History
Sam Walton started Walmart 57 years ago and now it’s one of the biggest companies in the world. Walmart has been a very successful company because they care about the customer. The organizational effectiveness is that their best to have the lowest prices out of all the retail companies. Walmart wants its costumer to save money as much as possible. Sam Walton came up with the acronym EDLP and this company thieves on this, EDLP means everyday low price and the company tries to have the lowest prices no matter what. The company started in Bentonville Arkansas and it’s where their main corporate offices is. Sam Walton success came from many key factors he had a vision and goals to achieve, some of his ideas was Customer focused advertising campaigns, particularly direct mail ads. He also A focus on controlling the price by purchasing and selling low cost imported goods this goes back to EDLP. Sam Walton also builds warehouses close to the stores so it’s easy and cheaper for the company to distribute It’s good in the fastest way possible. Walmart became very Successful in the areas they focused on above. The more successful the company became they began adding new stores outside of Arkansas. The different stores were across the Deep South and Within 20 years of its existence the company had rolled out the first Walmart superstores which you know them as Sam's Club. Sam’s Club is their bulk item stores which is now spread all across the United States and other countries as well. According to BRIAN O'CONNELL By 1990, Walmart had become the largest retailer in the U.S., and began to branch out internationally. The company eventually open a new store in Mexico and regionalized and then began to globalized open more stores in the U.K., Germany, China, and Canada. Walmart doubled its sales in the year 1995 three years after the sad death of founder Sam Walton. By the year 1999, Walmart growth was substantial and now had the title of the biggest companies of the year and was the only the largest
Mission /vision
Walmart’s mission is “to save people money so they can live better.” Since the inception of Wal-Mart, its entire purpose was to establish network that allowed people to be consumers at the lowest prices this is an example of organizational life cycle.By cutting out the middle man, he was able to create a system that did not require paying other people to manufacture and source his products. In this way, Wal-Mart has continued to be one of the largest corporations in America by selling all of its products at the lowest prices. Additionally, Walmart’s vision is in line with its mission statement. The most recent vision statement reads “be the destination for customers to save money, no matter how they want to shop.” This requires not only having low prices but also having a variety of goods for people to consume. It also requires marketing, as the company must have visibility to the general public in order to become the most popular destination for consumers. Finally, they must be accessible, providing locations for people to buy their products through the country and in each state.
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The organization’s core values are “fairness, honesty, accountability, customer first, frontline focused, listen, innovative & agile, inclusive, and high performance. All of these values are concepts that contribute to the mission statement. Being customer centered, fair, accountable and inclusive attracts a wide variety of people to their place of business. Innovation, agility and high performance allows Walmart to compete with other large retailers, such and Target and Amazon, to provide the best consumer experience for the public and to constantly be on the front line of change to continue to lead. private employer in the U.S. Almost 2 years later it became the largest company in the entire world Walmart also surpassing very big companies at the time.
Environment
In most recent years Walmart has set its eyes on being eco friendly to help protect the environment. structural contingency theory- is the theory states that there is no optimal way of functioning that applies to all organizations because optimal functioning is contingent on the organization’s environment, organization’s size, and other external factors (Hatch, 2018). Walmart uses many methods to promote being an environment friendly company, back in 2005 the company went to LED lighting because the light uses 75% less energy and generates less heat. These lights are efficient and reduce a lot of maintenance. Walmart also promoting water efficiency. Walmart collect rainwater in an underground tank and save it to water the store’s landscaping. Symbolic and post-modernist demands include more subjective concepts, such as the company positive appearance and good values that can represent the community and use ethical practices. For the sake of communities that struggle with water scarcity water is being recycled by Walmart, other stores opportunities for water savings are in the restrooms, Newly built stores feature high-efficiency urinals that reduce water use by 87% compared to the conventional 1-gallon-per-flush urinal in which Walmart tends to switch most of the urinal out for high pressure urinals. These high-efficiency toilets are going to use 20% less water compared standards toilet that uses much more water than the high-efficiency toilets. Walmart is using this exposed Concert flooring system to reduce surface chemical use on the floors. An example would be to eliminate chemical cleaner, wax and wax strippers and by doing so it’s an environmental safety project that Walmart has taking on. New vests soon to be worn by all employees of Walmart stores. What’s unique about this vest is it will be crafted from a fabric made from recycled bottles, yes recycled bottles I feel that this is an awesome step in being environmentally friendly. The lightweight vests, made from a material called Repreve, I have seen and felt some these vest and I can say they are really lightweight it really feels like nothing is in your hand. The Walmart vest is environment friendly and also comes with a better style than the older vest. The vest has upgraded some of the colors with very bright green, pink and orange which gives the vest a stylish look for Walmart employees. The company Unifi, which is a textile company who manufactures the product called Repreve, says it has recycled more than 14 billion plastic bottles. According to the company that manufacturer the product it states that, “compared to making virgin fiber, making Repreve uses less new petroleum, emitting fewer greenhouse gases and conserving water and energy in the process.”
Walmart’s use of the product Repreve is part of its “ongoing mission is to healthy and sustainable items for the people and the environment.
Economics
Walmart economics have a name of in itself, What Is the Walmart Effect one would ask?
