walmart
...ement'' stores. In 1990 Wal-Mart acquired ''The McLane Company'', a foodservice distributor. In 2003 McLane Company was sold to ''Berkshire Hathaway''. Wal-Mart stock is publicly traded at the New York Stock Exchange under the symbol WMT. As of March 31, 2004, there were 333,604 shareholders of Wal-Mart's common stock. Store Counts & Revenue • Current store counts and revenue for Fiscal Year Ending January 31, 2005 (revenue amounts in U.S. Dollars): • Company Total: 5,246 stores (excludes Seiyu operations) (US$285.2 billion) • Wal-Mart Stores USA: 3,337 stores (US$201.4 billion) • Discount Stores: 1,353 • Supercenters: 1,713 • Neighborhood Markets: 85 • SAM'S CLUB (United States): 551 Clubs (US$37.1 billion total) International: 1,587 (US$56.3 billion total) • Argentina]]: 11 • Brazil: 149 • Canada: 262 • China: 43 • Germany: 91 • South Korea: 16 • Mexico: 679 • Puerto Rico: 54 • United Kingdom: 282 ASDA in the United Kingdom is the largest of the international businesses by sales. Culture Wal-Mart’s success was attributed to the strong and pervasive culture at the company, which was developed and nurtured by founder Sam Walton. In over four decades of operation, Wal-Mart managed to retain most of the elements of culture it had when it first started out, as well as the entrepreneurial spirit which often drives startup companies to success. The fact that the company’s growth rate was often in double digits bears this out. Wal-Mart’s culture was characterized by an orientation towards customer service and providing the best value at the lowest prices. Wal- Mart Culture is base on Sam Walton’s Three Basic Beliefs: respect the individual, service to our customer, and strive for excellence. “As Wal-Mart continues to grow into new area and new mediums, our success will always be attributed to our culture. Whether you walk into a Wal-Mart store in your hometown or one across the country while you’re on vacation, you can always be assured you’re getting low prices and that genuine customer service you’ve come to expect from us. You’ll feel at home in any department of any store. That’s our culture”. Three basic beliefs, 'ten foot rule', and 'the sundown rule' to guide the organization's culture. Ten foot rules is The Sundown Rule was Sam Walton's twist on that old adage "why put off until tomorrow what you can do today." It is still an important part of Wal-Mart culture and is one reason why associates are so well known for their customer service. The observation of the Sundown Rule means they strive to answer requests by sundown on the day they receive them. At Wal-Mart, associates understand that customers live in a busy world. The Sundown Rule is just one way Wal-Mart tries to demonstrate to the customers that they care. The Ten-Foot Attitude is one of Wal-Mart's secrets to customer service is the "10-foot attitude," handed down by Wal-Mart Founder, Sam Walton. This Mean I want you to promise that whenever you come within 10 feet of a customer, you will look him in the eye, greet him and ask him if you can help him. However, despite the positive aspects and strength of the culture, there were a number of issues on which Wal-Mart was severely criticized. In the light of the number of law suits filed against the company, the top management realized that there were drawbacks in the culture of the company and began taking steps towards correcting them. Core- Value Core-Value Wal-Mart Excellence Yes Innovation Yes Respect Yes Social Profit Yes Integrity Yes Teamwork Yes Joy Yes The core values Wal-mart investigated are Excellence, Innovation, respect, social profit, integrity team work, and joy. Excellence Wal-Mart provide excellence low price for their customer living up to their motto “always low prices, always.” All Wal-Mart stores have employees referred to as "People Greeters and u could find almost anything in Wal-Mart. Innovation Among more than 3,300 U.S. stores, the corporation has designed one, scheduled to open in 2005 in McKinney, Texas, featuring a wind turbine, photovoltaic solar panels, and a biofuel-capable boiler. The building includes many other energy and cost-saving technologies. Respect Wal-Mart has win numerous awards: 2004 FORTUNE placed Wal-Mart in the top spot on its “Most admired Companies” List for the second year in a row. Also