WAL-MART

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Chapter 1 Introduction to the Retail Industry

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1. INTRODUCTION TO THE RETAIL INDUSTRY 1.1 What Is Retail? The word "Retail" originates from a French-Italian word. Retailer someone who cuts off or sheds a small piece from something. Retailing is the set of activities that markets products or services to final consumers for their own personal or household use. It does this by organizing their availability on a relatively large scale and supplying them to customers on a relatively small scale. Retailer is a Person or Agent or Agency or Company or Organization who is instrumental in reaching the Goods or Merchandise or Services to the End User or Ultimate Consumer. Retail is India's largest industry. It accounts for over 10 per cent of the India's GDP and around eight per cent of the employment. Retail sector is one of India's fastest growing sectors with a 5 per cent compounded annual growth rate. India's huge middle class base and its untapped retail industry are key attractions for global retail giants planning to enter newer markets. Driven by changing lifestyles, strong income growth and favorable demographic patterns, Indian retail is expected to grow 25 per cent annually. It is expected that retail in India could be worth US$ 175-200 billion by 2016. Emerging markets such as India and China are the final frontier for retail taking the focus away from saturated Western markets. Since 2001, 49 global retailers entered 90 new markets, but at the same time, 17 retailers left markets in 2005. The Indian retail industry in valued at about $300 billion and is expected to grow to $427 billion in 2010 and $637 billion in 2015. Only three percent of Indian retail is organized. Retailers of multiple brands can operate through a franchise or a cash-and-carry wholesale model. The Indian retail environment has attained $ 210bn quiche, witnessing a strong development pace of five percent per year as per latest survey by Price Waterhouse Coopers. As per the estimation 200 malls, presenting additional 50mn sq ft of retail space will be ready in next two years. Existing retail space in 160 malls is nearly 32mn sq ft.

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INDIAN RETAIL MARKET 700

637

600 500 400

427 300

300 200 100 0 2008

2010

2015

US $ Billion

Chart-1.1 Indian Retail Market The analysts foresee bright future of the retail sector. A huge number of shopping malls, nearly 100, have come up in the recent past, generating 20mn sq ft. retail space, extending more space of about 12mn sq ft to it. Nearly 60malls are on the verge of completion and may be operational by the end of current financial year. A forecasted number of nearly 200 malls, in a move to make additional 50mn sq ft of retail space, will be completed within the next two-years. Indian retail industry is expanding itself most aggressively, as a result a great demand for real estate is being created. Indian retailers preferred means of expansion is to expand to other regions and to increase the number of their outlets in a city. It is expected that by 2010, India may have 600 new shopping centers. In the Indian retailing industry, food is the most dominating sector and is growing at a rate of 9% annually. The branded food industry is trying to enter the India retail industry and convert Indian consumers to branded food. Since at present 60% of the Indian grocery basket consists of non- branded items.

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The global retail giants like Wal-Mart, Gap, Tesco, Versace, KMart/ SEARS, Carrefour, ZARA, FCUK, Fendi, NEXT, Mother Care, lKEA, Trussardi, DKNY and Debenhams have made plans to march in the Indian market. ESPRIT, GUESS, Chanel, Mango and many other global marked their presence in India by implementing licensing and franchisee agreements. The global retailers on the line of control, awaiting the green signal from Govt. to enter Indian retail market. However, the current scenario has encouraged Indian players to speed up retail expansion and fresh retail ventures. Companies like Shoppers Stop, Trent, Reliance, Lifestyle, Pantaloons Tanishq, Crossroads, Akbarallys' and Tanishq already have planned to invest over Rs 5,000cr. Trent is on the edge to take both its brands 'Star India Bazaar' and 'Westside' to new cities, meanwhile Shoppers' Stop has recently geared up for expansion of present ones and to add 11 new stores including two hypermarkets. Also, Pantaloon has planned to add eight 'Big Bazaar' malls within the next 6 to 8 months. After partition, Reliance Industries Ltd (RIL) is substantially getting ready to enter in field of retailing. RIL is poised to emerge as the single largest player in this sector. On the other hand, Tosco‘s, Wal-Marts or Safeway does ultimately enter in the country. So finally, Shoppers' Stops, Westside, Pantaloons and West sides in coming years have will face stiff competition.

1.2 Structure Of Retail Industry The retail industry continued in India in the form of Kiranas till 1980. Soon, following the modernization of the retail sector in India, many companies started pouring in the retail industry in India like Bombay Dyeing, Grasim etc. As has been mentioned earlier the retail sector in India can be widely split into the organized and the unorganized sector.

Organized Retail Sector After 50 years of unorganized retailing and fragmented Kiranas stores, the Indian retail industry has finally begun to move towards modernization, Systematization and consolidation. Today, modernization is the catch phrase and the key to understanding retail in the next decade. Traditionally retailers have had localized operations. This localized nature of

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the industry is Changing as retailers face lower growth rates and threatened profitability in home Markets. Organized Retail Market in INDIA (Rs. Cr.) 2008

2015

Chart 1.2 Organized Retail Market

This localized nature of the industry is Changing as retailers face lower growth rates and threatened profitability in home Markets. New geographies help them sustain top line growth in Addition toenabling global sourcing and encasing on global advantages of getting the best products at optimum prices. There has been a boom in retail trade in India owing to a gradual increase in the disposable incomes of the middle class households, as a result of good performance of IT, Service and Infrastructure sectors. More and more players are entering the retail business in India to introduce new formats like malls, supermarkets, discount stores, department stores and even changing the traditional looks of bookstores, chemist shops, and furnishing stores.

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Organized retail formats prevalent globally  Supermarkets: Self-service 4000-20000 sq ft stores with shopping carts typically focused on regular groceries, household goods and personal care.  Hypermarkets: Huge stores over 40000 sq ft situated outside the town with ample parking space aimed for bulk purchases stocking electronics, furniture and clothing. Carrefour is the global major in this format.  Mass merchandisers: Large destination stores that sell everything at competitive prices. They have cross-country chain operations with centralized sourcing and a huband-spoke distribution. Makro and Sam's Club are leading players in this format.  Discounters: Aimed at bargain buyers offering less choice but deep discount on bulk sourcing deals through controlled inventory. Aldi is the world leader in this format.  Convenience Stores: Small stores located at convenient points like petrol stations working round the clock.

Unorganized Retail Sector The unorganized retail sector basically includes the local Kiranas, hand cart, the vendors on the pavement etc. This sector constitutes about 98% of the total retail trade. As 70% of the employment is generated in Agriculture sector, hence this form of retailing is widely seen in those areas and of course to some parts of the urban. There is a lot of hue and cry in the sector for opening of sector for direct investment from the foreign players, but government can not neglect the interests of small players. One of main reason of not opening this sector to FDI is it may shrink the employment in the unorganized sector and expand that in the organized.

1.3 Retailing Formats In India  Malls: The largest form of organized retailing today. Located mainly in metro cities, in proximity to urban outskirts. Ranges from 60,000 sq ft to 7,00,000 sq ft and above. They lend an ideal shopping experience with an amalgamation of product, service and entertainment, all under a common roof. Examples include Shoppers Stop, Pyramid, and Pantaloon

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 Specialty Stores: Chains such as the Bangalore based Kids Kemp, the Mumbai books retailer Crossword, RPG's Music World and the Times Group's music chain Planet M, are focusing on specific market segments and have established themselves strongly in their sectors.  Discount Stores: As the name suggests, discount stores or factory outlets, offer discounts on the MRP through selling in bulk reaching economies of scale or excess stock left over at the season. The product category can range from a variety of perishable/ nonperishable goods  Department Stores: Departmental Stores are expected to take over the apparel business from exclusive brand showrooms. Among these, the biggest success is K Raheja's Shoppers Stop, which started in Mumbai and now has more than seven large stores (over 30,000 sq. ft) across India and even has its own in store brand for clothes called Stop.  Hyper marts/Supermarkets: Large self service outlets, catering to varied shopper needs are termed as Supermarkets. These are located in or near residential high streets. These stores today contribute to 30% of all food & grocery organized retail sales. Super Markets can further be classified in to mini supermarkets typically 1,000 sq ft to 2,000 sq ft and large supermarkets ranging from of 3,500 sq ft to 5,000 sq ft. having a strong focus on food & grocery and personal sales.  Convenience Stores: These are relatively small stores 400-2,000 sq. feet located near residential areas. They stock a limited range of high-turnover convenience products and are usually open for extended periods during the day, seven days a week. Prices are slightly higher due to the convenience premium.  Mob's : Multi Brand outlets, also known as Category Killers, offer several brands across a single product category. These usually do well in busy market places and Metros.

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1.4 Major Players in Indian Retail Industry

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1.5 SWOT Analysis Of Indian Retail Industry

1.6 Porters Five Forces Model Of Indian Retail Industry

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Chapter 2 Introduction of Walmart

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2. INTRODUCTION OF Walmart 2.1 Company Profile

•

Walmart, is an American multinational retail corporation that runs chains of large discount department stores and warehouse stores.

•

The company is the world's third largest public corporation, according to the Fortune Global 500 list in 2012, the biggest private employer in the world with over two million employees, and is the largest retailer in the world.

•

Walmart remains a family-owned business, as the company is controlled by the Walton family, who own a 48 percent stake in Walmart.

•

It is also one of the world's most valuable companies.

•

The company was founded by Sam Walton in 1962, incorporated on 31 October, 1969.

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•

Walmart has 8,500 stores in 15 countries, under 55 different names.

2.2 Retail Formats of Walmart Walmart Discount Stores: Walmart discount stores are discount department stores with size varying from 51,000 square feet (4,738.1 m2) to 224,000 square feet (20,810.3 m2) •

Products:-

 They carry general merchandise and a selection of groceries. Many of these stores also have a garden center, a pharmacy, Tire & Lube Express, optical center, one-hour photo processing lab, portrait studio, a bank branch, a cell phone store and a fast food outlet. Some also have gasoline stations. Walmart Supercenter: Walmart Supercenters are hypermarkets with size varying from 98,000 to 2,61,000 square feet (9,104.5 to 24,247.7 m2), with an average of about 197,000 square feet (18,301.9 m2).  Also include a full-service supermarket, including meat and poultry, baked goods, delicatessen, frozen foods, dairy products, garden produce, and fresh seafood.  Many Wal-Mart Supercenters also have cellular phone stores, hair and nail salons, video rental stores, local bank branches and fast food outlets. Also have McDonald's & Subway Walmart Market: Walmart Market is a chain of grocery stores that average about 42,000 square feet (3,901.9 m2).  They are used to fill the gap between discount store and supercenters.  Offering a variety of products, which include full lines of groceries, pharmaceuticals, health and beauty aids, photo developing services, and a limited selection of general merchandise.

