INTRODUCTION

As a fact, Wal-Mart is considered as the world’s largest

retailer nationwide that has been guided by its founder Sam
Walton’s passion toward customer satisfaction, and his
beliefs in excellence, as well as his philosophy in lowering his
prices that has been proven with his famous slogan “every
day low prices.”1Visible outstanding success has required a
lot of effort,

strategies, dedication, and wide consideration. Such as Wal-

Mart, victory is an echo that needs a lot of challenge to make
it real as Sam Walton did.
Since 1962 which was the year of the first Wal-Mart retail
store birth till nowadays, Wal-Mart has built up their
achievement tremendously to reach the highest fiscal year
ending over its rivals. In 2005 only, Wal-Mart fiscal year
ending has evaluated with $285.2 billion in wide variety of
quality merchandise, along with 1.6 million associates and
more than 3700 facilities in the US and abroad. Moreover,
Wal-Mart customers have been evaluated with more than
138 million per week that visit Wal-Mart stores worldwide
frequently. Thus, by the turn of the century, Wal-Mart has
been named with confidence “the retailer of the century”2
by Fortune magazine and one of 100 best companies
financially, respectfully, admiralty, corporate leadership, and
outstanding achievement in employees’ relations and
community initiatives. As an addition to Wal-Mart successful
achievements, they have established the global ethics office
in regard of protection and offer respect to their diversified
society. Furthermore, they have empowered their associates
as well as encourage them to contribute in several
opportunities to serve the needs of communities and its
members as well as helping nonprofit organizations
throughout Wal-Marl financial contributions toward better life
for all. “We’re proud of what we’ve accomplished; we’ve just
begun.” Sam Walton.

MISSION

The mission of Wal-Mart is to serve customers at the lowest

prices always, and to boom Wal-Mart’s profit by behaving
ethically, enhance and integrate diverse program. Wal-mart
mission statement has been documented through global
ethics office that has been established in 2004 to promote
ethical standards to all Wal-mart facilities and stakeholders.
The other things that are considered:

 SERVE CUSTOMER AT LOWEST PRICE ALWAYS

.
 BOOM WAL-MART’S PROFIT BY BEHAVING ETHICALLY.

 STRIVE FOR EXELLENCE.

  PROMOTE ETHICAL STANDARDS TO WALL-MART
FACILITIES AND STAKEHOLDERS.

Sam’s Leadership Rules for

Building
a Business:

Rule 1:
Commit to your business:
Sam Walton insisted to mention individual intelligence and
clear hard work that guide business to boom level. Moreover,
As soon as the people reach the passion level toward their
jobs, they would offer the best service and perform the best
outcome.

• Rule 2:
Share your profits with all your associates, and treat
them as partners:
In this rule, Walton mentioned firmness in such an
organization with a cooperative atmosphere through giving
his associates partnership feeling as well as retaining control
in order to achieve the best return from them. Offering
discounted stocks is one of the best ideas that allow Wal-
Mart associates to share profits, cooperate and perform their
best outcome.

• Rule 3
Motivate your partners.
Regularly, attractive, and challenging ways are important to
improve your partner’s ability in achieving goals. Setting
high goals, encouraging competition, and keeping scores as
well as switching jobs would empower employees to meet
the challenge with apatite and prevent outrageous
situations.

• Rule 4
Communicate everything you possibly can to your
partners.
Reveal your thoughts and plans as an owner to your
associates or employees in order to gain their
understanding, care, and trust. Thus, Walton believed that
sharing your information with your associates is more
powerful than counterbalance the risk of informing your
competitors.

