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Wal-Mart Case Analysis. WAL-MART CASE ANALYSIS Central Issue The main issue facing
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Submitted by onin on September 26, 2005
Category: Business
Words: 9414 | Pages: 38
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Wal-Mart: Staying on Top of the Fortune 500
I. Background
Last year, Wal-Mart had revenues of $191 billion. Wal-Mart's 2002 sales topped $218 billion, with sales growth at 13.8 %. Its 2002 net income was $ 6.7 billion, a growth of 6 %. Wal-Mart has 1,283,000 employees, as of 2002; a growth of 11.2 % (www.fortune.com).
Wal-Mart is the largest retail store in the United States, and is larger than any other retail chain in the world. Currently Wal-Mart operates over 4,150 retail facilities globally. Also, the company is the dominant retail store in Canada, Mexico, and the United Kingdom (www.walmart.com). According to the Fortune 500 index of the wealthiest and most powerful corporations in the world, Wal-Mart holds the number one spot, ranked by its total sales. The company is ranked as the second most admired company in the world by Fortune (www.fortune.com)
Wal-Mart provides general merchandise: family apparel, health & beauty aids, household needs, electronics, toys, fabrics, crafts, lawn & garden, jewelry and shoes. Also, the company runs a pharmacy department, Tire & Lube Express, and Photo processing center as well. (www.walmart.com)
When Sam Walton created Wal-Mart in 1962, he declared that three policy goals would define his business: respect for the individual, service to customers, and striving for excellence ( www.wal-mart.com).
Wal-Mart's corporate management strategy involves selling high quality and brand name products at the lowest price (Vance, 119). In order to keep low prices, the company reduces costs by the use of advanced electronic technology and warehousing. It also negotiates deals for merchandise directly from manufacturers, eliminating the middleman (Vance, 72).
Wal-Mart's community outreach focuses on the goals of providing customer satisfaction, involving itself with local community services, and providing...
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