Transcript Wal-Mart History - Bluffton University

The Business Structure of
Walmart
Lisa Herr,
Sarah Gottfried,
Ryan Strickler,
Jen Byrne,
Rachael Stine
Wal-Mart History
Founder: Sam Walton


Sam Walton was born in Kingfish, Oklahoma
on March 29, 1918.
In 1940, he started his business career by
opening the first Ben Franklin franchises in
Arkansas.
Wal-Mart History Timeline
1960-1970


In 1962, Sam Walton opened the first WalMart in Rogers, Arkansas
1969, company became an incorporated
company
Wal-Mart Timeline
1970-1980




In 1970, Wal-Mart opened its first distribution center
and home office in Bentonville, Arkansas
In 1972, Wal-Mart was approved and listed on the
New York Stock Exchange
In 1978, the first pharmacy, auto service, and jewelry
divisions were introduced in the Wal-Mart stores
In 1979, Wal-Mart had its first billion dollar year in
sales totaling $1,248,000,000
Wal-Mart History Timeline
1980-1990



In 1983, the first photo lab was introduced in
Tulsa, Oklahoma
In 1985, Wal-Mart received stock on the
Pacific Stock Exchange
In 1988, the first Supercenter opened in
Washington, Missouri
Wal-Mart Timeline
1990-1995




In 1990, Wal-Mart became the number 1
retailer in the nation
In 1991, Wal-Mart entered the international
market opening a Club Aurrera in Mexico
City
In 1992, the first Wal-Mart store opened in
Puerto Rico
In December on 1993, Wal-Mart reached its
first billion dollar sales in one week
Wal-Mart History Timeline
1995-2000

In 1996, Wal-Mart was listed on the Toronto Stock
Exchange
Also, Through joint venture agreements, Wal-Marts were
established in Korea and China
In 1997, Wal-Mart became the number one employer with
680,000 associates
Also, Wal-Mart had its first $100 billion dollar sales in one
year with total sales of $105,000,000,000
In 1998, Wal-Mart moved into Germany
Also, over $100 million dollars was given in annual
charitable contributions totaling $102,000,000
–
Stock Splits

Wal-Mart has had 11 100% stock splits, which has help their
economics manically
–
–
–
–
–
–
–
–
–
–
–
First split was in 1971 at $47
Second in 1972 at &47.50
Third in 1975 at $23
Fourth in 1980 at $50
Fifth in 1982 at $49.875
Sixth in 1983 at $81.625
Seventh in 1985 at $49.75
Eighth in 1987 at $66.625
Ninth in 1990 at $62.50
Tenth in 1993 at $63.625
Eleventh in 1999 at $95
Walmart’s Mission Statement
A National Mission Statement


The founder, Sam Walton, believed in
servant-leadership.
Their mission is to “serve our Associates and
customers with compassion and integrity.
Our emphasis is on our Associates, children,
families, the local community and other local
programs that improve the quality of life in
our communities.”
Walmart’s Philosophy


The Wal-Mart Good. Works. community
involvement program is based on the
philosophy of operating globally and giving
back locally.
“In our experience, we can make a the
greatest impact on communities by
supporting issues and causes that are
important to our customers and associates in
their own neighborhoods.”
Walmart’s Philosophy Cont.


Walmart relies on its associates to know
which organizations are the most important
in their home-town; therefore having say in
where Wal-Mart Foundation dollars will be
spent
“Consequently, our funding initiatives are
channeled directly into local communities by
associates who live there.”
Programs Walmart Funds








Community Grants*
Education
Military Support
Disaster Relief
Literacy
The World of Medicine
Child Safety and Missing Children
Volunteerism Always Pays
A Global Missions Statement





Wal-Mart released a revised Global Ethics to
communicate their ethical standards to all
Wal-Mart facilities and stakeholders:
Following the law at all times
Be honest and fair
Never manipulate, misrepresent, abuse or
conceal information
Avoid conflicts of interest between work and
personal affairs
Global Missions continued






Never discriminate against anyone
Never act unethically
Never ask someone to act unethically
Seek assistance if you have questions about the
Statement of Ethics or if you face dilemma
Cooperate with any investigation of a possible ethics
violation
Report ethics violations or suspected violations
Research: The effect Walmart has
on small businesses
Interview for Small Businesses
1. How long have you been in business?
2. How close are you to Walmart?
3. What is your mission statement?
4. Has your mission statement changed since Walmart
came in?
5. Has your yearly profit increased or decreased since
Walmart has moved in?
– % of increase or decrease (3 years before & 3 years
after)
6. Did you have to change your layout, product, or
advertising?
7. Did you have to lower your prices in order to stay
competitive in the market?
8. Did you have to cut back on the number of employees,
wages, and benefits?
9. Did your product change at all (quality, supplier)?
What Would We Change

Interview businesses at further distance from
Walmart
–

Even in cities/towns where a Walmart is not
present
Interview businesses that have failed
How our research connects to CVGC



Walmart resembles a capitalistic structure.
Discourages the simple life by encouraging a
life of consumerism.
Doesn’t function as a member of a global
community by isolating itself.