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Individual Project 1

Studying and researching internal and external factor of Walmart.
Course

Business Policy (BUAD 4980)

14 Documents
Students shared 14 documents in this course
Academic year: 2022/2023
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Middle Tennessee State University

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Bryan Nguyen Dr. Arik BUAD 4980 September 26, 2022 Walmart Corporate I. INTRODUCTION A. Walmart History The story of Walmart begins in the early 1950s, when a businessman, Sam Walton, decided to buy a small grocery store in Bentonville, AR, and named Walton's Five and Dime. On July 1962, Sam Walton opened the first Walmart store in Rogers, AR intending to provide discounted goods to the rural American market. In 1967, Walton continued to expand and had a total of 24 stores in Arkansas, Missouri, and Kansas, bringing this leading retailer $12 million in revenue and profit in the area. After that, Walmart stores continued to spring up in many other places across the United States. In 1969 Walmart Stores Inc. was officially established. Within three years, Walmart was listed on the stock exchange at $16 per share (Walmart). With visionary leadership skills, Walton sought to locate stores no more than a day's drive from the company's distribution centers to ensure the timely delivery of goods to customers and boost the business's sales. An average facility serves 90-100 stores within a 200-mile radius (DeShields). Between 1970 and 1980, Walmart's sales increased from $313 million to $1. billion, and the number of stores also increased nearly nine times. In 1983, Walton decided to open another chain of stores called Sam's Club, which operated in tandem with Walmart and only for registered customers (Walmart). Sam's Club is as successful as Walmart and has now expanded its operations to the whole of the United States.

B. Present Conditions Over the past 50 years, Walmart has remained the largest retail company and employer in the United States, Mexico, and Canada, with annual sales of more than $5 billion, and approximately 1 million Walmart associates work in the U. alone, making up 2 million worldwide. According to Walmart Corporate, approximately 10,500 Walmart Discount stores, Walmart Supercenters, Walmart Neighborhood Market, and clubs operate in 46 states of the United States and across 24 countries and eCommerce (Walmart). Using existing strategies, Walmart continues to grow and succeed in international markets such as the U., South America, and China; however, it failed in Germany and Korea. According to Walmart's financial reports from the previous three years, the company's liquidity and solvency have improved, indicating a positive performance report. As ranked by total sales, Walmart holds the number one spot in the Fortune 500 listing of the world's wealthiest and most powerful corporations (Mejia, 2018). Walmart's fiscal 2022 revenue was approximately $573 billion, net profit was about $13 billion, and it continues to grow (Repko, 2022). With remarkable success, Walmart still encountered many difficulties in business, significantly when the Covid 19 pandemic impacted the company's economy. In the first three months of 2020, Walmart did not have enough products to provide consumers. Moreover, operating hours were also changed due to staff shortage. These factors have severely affected Walmart's business, leading to reduced sales. C. Mission and Objectives

  1. Efforts to Satisfy Customers To ensure sustained excellence in this changing world, Walmart relies on defining objectives, acquiring a competitive advantage, and having the financial resources and capabilities to achieve

shopping market will account for 79%. While Walmart offers a wide variety of products, groceries are by far the most popular category for Walmart shoppers, with more than 56% of sales in 2021 coming from shoppers. Nearly 220 million shoppers every single week. Walmart has the highest customer loyalty of any other retailer, at a 95% yearly retention rate between 2020 and 2021. The average Walmart customer is a middle-aged white woman earning $80, annually. According to Business Insider, the Walmart customer is very similar to the typical American due to the massive size of Walmart’s customer base (Reuter, 2022). B. Economical For a large company like Walmart, stable economic circumstances are crucial. As far as we know, the business is known for offering discounted goods and services. Walmart is forced to raise prices in response whenever a nation's economic circumstances change. Walmart's price- conscious client base is declining, and they hold the firm responsible. As long as Walmart does not raise the price, it will be unable to control costs and compete with other brands on the strength of profits and market share. C. Technology 1. Expansion of Using Technology in Operation To promote the brand, Walmart uses various advertising media, from TV ads, billboards, social media, and even their e-commerce platform. Secure delivery methods ensure the highest level of service for customers purchasing online. The company not only stops at a retail brand but also makes the most of its e-commerce website. Walmart has introduced automated and robotic technology for cleaning, order fulfillment, and manufacturing facilities. The company will compete better in the technological environment and be more effective in various commercial operations to this digital transformation.

