggressive hospitality", to be the most friendly, to offer a welcoming smile, to provide assistance to all
who do us a favor by entering our stores, and to give service that exceeds our customers' expectations.
As our associates know, we must go above and beyond simply being grateful to our customers for
shopping our stores. We want to demonstrate our gratitude in every way we can, because that's what
keeps our customers coming back again and again.

Explanation
Wal Mart is continuously focusing on LOW Price Strategy of EDLP (Every day Low Price) item
available at door steps with respect and value to the customer
The basis of our discounting philosophy is that by cutting our price, we can boost our sales to a point
where we earn far more at the cheaper retail than we would have by selling the item at the higher price.
In retailer language, we can lower our markup but earn more because of the increased volume of
merchandise sold.
Sam Walton's adherence to this pricing philosophy was unshakable. No matter what we pay for it, if we
get a great deal, it only makes sense to pass it on to the customer. And that's what we continue to do,
work diligently to find great deals to pass on to our customers.

Thanks to Sam Walton's legacy, Wal-Mart is a store you can count on every day to bring you value for
your dollar. And that's why at Wal-Mart, you never have to wait for a sale to get your money's worth.
Here are three of our pricing philosophies:

Every Day Low Price
Because you work hard for every dollar, you deserve the lowest price we can offer every time you make
a purchase. You deserve our Every Day Low Price. It's not a sale; it's a great price you can count on
every day to make your dollar go further.
Rollback
This is our ongoing commitment to pass on even more savings to you by lowering our Every Day Low
Prices whenever we can. When our costs get rolled back, it allows us to lower our prices for you. Just
look for the Rollback smiley face throughout the store. You'll smile, too.
Special Buy
When you see items with the Special Buy logo, you know you're getting an exceptional value. It may be
an item we carry every day that includes an additional amount of the same product or another product
for a limited time. Or it could be an item we carry at a very special price while supplies last.

““MORE TO SMILE ABOUT
Wal Mart Inc””

While substantiating through the foresaid data of bulk production and various pricing strategies
like reducing profit margins and increasing sales, wee can identify our organization in quadrant
8th with Low Cost Differentiation due high production and higher sales
Social Responsibility and Compliances for Wal Mart
Mindy, Regional Compliance Manager

"I really never anticipated reaching this level of success, but thanks to mentors who believed in me
along the way, I am extremely grateful that I have."
Did you know?
• Our experimental store in McKinney uses solar power to help meet its energy needs.
• We developed an innovative system for recycling plastic bags. The "sandwich bale" has
enabled us to divert 1,100 tons of plastic from landfills so far.
• We helped one of our suppliers reduce the packaging on one of their popular toys. As a
result, we were able to distribute it using 230 fewer shipping containers, so we saved 356
barrels of oil and 1300 trees
The scope and scale of our business presents great potential to effect positive change. We see
opportunities to influence our own operations, while also leading change in the business world at large.
Focusing on the environment is key to our mission to improve the quality of life for people around the
world. Environmental leadership is critical to our future ability to grow and thrive as a company.

