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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

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Table of Contents

1.  History and Origin of Wal-Mart

2.  Wal-Mart Structure

3.  Wal-Mart Turnover4.  Basic Data and Analysis of Wal-Mart

5.  Summary and Conclusion

6.  Questions and Class discussion

7.  References

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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 thethree 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 heron 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

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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 connectionwhich works pretty good. The challenge for Wal-Mart is nowadays, to think about developingthis system to make it matching with their fast and wide international growing.

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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. 

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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.

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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-Martemployee 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 aworld 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?

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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 

•