• Rule 5
Appreciate everything your associates do for the
business.
An appreciation and admiration expression toward your
associates is a superior technique to gain their loyalty
through paychecks stock options, or sincere words of praise.
• Rule 6
Celebrate your successes.
Enthusiasm and humor have to be shown in failures as well
as successes. Preventing serious behaviors especially in
negative days is a smart tactic to fool competition.
• Rule 7
Listen to everyone in your company.
Listen to your employees especially the people who are on
the front lines that deal directly with customers to know the
desired improvement that need to be done. Knowing your
associates thoughts, suggestions, and plans will give the
company the opportunity to offer the best quality in services
and products.
• Rule 8
Exceed your customers' expectations.
As soon as you offer what your customers needs, they will be
definitely returned customers. Moreover, try to appreciate
your customers by reaching their satisfaction because they
are the sources who make all the differences.
• Rule 9
Control your expenses better than your competition.
Efficient operation and controlling expenses is the best way
to find the competitive advantage through running an
industry with the lowest ratio of expenses.
• Rule 10
Swim upstream.
Going to the opposite direction of others is a fanatical way to
have a good chance for challenge and creativity.
Wal-Mart Corporate
Governance:
Wal-Mart is a successful company due to a variety of factors,
from our associates to our retail platforms. Wal-Mart
executive leadership and Board of Directors have drawn the
outline of retail divisions from neighborhood markets to
super centers, and everything in between.
o The chairman and CEO is Rob Walton
o Wal-Mart has 14 members of board of directors who have
contributed along with their associates to make Wal-Mart
successful everyday
o 23 senior officers
o 12 divisions

CEO
and
Chairman of Wal-
Mart

Corporate
Governance
14 members of
directors
23 senior officers

Wal-Mart
Alaska
Wal-Mart Super Neighborhood Sam’s Wal-Mart Wal-Mart Wal-Mart Wal-Mart Used
Stores center market Club international
Walmart.com
pharmacy Optical
TLC Vacation
Bush
Fixture
Shopper
Auctions
Wal-Mart Managerial
Hierarchy for each division:
MANAGERIAL FUNCTION

 PLANNING:
Every company has some planning to success. Wal-mart is
one of the victorious retail stores that stand on certain
planning for its betterment. As Wal-mart has 14 members of
board of director, they make plans to run the business
smoothly. Moreover it has a huge managerial base that
empowers each individual store with its own managerial
hierarchy.

 DECISION MAKING:
Among alternative courses Wal-Mart’s managers choose the
best courses of action. Wal-Mart phenomenal growth through
Sam’s three basic beliefs has been an engine for guidance
toward best decision making.

 ORGANIZING:
Wal-Mart store either local or abroad distinguish with store
top manger who responsible of the overall operations.
Reporting to the top manager and assist are co-managers
(middle managers) who are responsible for the merchandise
and grocery departments. The next level is consist of
assistant managers (first lines) for each store, some of them
are assigned to be in charge for the entire store’s
operations, during overnight shift and the rest are
responsible for various department operations during day
and evening shift.

 STUFFING:
Wal-Mart use strategies to educate employees the best ways
in dealing that they can face any problems. The organization
is also concern about the contribution of the employees on
organization.

 COMMUNICATING:
Wal-Mart managers thought and plan as an owner to their
associates or employees in order to gain their
understanding, care, and trust. Thus, Walton believed that
sharing information with associates is more powerful than
counterbalance the risk of informing competitors.

 MOTIVATING:
Wal-Mart has regularity, attractiveness and challenging ways
to improve their employee’s ability in achieving goals. They
encourage competition as well as the job facilities and high
job security.

 LEADING:
Wal-Mart managers serve as role models and adapt their
management style with the situation. Wal-Mart has some
leadership rules on their own. Sam Walton, In 1992, had
came up with some leadership rules. Wal-Mart managers still
follow those rules.

 CONTROLLING:
Wal-Mart managers compare desired results with actual
results and take the necessary corrective action; they are
keeping things on track through the control function.
Efficient operation and controlling expenses is the best way
to find the competitive advantage through running an
industry with the lowest ratio of expenses.
 WAL-MART OPERATION
Wal-mart has become a successful company though Sam
Walton’s beliefs. Now it’s the world’s number one retailer
enterprise. Wal-Mart follows Sam’s three basic beliefs on
their operation.
 Respect the individual.
 Service to the customers.
 Strive for excellence.
With out these three basics there are some core guidelines
that Wal -
Mart follows to their operation.
 Following the government laws.
 Be honest and fair.
 Always low price.
 Avoid conflicts of interest between work and personal
affairs.

