BUSINESS INSIGHT

VENKATESH DAMODHARANI-YEAR MBA

SRI KRISHNA COLLEGE OF ENGINEERING AND TECHNOLOGY

FORTUNE 500An annual list of the 500 largest companies in the United States as compiled by FORTUNE magazine that includes both public and private companies.The criteria for Fortune 500 list is based on Revenue Exxon Mobil, Wal-Mart, General Electric and Chevron have reached the top spots on the list in recent years. To be a Fortune 500 company is widely considered as a mark of prestige.

MY CHOICE

ABOUT THE COMPANY TYPE : PUBLIC INDUSTRY : RETAIL FOUNDER : SAM WALTON CURRENT CEO : DOUG McMILLON REVENUE :US$ 485.651 billion NO.OF.LOCATIONS :11,532 (July 31, 2015) NO.OF.EMPLOYEES : 2.2 MILLION(2015) NO.OF.SUBSIDIARIES :13

SLOGAN : “SAVE MONEY.LIVE BETTER”

CONSTITUTES 2% OF TOTAL AMERICAN ECONOMY

REASONS FOR SELECTION

Leadership of “SAM WALTON”

Ability to give “EVERYDAY LOW PRICE”

SAM WALTON’S TEN COMMANDMENTS OF BUSINESS

1. Commit to your goal2. Share your rewards3. Energize your colleagues4. Communicate all you know5. Value your associates6. Celebrate your success7. Listen to everyone8. Deliver more than you promise9. Work smarter than others10. Blaze your own path

EVERY DAY LOW PRICE1. Sales volume, scope of operation and

wide customer base

2. Supply chain management

3. Minimization of overhead and operational costs

4. Leveraging of Its bargaining power to force suppliers to lower prices

SALES VOLUME, SCOPE OF OPERATION AND WIDE CUSTOMER

BASE It sells almost everything, and being present

almost everywhere. It sells goods through four types of stores:

Discount stores, Wal-Mart Supercenters, Sam's Club warehouses, and neighborhood markets.

90% of Americans live within 15 miles of a Wal-Mart store.

Its large volume of sales enables it to make substantial profits, even in instances where individual margins on single items may be slimmer than those of its competitors.

SUPPLY CHAIN MANAGEMENT The goal was to master the art of knowing what it

needed, how much was needed, and when it is needed.

Deals directly with manufacturers.

It has the largest private satellite system that enables the easy transfer of this information among all participants in its supply chain process.

Wal-Mart opened stores in small, rural towns first before entering metropolitan areas. This resulted in lower operating expenses.

MINIMIZATION OF OPERATIONAL COSTS

Its executives reportedly fly coach and share hotel rooms with colleagues.

The company has even been accused of demanding that hourly workers put in overtime without pay.

LEVERAGING OF ITS BARGAINING POWER

Many well-known companies rely on Walmart for more than 20% of their revenue

Wal-Mart, as the number one supplier-retailer of most of the consumer goods, wields considerable power over their bottom line and in fact wields this power over almost all the consumer goods industries and they force to give goods at cheaper prices continuously.

CURRENT LEADER The current CEO of Wal-Mart is DOUG McMILLON

CARRER PATH : 1984 – Summer associate at a Wal-Mart Distribution

Center 1990 – Began full-time career working at a Wal-Mart 2006–2009 – President and CEO of Sam's Club 2010–2013 – President and CEO of Wal-Mart

International 2013 – CURRENT - CEO of Wal-Mart

ACHIEVEMENTS AT SAM’S CLUB From 2006 to 2009, McMillan served as

President and CEO of Sam’s Club, an operating segment of Wal-Mart, with sales of more than $46 billion annually during his tenure. 

Prior to heading Sam’s Club, McMillan held the role of Executive Vice President of merchandising and replenishment and helped drive the renewed focus on small business owners.

ACHIEVEMENT’S AT WAL-MART INTERNATIONAL

During McMillan's tenure, Wal-Mart International grew revenues by more than $50 billion and added nearly 3,000 stores. 

McMillon oversaw acquisitions in markets such as China, the United Kingdom, Canada, Brazil, Central America

McMillan also worked to globalize Wal-Mart's “Every Day Low Prices” strategy and began to implement the strategy in some of Wal-Mart's International markets

Queries

EFFORT NEVER DIES