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Walmart India  Our first Best Price Modern Wholesale opened in 2009.  Best Price is a cash-and-carry wholesale warehouse that sells bulk food and consumables along with supplies needed to operate small business operations, such as restaurants, hotels and convenience stores. A unique feature of Wal- Mart retailing is that it is virtually recession proof. In times of economic downturn, consumers flock to discount retailers. During the recession of 1974-75, sales expanded 42 percent; in the 1981-82 recessions, sales grew 44 percent; and the recession of 1990s, sales grew 30 percent. As such, Wal-Mart is not affected by economic downturns like many other retailers. Wal-Mart has obtained a distinct competitive advantage by targeting small, rural communities, which leads to lower operating cost .this advantage result from lower rents, moderate wages. and the absence of unionization. In addition, real estate is significantly cheaper, and smaller communities have a loyal and productive workforce. Although the store location strategy was innovative, several other factors have played a strong role in valuating Wal-mart the top of the retail mountain. For instance, Mr. Sam‘s Management practices were even more trend setting than his store location strategy. For example employees are referred to as employees; instead they are called associates .Other factors contributing to Wal-Mart success include rigorous cost control, an excellent distribution Network, and technological advantage Wal –Mart proudly moves up in Fortune‘s list of the top ten ―America‘s Most admired Companies in 200, rising to fifth on the list. About Wal-mart 

Sam Walton opened the first store in 1962 in Rogers, Arkansas.



Within 5 years there were 25 Wal-mart stores earning total revenue of $12.6 million in sales.



In 1972 Wal-mart was listed in the NYSE.



In 1991, Wal-Mart became an international company when we opened a Sam's Club near Mexico City. Just two years later, Wal-Mart International was created.

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

In 2005 Wal-mart incorporated sustainability in it‘s business under their CEO H Lee Scott Jr.



In August 2007, Wal-Mart and Bharti Enterprises announced an agreement to establish Bharti Wal-Mart Private Limited.



Mike Duke succeeded Lee Scott as president and chief executive officer on February 1, 2009.

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Presently 7,800 stores and club locations in 15 markets employ more than 2 million associates, serving more than 176 million customers a year



Wal-mart‘s major international operations are in the following markets:

2.3 Mission Statement Of Walmart Offers the best quality merchandise at the lowest prices in all their stores, from school supplies, to household items and top quality groceries 2.4 Vision Statement Of Walmart Saving people money to help them live better

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2.5 Competitive Advantage Of Walmart Wal-Mart has been an undisputed leader in offering the markets lowest prices to consumers. It has always given a ―price match guarantee‖, and has challenged other stores to offer lesser prices and has agrees to reimburse the difference, the difference of price if any. No other store could meet this and Wal-Mart has been leading the pack for years.

Purpose. . . Sam Walton said it best, ―If we work together, we‘ll lower the cost of living for everyone…we‘ll give the world an opportunity to see what it‘s like to save and have a better life.‖ 2.6 Wal-Mart Logo Timeline

1962 - 1964 Sam Walton names his new stores WALMART. The Walmart name was presented in just about any font/style available to the printer. 1964 - 1981 Also known as the "Frontier Font Logo," this was the first official and consistently used logo. 1968-1981 The Discount City mark was used in print advertising, on the uniforms/smocks, in-store signing, and other things. However, it was never used as building signage or in an annual report. 1981 - 1992 The logo was updated again in 1981.

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1992 - 2008 The star was adopted as an update to the existing logo in early 1992. 2008 New logo adopted by Walmart Stores U.S.

Currently Wal-Mart: We are a global retailer committed to growing our company by improving the standard of living for our customers and serving communities around the world. We earn the trust of our customers every day by providing a broad assortment of quality merchandise and services at everyday low prices while fostering a culture that rewards and embraces mutual respect, integrity and diversity.

Today, WalMart Stores, Inc. is the world‘s largest retailer with more than 1.8 million associates worldwide and nearly 6,500 stores and wholesale clubs across 15 countries. The "most admired retailer" according to FORTUNE magazine has just completed one of the best years in its history: Walmart generated more than $312.4 billion in global revenue in the fiscal year ended January 31, 2006, establishing a new record and an increase of 9.5 percent. The

company

earned

almost

$11.2

billion

in

net

income

in

fiscal

2005.

Guided by founder Sam Walton‘s passion for customer satisfaction and ―Every Day Low Prices,‖ Wal-Mart‘s four retail divisions offer a wide variety of quality merchandise to consumers around the world.

Wal-Mart Discount Stores Wal-Mart now has more than 1,470 discount stores in the United States offering a variety of quality, value-priced general merchandise and a pleasant, convenient shopping experience. The stores feature wide, clean, brightly lit aisles and shelves stocked with quality items

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including: family apparel, automotive products, health and beauty aids, home furnishings, electronics, hardware, toys, sporting goods, lawn and garden items, pet supplies, jewelry, and housewares.

Wal-Mart Supercenters Developed in 1988 to meet the growing demand for one-stop family shopping, Wal-Mart Supercenters today number more than 1,430 nationwide and most are open 24 hours a day for the ultimate in convenience. Supercenters save customers time and money by combining full grocery lines and general merchandise under one roof at Wal-Mart‘s signature Every Day Low Prices. In addition to general merchandise, Supercenters feature bakery goods, deli foods, frozen foods, meat and dairy products, and fresh produce. Supercenters also are home to many specialty shops such as vision centers, Tire & Lube Expresses, Radio Grill restaurants, portrait studios and one-hour photo centers, hair salons, banks, and employment agencies. Sam's Club

Sam's Club is a chain of warehouse clubs which sell groceries and general merchandise, often in large quantities. Sam's Club stores are "membership" stores and most customers buy annual memberships. However, non-members can make purchases either by buying a oneday membership or paying a surcharge based on the price of the purchase. [51] Some locations also

sell gasoline.[46] The

Oklahoma

[51]

first

Sam's

Club

opened

in

1983

in Midwest

City,

under the name "Sam's Wholesale Club".

Sam's has found a niche market in recent years as a supplier to small businesses. All Sam's Club stores are open early hours exclusively for business members and their old slogan was "We're in Business for Small Business." Their current slogan is "Savings Made Simple" as Sam's Club attempts to attact a more diverse member base. In March 2009, the company announced that it plans to enter the electronic medical records business by offering a software package to physicians in small practices for $25,000. Wal-Mart is partnering with Dell and eClinicalWorks.com in this new venture.[52]

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According to Wal-Mart's 2007 Annual Report, Sam's Club's sales during 2007 were $42 billion, or 12.1% of Wal-Mart's total 2007 sales.[53]As of December 2009, there were 605 Sam's Clubs in the United States. Wal-Mart also operates more than 100 international Sam‘s Clubs inBrazil, China, Mexico, and Puerto Rico.[54] Wal-Mart International: Wal-Mart's international operations currently comprise 2,980 stores in 14 countries outside the United States.[55] According to Wal-Mart's 2006 Annual Report, the International division accounted for about 20.1% of sales.[41] There are wholly owned operations in Argentina, Brazil, Canada, Puerto Rico (although PR is part of the US, the company's operations there are managed through its international division[55]), and the UK. With 1.8 million employees worldwide, the company is the largest private employer in the US and Mexico, and one of the largest in Canada.[56]

Wal-Mart has operated in Canada since its acquisition of 122 stores comprising the Woolco division of Woolworth Canada, Inc in 1994.[57] As of October 31, 2008, it operates 310 locations,

employing [58]

in Mississauga, Ontario.

77,500 Wal-Mart

Canadians, Canada's

with first

three

a

local

home

Supercentres

office

(spelled

as

in Canadian English) opened on November 8, 2006, in Hamilton, London, and Aurora, Ontario. As of October 31, 2008, there are 39 Wal-Mart Supercentres in Canada,[48]. In 2008, Wal-Mart named German retailing veteran Stephan Fanderl as the president of WalMart Emerging Markets-East in an effort to, "explore retail business opportunities in Russia and neighboring markets." The market is estimated to be worth more than $140 billion per year in food sales alone.

In January 2009, the company acquired a controlling interest in the largest grocer in Chile, Distribucion y Servicio D&S SA In February 2010, the company agreed to buy Vudu, a Silicon Valley start-up whose threeyear-old online movie service is being built into an increasing number of televisions and Bluray players. Terms of the acquisition were not disclosed, but a person briefed on the deal said the price for the company, which raised $60 million in capital, was over $100 million.

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Grass Roots Process ―Listen to your associates. They‘re the best idea generators.‖ Sam Walton said that, and he believed it. For years, he traveled continuously so he could visit all of his stores at least once a year, listening to associates and asking for their ideas. We‘re still listening. The sheer size of our company limits how many stores executives can physically visit each year. But, Sam‘s philosophy lives on today in our Grass Roots Process A key part of that process is the associate opinion survey — it gives every single associate a way to voice their ideas, suggestions, and concerns.

Our associates — making a difference. Using the survey, we continually find ways to improve our customer service, and how to better serve our associates. We continue to learn how to be a more efficient, more environmentally friendly company. Using the Grass Roots Process and the survey, our associates have made Walmart one of the most admired companies in Am 2.7 Basic Beliefs & Values Three simple things that make us great: Our unique culture has helped make Walmart one of the world‘s most admired companies. Since Sam Walton opened the first Walmart in 1962, our culture has rested on three basic beliefs. We live out these beliefs every day in the way we serve our customers and each other. 1. Respect for the Individual We‘re hardworking, ordinary people who‘ve teamed up to accomplish extraordinary things. While our backgrounds and personal beliefs are very different, we never take each other for granted. We encourage those around us to express their thoughts and ideas. We treat each other with dignity. This is the most basic way we show respect.

