Wal-Mart Case Study

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Running head: WAL-MART CASE STUDY WAL-MART CASE STUDY [pic] [pic] Sam Walton’s original Walton’s Five and Dime, now the Wal-Mart Visitor’s Center Bentonville, Arkansas. The history of Wal-Mart can be traced back to the 1940s when the founder Sam Walton began his career in retailing. After being interviewed by recruiters from Sears and JC Penney, just before graduating from the University of Missouri in Columbia, Sam accepted a job offer from JC Penney. He began working at a JC Penney store in Marshalltown, Iowa on June 3, 1940, making salary of $2.00/month. During his employment there, Sam Walton met James Cash Penney, the store’s founder, during a visit to the store. Sam remained at JC Penney for 18 months. In September 1945, Walton acquired the franchise and lease on a variety store; Ben Franklin in Newport, Arkansas from George Scharlott. The variety store was part of a chain operated by the Butler Brothers, a regional retailer. After three years, Walton increased annual sales from $80,000 to $225,000 by 1948. However, the landlord, P.K. Holmes, declined to renew the lease on favorable terms and Walton was forced to relocate before the end of 1950. Walton was prepared to purchase a five-and-dime from Jim Dodson in Siloam Springs, Arkansas, but the two were $7,000 apart on agreement on a purchase price. On May 9, 1950, Walton purchased a store from Luther E. Harrison in Bentonville, Arkansas, and opened Walton’s 5 & 10. Thus, the Ozark Mountain town of 2,900 residents would become the headquarters for the world’s largest retailer. Threats that Wal-Mart is currently facing In order to keep prices low, Wal-Mart has had to cut costs in some of their areas. They are also forcing their suppliers to offer their products at much lower prices. As a result, their competitors are forced to do the same, which in return is causing profits to

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