Waste Reduction
We believe that we should be able to conduct business in such a way that we generate no net waste. As a
cost-conscious retailer we have always worked hard to reduce waste, although we once assumed a
certain amount was an inevitable part of doing business. There are always creative alternatives. We are
moving toward our goal by recycling more materials, by refining our production and distribution
systems so that we create less trash, and by selecting packaging that creates minimal waste. Here are
some of the ways we are beginning to make our goal a reality:
By reducing the packaging on one of our patio sets we were able to use 400 fewer shipping containers to
deliver them. We created less trash, and saved our customers a bundle while doing it.
We worked with one of our toy suppliers to help them reduce packaging on just 16 items. We were able
to use 230 fewer shipping containers to distribute their products, saving about 356 barrels of oil and
1300 trees. By broadening this initiative to 255 items, this year we hope to save 1,000 barrels of oil,
3,800 trees, and millions of dollars in transportation costs.
Loose plastic is unruly and hard to collect for recycling, so we began using an innovative baling system
called the "sandwich bale." Like a sandwich, the plastic is pressed between two stacks of cardboard then
bundled for transportation. We've tried it out in just 326 stores this year, and so far we estimate that
we've diverted 1100 tons of plastic from landfills. That's enough to fill football field 38-feet deep. Even
better, recyclers pay us for the plastic, so we've been turning trash into cash. We plan to roll this
innovation out to more stores soon.
Zero net waste is good for business, it's great for the environment, and it even creates jobs; Recycling is
far more labor-intensive than dumping, after all. We think it just makes good sense.
Renewable Energy
Our planet's future depends on our redesigning the current energy system, which relies on fossil fuels
that emit tremendous amounts of carbon and greenhouse gases into the air, which many scientists say is
altering our climate. Climate change is an urgent threat not only to our business but also to our
customers, communities, and the life support systems that sustain our world.
As significant consumers of energy worldwide, we are committed to doing our part. Through deep
investments and efficiency innovations in our stores and trucking fleet, we plan to reduce our overall
greenhouse gas emissions by 20 percent over the next eight years. We will also design a store that will
use 30% less energy and produce 30% fewer greenhouse gas emissions than our 2005 design within the
next 3 years. Doing this will bring cleaner air to our communities, help address an urgent environmental
problem, and save us millions of dollars at the pump and on electricity bills.

We also plan to share our innovations throughout our supply chain and with our customers and
associates, which we believe will create a ripple effect and profitably magnify the solutions on a global
scale.
Motivation Theory in Wal Mart
Equality of Opportunity
"Wal-Mart will not tolerate discrimination in employment on the basis of race, color, age, sex, sexual
orientation, religion, disability, ethnicity, national origin, marital status, veteran status, or any other
legally-protected status."
Equality of Opportunity Statement
Today, with 1.6 million Associates, thousands of diverse suppliers and hundreds of millions of
Customers worldwide, we indeed embody a diverse, global community at Wal-Mart.
But our commitment to always treat our Customers and Associates with fairness and respect, to be their
advocates, to be sensitive to their causes, to value their differences and to serve them as best as we can
has never changed. This commitment takes many forms:
• It's reflected in our "Store of the Community" program, which showcases products from
local suppliers and mirrors the makeup and tastes of a local community, by often gearing
itself specifically to the desires of our diverse customers;
• It's seen in the hundreds of minority- and women-owned businesses that have flourished
through their association with Wal-Mart;
• It's part of our philosophy of promoting from within, which has given thousands of
diverse Associates a step up the ladder in our stores;
• It's revealed in Wal-Mart's support of diverse organizations on both the national and local
levels.
• It's demonstrated by our senior leaders and Office of Diversity being engaged in diversity
initiatives.
Our respect for diversity translates into everyday action at Wal-Mart Stores, Inc. and in the communities
we serve. We are adamant in our belief that our people and our customers make the difference.

Wal-Mart Stores, Inc. has always been a values-based, ethically led company. The values guiding our
decisions and leadership are the 3 basic beliefs established by our founder, Sam Walton, in 1962:
1. Respect for the Individual

2. Service to the Customer
3. Strive for Excellence
Global Ethical Principles

Wal-Mart's Guiding Ethical Principles were added to the revised Global Statement of Ethics on June 4,
2004. These principles are designed to assist our Associates and Suppliers with making the right
decision and doing the right thing.
1. Follow the law at all times

2. Be honest and fair
3. Never manipulate, misrepresent, abuse or conceal information
4. Avoid conflicts of interest between work and personal affairs
5. Never discriminate against anyone
6. Never act unethically – even if someone else instructs you to do so
7. Never ask someone to act unethically
8. Seek assistance if you have questions about the Statement of Ethics or if you face an ethical
dilemma
9. Cooperate with any investigation of a possible ethics violation
10. Report ethics violations or suspected violations

Industrial life cycle of Wal Mart shows it at maturity level with high market share
bur low growth which has never been slow and it has reached in the region of Asia
pacific ad Latin America
Industrial Life Cycle

Key Roles of Teams in Wal Mart
Teamwork role at wal mart is extremely strong due immense care of associates by the company, which
is paying to them much bigger wages as compared to its competitors.