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2. Service to our Customers Our customers are the reason we‘re in business, so we should treat them that way. We offer quality merchandise at the lowest prices, and we do it with the best customer service possible. We look for every opportunity where we can exceed our customers‘ expectations. That‘s when we‘re at our very best. 3. Striving for Excellence We‘re proud of our accomplishments but never satisfied. We constantly reach further to bring new ideas and goals to life. We model ourselves after Sam Walton, who was never satisfied until prices were as low as they could be. Or that a product‘s quality was as high as customers deserved and expected. We always ask: Is this the best I can do? This demonstrates the passion we have for our business, for our customers, and for our communities. Sundown Rule Our founder Sam Walton created the Sundown Rule. It‘s really just a twist on ―why put off until tomorrow what you can do today?‖ Observing the Sundown Rule is very simple. Whether it's a request from a store across the country or a call from an associate down the hall, we do our very best to give our customers, and each other, same-day service. We take the Sundown Rule seriously. It‘s one of the many ways we provide superior customer service. When we show a sense of urgency, we show people we know their time is valuable. We care about their needs, and we want to help them quickly. When we observe the Sundown Rule with other associates (employees), it shows we respect each other. And we‘re proud to be part of a team working together to get things done. The Sundown Rule in action: Jeff, a pharmacist at a Walmart store in Harrison, Arkansas, got a call at home one Sunday morning. He learned one of his diabetic customers had accidentally dropped her insulin down her garbage disposal. Knowing that she could be in grave danger without insulin, Jeff

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immediately rushed to the store, opened the pharmacy, and filled her prescription. This is just one of the many ways our associates honor the Sundown Rule every day. 10-Foot Rule The 10-foot Rule is one of our secrets to customer service. During his many store visits, Sam Walton encouraged associates to take this pledge with him: "I promise that whenever I come within 10 feet of a customer, I will look him in the eye, greet him, and ask if I can help him." The 10-foot Rule was something Sam practiced his entire life. "I learned early on that one of the secrets to campus leadership was the simplest thing of all: Speak to people coming down the sidewalk before they speak to you,‖ Sam once said. ―I would always look ahead and speak to the person coming toward me. If I knew them, I would call them by name, but even if I didn't, I would still speak to them. Before long, I probably knew more students than anybody in the university, and they recognized me and considered me their friend. I ran for every office that came along." We‘ve kept Sam‘s promise. Not only was Sam elected to nearly all of those offices at the University of Missouri in Columbia, but the 10-foot Rule helped Sam build a successful business, too. Today, in stores around the world, associates put Sam‘s rule into practice every day. From the greeters at the front doors, to associates throughout the store, and the friendly smile at the checkout lane, The 10-foot Rule is one of the things that makes Wal-Mart great. Open Door The door is always open. At Wal-Mart, our management believes open communication is critical to understanding and meeting our associates‘ and our customers‘ needs. Through our ―open door‖ policy, associates (employees) are free to share suggestions, ideas, and voice concerns. Whether it‘s help with a problem, guidance or direction, or simply getting an answer to a question. Associates can trust and rely on the open door.

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This means that managers will treat all discussions fairly, with an open mind, and without bias. They‘ll maintain complete confidentially, whenever it‘s possible. They‘ll work with you to mutually resolve any issues or problems you may have. It‘s one of the most important parts of our culture. We‘re all part of the same family —the Walmart family. And like family, we care. The open door has helped solve some of our biggest problems, and its generated some of our greatest ideas. Servant Leadership Effective leaders don‘t lead from behind a desk. It's more important than ever that we develop leaders who are servants, who listen to their partners – their associates – in a way that creates wonderful morale to help the whole team accomplish an overall goal,‖ Sam Walton, our founder said that. Sam believed in servant leadership, and so do we — to this day. Echoing Sam‘s leadership philosophy, our leaders are out on the floor with their associates. Whether in a Wal-Mart store, Sam‘s Club, Distribution Center, the Home Office, or at any other facility around the world, our teams can expect their managers to be there, serving right alongside them. It‘s what makes us great. It‘s what makes us a team Teamwork Sam Walton believed it‘s our teamwork that makes us special. "What makes ordinary people do extraordinary things?‖Sam Walton, our founder once asked. ―Aren't we a group of ordinary folks? We really are. And I think we, together as a team, have done extraordinary things. We've all grown, we've all accomplished much more than any of us ever thought that we could." We believe in the power of teamwork, too. As our business grows and the pace of modern life quickens, Sam‘s philosophy of teamwork has become even more important. Our ability to work together affects the quality of service our customers receive. To give the very best

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service to our customers, and to each other, we rely on guidelines that made our culture great. And make us proud to be a member of the Wal-Mart family: Guiding Principles: 

Always act with integrity.



Lead with integrity, and expect others to work with integrity.



Follow the law at all times.

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Be honest and fair.

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Respect and encourage diversity, and never discriminate against anyone.



Work, actions, and relationships outside of your position with the company should be free of any conflicts of interest.



Ask your manager or the Global Ethics office for help if you have any questions about our Statement of Ethics, or if you face an ethical problem.



Inform the Global Ethics office about any suspected violations of our Statement of Ethics.



Reveal

and

report

all

information

truthfully,

without

manipulation

or

misrepresentation. 

Cooperate with and maintain the private nature of any investigation of a possible ethics violation.



When involved in an ethics investigation, you should reveal and report all information truthfully. You should present all the facts you are aware of without personal opinion, bias, or judgment.

2.8 Corporate social Responsibility Community & Giving: At Walmart, we believe in a philosophy of operating globally and giving back locally. We know we can make the greatest impact on our communities by supporting causes that are important to our customers right in their own neighborhoods. We‘re proud to be a "store of the community" for all of the communities we serve by helping to provide financial and

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volunteer support to more than 100,000 charitable and community-focused organizations, and by using our locations to provide opportunities for our customers and associates to give back. Education: First-Generation College Students Get Help from the Wal-Mart Foundation to Pursue Their Degrees The Wal-Mart Foundation awarded a $4.2 million grant to the Institute for Higher Education Policy, which will support programs to help first-generation students achieve success at minority-serving institutions. Walmart Foundation Scholarship Programs At the Walmart Foundation, we believe that a good education creates opportunities that lead to a better life. Walmart College Success Award Winners Twenty colleges recently received grants of $100,000 each from the Walmart Foundation to help them support students seeking to become the first college graduate in their families.Hunger Relief: Walmart and the Walmart Foundation have committed $2 billion cash and in-kind, stepping up efforts to help end hunger in America. Fighting Hunger Together Our "Fighting Hunger together" initiative includes four key components: 

Donating more than 1.1 billion pounds of food from Wal-Mart stores, distribution centers and Sam‘s Club locations, valued at $1.75 billion;



Grants totaling $250 million to support hunger relief organizations at the national, state and local levels;



Mobilizing Walmart associates and customers. For example, Walmart‘s logistics team will lend their expertise to help food banks become more efficient in their operations; and

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Collaboration with government, food manufacturers and other corporations that are fighting hunger to increase impact and reach a greater number of families in need.

Disaster Relief: When the Unthinkable Happens, Walmart is There.Whether the disaster is a fire, flood or hurricane, Walmart and its Foundation are first in line to lend a helping hand to the communities we serve. In the aftermath of a disaster, basic needs become paramount and many of the products Walmart and Sam's Club contribute can save lives. Working collaboratively with the American Red Cross and The Salvation Army, Walmart and its Foundation are able to provide life-sustaining items and much needed peace of mind to those in need of assistance. We‘re proud to support disaster relief efforts in communities around the world. Chile Earthquake and Tsunami Relief We're very concerned about conditions in Chile after the earthquake, and our thoughts are with everyone who has been impacted by the devastation. Haiti Earthquake Relief In response to the tragic earthquake in Haiti, our operations around the world, along with the Walmart Foundation, are responding. Disaster Preparedness Although disasters are truly devastating events, preparation for them is something that can help save resources as well as lives. Localized Efforts: When disasters strike, they can have a tremendous impact on a community. Fast, reliable access to vital supplies can make all the difference in areas that are facing overwhelming damage and destruction. At Walmart, we have the unique ability to draw from both our resources and our logistics network to distribute relief supplies to communities in need immediately after a disaster takes place.

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Longstanding Partners: The Walmart Foundation is proud to have developed relationships with several national nonprofits over the years. Below are a few examples of how we work with these organizations to expand the impact of our work in the communities we serve. American Red Cross

Every day, the American Red Cross responds to events, ranging from hurricanes, floods and tornados to smaller emergencies such as house and apartment fires. Our long-standing support of the American Red Cross is an important part of our disaster relief efforts.

Feeding America

Walmart is partnering with Feeding America, the nation‘s largest hunger-relief charity, and enlisting its entire network of Supercenters, Neighborhood Markets and Sam‘s Club locations to help those in need. The Salvation Army

Walmart and Sam‘s Club associates are committed to the Salvation Army‘s ―Red Kettle Campaign.‖ For more than 20 years we have shown our support by raising funds in front of our locations nationwide. Children's Miracle Network

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More than 1 million Walmart associates help a total of 17 million children each year through our partnership with Children‘s Miracle Network. United Way Worldwide

The Walmart Foundation has supported United Way Worldwide and its affiliates at a national level since 1983. Management Style:  Maintain an open-door policy  Empowering associates  Maintain technology superiority  Build loyalty among associates, customers, and suppliers

Functional Strategies:  Same goods for less( charges 2-5%lower price) & still earns profit.  Very good operational efficiency.  Use of IT in all verticals of business  Effective use of logistics management  Global Expansion for new market opportunity  Networked to HQ via private satellite in 1983  Bargaining power over suppliers  Data used to ―profile‖ each market  Predicts demand, optimizes stock

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2.9 Store Layout Of Walmart

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Chapter 3 Marketing Management of Walmart

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3. MARKETING MANAGEMENT OF WALMART 3.1 Marketing Strategies of Walmart Thinking globally. Serving locally. Wal-mart international stores offer working families the things they need at prices they can afford, and offer the customer service and convenience they‘re famous for. In each of their international markets, they use their strength as a global company to meet the local needs of our customers, and provide help for their communities. Saving People Money so they can live better. Saving people money to help them live better was the goal that Sam Walton envisioned when he opened the doors to the first Wal-Mart. Today, more than 40 years later with operations in 16 markets worldwide, Wal-mart continue to deliver that promise to families around the globe. It‘s the focus that underlies everything they do at Wal-Mart. And for the millions of customers who shop at Wal-mart stores and clubs around the world each week, it means a lot. „Saving money — good news in any language‟ “Every Day Low Price” is a epicenter of the Wal-mart marketing strategy.

3.2 STP Analysis of Walmart Segmentation: Walmart segmenting the market on following bases of following segmentation, Geographic Segmentation Psychographic Segmentation Targeting: Walmart targeting all class and all ages of people who are looking for value for their money Positioning: Walmart have positioned the store image as saving people money to help them live better in costumers mind.

