International Business summer semester 2011

Managing Organisation
Term paper no 1:
WAL-MART STORES

Supervisor:- Presenters:-
PROF. DR. FRANK KAONEKA Rajab Hassan
Innocent Abonyi
Lucie Panknin
Table of Contents

1. History and Origin of Wal-Mart

2. Wal-Mart Structure
3. Wal-Mart Turnover
4. Basic Data and Analysis of Wal-Mart
5. Summary and Conclusion
6. Questions and Class discussion
7. References
 1. History And Origin of Wal-Mart stores Inc.
Sam Walton built Wal-Mart on the revolutionary philosophies of excellence in the place,
customer service and always having the lowest Prices. Wal-Mart always stayed true to the
three basic beliefs---Respect for the individual, service to customers and strives for
excellence.

KEY DATES;
1962: Samuel Walton and his brother J.l. Walton open their first Wal-Mart Discount city in
Rogers, Arkansans.
1969: The brothers are operating 18 Wal-Mart stores in Arkansans, Missouri, Kansas and
Oklahoma. They incorporated these ventures as Wal-Mart stores Inc.
1970: Wal-Mart begins trading over the counter.
1972: The Company’s stock is listed on the New York stock exchange.
1979: Revenue surpasses l billion; the company is the fastest to reach this milestone.
1983: The first SAMS-wholesale clubs are opened. They are later renamed Sam’s –club.
1988: The Company opens its first Wal-Mart supercentres.
1990: Wal-Mart becomes the largest retailer in the united state.
1991: Foreign expansion begins with the creation of joint venture with CIFRAS, De-
cv,Mexicos largest retailer.
1994: Wal-Mart enters the Canadian market through the purchase from Woolworth
corporation 122 wolco stores.
1997: Wal-Mart enters EUROPE through the acquisition of the 21 –unit Welkauf
hypermarket chain in Germany.
1999: Wal-Mart acquires ASDA-group plc, third largest UK supermarket operator for about
10.8 billion.
2002-2003: Wal-Mart accumulated a fiscal revenue of 244.52 billion, which, which put her
on top, as the world’s largest corporation.
Wal-Mart stores inc., is not only the largest retailer in the world
But also the largest corporation
 2. Wal-Mart structure

1---There are a total of 41 regions and 6- Sam’s club regions

2----Each region is supervised by a regional Vice –president
3----The regional management is based in Bentonville.
4----Wal-Mart has a high concentration of executives and managers based in the home office.
5-----Each region in turn contains approximately eleven districts.
6----Each district contains approximately 6 -8 stores.
7-----Each district is run by a district manager, who lives in the field.
8----District managers work in conjunction with regional personal managers on personal
matters.
9----RPMs visit the stores on a weekly basis and submit reports to five people directors in the
home office.
10----Each Wal-Mart store has the same job categories, job description and management
hierarchy.
Each store has several Assistant managers, varying with the size of stores.
11----At the bottom of the hierarchy are the cashier, sales associate and stocker. These are the
hourly paid workers.

Communication
The initial communication to the management team of Wal-Mart defined “success,” and the
“keys” to achieve that success.
Success was defined as:
• reduced cost
• improved controls
• initiation of best practices learned through benchmarking
• improved customer service
Keys to success were identified as:
• including the right people
• developing the right culture
• incorporating efficient support systems
• a Results-Only Work Environment (ROWE)
With this system of communication, Wal-Mart reached a very interesting level of connection
which works pretty good. The challenge for Wal-Mart is nowadays, to think about developing
this system to make it matching with their fast and wide international growing.
1. Wal-Mart Turnover

(1)
Effective May 1, 2010, the Company implemented a new financial system for its
operations in the United States, Canada and Puerto Rico. Concurrent with this
implementationand the increased system capabilities, the Company changed the
level at which we apply the retail method of accounting for inventory in these
operations. The retrospective application of this accounting change impacted both
segment and consolidated operating income, as well as consolidated net income for
all comparable periods presented. See “Notes to Consolidated Financial Statements,”
Note 2. “Accounting Change.”