Degree of Evaluation at Wal Mart
Either employees or the suppliers or the third parties that directly or indirectly
related with Wal Mart activities, all of them are conducted and treated as
customers. Their satisfaction is as much important for wal mart as that of its
customers all over the world.

Problem Identification and quality Circle
Wal Mart always goes for systematic approaches towards identification of

bottlenecks and problematic areas to be covered fully and getting defined
results.

Recommendation \ Conclusion
Wal Mart slogans that they have ability of adapting themselves in the local
cultures. If it is true then why such statements in Germany?? What I thins Wal
Mart need is just a little consideration towards its advertisement marketing
activities and promotional campaign in various countries, If it can spend I
million US Dollar to save wild life in USA each year, how it could be so
much indifferent to human being whom Wal Mart says “ Valued Customers.

Wal Mart

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Contents

Sr. No Title Page No

11 Financial outlook of Wal Mart Inc in 2006 16-20

Faisalabad Institute Of Textile and Fashion Design 1

Unfathomable appreciations and reverences to Prof. Rasheed Khalid, my

Faisalabad Institute Of Textile and Fashion Design 2

Faisalabad Institute Of Textile and Fashion Design 3

Faisalabad Institute Of Textile and Fashion Design 4

Faisalabad Institute Of Textile and Fashion Design 5

Substantiation from the Founder

Faisalabad Institute Of Textile and Fashion Design 6

Goals and Objectives

Faisalabad Institute Of Textile and Fashion Design 7

Faisalabad Institute Of Textile and Fashion Design 8

Yoko, Store Manager

Faisalabad Institute Of Textile and Fashion Design 9

• Aida joined the board June

• Jim joined the Board in

Faisalabad Institute Of Textile and Fashion Design 10

• Michele joined the Board in

James Cash, Jr., Ph.D.

• James joined the board

• Roger joined Wal-Mart's

• Doug joined Wal-Mart's

Faisalabad Institute Of Textile and Fashion Design 11

• David has been on the

• Roland joined the Board in

• Lee has been a member of the

• Jack has been a member of the

Faisalabad Institute Of Textile and Fashion Design 12

• Jim joined the Board in

• Rob has been a member of

• Chris has been a member of

• Linda been a member of the

Faisalabad Institute Of Textile and Fashion Design 13

Faisalabad Institute Of Textile and Fashion Design 14

Faisalabad Institute Of Textile and Fashion Design 15

Wal-Mart Used Fixture Auctions

Explanation. The company has huge volume of various merchandises being

Faisalabad Institute Of Textile and Fashion Design 16

Faisalabad Institute Of Textile and Fashion Design 17

(Dollar amounts in millions except per share data)

Operating Results 2004, 2005,2006

Net sales $312,427 $285,222 $256,329

Net sales increase 9.5% 11.3% 11.6%

Comparative store sales increase in the United States (1) 3% 3% 4%

Cost of sales $240,391 $219,793 $198,747

Operating, selling, general and administrative expenses 56,733 51,248 44,909

Interest expense, net 1,172 986 832

Effective tax rate 33.4% 34.7% 36.1%

Income from continuing operations $ 11,231 $ 10,267 $ 8,861

Net income 11,231 10,267 9,054

Per share of common stock:

Income from continuing operations, diluted $ 2.68 $ 2.41 $ 2.03

Faisalabad Institute Of Textile and Fashion Design 18

Financial Position 2004,2005,2006

Current assets of continuing operations $ 43,824 $ 38,854 $ 34,421

Inventories 32,191 29,762 26,612

Total assets of continuing operations 138,187 120,154 105,405

Current liabilities of continuing operations 48,826 43,182 37,840

Long-term debt 26,429 20,087 17,102

Long-term obligations under capital leases 3,742 3,171 2,997

Shareholders’ equity 53,171 49,396 43,623