Wal-Mart Strategic Audit
Jessica Kauten, Siveicea Love-Guarganious,
William Montague, Scott Randall,
Marchelle Robinson, and Judith Rosado
Strategic Management 479
May 8, 2011
Wal-Mart Executive Summary
Wal-Mart was founded in 1962 by a man named Samuel Moore Walton. He was considered “one of the most influential retailers of the century” (Wheelen & Hunger, 740). Sam Walton started his retail career in management in 1940 with J.C. Penney Co. His training and hard work at J.C. Penney Co. led him to his great Wal-Mart idea. He decided that small town populations would welcome, and make profitable, large discount shopping stores. When Sam Walton created Wal-Mart in 1962, he declared that three policy goals would define his business: “respect for the individual, service to customers, and striving for excellence” (Walmartstores.com).
Wal-Mart stores “sold nationally advertised, well-known-brand merchandise at low prices in austere surroundings” (Wheelen & Hunger, 738). The 1970’s marked significant growth for Wal-Mart with its first Wal-Mart Distribution Center as well as the Wal-Mart Home Office. By the end of 1979, there were 276 Wal-Mart stores in 11 states and in 1991, the firm had 1,573 stores in 35 states to include the international market. Wal-Mart sales growth continued into the 1980s. Wal-Mart was divided into three business segments: Wal-Mart stores, Sam’s Clubs, and the International Division.
In 1983 the company opened its first three Sam's Wholesale Clubs and began its expansion into bigger city markets. Wal-Mart Supercenters were large combination stores that included a full-line grocery center, a general merchandise discount store, banks and some even offered a food court of restaurants. Wal-Mart’s international expansion accelerated management’s plans for expansion and notoriety. In 2000, Fortune magazine named it as one of the “100 Best Places to Work” and in 2002, “Wal-Mart...