The Business Structure of Walmart Lisa Herr, Sarah Gottfried, Ryan Strickler, Jen Byrne, Rachael Stine

Wal-Mart History

Founder: Sam Walton Sam Walton was born in Kingfish, Oklahoma on March 29, In 1940, he started his business career by opening the first Ben Franklin franchises in Arkansas.

Wal-Mart History Timeline In 1962, Sam Walton opened the first Wal- Mart in Rogers, Arkansas 1969, company became an incorporated company

Wal-Mart Timeline In 1970, Wal-Mart opened its first distribution center and home office in Bentonville, Arkansas In 1972, Wal-Mart was approved and listed on the New York Stock Exchange In 1978, the first pharmacy, auto service, and jewelry divisions were introduced in the Wal-Mart stores In 1979, Wal-Mart had its first billion dollar year in sales totaling $1,248,000,000

Wal-Mart History Timeline In 1983, the first photo lab was introduced in Tulsa, Oklahoma In 1985, Wal-Mart received stock on the Pacific Stock Exchange In 1988, the first Supercenter opened in Washington, Missouri

Wal-Mart Timeline In 1990, Wal-Mart became the number 1 retailer in the nation In 1991, Wal-Mart entered the international market opening a Club Aurrera in Mexico City In 1992, the first Wal-Mart store opened in Puerto Rico In December on 1993, Wal-Mart reached its first billion dollar sales in one week

Wal-Mart History Timeline In 1996, Wal-Mart was listed on the Toronto Stock Exchange – Also, Through joint venture agreements, Wal-Marts were established in Korea and China In 1997, Wal-Mart became the number one employer with 680,000 associates Also, Wal-Mart had its first $100 billion dollar sales in one year with total sales of $105,000,000,000 In 1998, Wal-Mart moved into Germany Also, over $100 million dollars was given in annual charitable contributions totaling $102,000,000

Stock Splits Wal-Mart has had % stock splits, which has help their economics manically – First split was in 1971 at $47 – Second in 1972 at &47.50 – Third in 1975 at $23 – Fourth in 1980 at $50 – Fifth in 1982 at $ – Sixth in 1983 at $ – Seventh in 1985 at $49.75 – Eighth in 1987 at $ – Ninth in 1990 at $62.50 – Tenth in 1993 at $ – Eleventh in 1999 at $95

Walmart’s Mission Statement

A National Mission Statement The founder, Sam Walton, believed in servant-leadership. Their mission is to “serve our Associates and customers with compassion and integrity. Our emphasis is on our Associates, children, families, the local community and other local programs that improve the quality of life in our communities.”

Walmart’s Philosophy The Wal-Mart Good. Works. community involvement program is based on the philosophy of operating globally and giving back locally. “In our experience, we can make a the greatest impact on communities by supporting issues and causes that are important to our customers and associates in their own neighborhoods.”

Walmart’s Philosophy Cont. Walmart relies on its associates to know which organizations are the most important in their home-town; therefore having say in where Wal-Mart Foundation dollars will be spent “Consequently, our funding initiatives are channeled directly into local communities by associates who live there.”

Programs Walmart Funds Community Grants* Education Military Support Disaster Relief Literacy The World of Medicine Child Safety and Missing Children Volunteerism Always Pays

A Global Missions Statement Wal-Mart released a revised Global Ethics to communicate their ethical standards to all Wal-Mart facilities and stakeholders: Following the law at all times Be honest and fair Never manipulate, misrepresent, abuse or conceal information Avoid conflicts of interest between work and personal affairs

Global Missions continued Never discriminate against anyone Never act unethically Never ask someone to act unethically Seek assistance if you have questions about the Statement of Ethics or if you face dilemma Cooperate with any investigation of a possible ethics violation Report ethics violations or suspected violations

Research: The effect Walmart has on small businesses

Interview for Small Businesses 1. How long have you been in business? 2. How close are you to Walmart? 3. What is your mission statement? 4. Has your mission statement changed since Walmart came in? 5. Has your yearly profit increased or decreased since Walmart has moved in? – % of increase or decrease (3 years before & 3 years after) 6. Did you have to change your layout, product, or advertising? 7. Did you have to lower your prices in order to stay competitive in the market? 8. Did you have to cut back on the number of employees, wages, and benefits? 9. Did your product change at all (quality, supplier)?

What Would We Change Interview businesses at further distance from Walmart – Even in cities/towns where a Walmart is not present Interview businesses that have failed

How our research connects to CVGC Walmart resembles a capitalistic structure. Discourages the simple life by encouraging a life of consumerism. Doesn’t function as a member of a global community by isolating itself.