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3.3 SWOT Analysis of Wal-mart: Strengths

1)

Scale of operations. Walmart is the largest retailer in the world with more than $400 billion in revenue and 10,130 stores. It makes Walmart the giant that no other retailer can match. Due to such large scale of operations, the corporate can exercise strong buyer power on suppliers to reduce the prices. It can also achieve higher economies of scale than competitors because of its size. Higher economies of scale results in lower prices that are passed to consumers.

2)

Competence in information systems. The corporate achieves significant cost savings because of its extensive information systems that tracks orders, inventory levels, sales and other related information in real time. All this information can be instantly accessed, analyzed and decisions made at each store. Effective management of supply chain and logistics is one of the most important factors for Walmart success.

3)

Wide range of products. Walmart can offer wider range of products than any other retailer. It sells grocery, entertainment, health and wellness, apparel and home related products among many other categories and offers both branded and own label goods. Wide range of products attracts more customers to Walmart stores.

4)

Cost leadership strategy. This strategy has helped Walmart to become the low cost leader in the retail market. This strategy requires selling products ant the lowest price possible and providing a no frill services to achieve higher economies of scale and attract masses of consumers and that is exactly what the company is doing. It sells products at much lower prices than competitors do, builds warehouse style superstores that contain extensive range of products but doesn‘t offer much additional benefits or services. All of this result in cost reductions and lower prices for consumers.

5)

International operations. Walmart does not rely on sales from US stores only as its competitors do. It has earned $135 billion in sales in 2013 from its international operations, which grew at a much faster rate than sales in the home market. Foreign markets open up new opportunities for Walmart‘s growth and provide new experience for the company as it operates quite differently abroad than in the home market.

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Weaknesses

1)

Labor related lawsuits. Walmart faces labor related lawsuits every year, which costs millions of dollars for the company. It is criticized for poor work conditions, low wages, unpaid overtime work and female discrimination. In addition to litigation costs, corporate‘s reputation has been damaged and fewer skilled workers are willing to work for it.

2)

High employee turnover. The business suffers from high employee turnover that increases firm‘s costs, as it has to train new employees more often. The main reason for high employee turnover is low skilled, poorly paid jobs.

3)

Little differentiation. Walmart has no differentiation compared to its competitors, which might hurt the company in the future if commodity prices or average consumer income would increase. In this case, low cost leadership strategy wouldn‘t be as effective as it currently is and Walmart‘s main competitive advantage would erode.

4)

Negative publicity. The company is often criticized for its questionable practices such as bribery of authorities or poor work conditions. Negative publicity damages corporate‘s reputation.

Opportunities

1. Retail market growth in emerging markets. Retail markets grew by at least 5% on average in emerging markets in the last year, opening huge opportunities for Walmart‘s revenue growth. The business currently operates in Brazil, Mexico, China and India markets. Walmart should increase its presence in these markets to sustain future growth. 2. Rising acceptance of own label products. The sales of private label products have increased by more than 40% over the last 10 years. This reveals increasing consumer acceptance of supermarket chain products compared to national brand products. Walmart has an opportunity to increase the number of private label products sold at its stores and earn higher profit margins. 3. Trend toward healthy eating. The current trend of eating healthier food has resulted in higher demand for grocery products. Walmart has an opportunity to expand its grocery stores to earn more income from this trend.

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4. Online shopping growth. Online retail sector grew by 4.7% in the US in 2011, reaching $197 billion. Walmart being the biggest offline retailer has huge opportunities to expand its presence in online retail market. The company can offer convenience to pick up the goods ordered online in its more than 10,000 stores and can offer even lower prices online than at the store. As a result, Walmart can reach more customers and increase its revenue. Threats

1. Increasing

competition

from

brick

and

mortar

and

online

competitors. Competitors like Target, Costco, Amazon and Tesco (in UK) are putting huge efforts to eliminate price differences that Walmart enjoys. Except the lower prices, Walmart doesn‘t differ from other low cost retailers and will experience increased competition from them in the future. 2. Increasing resistance from local communities. Walmart superstores have a negative impact on local retailers and communities. Some of the local retailers are usually forced to close off when Walmart superstore opens in the area. This affects not only the retailers but their families and the community as a whole. 3. Rising commodity product prices. Rising commodity prices squeeze Walmart‘s profit margins and erode its competitive advantage. As prices go up, the cost difference between the retailers decreases and competition shifts from price to product and service differentiation. 3.4 PEST Analysis Of Walmart 1. Political: Wal-Mart was at a time subject of the largest class action lawsuit. Was for gender discrimination. 2. Economic: "The decision is related to Wal-Mart's recently announced plans to moderate growth of U.S. super centers as part of leveraging capital resources through a strategy designed to improve returns and sales within U.S. stores." 3. Social Analysis:

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•

People looking for ONE STOP service come to Wal-Mart s a first choice in US.

•

Wal-Mart and China.

4. Technological Analysis: Wal-Mart incorporates the latest MIS systems to vertically integrate with suppliers and customers. 3.5 Key Success Factors The Company‘s ‗Low Price‘ image, backed by the strong integrated marketing strategy is the key success factor of Wal-mart. People at Wal-Mart believe that , ‗saving money is a good news in any language’. – This statement (believe) is certainly true as it helped them acquiring success in which this concept is not so popular – like Germany. Walton‘s 10 commandments for business success were: 1. Commit to your business. 2. Share your profits with your associates (employees), and treat them like your partners. 3. Energies your colleagues. 4. Communicate everything you possibly can with your partners. 5. Appreciate everything your associates do for the business. 6. Celebrate your success. 7. Listen to everyone in your company. 8. Exceeds your customers expectations. 9. Control your expenses better than your competition. 10. Blaze your own path.

Management at Wal-Mart strictly adheres to these commandments, and that‘s the key to their success. Cost Leadership Strategy:  It is the world's largest public corporation by revenue  dominant player in the retailing industry

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 became successful by rigorously pursuing its core philosophy of cost leadership  strategy of establishing discount stores in smaller towns and capturing significant market share.  growth in the 1980s by using information technology (IT) to manage its supply chain and by expanding business in bigger metropolitan cities.  In the late 1980s, it ventured into food retailing by introducing Supercenters  In the late 1990s, Wal-Mart launched exclusive groceries/drug stores known as "neighborhood markets" Wal-Mart's Aggressive Pricing:  Mission ‖ to provide a wide variety of high quality, branded and unbranded products at the lowest possible price‖.  efforts to procure products at the lowest prices possible from manufacturers.  Wal-Mart's products are usually priced 20% lower than those of its competitors  generate more profits due to larger volumes.  surplus generated was reinvested in building facilities(modern equipment, latest technology) of an efficient scale  Wal-Mart imposes a strict control on its overhead costs  The stores are set up in large buildings, while ensuring that the rent paid was minimal. Wal-Mart Customer Service:  Wal-Mart‘s key to success is that it thinks like the customer, give a good value in product for the customer, sell the customer what he or she really wants to buy, exceeds the customer‘s expectation and ensures that the customer enjoy themselves in the process.  Wal-Mart‘s customer strategy is to have almost every aspect of their business centered on its customer  Wal-Mart handles their customer‘s complaints in a fast and friendly manner.

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Wal-Mart Growth Strategy:  At present, the most important goal for Wal-Mart is to maintain their current net sales growth of approximately 12 percent per year.  expand into international markets that have large population centers.  increasing the overall efficiency of the organization by reducing operating costs or cost of goods sold.  In the area of human capital, Wal-Mart has no unions, pays low wages, and relies heavily on part-time and temporary help. 3.6 Corporate Strategy Of Walmart (Gain competitive advantage by) providing customer‘s access to quality goods, when and where needed, at competitive prices Corporate Strategies 

Differentiate themselves from their competitors



To grow through new services and alliances



Growth of the supply chain capabilities

Corporate Goals: 

Store openings

Globally in 2007, the company expects to add around 5.5 million square metres of gross retail space, which is a 7.5% increase. The company will open over 660 new units during the year. 

Buying strategy

Wal-Mart's buying power is immense and it is seeking to gain further efficiencies by increasingly shifting buying towards Asia. 

Pricing strategy

EDLP is Wal-Mart's key retailing ethos around the world and it seeks to offer shoppers the keenest possible pricing without compromising quality. Own labels have been a core component of the EDLP strategy.

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

Marketing strategy

Wal-Mart actively uses TV, press and radio ads to market itself, its low prices and new stores. Its US division is also home to the biggest instore TV network in the world. Increasingly, in the face of more vocal criticism, Wal-Mart is using its marketing initiatives to defend its reputation. 

Brand and Private Label Strategy

Private label development has been a cornerstone of Wal-Mart's success, and the company is developing similar ranges in all of its markets. An example is the international roll-out of the George clothing line. 

E-commerce

Wal-Mart has embraced e-commerce in a number of its core operating markets, although it is by no means a universal strategy throughout its international operations. 

Supply chain management

Wal-Mart's supply chain infrastructure and systems are the envy of the retail world. The company takes a very hands-on role in its supply chain operations and is keen to collaborate with suppliers to drive out 

I.T. strategy

A cornerstone of Wal-Mart's growth has been its Retail Link system. This EDI system enables suppliers and Wal-Mart to interact more effectively. Wal-Mart is also a keen proponent of RFID implementation within the supply chain. Strategic Goals: 

Dominate the Retail Market wherever Wal-Mart has a presence.



Growth by expansion in the US and Internationally.



Create widespread name recognition and customer satisfaction with the Wal-Mart brand, and associate the retailer with the reputation of offering the best prices.



Branching out into new sectors of retailing such as pharmacies, automotive repair, and grocery sales.