in 2004 Wal-Mart was presented the "Corporate Patriotism Award" which is presented to a company that exhibits exceptional dedication to raising awareness and support of U.S. service members and their families. Integrity With that lower pricing and good customer service Social Profit In 2004, cash donations to non-profit organizations by Wal-Mart, its employees, and its customers made through Wal-Mart, the Wal-Mart Foundation and the Sam's Club Foundation totaled more than $170 million. The typical Supercenter channels gives $30,000 to $50,000 a year to local charitable needs ranging from youth programs to literacy councils. More than 90 percent of cash donations from Wal-Mart Stores and the Wal-Mart & SAM'S CLUB Foundation target local communities. Teamwork 1.4 million employees and 4,900 stores Joy Create customer satisfaction by combining low prices, a wide range of quality products carefully tailored to customer needs and a pleasing shopping experience. Employees Wal-Mart refers to its employees as "associates," and encourages managers to think of themselves as "servant leadership/servant leaders." Each shift at every store, club, and distribution center starts with a store-wide meeting where managers discuss with hourly associates daily sales figures, company news, and goals for the day. All Wal-Mart stores have employees referred to as "People Greeters." They welcome people to the store and help prevent shoplifting. At Sam's Club these employees inspect the contents of the shopping carts of every exiting customer and check them off item by item against the printed receipt; however, nonmember U.S. customers may legally refuse to reveal the contents of their purchase. It pays its 1.2 million American workers an average of only $9.68 an hour, almost double the federal minimum wage. Wal-Mart’s average full-time wage in urban areas is slightly higher than the national average. For example: Chicago, $10.69; Austin, TX, $10.69; Washington D.C./Baltimore, $10.08; Atlanta, $10.80; and in Los Angeles, $9.99. Wal-Mart officials say the company's full-time hourly workers average $9.68 an hour, with a new, inexperienced worker beginning at $7 to $8 per hour. Wal-Mart's average hourly wage produces an annual income of $20,134.40, which is slightly more than the federal poverty level for a family of four ($19,350). Given that many "full-time" Wal-Mart employees work 34-hour weeks, though, the resulting average annual income of $17,114.24 falls well short of that standard for a family of four. A common charge against Wal-Mart is that it doesn't pay a "livable wage." Wal-Mart resisted the unionization of it’s the belief union membership created a barrier between the management and the employees in furthering the success of the company and its members. Despite strenuous efforts by unions to recruit Wal-Mart employees, union penetration remained low. Wal-Mart benefits: • Wal-Mart offers the following benefits to its employees: • Health (80/20 co-pay cost varies by plan and health; Wal-Mart pays average of two-thirds of insurance cost. • Dental (80/20 co-pay) • Stock Options (1.5% return default) • 401k (50% match, up to 4% of employees' pay) • Life Insurance (up to 200,000) • Company Paid Life Insurance (up to 50,000) • Accidental Death and Dismemberment (100% company paid) • Short Term Disability (100% company paid) • Long Term Disability • Prescription Drug Benefit • 10% Discount • Stake Holders Bonus (varies per store based on sale threshold) • Sick Pay • Vacation pay • Personal time pay • Bereavement Pay (immediate family members) Employees are eligible for full benefits after six months of full-time employment, two years of peak-time (part-time or seasonal) employment, or 1000 hours worked. Most benefits, including limited health insurance, start at the first day of employment. About 30% of its 1.6 million employees have some coverage under the insurance plan. Wowing the Customer • Wal-Mart Motto Always low Price! Always get the customer saying wow! No matter how old it gets. • Wal-Mart Supercenter putting McDonald in it store • Quality product Competition Wal-Mart's chief competitors in the discount retail space nationally include the Sears Holdings Corporation and the Target Corporation, along with many smaller regional chains such as Meijer in the Midwes...