Walmart and drivers of

International Business

GROUP 9 GROUP 10

Ravindra Kumar Rahul Singh Gaurav Kumar Manish Kumar Sumit Kumar Rahul Chawla

Yatish Mittal Arun Joshi Amit Yadav Rajnish Kumar Sudhir Kumar Vikrant Arora

INTRODUCTION

Walmart store inc. the largest retailer and the largest company in terms of revenue.

Sam Walton ,the founder of Wal-Mart, opened the first Wal-Mart store in Rogers, Arkansas in 1962. The company is publicly traded at the New York Stock Exchange under the symbol WMT and has its headquarters in Bentonville, Arkansas.

"The secret of successful retailing is to give your customers what they want. And really, if you think about it from your point of view as a 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."

- Sam Walton (1918-1992)

LOGOS OF WALMART

FEATURES OF WALMART

Merchandise Feeling of family for the employees Operating division

BACKGROUND

Started on 2nd July 1962 in Rogers, Arkansas.

Expansion of company Listing in stock exchange Launch of supercenter concept

BACKGROUND

Home delivery services Focus of the company Cost cutting concept

PLANNING : SMALL TOWNS TO A GLOBAL STRATEGY

Traditional stores and Supercentre Supercentre stock everything Many Wal Mart Supercentre also have a

Garden Centre, Pet Shop, Pharmacy, Tire and Lubricants, Optical Centre, Photo processing lab etc

By the early 1990s Wal Mart has Gone international

PLANNING : SMALL TOWNS TO A GLOBAL STRATEGY

Clubs and Stores are world wide Wal Mart’s international operations

currently comprise 4263 stores and 660,000 workers in 15 countries outside the U.S

Known for its Brand Strategy Hub and Spoke Distribution System

ORIGINATION STRUCTURE

Information system is centralized Operation is decentralized Meetings provides opportunity for

customer feedback Origination is based on 3 basic

values Respect for the individual Service to the customers Striving for excellence

HUMAN RELATION MANAGEMENT

Employee advancement programs Campus recruitment Good retention rate Training and Development Sams suggestion system

LEADERSHIP

Personal leadership Experimenting Valuing team work Delegate responsibility resilience

CONTROLLING

Modern technology and inventory system

Relationship with supplier Customer controlling

GLOBAL CHALLENGES FOR THE FUTURE

Weakest overseas business in Germany Cut throat competition in China Failure in influencing the Chinese

customers

STRENGTH

WEAKNESS

OPPORTUNITY

THREAT

STRENGTH

Walmart is powerful retail plant Walmart has grown substantially over

recently year, and has experience global expansion

The company has a core competency involving its user of IT to support its international logistics system

A focus strategy in place for HRM and development

WEAKNESS

The corporate is huge but still has presence in 14 countries

Customers sometimes are curious about the quality of products

Keep poor performance employee on hand

The market share is low outside the US market

Supplies profit margin is very low

OPPORTUNITY

Take over , merge with , or form alliances with global retailers focusing on specific market such as Europe or China

Due to recession in 2008-09 the purchasing power of customers is reduce

Market development untapped market specially.

THREATS

Being leader it faces a lot of competition

Poor human relation Effect on local retailers.

Can Walmart adopt same strategies in other countries like U.S

NO Difficulties of Walmart :-• Hire a large no. of employees• Demand of urban people• Appropriate pricing• Organization culture

Can organization be copied to other countries from U.S

YES Changes suggested :- Change in organization culture Pricing strategy

Could competitors copy the inventory system of Walmart

Walmart uses SMART inventory system , it keeps tracks of all the stock of Walmart and can automatically order the product which is out of stock.

NO other companies cannot copy their system because Walmart had ordered that software specially for them and they patented them.

Would you like to be a manager of walmart

A bigger brand of world wide Comprehensive training program for all

types of associates Company use to offers generous

financial rewards for their associates Offers good salary package to its

managers.

What should walmart to be successful in other countries

GLOCAL Joint ventures Improving their efforts

How can walmart control the global enterprise

Walmart operations are organised into three divisions :-

Walmart stores US SAM’s club Walmart international