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3.7 Marketing Mix Of Walmart

Product Walmart is a multinational retailer; in short it has every product or a brand which a person could see in his day to day life. The broad range of product categories include movies, crafts, gifts, college essentials, Electronic items, home appliance, jewellery, photo centre, toys, outdoor living, funeral, grocery, video games etc Product Mix Men's Big & Tall College Living

Shoes

Baby Registry Activities & Toys

Back to School Women

Made in the USA Empowering

Baby

Baby Bath & Skin Care

Women

Women's Plus Bedding & Décor

Together Game Time

As Seen On TV

Man Cave

Auto & Tires

Character Corner

ATV, Motorcycle, RV

Cribs

Super Heroes Store

Auto Batteries

Diapering

Auto Electronics

Feeding

Accessories

Auto Services

Baby Gear

Baby

Car Care & Maintenance

Gifts for Baby

Bags

Exterior Accessories

Health & Safety

Boys

Interior Accessories

Nursery Furniture

Girls

Oil, Fluids & Lubricants

Strollers

Juniors

Tires

Toddler

Maternity

Tire Accessories

Beauty

Men

Tools & Equipment

Apparel, Accessories

Shoes

Car Seats

&

Bath & Body

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Fragrances

Video Games

Batteries

Hair Care

Funeral

Beverages

Makeup

Furniture

Breakfast & Cereal

Baby Massagers & Spa

Candy Bedroom

Men's Grooming

Canned Goods & Soups Entryway

Shaving

Condiments, Sauces & Kids' & Teen Room

Skin Care Kitchen & Dining Books New Releases Our 200 Top Sellers Preorders

Living Room Mattresses Office

Spices Fresh Food Household Essentials Infant & Childcare Meal Solutions, Grains &

Patio

Pasta

Electronics

TV Stands &

Snacks, Cookies & Chips

Accessories

Entertainment Centers

Auto Electronics

Gift & Registry

Health

Baby Registry

Diet & Nutrition

Gift Baskets

Home Health Care

Gift Cards

Medicine Cabinet

Gifts by Recipient

Oral Care

Personalized Gifts

Personal Care

Specialty Gift Cards

Vision Center

Wedding Registry

Vitamins

Wish List

Wellness Shops

Grocery

Home

Baking

Appliances

Clearance

Cameras & Camcorders Cell Phones & Services Computers GPS & Navigation Home Audio & Theater iPad, Tablets & eReaders iPods & MP3 Players Laptops TV & Video

Grocery Delivery - Beta

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Bath

Patio & Garden

Bedding

Paint & Home Décor

Crafts

Plumbing & Fixtures

New Releases (Blu-ray & DVD) Preorders (Blu-ray & DVD)

Décor

Tools TV Shows (DVD)

Furniture Heating & Cooling Kitchen & Dining Luggage Patio & Garden Personal Care Pets Storage & Organization Home Improvement Fire Safety Flooring Garage Storage Gardening & Lawn Care Generators Hardware Heating, Cooling, & Air Quality Light Bulbs Outdoor Power Equipment

Jewelry Bracelets

Video on Demand by VUDU

Earrings Music Jewelry Storage

CD Store

Pendants & Necklaces

Musical Instruments

Personalized Jewelry

New Releases

Rings

Preorders

Watches

Top 100 CDs

Wedding & Engagement

Office

Walmart MoneyCenter

Breakroom Supplies

Bluebird

Business Office Furniture

Walmart Credit Card

Home Office Furniture

Money Transfers

Janitorial Supplies

Walmart MoneyCard

Office Supplies

Bill Pay & Money Order

Office Technology

Check Printing

School Supplies

Movies

Party & Occasions

Blu-ray Discs

Birthday Shop

Moviecenter

Crafts

Movies (DVD)

Party Supplies

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Wedding Shop

Fill New Prescriptions

Outdoors & Recreation

Patio & Garden

Photo Center

Sports Fan Shop

Gardening & Lawn Care

Available in 1 Hour

Grills & Outdoor

Available same day

Cooking Hot Tubs & Saunas Outdoor Play Outdoor Power

Blankets

Sports Tennis & Racquet Toys

Calendars

Action Figures

Canvas Wall Art

Bikes & Riding Toys

Cards & Invitations

Building Sets & Blocks

Mugs

Development & Learning

Equipment Patio Furniture Photo Books Patio & Outdoor Decor Posters Pets

Toys Dolls & Dollhouses Games & Puzzles

Cats

Prints

Dogs

Wedding Stationery

Fish

See all Products

Pharmacy

Rollback

Rx Services & Savings

Special Buys

Programs

Sports, Fitness &

Pretend Play, Arts &

Outdoors

Crafts

Health Insurance &

Kids Electronics Music Instruments & Karaoke

Bikes and Riding Toys

Benefits Camping Medicare Exercise & Fitness Refill Prescriptions

Outdoor Play

Shop By Age Stuffed Animals Vehicles, Trains &

Fishing & Marine

Remote Control

Game Room

Value Bundles

Transfer Prescriptions View Order History Golf New Pharmacy Customer

Value of the Day Video Games

Hunting

Gamecenter

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Kids & Family Gaming

Nintendo Wii U

Xbox One

Nintendo 3DS

PlayStation 3

Xbox 360

Nintendo DS

PlayStation 4

PC Gaming

Nintendo Wii

PlayStation Vita

Price Walmart business model doesn‘t include manufacturing of any product; it procures products across the globe in large quantities in order to enjoy benefits of economies of scale. This makes price of Walmart to offer products at 15% lower price than other retailers. Walmart uses different pricing concepts to get focus of the customers and compel a purchasing behaviour through discount strategies. Sam Walton coined the term ―Always lows prices‖ and ―Everyday low prices‖; according to this each product is offered at different discount prices based on the time and demand of the hour. The consumer electronics are offered at a very low price compared to other retailers. Place Walmart has more than 10,020 retail units which is spread across 28 countries and operates under 60 banners. It sells both by brick and mortar (traditional stores) and Brick and click (ecommerce) formats. The average size of each Walmart store is more than a 1, 00,000 (1lac) square feet. Its store operations are categorized into following. Walmart discount stores Walmart super centers Walmart neighborhood markets Walmart express stores Promotions Walmart has its own in-store promotional activities which includes sales promotions through product bundling and its pricing strategies. The online store of Walmart earns major revenues from through customers placing online gifts. The pricing strategies adopted by Walmart like

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―Everyday low prices‖, ―value of the day‖ increases the sales turnover. The online store uses strategies to pull customer by attractive slogans like ‗Grab it before it‘s done‘ which pushes customer to take a purchase decision immediately before the deals get expired. 3.8 Advertising Strategy Of Walmart 

Walmart has increased advertising expenditures by 56% since 2006, while Target‘s spending has remained constant.



The target audience prefers to get their information from digital media, which is cheaper to advertise in than print media.



Extraordinary marketing efforts receive criticism from supporters of local business.



Walmart must repair an unfavorable reputation by allocating more money for donations and sponsorships.



Survey shows that Walmart‘s advertising is already recalled by consumers at a high rate.

% of budget Allocation

Network TV 30%

30%

Cable TV Digital Magazines Radio

2% 0%

Outdoor

10%

20%

Below the Line

8%

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Budget for Media

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Print Advertisements

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Outdoor Hoardings

3.9 Last Year‟s Loyalty Program Of Walmart Walmart and HumanaVitality have developed a unique way to incent people to eat healthier while promoting increased customer traffic at Walmart stores. The companies launched a first-of-its-kind program called Vitality HealthyFood whereby Walmart offers a 5% discount on produce items to HumanaVitality members. The discount is loaded on a card in the form of a credit within five business days that can be redeemed on a subsequent trip to Walmart.

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The program is set to begin Oct. 15 2012 when the 5% discount becomes available on produce items bearing the recently developed "Great for You" icon, which, as the name implies, was created to designate foods that are part of a healthy diet. In the coming months, Walmart expects to apply the icon to select private label products under the Great Value and Marketside brands that meet the Great for You criteria. The program is likely to be expanded to branded food items in 2013. The effort is the first national program where a major retailer and healthcare company have come together to incentivize people to eat better through savings on healthier foods, according to Walmart. "Price is an important factor in incentivizing wellness in America. By offering affordable, healthier foods, we will help make our customers healthier and reduce costs to our healthcare system as a whole," said John Agwunobi, M.D., president of health and wellness, Walmart U.S. He referred to the initiative as preventative care in its purest form, noting that Walmart wants to be a wellness destination for its customers and the retailer that, "provides them with affordable ways to fight for their health." The initiative with HumanaVitality, a rewards-based program developed as a joint venture between Humana and Discovery Holdings, is a continuation of an effort Walmart began in 2011. That‘s when the retailer unveiled a commitment to make healthier food affordable and accessible at a high profile event involving Walmart U.S. president and CEO Bill Simon and First Lady Michelle Obama. Walmart said by collaborating with HumanaVitality it is directly addressing the issue of making healthier food more affordable food, working to bring down the costs of healthcare in the U.S., and leveraging its size and scale to lead on big social issues that matter to Americans. HumanaVitality CEO Joe Woods said the program, called Vitality HealthyFood, represents a new way to decrease America‘s healthcare bill. A survey of Humana‘s membership found that 84% said a savings program would motivate them to purchase healthier foods. From Humana‘s perspective, the program is launching just as open enrollment periods are set to begin for many employers.

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"We will be aggressively communicating this program to more than 600,000 hospitals and physicians, as well as 60,000 insurance brokers to ensure as many members as possible can benefit from it," Woods said.

3.10 Social Media Strategy Of Walmart Social media is one of the most important marketing channels for brands, as it offers unique opportunities to communicate with customers. But getting social media strategy right isn‘t an easy task, and the brands that are achieving the best results tend to be those that are taking risks and trying new things. With this in mind, I thought it would be interesting to take a look at how major brands use social, focusing on which of the main networks they are active on and how they use them. And what better place to start that with the world‘s biggest retailer: Walmart. Handily Walmart has actually published its own social media guidelines, which include things like 'don't be rude' and 'keep it real'. So here's a quick look at how Walmart uses Facebook, Twitter, Pinterest and Google+. Facebook Walmart has put a huge amount of effort into developing its Facebook presence, and has embraced the timeline to showcase how the brand has grown over time. It has populated its timeline with an image for almost every year since it was established in 1962, although many just show when Walmart opened a store in a new US state. The retailer has clocked up a whopping 26m fans – an increase of 9m since last July – who it entertains with a confusingly broad range of updates. A majority of Walmart‘s posts are just product suggestions, but it also includes caption competitions and sports chat, as well as trumpeting its sustainability credentials.

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On any given day it will post between two and five updates, including weekends, and most achieve an impressive number of responses from its fans. Most of its posts achieve tens of thousands of ‗likes‘ and hundreds of comments, with pictures of pets and children proving to be particularly popular.

However not everything Walmart touches on Facebook turns to gold. In October 2011 it partnered with the social network to create 3,500 pages for its local stores across the US. The idea was to build brand loyalty with ―enhanced local interaction at an unprecedented scale", but as of last September the results were far from encouraging. Research by Recommend.ly found that the local pages had managed to add just 2m fans in 10 months, while the main Walmart brand page had added 10.5m fans in the same period.