  1. Improving e-Commerce To compete with other retail brands and boost their sales through e-commerce, Walmart is adapting to the technological transformation, quickly expanding its audience to e-commerce and online retail outlets. The young people of today shop on their laptops, smartphone, or tablet. They enjoy doing everything online, including shopping, paying bills, and browsing products. For online buyers, Walmart also provides a mobile app. To improve the consumer experience, it offers a variety of features. This improvement indicates that Walmart is aware of the importance of technology in retail sales in the US and worldwide markets.
  2. Bringing the Convenience Additionally, it enables users to check Walmart's numerous shops in a particular area and the items they are selling and monitor their orders. In other words, clients can practically visit the store without visiting there. Moreover, the company recently introduced its Walmart Plus membership so customers can shop on their mobile devices anywhere, anytime, and get the order delivered right to the door within a couple of hours which is very convenient and efficient.
  3. Delivery Innovation Currently, the company is partnering with the operator DroneUp, which has launched a drone program for door-to-door delivery. According to Walmart, it is estimated that by the end of this year, it will have 34 drone delivery centers in place, with the capacity to deliver one million parcels with a maximum weight of 10lb each, which would put approximately four million consumers in the drone delivery range (Guggina,2022). D. Competitors Amazon is a global technology business that offers e-commerce, cloud computing, and artificial intelligence services. Amazon is the second-largest corporation in the United States,

increases the possibility of offering lower prices to consumers, gaining market share, and earning more profits. 2. Boost online sales The number of people who purchase online has dramatically expanded in recent years. Walmart might take advantage of this chance by enhancing its online sales platforms. Walmart already has the assets and retail supply network necessary to grow its online business. The firm may increase its earnings and sales if it takes advantage of this chance to enter the internet market. Online shopping is becoming more popular among consumers, and Walmart can take advantage of this opportunity. B. Threats 1. Becomes a Highly Competitive Subject As the largest retail brand in the world, Walmart is naturally a target of competitors. Among them, Target and Costco are two direct competitors to this brand. If Target offers the same items at a higher quality, Costco allows customers to buy in bulk. 2. The Emergence of Small-scale e-commerce platforms Many small and individual online sellers have entered the retail market, offering similar products and prices on their Web sites. This could be a threat to Walmart's future standing. 3. Fluctuating economy Retailers are very vulnerable to an economic downturn like this time. When this problem occurs, the purchasing power of consumers also decreases significantly (Tatevosian, 2022). They will also consider carefully in their purchasing decisions. Just like any other retailer, Walmart is not immune to this.

Work Cited

Cuofano, G. (2022, August 21). Walmart Mission Statement and Vision Statement In 2022 - FourWeekMBA. FourWeekMBA.

DeShields, J. (2019, September 9). A behind-the-scenes look at how Walmart delivers. Corporate.

Guggina. (2022, May 24). We’re Bringing the Convenience of Drone Delivery to 4 Million U. Households in Partnership with DroneUp. Corporate – US. Mejia, Z. (2018, May 23). Walmart is the No. 1 Fortune 500 company for the 6th straight year. CNBC. Petro, G. (2021, November 19). How Target And Walmart Are Closing The Ecommerce Gap With Amazon. Forbes.

Repko, M. (2022, August 16). Walmart sticks with second-half outlook after earnings beat expectations. CNBC.

Reuter. (2022, January 17). Typical Walmart Shopper Is 59, White, Female, Earns $80,000. Business Insider.

Tatevosian. (2022, May 20). Inflation Causes Walmart to Lower Expectations for 2023 | Nasdaq. Inflation Causes Walmart to Lower Expectations for 2023 | Nasdaq.

Walmart Corporate. (n.). History. corporate.walmart/about/history

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Individual Project 1

Course: Business Policy (BUAD 4980)

14 Documents
Students shared 14 documents in this course

University: Middle Tennessee State University

Was this document helpful?
Bryan Nguyen
Dr. Arik
BUAD 4980
September 26, 2022
Walmart Corporate
I. INTRODUCTION
A. Walmart History
The story of Walmart begins in the early 1950s, when a businessman, Sam Walton,
decided to buy a small grocery store in Bentonville, AR, and named Walton's Five and Dime. On
July 1962, Sam Walton opened the first Walmart store in Rogers, AR intending to provide
discounted goods to the rural American market. In 1967, Walton continued to expand and had a
total of 24 stores in Arkansas, Missouri, and Kansas, bringing this leading retailer $12.7 million
in revenue and profit in the area. After that, Walmart stores continued to spring up in many other
places across the United States. In 1969 Walmart Stores Inc. was officially established. Within
three years, Walmart was listed on the stock exchange at $16.50 per share (Walmart).
With visionary leadership skills, Walton sought to locate stores no more than a day's drive
from the company's distribution centers to ensure the timely delivery of goods to customers and
boost the business's sales. An average facility serves 90-100 stores within a 200-mile radius
(DeShields). Between 1970 and 1980, Walmart's sales increased from $313 million to $1.2
billion, and the number of stores also increased nearly nine times. In 1983, Walton decided to
open another chain of stores called Sam's Club, which operated in tandem with Walmart and only
for registered customers (Walmart). Sam's Club is as successful as Walmart and has now
expanded its operations to the whole of the United States.
1

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