In addition, we reclassified certain revenue and expense items within our

Consolidated Statements of Income for financial reporting purposes. The
reclassifications did not impact consolidated operating income or consolidated net
income attributable to Walmart. The changes were effective February 1, 2009 and
have been reflected for
fiscal 2010, 2009 and 2008.
(2)
Comparable store and club sales include fuel. Fiscal 2008 and fiscal 2007
comparable sales include all stores and clubs that have been open for at least the
previous 12 months. Additionally, for those fiscal years, stores and clubs that are
relocated, expanded or converted are excluded from comparable sales for the first 12
months following the relocation, expansion or conversion. Fiscal 2011, 2010 and
2009 comparable sales include sales from stores and clubs open for the previous 12
months, including remodels, relocations and expansions. Fiscal 2008 and fiscal 2007
comparable store and club sales do not reflect reclassifications effective February 1,
2009, as noted above.
 4. Basic Data and Analysis of Wal-Mart

(1) Return on investment (ROI) and free cash flow are non-GAAP measures. Return on assets
(ROA) is the closest GAAP measure to ROI and net cash provided by operating activities of
continuing operations is the closest GAAP measure to free cash flow. The reconciliations and
other information regarding ROI and free cash flow and their closest GAAP measures can be
found in the Management’s Discussion and Analysis of Financial Condition and Results of
Operations included in this Annual Report. A reconciliation of ROI to ROA for fiscal 2009 is
reflected on the website at www.walmartstores.com/investors.
 5. Summary and Conclusion

In the recent years, career opportunities in Wal-Mart have increased by leaps and bounds.
One of the biggest private sector recruiter, Wal-Mart stores provides plethora of employment
opportunities to candidates interested to work in variety departments. Being a Wal-Mart
employee can be a great learning experience for any one as this mega retail is the world’s
largest retail shop. As an employee you will be to work, in team and Contribute to the success
of this store. Working in Wal-Mart not only Gives you the an experience of working for a
world class firm but it also helps you in getting access to numerous Wal-Mart employee
benefits.
Medical insurance profit, profit sharing and education schemes, paid holidays and
vacation time are just some of the various facets of Wal-Mart employment features. It has to
be understood that Wal-Mart is a retail giant and is an organization that is a brand in the retail
Industry. We have elaborated on the history, structure, turnover, basic data and analysis of
Wal-Mart, it can be concluded that Wal-Mart is
A real machine and chief controller in worlds retail industry.

4. Questions and Class discussion

-Choosing a market to enter is of major importance in global expansion. If you were in

charge of Wal-Mart, what European country would you enter next? Why? Would enter this
country requires adaptation of Wal-Mart marketing strategy? If so how?

-As a newly appointed CEO of Wal-Mart, what non-European country in the world would you
enter next? Why?

-Can Wal-Mart sustain its competitive advantage in global retailing?

-What tactics has Wal-Mart used to become a major global retailer?

 5. References

• http://walmartspace.blogspot.com/2005/10/wal-mart-structure.html
• http://en.wikipedia.org/wiki/Sam%27s_Club
• http://en.wikipedia.org/wiki/Warehouse_club
• www.ssonetwork.com/.../2008/December/WalMart
• http://www.businessworld.in/bw/2010_12_11_Walmart_Back_To_The_Front.html?st
oryInSinglePage=true
• http://www.mybudget360.com/lining-up-at-midnight-at-wal-mart-to-buy-food-is-part-
of-the-new-recovery-banks-offering-mattress-interest-rates-the-invisible-recovery-
outside-of-wall-street/
• http://www.wiso.tu-dortmund.de/wiso/is/Medienpool/Arbeitspapiere/ap-soz04.pdf
• http://walmartstores.com/AboutUs/297.aspx
• http://reclaimdemocracy.org/walmart/
• http://walmartstores.com/sites/annualreport/2011/financials.aspx
• http://walmartstores.com/sites/annualreport/2011/financials/2011_Five_Year_Summar
y.pdf
• http://walmartstores.com/sites/annualreport/2011/financials/Walmart_2011_Annual_R
eport.pdf
• http://www.stock-analysis-on.net/NYSE/Company/Wal-Mart-Stores-Inc/Ratios/Short-
term-Operating-Activity
•