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Furthermore, a majority of the local stores have between 101 and 1,000 fans, while just 4% have more than 1,000, despite the fact that they were updated on a regular basis with photos and videos.

Twitter Walmart mainly uses Twitter to post questions; with topics ranging from sports, caption contests and requests for retweets if users agree with a certain statement. Most of its tweets only get a handful of responses, and it does a good job of answering those users.

However it also responds to hundreds of tweets a day from other users, and has the hashtag #WalmartElves to help customers who are looking for gift inspiration. Clearly Walmart sees the value of using Twitter to engage with its customers rather than just using it to churn out marketing messages. It has managed to clock up 307,000 followers, which is impressive but still someway behind rival retailer Target which has more than half a million. Walmart also operates several other Twitter accounts that focus on its sustainable initiatives,healthy food, and charity and community programs. However these are far less popular than its main account, and all have around 10,000 followers.

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Pinterest Walmart appears to have two Pinterest accounts; one aimed more at product ideas and one thatpromotes green living. The product-focused account has more than 12,000 followers and has created 65 boards, while the green living account has just over 2,000 followers. The main account uses fantastic imagery to promote creative ideas and special occasions such as Mother‘s Day and Easter, and created seven new boards for Christmas alone. A majority of its pins link back to the Walmart ecommerce site, but it also occasionally pins content from third party sites and it own Tumblr as well.

In September Walmart launched its first competition on Pinterest, offering users the chance to win a $500 gift card by sharing images of products that help them to live more eco-friendly lives using the hashtag #WalmartGreen. According to its own information, the competition received hundreds of entries.

Google+ Assuming it‘s a real account, Walmart joined Google+ back in December 2011 and has posted a whopping two updates since then.

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Walmart is extremely active through its other social channels, so I‘m dubious that this one is real but in truth there‘s no other reason to doubt its validity. If anything, Google should be quite concerned that Walmart has neglected to maintain a G+ page while putting so much effort into other social networks, though I doubt Eric Schmidt will lose any sleep over it. 3.11 Retail Mix For Walmart

Location

These Wal-Mart outlets are located near to shopping center and main roads which have mass transit accessibility.

Merchandise assortment

The retail store stocks a wide variety of products such that it can be described as a one-stopshop. The expansive store handles hundreds of products which are well arranged in categories such that it is easy for customers to shop. Products ranging from kitchen ware, to electronics can be found at different sections in the store. Among the major items include foodstuffs, kitchen ware, electronics, toys, clothing, shoes; furniture and beauty products.

Notably, the number of items in each category of goods is not large. This is an indication that the retail shop deals with a few distributors such that wide selection among products is limited. For example, you might find that while there are very many refrigerators in the store, there is however a limited choice as most products belong to companies such as Samsung, LG, Ramtons and General Electric among other prominent companies. It therefore follows that customers do not have a wide range of products to choose from and are therefore forced to take what is there or to look for alternatives in other stores.

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Pricing

The pricing at the retail store is low as compared to other retail shops in the area. It is common to find commodities costing up to 15% less in the Wal-Mart store as compared to the other retail shops in the area. This serves as an advantage to this particular stores and leads to a constant inflow of customers seeking to save money during their shopping sprees. The store occasionally offers discounts to customers on a variety of items in order to increase sales. These discounts often attract a large number of customers to the store and new orders to refill empty shelves have to keep coming. According to the manager, this is strategy that has helped the Wal-Mart store to develop a lasting relationship with customers such that they tend to be loyal to the store.

Communication mix

The Wal-Mart store is committed in ensuring that information regarding its products is effectively disseminated to the public. In this respect, the retail store makes use of TV advertisement and newspaper insert ads. TV is an effective media to transmit information because it is likely to reach a considerable audience (Zoltan, 1998). Information regarding products, prices and discounts is often provided on TV during the evening hours when people are expected to be at home. This ensures that a significant number of potential customers can see the advertisement hence maximize the efficiency of the advert (Pettigrew, Thomas & Whittington, 2002). Newspaper advertisements by the enterprise are mostly placed in the classifieds corner. People are more likely to visit the classifieds pages when they are looking for places to shop. This therefore provides a convenient place to place an advertisement. Occasionally, the retail store may secure a big space on the newspaper to advertise an oncoming sale or to sensitize customers on discounts available at the store. The use of vouchers is also a common method of advertising. Vouchers given to customers have information regarding the company‘s products such that customers are well acquainted with the store‘s products. Banners and posters placed in conspicuous places around Winnipeg also help to popularize the store with an objective of increasing the sales.

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Store design and display

The store layout is moderately attractive with special display for certain products being highly eminent. Shelves are well arranged and the prices well displayed. Selected products, depending on the suppliers, are arranged in well-designed displays that make their locations appealing and inviting. As a matter of fact, one can easily note more people checking the products displayed on these displays. While these customers may not buy the products at that particular time, they may come to buy it in future, given that they are aware of the product, the price and use (Lane & Schary, 1991). The design of the store leaves wide aisles between shelves which allow customers to easily push their shopping carts as they collect the goods that they require. Spacious aisles make the store desirable especially for shoppers with children because they can easily move around without blocking the way for other shoppers. Staircases are broad and moderately steep which gives customers comfort during their shopping experience at the store. Accordingly, they are able to explore all areas of the store in search of what they desire to buy.

Customer service

The customer care service at this Wal-Mart store is excellent. Service attendants are very friendly and willing to assist shoppers with whatever information they need. You will even find customer service representatives whose sole responsibility is to ensure that customers are okay and that they are not encountering any challenges such as lack of information on price, quality and availability of products stocked at the store. There is a customer care representative at proximities of less than 3 meters such that any queries and assistance required by the customers can be provided as quickly as possible. Interestingly, these customer care representatives are well conversant with the store‘s products such that they are very efficient in helping customers.

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Chapter 4 SUPPLY CHAIN, LOGISTICS AND MIS OF WALMART

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4. SUPPLY CHAIN, LOGISTICS AND MIS OF WALMART 4.1 Distribution Centers 

Walmart‘s 158 distribution centers are hubs of activity for business. Distribution operation is one of the largest in the world. Walmart logistics has a fleet of 6,500 tractors, 55,000 trailers and more than 10,000 drivers.



A regional distribution center can have up to 12 miles of conveyor belts, which can move hundreds of thousands of cases through the facility each day.



There are 9 disaster distribution centers, strategically located across the country and stocked to provide rapid response to struggling communities in the event of a natural disaster.



Each distribution center is more than 1 million square feet in size, and uses more than 5 miles of conveyor belts to keep products moving to our stores 24 hours a day.



Every distribution center supports 90 to 100 stores in a 200-mile radius.

Trucks and Truck Drivers 

Walmart is able to move goods to and from distribution centers because they maintain a private fleet of trucks and a skilled staff of truck drivers.



They think that team of drivers is the best in the world. They‘re part of one of the largest and safest fleets, and every year they drive 700 million miles to make millions of deliveries to our stores and clubs.



Each driver averages around 100,000 miles annually—that‘s like driving around the world 4 times!

Hub and Spoke System 

In the early 1970s, Wal-Mart became one of the first retailing companies in the world to centralize its distribution system, pioneering the retail hub-and-spoke system.



Under the system, goods were centrally ordered, assembled at a massive warehouse, known as ‗distribution center‘ (hub), from where they were dispatched to the individual stores (spoke).

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

The hub and spoke system enabled Wal-Mart to achieve significant cost advantages by the centralized purchasing of goods in huge quantities..



And distributing them through its own logistics infrastructure to the retail stores spread across the U.S.

4.2 Walmarts Procurement 

Wal-Mart emphasized the need to reduce purchasing costs and offer the best price to the customer.



The company directly procured from manufacturers, by passing all intermediaries.



Wal-Mart finalizes a purchase deal only when it is fully confident that the products being bought are not available elsewhere at a lower price.



Wal-Mart spends a significant amount of time meeting vendors and understanding their cost structure.



By making the process transparent, the retailer can be certain that the manufacturers are doing their best to cut down costs.

Using EDI for Procurement 

The computer systems of Wal-Mart were connected to those of its suppliers.



EDI enabled the suppliers to download purchase orders along with store-to-store sales information relating to their products sold.



On receiving information about the sales of various products, the suppliers shipped the required goods to Wal-Mart‘s distribution centers.

Benefits Analysis by Walmart 

EDI provides speed



EDI reduces paper work



EDI improves accuracy



EDI reduces costs



EDI improves operational efficiency

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4.3 Logistics Management 

An important feature of Wal-Mart‘s logistics infrastructure was its fast and responsive transportation system.



The distribution centers were serviced by more than 3500 company owned trucks.



Wal-Mart believed that it needed drivers who were committed and dedicated to customer service.



The company hired only experienced drivers who had driven more than 300,000 accident-free miles, with no major traffic violation.

Cross-docking 

The system reduced the handling and storage of finished goods, virtually eliminating the role of the distribution centers and stores.



The manufacturer directly forwarded the goods to a place called the ―staging area.‖



The goods were packed here according to the orders received from different stores and then directly sent to the respective customers.

4.4 Inventory Management 

Wal-Mart invested heavily in IT and communication systems to effectively track sales and merchandise inventories in stores across the country.



With the rapid expansion, it was essential to have a good communication system.



Hence, Wal-Mart set up its own satellite communication system in 1983.



Wal-Mart was able to reduce unproductive inventory by allowing stores to manage their own stocks, reducing pack sizes across many product categories, and timely price markdowns.



Instead of cutting the inventory across the board, Wal-Mart made full use of its IT capabilities to make more inventories available in the case of items that customers wanted most, while reducing the overall inventory levels.



Employees at the stores had the ―Magic Wand,‖ a hand-held computer which was linked to in-store terminals through a radio frequency network.



These helped them to keep track of the inventory in stores, deliveries, and backup merchandise in stock at the distribution centers.



The order management and store replenishment of goods were entirely executed with the help of computers through the Point-of-Sales (POS) system.

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

Through this system, it was possible to monitor and track the sales and merchandise stock levels on the store shelves.

Quick Replenishment 

Since the floor area of any Wal-Mart store varied between 40,000 to 200,000 square feet, movement of goods within the store was an important part of logistics operations.



Wal-Mart made significant investments in IT to quickly locate and replenish goods at the stores.



The company asked its suppliers to ship goods in store-ready displays called pretty darn quick (PDQ) displays.



Goods were packed in PDQ displays that arrived at the stores ready to be boarded on the racks.