Wal-Mart Competitive
Advantage:
Wal-Mart's competitive advantage is designed thought
promoting a guideline to assist their associates and suppliers
with the right decisions and behaviors through submission of
efficiency, innovation, and quality, as well as responsiveness
to their customers, the following guideline considered as an
essential to every Wal-Mart store and its associates:
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”

Wal-Mart Pricing
Philosophy:

Wal-Mart has a unique pricing policy that is based on low

cost strategy. The basis of discounting philosophy is by
cutting prices to such a level below its competitors’ prices,
beside they can boost their sales to a point where they earn
far more at the cheaper retail than they would have by
selling the items at the higher price. In retailer language,
Wal-mart can lower their markup but earn more because of
the increased volume of merchandise sold.
“If we can go without something to save money, we do. It's
the cornerstone of our culture to pass on our savings. Every
penny Wal-Mart saves is a penny in our customers'
pockets”6 (Sam Walton). By formulating low cost strategy,
Wal-Mart is focusing on the energy of all the organization’s
departments or functions on driving the organization’s costs
down below the cost of its rival. Wal-Mart always searches
for new ways to reduce production cost, alongside with R&D
managers who have focused on developing products that
can be manufactured more cheaply. Thus, Wal-Mart
successfully reduces their cost and delivers the product to
customers at lower price. As a result, according to a study
done by the Los Angeles Economic Development Council,
Wal-Mart has lower grocery prices by 17 to 20 % than other
supermarkets, which potentially saves individual families
more than $500 a year.

SWOT ANALYSIS
STRENGTH:
 Wal-Mart is a powerful retail brand. It has a reputation
for value and efficiency, convenience and a wide range
of products all in one store.
 Wal-Mart has grown substantially over recent years,
and has experienced global expansion.
 A focused strategy is in place for human resource
management and development.
 Wal-Mart has loyal and trusted customer base.
 Wal-Mart has the largest grocery retailer stores
comparing with its rivals.
WEAKNESS:
 Since Wal-Mart sells products across many sectors such
as clothing, food, or stationary, it may not have the
flexibility comparing with its more focused competitors.
 The company is half-global; it has a presence in very
few countries worldwide.
 Due to the recognized expansion of its operations, it
would be a big chance to lose control.
OPPORTUNITIES:
 Focusing on specific markets such as Europe or middle
and eastern Asia region.
 New locations and store types offer Wal-Mart
opportunities to exploit market development. They
could diversify from large super centers, to local and
mall-based sites.
 Persuade to have more premium brands to be sold in
Wal-Mart stores.
THREATS:
 Being number 1 will expose Wal-Mart to be targeted by
competition either locally or globally.
 Global retailers such as Wal-Mart would expose to
political importing and commercial problems in other
countries.
 Since the production cost is falling due to low
manufacturing cost and outsourcing, the price
competition will result in price reduction in some range;
thus, intense price competition means a threat.

RECOMMENDATION
 Last year six employees raised
charges discrimination.

 Always keep lower price is tough and

maintain the same lower price at
globally is problematic.

 During the lower price sometimes its

effect the product quality and cause
lower quality of product.

 Wal-Mart outsourcing policy is

primarily minimal, which is about 7.6%
of over all action.
 OUR PROPOSED MODEL

 Wal-Mart can provide a good career opportunity

globally which can impact economically.
 They can act social responsibly, such as helping fund
fundamental services.
 They can increase female employees to stop the
discrimination.
 They can start their business on middle Europe or
middle and eastern Asia region

Wal-Mart Careers:
Wal-Mart refers to its employees as "associates," and
encourages managers to think of themselves as "servant
leaders,” which reflect the respect philosophy that Wal-Mart
applies. Each shift at every retail store starts with a store-
wide meeting where managers discuss with hourly
employees daily sales figures, company news, and goals for
the day. The majority of Wal-Mart’s hourly store associates in
the United States work full time. As the percentage for full-
time employment in the retail industry traditionally ranges
only 20 to 40 percent. Likewise, Wal-Mart actively recruits
talent from colleges and universities including many
women’s colleges. Wal-Mart helps their employees to reach
a certain level of high performance by training and
empowerment. These strategies help the employees to
enrich their knowledge and responsibility so later on they
can self- manages them and drives their outcome toward
superiority.
The benefits offered by Wal-Mart to their employees are
displayed as follow:

1. “Health insurance - Wal-Mart pays average of two-thirds

of insurance cost.
2. Dental -$1000 per year cap
3. Stock Options (payroll deduction option, 15% match)
4. Life Insurance (up to $200,000)
5. Company Paid Life Insurance (1 year's pay, up to
$50,000)
6. Accidental Death and Dismemberment (100% employee-
paid)
7. Short Term Disability (100% employee-paid)
8. Long Term Disability
9. Prescription Drug Benefit (Begins after one year of
enrollment in company health insurance plan)
10. 10% Discount (General merchandise only, does not
apply to grocery items)
11. Stake Holders Bonus (Two parts, one bonus is based on
sales where employees receive $200 for each 2% increase,
the other part allows one customer accident per
$3.5 million in sales, and pays a $500 bonus)
12. Sick Pay (Beginning the second day of absence; accrues
at approximately one hour per 80 worked)
13. Vacation pay (An average of hours worked, begins on
second year of employment)
14. Personal time pay
15. Bereavement Pay (immediate family members)”
As for future Wal-Mart employees, nearly they target to
create positions for more than 100.000 new jobs, as a
preparation of operations expansion.
Wal-Mart’s impact on local
businesses:

Wal-Mart has an undeniable and

dynamic force on the local
economy and local businesses
through the expanding number
of local businesses located near
by Wal-Mart neighborhood
stores. Obviously, those small
businesses are taking such a
great advantage from being
close to Wal-Mart retail stores to
benefit from the great number
of Wal-Mart daily customers.

Wal-Mart’s impact on the

economy:

As the impact of Wal-Mart on community

and local businesses is being
distinguished noticeably, there is
another recognized impact of Wal-Mart
over the economy. particularly Wal-Mart
affect the economy through being the
largest cash contributor in the American
public with donation of more than 170
million to different fields such as
education, children’s health, literacy,
and local charities around the nation,
producing work aids businesses, creates
new tax revenues, and generating
83.000 jobs each year along with
fulltime hours as well as health benefits.

Wal-Mart from Small Chain

to Global Enterprise

The successful company that Sam Walton had built through

his beliefs has created the world's number one retailer
enterprise through diversification expansion such as Wal-
Mart Super centers and Neighborhood Markets, the
expansion of international operations, and membership
warehouse clubs, which is SAM'S Clubs. Actually, these
operations have created great opportunities for growth.
However, unlike some corporations whose financial growth
does not translate into more creativity such as Wal-Mart did,
Wal-Mart's phenomenal growth through Sam’s three basic
beliefs has been an engine for guidance toward best
decisions making and leadership. Obviously, those rules are
the primary credo that led Wal-Mart toward goal
achievement since these beliefs have been put into practice:

1. Respect the individual:

Wal-Mart primary goal is empowering their people; cherish
their hardworking associates, and ensuring the accuracy of
respect and dignity.

2. Service to our customers:

Customers’ loyalty is the spirit of Wal-Mart business; one of
Wal-Mart philosophy is to ensure the quality merchandise at
the lowest prices associated with the best customer service
possible in order to cope with their second belief and set it in
practice.

3. Strive for Excellence:

Innovative ideas and goals are essential to Wal-Mart’s
guiding principles. Sam Walton as a founder of Wal-Mart was
encouraging his people to believe in striving for excellence in
quality and services.

CONCLUSION

Undoubtedly, the overall image of Wal-

Mart has been brought as a positive
accomplishment since it is being observed
through competitive operation sphere. The
idea of global thinking along with local
application gives Wal-Mart a positive proof
to be successful for Wal-Mart
stakeholders. Evidently, the profit
maximization margin of Wal- Mart is
widely remarkable compared to other
retail stores such as Target, K-mart, Home
Depot, and others. Moreover, their
competitive edge has reached the
excellent role in providing unique,
atypical, and popular products to be
delivered to diversified societies
nationwide. Another important dimension
is Wal-Mart’s advanced control operations’
methods; it has certainly helped them to
attain one of the top market positions and
best company rewarded. In conclusion,
quality effectiveness, strategies efficiency,
and ethnicity awareness make Wal-Mart
an exceptional and popular company
among the people along with positive
leadership that drags them to success.
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