The Walmart Effect is a term used to refer to the economic impact felt by local businesses when a large company like Walmart opens a location in the area(Will Kenton). The Walmart Effect is harmful for small businesses in some places, the effect force smaller retail firms out of business and reducing wages for competitors' employees. The local businesses people do not like the idea of Walmart stores into their territories for these reasons. The presence of a Walmart store can hurt the business smaller businesses in many ways one of them is that companies will lower wages for local workers. Walmart has such great buying power that it harms the small businesses in each and every town til the fact that they would eventually have to close Down. The economics of Walmart also affect suppliers, who must drive their production costs down in order to afford to sell to Walmart (Will Kenton). There is some good far as the economics of Walmart it can curb inflation and help to keep employee productivity at an level that’s very beneficial. As I stated before Walmart is all about low cost the chain of stores can also save consumers billions of dollars but may also reduce wages and competition in an area. There are some advantages and disadvantages to this so called “Walmart effect” for example, Walmart's wants to keep all of their products at lower prices no matter what, so for the suppliers this means that they have to ultimately find ways to make their products for less money, if the suppliers can’t effectively take on this type of task they could be forced to take losses if they choose to sell through Walmart. This also could be potentially bad for Walmart because it forces the company to use overseas products which could cause consumer backlash because of less expensive materials.
Technology
Walmart do their best to keep up with today’s society and spends tons of money to make sure they have the best technology to keep up with demand. Walmart calls it refreshing the fleet making sure all of there store are up to date. Online grocery shopping is a very big ideal in today’s society and Walmart is very much so keeping up with that demand. Walmart just unveiled a new technology that could help defend its position as America's largest online and In store grocery store. Technological- allows both the customers and associates to enjoy online shopping without the hassle of being overwhelmed. The new technology is called Alphabot, this technology will be doing amazing things for not only the customers but for the company as well. The Alphabot technology should enable it to pick, pack and deliver shoppers' online grocery orders faster and with fewer headaches. I know that Walmart has an online grocery department that is run by Walmart associates Which they run around the store for most of their shift picking grocery, this can be a very big headache especially around the holidays. This advanced technology will take the headache away from those associates and potentially make things easier. I bet you are think the Alphabot will take jobs away, the answer is no Walmart states that they will still have associates picking online grocery the technology makes it so much more simple. According to Lauren Thomas In its latest reported quarter, Walmart said it was a strong grocery business that played a 'meaningful' role in helping boost its digital sales by 41%. It said grocery comparable sales climbed a mid-single-digit rate, better than general merchandise. Putting those numbers in to contexts the revenue was up by 2.5% which made the company 127.99 billion which is awesome. For Walmart it’s all about the customers they continuing to do research and finds ways to meet their customer needs. Also they find ways through technology to help associates gain an advantage while doing their jobs. An example of this technology , Walmart began rolling out its new FAST Unloader this will aid the associates by helping get product that’s delivered out to the store much faster. The new unloading machine has an automated unloading conveyor system. How this new system works Walmart items are conveyed out of the truck using an extendable conveyor, When out of the truck, a barcode scanner reads the labels and sorts the boxes based on its location in the store. An operator organizes the boxes on standing carts Once full, carts are sent to the sales floor for stocking.
Competition
Walmart has a number of competitors but continue to outgrow and out preform most of them as well. Walmart tends to add 10,000 more jobs and most of its competitors in the retail business are cutting down on jobs.Walmart’s competitors continue to contract and consolidate, But there many reasons as to why these retail companies can’t keep up. Walmart is constantly evolving and other retailers haven’t taking advantage of changing their business. Walmart as a focal organization a competitor organization would be would be Amazon.Walmart biggest competition in the global market is Amazon. Amazon over the past couple of years have been generating great numbers far as business goes.
I feel Walmart is a great organization that keeps both its associates and customer first. Walmart are always researching ways to be a better company for both its customers and associates. The company is environmental cautious As well and do their best to be environmentally friendly.
Overall I think the company do a great job and this is the reason they are one of the biggest retail companies in the world. It all started from an idea that Sam Walton had and now I say it’s one of the most important companies in the United States. I guarantee A person has either heard about Walmart or shopped in one of its stores across the country. As it’s mission statement they promote to save people money and live better and I feel that the company uphold that standard.
Reference
- Ferguson, E. (2019, February 13). Walmart's Mission Statement & Vision Statement, Generic & Intensive Strategies. Retrieved from http://panmore.com/walmart-vision-mission-statement-intensive-generic-strategies
- History of Walmart: Timeline and Facts. (n.d.). Retrieved from https://www.google.com/amp/s/www.thestreet.com/.amp/markets/history-of-walmart-15092339
- Kenton, W. (2020, January 29). Walmart Effect. Retrieved from https://www.investopedia.com/terms/w/walmart-effect.aspOur History. (n.d.). Retrieved from https://corporate.walmart.com/our-story/our-history
- Walmart Highlights Economic, Societal and Environmental Progress in 2018 Global Responsibility Report Summary. (n.d.). Retrieved from https://corporate.walmart.com/newsroom/2018/04/23/walmart-highlights-economic-societal-and-environmental-progress-in-2018-global-responsibility-report-summary
- Walmart just unveiled a new technology that could help defend its position as America's largest grocer. (n.d.). Retrieved from https://www.google.com/amp/s/www.cnbc.com/amp/2020/01/08/walmart-unveils-a-new-technology-for-its-grocery-business-alphabot.html
- Walmart's New FAST Unloader Shows Intelligence of Motor-Driven Roller Conveyors. (n.d.). Retrieved from https://www.pulseroller.com/resources/pulsenews/walmart_s_new_fast_unloader_shows_intelligence_of_motor_driven_roller_conveyors
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