Wal-Mart‘s employees could directly replace the empty racks at the stores with fully packed racks, instead of refilling each and every item at the racks.

4.5 Management Information System of Walmart

Retail link System 

In 1991, Wal-Mart had invested approximately $4 billion to build a retail link system.



More than 10,000 Wal-Mart retail suppliers used the retail link system to monitor the sales of their goods at stores and replenish inventories.



Details of daily transactions (~10 million per day) were processed through this system.



Retail Link connected Wal-Mart‘s EDI network with an extranet, accessible to WalMart‘s thousands of suppliers.



The suppliers could find out how their product was performing vis-a-vis competitors‘ products in a particular product category.

Voice-based Order Filling (VOF) 

In 1998, Wal-Mart installed a voice-based order filling (VOF) system in all its grocery distribution centers.

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

Each person responsible for order picking was provided with a microphone/speaker headset, connected to the portable (VOF) system that could be worn on waist belt.



They were guided by the voice to item locations in the distribution centers.



The VOF system also verified quantities picked, and could respond to a variety of requests such as providing product detail (type, price, barcode number, etc.)



By installing the VOF system, Wal-Mart eliminated mispicks and product labeling costs since the system did not require paper lists and labels to be affixed on the goods.

•

Wal-Mart owned the largest and most sophisticated computer system in the private sector.

•

The company used Massively Parallel Processor (MPP) computer system to track the movement of goods and stock levels.

•

All information related to sales and inventories was passed on through an advanced satellite communication system.

RFID Technology (Radio Frequency Identification) 

In efforts to implement new technologies to reduce costs and increase the efficiency.



In July 2003, Wal-Mart asked its top 100 suppliers to be RFID compliant by January, 2005.



Wal-Mart planned to replace bar-code technology with RFID technology.



The company believed that this replacement would reduce its supply chain management costs and enhance efficiency.



Because of the implementation of RFID, employees were no longer required to physically scan the bar codes of goods entering the stores and distribution centers, saving labor cost and time.



Wal-Mart expected that RFID would reduce the instances of stock-outs at the stores.

Wal-Mart‟s Data Warehouse 

Current Level of Storage Capacity : 570 Terabytes *



Second only to the U.S. Government‘s



More than all of the Internet‘s fixed pages



Information is shared with its own Buyers AND Suppliers

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4.6 Walmart Supply Chain Flow Chart

Focus Strategy of WALMART 

Those activities that focus on



Getting the right amount



Of the right products



To the right place



At the right time



At the lowest possible cost

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Chapter 5 Human Resource Management of Walmart

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5. HUMAN RESOURCES MANAGEMENT OF WALMART 5.1 Management Philosophy about Human Resources at Walmart ―Wal-marts philosophy is that management role is simple to get the right people in the right place to do job and then encourage them to use their own inventories to accomplish the task at hand‖ Sam Walton ―We have super stores in Wal-mart we have average people operating in an environment that encourages everyone to perform way above average‖ David Glass

―Most of us wear a button that says, ―Our people make the difference‖. That is not a slogan at Wal-mart it is a way of life .Our people really do make difference.‖ David Glass 5.2 Human Resource Culture Of Walmart Wal-Mart culture is most fearsome weapon .The company gospel is ―Be an agent consumer, find out what they want, and sell it to them for the lowest possible price‖ One source describe Wal- mart as follows: The key to Wal-Mart success is the quality of their management, its style, and its recognition of their importance of the individual player in the overall team effort .other companies are striving to achieve those cultural level but no other retail company is close .Wal-Mart people work harder the most, probably because they have more fun .they are constantly being challenged by one another and forced to laugh at themselves. They take pride in working for perhaps the finest company in the world and their individual contributions are recognized‖. According to Mr. Sam ―99 percent of the best ideas we ever had come from our employees‖ .His explanation was simplistic but to the point. ―if people believe in themselves ,it‘s truly amazing what they can accomplish‖

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Managers for each of the 40 departments within a typical Wal-Mart are expected to un their operations as if they were running their own business .According to one manager 90 percent to their day is spend walking around stores communicating with associates he praises them for well done jobs, discuss how improvement could be made and listens to comments and solicits suggestions. The management style encourages ideas from its associates. Wal-Mart corporate culture is defined by ten basic principles. 1. The customer is always right. 2. We are merchandise driven company. 3. Our people make the difference. 4. We communicate with our associates. 5. We maintain a strong work ethic. 6. Associates are partners. 7. Our leaders are also servants. 8. Associates are empowered. 9. We have integrity in all we do. 10. We control our expenses. Store Meetings: Every morning before store open and every evening after store close, associates and managers meet for ten minutes to discuss over all operations, expectation how things went, and so on. Every Friday morning each store has a general store meeting during which associates at every level can ask questions and expect to get straight forward answers from management. These meeting communicate to associates information on new company initiatives and policy change announcements. Video training films are shown time to time .As a part of these meetings, corporate management, via satellite emphasis company most important priorities for the operating week, which gives employee goals and keep them focused. Saturday Morning meeting at headquarters: Since 1961 on every Saturday at 7:30 in Bentonville, Arkansas, Wal-mart conducts a very informal meeting, employee dress casually some in hunting or tennis clothes for after meeting fun. Those attending include top officers ,merchandising staff ,regional managers who oversee store districts, and the Bentonville headquarters staff .they meet to discuss Wal-mart

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issues such as weak sales; payroll percentages; special promotion items ;unusual problems and reports on transportation ,loss prevention and information systems. People division: Instead of personnel department Wal-mart has a people department .According to Von Johnston director of people division: we deal with people; people are our jobs. One of the board member suggested that we change our name to reflect our job and we did‖ This division is divided into five functions; store operation, warehouse personal, T&D, general office personal staff, and Walton life fitness centre staff. The primary focus of the people division is recruitments of new associates. “The Wal-Mart Way”: ―The Wal-Mart Way‖ summarizes that company unconventional approach to business and the determination of its associate‘s .This commitment to ―total quality‘ is essential to the company future success. ―Quality the Wal-Mart way‖ is an ongoing focus with the emphasis of doing everything right the first time because that is the most efficient way .Key elements are productivity ,team work the ―elimination of dumb things: innovation that calls for ―breaking the frame‖, and effort to continuously improve. This mind set has also been adopted by Sam‘s club, which has adopted HEATKTE-―high expectation are the key to everything ― as its strategic rally cry‖ 5.3 Staffing In store employees at Wal-mart consist of two categories: manager (salaried) and associates (hourly) .Every retail outlet is managed by a store manager and one or more assistants .Mangers are hired in three ways 1. People from other retail companies with outstanding merchandising skill are recruited. 2. College graduates are hired 3. Hourly associates move up to the rank.

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5.4 Job Analysis 

Job Description

At Wal-Mart every employee gets his job description before starting his formal job after training as they are very much conscious about their employees so they not only depend on job description but also employees are guided by the supervisor and the line manager or any other manager.

Wal-Mart offers the opportunity for you to start a career in a broad range of fields, such as in cashier sales, hospitality, inventory, stocking, customer service, management, maintenance, shipping and receiving, engineering, writing, programming, business development and pharmacy

Wal-Mart cashier Job description: A Wal-Mart cashier is responsible for effectively executing and adhering to the "Basic Beliefs" of the founder, Sam Walton. These beliefs entail showing the customer respect at all times, demonstrating outstanding customer service and settling for nothing less than excellence while performing daily responsibilities. Training 1. Wal-Mart cashiers are trained to provide excellent customer service. A cashier's training focuses on the 10-foot rule, which ensures every customer encountered at this distance is aided in a polite, serviceable manner. Responsibilities 2. The cashier is responsible for talking to the customer, responding to questions and giving assistance while processing transactions. Cashiers should adhere to company policy at all times. Merchandising 3. Cashiers are required to uphold the tone of the register area by removing unpurchased merchandise and restocking it in the appropriate areas. They also settle issues pertaining to product pricing and UPC codes.

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Characteristics 4. Aside from having the basic math skills and the operational knowledge of running a cash register, the cashier should possess the people skills necessary for interaction with customers. Restrictions 5. A Wal-Mart cashier should be able to effectively confirm identification for customers purchasing cigarettes, alcohol and other age-restricted products, Carrier Available in Wal-Mart: As one of the world's largest companies, the job opportunities at Walmart are unlimited. Working at Wal-Mart is more than just a job, it's the chance to build and advance a life-long career. Take a moment to explore the many different areas within our company where you can apply your skills to realize your goals. If you're a veteran, you can apply your skills here at WalMart. Carrier Available in Respective Fields: 

Walmart stores, Sam's Clubs and distribution centers



Corporate Careers



Walmart.com



Pharmacy Careers



Independent Doctors Optometry Careers



Truck Driving Careers

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5.5 Recruitment and Selection at Walmart The Wal –Mart recruitment is done through online website http://walmartstores.com statements, including agreeing to a background check and a drug screening, and acknowledging that misrepresentation or omission of any information will result in your disqualification from consideration for employment or, if employed, your dismissal. Register for an Applicant Account The next step is to create an applicant account. Either create a new account or login to an existing account, if you have one. If you are creating a new account, be prepared with your social security number. Complete the Wal-Mart Job Application 

You can choose to volunteer your gender or ethnic group, or, you can withhold this information.



Be prepared to answer whether or not you can prove your U.S. citizenship.



Choose if you want to work at a Wal-Mart retail store, Sam's Club, or for Wal-Mart distribution and transportation. Choose the city you'd like to work in, and select a store or facility you're interested in.



Provide your contact information - name, address, phone number, and email address.



Fill out your scheduling availability.



Provide two references.



Complete your employment history - employers, dates worked, - up to ten years ago.



Provide your qualifications, such as if you have any special skills or if you are bilingual.

Wal-Mart Employment Questionnaire Next, you will fill out a questionnaire in which you are asked to provide your age, and if you have ever been convicted of a felony, theft, fraud, or a violent crime. You need to answer whether you're available to work evenings/weekends, if you can work the night shift, and if you'd like to work full-time, part-time, or on temporary basis.

