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Wal Mart Analysis

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Wal Mart Analysis
Wal-Mart and the United States and Global Economy
Azusa Pacific University Table of Contents
History of Sam Walton 3
Background of Wal-Mart 5
Management Philosophy 9
Use of Information Technology as a Competitive Weapon 10
Purchasing Power 12
Supply Chain and Inventory Management 14 Supply Chain and Distribution 14 Inventory Management 18
Expanded Operation in Groceries 21
Labor Unions and Wal-Mart 22
Role of the Largest Company and Employer on Planet Earth 23
Strengths, Weaknesses, Opportunities, and Threats Analysis (SWOT) 24 STRENGTHS 25 Wal-Mart 's broad inventory and customer base 25 The ability to customize to and meet any customer segment 25 Partnerships 26 Wal-Mart management and Corporate Culture 27
WEAKNESSES 28 OPPORTUNITES 29 Other potential growth opportunities 30 THREATS 30
References 32
Sources of Images 33 History of Sam Walton
Sam Walton was born on March 29, 1918 in Kingfish, Oklahoma. While growing up in Missouri, he was an active student of retailing. His first job was working for his father 's store while he was attending school (Galiano, 2005). Later, Sam attended the University of Missouri and majored in Economics. During his senior year of college Sam was elected Senior Class President (Kennon, 2005).
After college, Sam started his career in the retailing business by running several Ben Franklin five-and-dime franchise stores in Arkansas. He learned some of his first lessons about buying, pricing, and passing good deals on to customers from Harry Weiner, a manufacturer 's agent from New York. Sam learned "by cutting your price, you can boost sales to a point where you can earn far more at the cheaper retail than you would have by selling them at the higher price" (Wal-Mart Stores, 2005).
Sam was convinced that this new discount retailing concept was the wave



References: Bianco, A., Zellner, W., Brady, D., France, M., Lowry, T. et. al. (2003). Is Wal-Mart too powerful?. Business Week, 3582, 100-107. ComputerUser. (2004). A Wal-Mart union?. ComputerUser.com, April, 2004. Retrieved May 28, 2005, from http://www.computeruser.com/articles/2304,3,2,1,0401,04.html Discount Store News Fishman, C. (2003). The Wal-Mart you don 't know. Fast Company. Retrieved May 30, 2005, from http://www.fastcompany.com/magazine/77/walmart.html Galiano, A Guffey, M. E. (2003). Business communication; process and product (4th ed.). Mason, OH: Thomson/South-Western. Howell, D. (2002). Food merchants must know their niche [Electronic version]. DSN Retailing Today, November 25, 2002. Retrieved May 22, 2005, from http://www.findarticles.com/p/articles/mi_m0FNP/is_22_41/ai_95447094 Huey, J ICFAI. (2004). Wal-Mart 's supply chain management practices. ICFAI Center for Management Research. Retrieved May 30, 2005, from http://icmr.icfai.org/casestudies/walmart%20supply%20chain%201.html Longo, D Kennon, J. (2005). Sam Walton (aka Samuel Moore Walton): Wal-Mart founder & billionaire. About.com. Retrieved May 28, 2005, from http://beginnersinvest.about.com/od/samwalton/p/aasamwalton.htm McClenahen, J.S Sidron, J. (2002). Wal-Mart, Thrifty ink deal: Car rental firm offers flat rate at WALMART.COM - Brief Article. Travel Weekly, August 5, 2002. Retrieved May 22, 2005, from http://www.findarticles.com/p/articles/mi_m3266/is_31_61/ai_90360092 Smith, H Thompson Jr., A.A., & Strickland, A.J. (2001). Strategic management: Concepts and cases (12th ed.). New York, NY: McGraw-Hill Irwin. Walton, S. (1992). Sam Walton, made in America: My story. New York, NY: Doubleday. Wal-Mart Stores. (2005). Retrieved May, 2005, from http://www.walmartstores.com Sources of Images

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