Walmart History and Case Study

Overview

When Sam Walton founded the first Wal-Mart in 1962, the idea of bringing in a discount-shopping store into rural America was almost unheard of, except for the local five and dime stores. When Walton noticed that he had a lot of competition from regional discount chains, him and his wife Helen traveled the country to study other new retailing concepts, and were convinced that it was the wave of the future. With Walton's vision, Wal-Mart grew to be a multi-billion dollar, international company, operating about 4,600 stores around the world.

Wal-Mart competes in many industries that include: 5331- Retail-Variety stores, 5411-Grocery stores, 5311-Department stores, 5812-Eating Places, 5399-Miscellaneous General Merchandise store, and 5912-Drug stores and Proprietary stores. Since there are several industries to choose from, our group chose to go with retail-variety stores, SIC code 5331. These establishments are primarily engaged in the retail sale of a variety of merchandise in the low and popular price ranges. Sales are made on a cash and carry basis, with the open-selling method of display and customer selection of merchandise.

Wal-Mart's milestones began in 1962 when the first Wal-Mart was opened in Rogers, Arkansas. Seven years later the company incorporated as Wal-Mart Stores, Inc. Then a year later they opened the first distribution center and home office in Bentonville, Arkansas, and also went public on the New York Stock Exchange. Several years later, in 1988, the first super center was opened. Then in 1991, the first international unit was opened in Mexico City.

By the turn of the century, Discount Store News had named Wal-Mart "Retailer of the Century" and made Fortune magazine's lists of the "Most Admired Companies in America" and the "100 Best Companies to Work For." They were also ranked on Financial Times' "Most Respected in the World" list. In 2002, Wal-Mart became number one on the Fortune 500 list and was presented with the Ron Brown Award for Corporate Leadership, a presidential award that recognizes companies for outstanding achievement in employee and community relations.

Mission Statement

Wal-Mart Stores, Inc. does not have a formal mission statement. This is because Kim Ellis, the Public Relations Coordinator, said that they believe the customers are more interested in other aspects of the business, and they, the company, are focused on meeting their basic consumer needs.

Since Wal-Mart does not have a mission statement our group has created a mission statement that they might use. It discusses all nine components of a mission statement. This is the mission statement we have established:

Our first responsibility is to provide all consumers the best products and services with guaranteed satisfaction under one roof. Wal-Mart provides a wide array of products like toys, electronics, groceries, jewelry, ladies, men, and children's apparel, and hard goods at reasonable prices. We will continue to offer scholarships to deserving high school graduates in hopes of providing students with a well-deserved education. Consumers have been conveniently provided with on-line shopping, but also with the concept of "one-stop shopping." The Wal-Mart team is devoted to everything that Wal-Mart has accomplished as a universal competitor. We are dedicated to recruiting, rewarding, and retaining employees of good moral standing by providing benefits for excellent performance, providing clean environments to work in, and by providing equal opportunity for all individuals. We will continue to offer the highest quality products at the lowest price to strive to be the best in the retail industry.

Components of Mission Statement

In the mission statement we target our customers by saying: "Our first responsibility is to provide all consumers the best products and services." Their customers are their number one priority. Customers keep Wal-Mart in business, so of course they would want to offer them their best products and services. The mission statement targets products or services by saying: "Wal-Mart provides a wide array of products like toys, electronics, groceries, jewelry, ladies, men, and children's apparel, and hard goods." Wal-Mart has so many different types of products and services that a list of the basic departments needed to be listed. These products are their main service.

Their concern for public image is stated: "We will continue to offer scholarships to deserving high-school graduates." Wal-Mart intends to make the future better. They want to see more high-school graduates go on to college and make something of