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You will also be asked the highest level of education you have completed, if you're a student, the lowest amount of money you would accept for the job, your past employment experience, if they can contact your past employers, when you can start working, along with answering questions that will determine if you are eligible to receive federal tax credits. Wal-Mart Pre-Employment Assessment Test This retail Wal-Mart assessment test has 65 questions in four sections. Section 1: Six multiple choice questions about customer and employee relations. They are looking to see what path you would take in handling conflicts that you might experience working in a Wal-Mart store. For example, they ask you how you would deal with angry customers, customer complaints, and conflict with coworkers. Each question asks a hypothetical situation and you choose the option which is most similar to how you would deal with the situation. Section 2: You are asked about work-related situations and you are asked to grade the effectiveness of different responses to problems. For example, they ask you if you think it is very ineffective, somewhat ineffective, somewhat effective, very ineffective, or neither ineffective nor effective to ask your supervisor to schedule you to work with someone else when it comes to dealing with a difficult employee you don't want to work with. Also rate how much you disagree/agree with questions like, "I complete my tasks at work successfully" or "I feel I am an expert in what I do at work." Section 3: Questions about how much you disagree/agree (choose somewhat disagree, strong disagree, somewhat agree, strongly agree, or neither) with self-analysis questions about your work ethic, personal decisions, your behaviors, and moral issues, such as whether or not you agree with the fact that stealing from work is wrong. Section 4: Questions about your past experience in previous jobs such as your quality standards, your attention to detail, if you would sacrifice quality for getting something done on time, the number of your past employees, and your self-discipline.

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Sample Test Questions 

Two of your co-workers are having a disagreement. One is from your department and the other is from another department. You find them arguing and how would you handle it?



A customer has complained about the same problem three times. Do you ask her to explain the problem and tell her you'll solve it? Do you say you will get the last person she talked to and let them solve it? Do you ask her to wait while you talk to the last person she talked to and find out why it hasn't been resolved?



A person in your department is habitually late, and the others in the department are picking up the slack, but they're getting mad about it. Do you tell her that she needs to start being on time? Do you mention being late at the next department meeting? Do you explain how it's affecting the whole department when she's late?



Do you do your job as fast as possible to meet the deadline without checking it? Or do you make sure you leave extra time to check it before turning it in, even if it may make it a little later?

Passing the Pre-Employment Test If you did not pass the Retail Pre-Employment Assessment Test or the Logistics PreEmployment Assessment Test, you can retake it after 60 days. If you took the Supervisory Leadership Assessment but did not pass it, you can take it again in 6 months. Wal-Mart Interview Questions Do you have an interview scheduled or have you interviewed at Wal-Mart? Review interview questions and add your questions to the list. 5.6 Training and Development Management training and succession: In order to ensure well trained future store managers, Wal-mart is committed to an ongoing training program for store managers, assistant mangers, and department managers .All managers complete structured management training program that consist of on the job training and book work..Areas studied include management topics such as internal/external theft; scheduling; store staffing; retail match; merchandise replenishment; and Wal-mart key

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to supervision series, which deals with interpersonal skill and personnel responsibilities .After completing the training program trainees are given responsibility of an area in a store they length of the time they are in this position vary according to how the trainee progress .Subsequent to this the training is promoted to assistant manager. In 1985 Wal-Mart created the Walton institute of retailing which was open in affiliation with the University of Arkansas. Currently every Wal-Mart corporate and store manager is expected to participate in the institute special program to strength and develop company managerial capabilities. Wal-Mart believes that good people need good challenges therefore with respect to senior management .Wal-Mart offers cross training to enable them to master new areas. Associate training: Upon being hired new associates must complete a ―new hire‘ checklist and a 3-day orientation ,and they are immediately placed in position for on the job training .No formal training is provided by Wal-Mart headquarters for hourly associates.OJT is Wal-Mart philosophy regarding associates training .Store manager and train and supervise employees .The use of video films is popular training technique, shown from time to time in Friday morning meetings .Topic of the videos vary from new cash register functionality to security policies. Wal-mart also use satellite television broadcast to retail management seminars to disseminate information from headquarters. Associates have every opportunity of advancement .the management trainee program is designed to give associates an opportunity to learn and apply basic skill necessary to advance to the assistant manager position .The program is structured 20 weeks period with each including a specific focus .the objective is to build strong knowledge and experience base in following areas: personnel functions and administration, operation, merchandising and supervisory skills. The trainee program is implemented via CBL Computer based learning provide training on approx 200 task areas and test the associate on each learning module. It is used to train newly hired associates.

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5.7 Performance Evaluation Wal-Mart calls the process of performance appraisal ―evaluation‖. All managers and associates are evaluated annually. Associate are hired more than minimum wage and can expect to rise with in one year .New associates receive two evaluation during the first fiscal year. The first at 90 day and the second on the anniversary date. The four performance appraisal level are  Below standard  Above standard  Standard  Outstanding Assuming performance is above standard the employee receives raise at the 90 day evaluation and at the annual evaluation. Employees who are performing outstanding can receive rise in pay ant time during the year. All employees must be in their current position for at least 6 months before they are promoted to next level

5.8 Compensation and Benefits 

Executive Compensation: Wal-mart uses the compensation and nominating Committee and the stock option committee to help determine executive compensation parameters The Wal-mart compensation and nominating committee administer Wal-Mart stock option and restricted stock plans sets the interest applicable to the deferred compensation plan and reviews the benefits and benefits structure for executive officers. This committee has make nomination for directors..



Director compensation plan: This program is designed to 1. Provide fair compensation to executives based upon their performance and contribution to Wal-mart. 2. Provide incentives to attract and retain key executives. 3. Instill a long term commitment to Wal-mart and develop pride and sense of company ownership

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This compensation package has three main parts. 1. Base salary, which is reviewed annually 2. Equity compensation consisting of stock option and for certain executive restricted stock 3. Incentive payment under the company management incentive plan.

Wal-Mart has deferred compensation plan under which executives may defer compensation with its interest accruing on amount deferred. .Executive also participates in the Profit sharing plan which is doffed contribution to retirement plan with its assets primarily invested in Wal-Mart stock.

Reward System: Store manager receive additional compensation based upon their store profit .Assistant store manager receive compensation based upon company profitability. All other persons are compensated on hourly basis with the opportunity of receiving additional bonuses based upon the company productivity and profitability. Shrinkage bonuses are implemented in 1980 to control losses from theft and damage. If a store holds shrinkage below corporate goal every associate in that store receive bonus .wallmart has paid several million dollars in bonuses for improving shrinkage problem. A very successful incentive program is its volume producing item contest where by departments within a store have special promotion and pricing on items they want to feature .the contest is initially among departments in the store .result are compared among departments and region to region .This is done to boost sales and sell slow moving items .it also encourages employees to be innovative.

Benefits Packages: Wal-Mart benefit program is extensive and very competitive in the industry .Te benefits package include

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1. Profit sharing 2. Comprehensive health care plan and dental insurance for employees and their dependents. 3. Group life insurance and optional term life insurance plan 4. Business travel accident policy 5. Salary continuance. 6. Long term disability insurance 7. Paid vacation 8. Purchase discount 9. Store managers bonus program 10. Generous stock purchase plan. Our benefits are designed to help associates meet their unique personal, family, and financial needs, and the program is divided into four areas:

Career Benefits

Career benefits are designed to give each Associate every opportunity to grow, prosper, and advance in his or her career. Regardless of gender, color, religion, age, national origin, or sexual orientation, an Associate with the desire and the ability to get the job done will find many career paths and opportunities to explore.

We also provide classroom training, computer-based training, in-store and on-the-job training, mentoring, and a host of other opportunities to give associates the knowledge and skills for a successful career.

Financial Benefits

Financial benefits offer associates several ways to save and invest for their financial security. Our Profit-Sharing and 401(k) Plan help associates save for long-term financial needs, such as retirement. Another financial benefit is the Associate Stock -Purchase Plan, which allows associates to buy stock through payroll deductions.

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Health Care Benefits The foundation of our health benefits is to provide a choice of medical coverage options designed

to

protect

associates

from

catastrophic

medical

costs.

Health care benefits also include Life and Accidental Death and Dismemberment Insurance, Short- and Long-Term Disability Insurance, and a dental plan that covers a range of general and major care.

Personal Benefits Our personal benefits include such extras as discounts on child care, education, and travel. Personal benefits also include medical and personal leaves of absence, long-term service benefits, and even a professional and personal associate counseling service.



Profit sharing and Stock option plans: Wal mart believes

that each of its associates is a partner in the company and

encourages stock ownership .To maintain feeling of ownership and to keep them informed the company stock price is announced storewide ate the end of each business day .eight percent of the Wal-Mart full time associates own stock 5.9 Current Problems and issues in HR at Walmart Non-Unionization: Unlike its competitors in the retail industry Wal-Mart has remained non-unionized. Its alternative is an open door policy which aims to encourage employees to take their complaints beyond management. Wal-Mart employees commence at lower wages than unionized corporations, quitting by the end of the first year Low Wages: The average Wal-Mart associate makes between a paltry $12,000 and 17,000 annually. Suggest that the company cares more about keeping its prices low than to increase employees‘ wages and thus, in turn, their standard of living. Discrimination against Women:

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Wal-Mart has been accused of discriminating against women by its actions of denying training and promotion opportunities that are generally offered to men. Men are also paid more than women. In June 2001 a group of six current and former female Wal-Mart employees filed a sex discrimination lawsuit (seeking to represent up to 500,000 current and former Wal-Mart workers) against the company . The suit was filed because Wal-Mart failed to provide equal employment opportunities for women. Women comprise 72% of the workforce but only small percentages are in supervisory or managerial positions. In addition, ―Wal-Mart is the nation's largest employer of women, but unfortunately they are being treated without dignity and respect." (Cookson, 2001). The data also shows that women are rated higher

in

Summarizing

Women total

are

earnings

performance the

evaluations

research

of

Richard

disproportionately paid

to

men

across

Drogin

employed is

about

all

in

$5,000

positions (Anon.,

lower more

except 2003d)

paying than

paid

cashier. are

that:

hourly

jobs

to

women

Women are on lower hourly rates but have been employed longer than men Women scored higher in performance ratings Over 95% of Store Managers and Co-Managers change stores at least once upon entering the positions. 80% of Support Manager promotions did not appear in job posting data. Wal-Mart's (Anon., 2003d) treatment of its female employees is characterized by a sexually demeaning atmosphere, where female employees are told that "women do not make good managers", that "a trained monkey" could do their jobs, and that women with kids couldn't be managers. Production/Operations: The largest source of concern for this functional area is the slowing speed of checkout lines. This is simply a product of Wal-Mart's success. Because more and more people are going to Wal-Mart, and the number of checkout lines is staying constant, the only way to compensate is for the time to checkout increase. This is a problem because it can and will cause people to choose other stores that are less congested. They are basically losing sales due to this fact.

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