WALMART DAWN BRUST Bryant and Stratton college buss100: Business Principles Ms. Carrie whittke June 18, 2016

About walmart It is our mission to create opportunities so people can live better. We concider it our responsibility to make a positive impact in the communities we serve. 1962 Sam Walton opened the first Walmart 1967 Owned 24 stores 1969 Incorporated as Wal-Mart Stores Inc. 1970 Walmart goes National and becomes publicly traded 1980 Walmart reaches $1 billion in annual sales 1983 Replaces cash registers with point of sales systems 1990 Walmart becomes the Nations #1 retailer 1992 Sam Walton dies yet his legacy continues

Business structure Supports a hierarchical and functional organizational structure Functions are centralized to create synergy and cost efficiencies Functions deliberately decentralized to cater to local needs Flat structured with a strong vertical authority structure that is centralized

management Sam Walton (Founder) surrounded himself with kind people with big ideas. Doug McMillion – President and CEO – Wal-Mart Stores, Inc. Greg Foran – President and CEO – Walmart USA David Cheesewright – President and CEO – Walmart International Roseland Brewer – President and CEO – Sam’s Club Neil M. Ashe – President and CEO – Global eCommerce and Technology

management Corporate Strategy Branch out to New Sectors of Retail Dominance in the Retail Market Expansion in the US and International Market Creation of Positive Brand and Company Recognition Branch out to New Sectors of Retail

HUMAN RESOURCE MANAGEMENT Linda Simom – Executive Vice President of People for Walmart U.S. The worlds largest retailer depends on their Human Resource Management to understand the connection between fitting the right person to the right job. Looking to the HR to motivate and empower 2.2 million associates. Walmart is committed to the design and administration of competitive health packages. Offers generous financial rewards for employees by means of profit-sharing/stock-purchase options. Provides comprehensive training programs to all employees. Announced in May 2015, it’s Welcome Home Commitment by guaranteeing a job to any eligible veteran honorably discharged from active duty.

production STANDARDS PROCESS All suppliers must maintain Walmart’s standards for suppliers. Vendors are selected based on reputation sales projections and alignment with Walmart’s values. All suppliers must maintain insurance at all times. Walmart operates over 11,500 retail units under 63 banners in 28 countries and commerce in 11 countries. Purchasing managers determine which products will sell, find vendors, and analyze deals for the products Operations focus on demand planning, forecasting, and inventory management. Walmart uses vendor managed inventory to insure products are always available on the shelves. Distribution from warehouse/manufacturing plants to stores begin with Walmart’s own trucking fleet and drivers. Walmart instituted cross- docking at it’s warehouses to move inventory directly from arriving or departing trucks.

marketing Walmart is committed to bringing manufacturing back to the United States. Overseas labor costs are rising. Energy in the U.S. is low. Walmart is moving away from a model that was about serving customers where we are and moving towards a model that is about serving customers where they are, when they want to shop and how they want to shop. Focused entirely on their needs in everyday lives.

marketing Investors – Walmart’s top priority. Walmart continues to minimize costs, as through the minimization of wages, to generate profits. Customers – Walmart maintains it’s cost leadership generic strategy. The company offers the lowest prices possible on goods with acceptable quality. Employees – Walmart’s employees are significant in the company’s managerial decision making process. Walmart has job security but stands firm on their position of minimizing wages. Suppliers - Walmart prioritizes suppliers last. Suppliers would like to sell their product at a higher price but Walmart being the largest retailer has leverage to influence the suppliers or not offer their products.

references Wal-Mart Stores Inc. (2015). Wal-Mart AuthoritarianCulture. The New York Times Wal-Mart Stores Inc. (2014). Walmart CEO Outlines Growth Strategy at Annual Meeting For the Investment Community. Meyer. A. (n.d) Striking a Balance. Retailer Leader. Retrieved from www.retailleader.com Corporate.Walmart.com/ourstory/leadership Wal-Mart Stores Inc. (2015). Walmart Human Resources

referrences http://panmore.com/walmart-stakeholders-analysis-recommendations http://www.usanfranonline.com/resources/supply-chain- management/walmart-keys-to- successful-supply-chain-management/# Barnett,M.L. (2014). Why Stakeholders ignore Firm Misconduct a Cognitive View. Journal of Management, 40(3),676-702 Jensen, M.C.(2000). Value Maximization and Stakeholder Theory. Harvard Business School.