WAL MART Stores, Inc.
Worlds largest retailer $244.5 billion in sales in the fiscal year ending Jan. 31, 2003 Employs more than 1.3 million associates worldwide More than 3,200 facilities in the United States More than 100 million customers per week visit Wal-Mart stores worldwide.
Co-Founders Sam and Bud Walton
H. Lee Scott, Jr. President and Chief Executive Officer
David D. Glass Chairman of the Executive Committee of the Board of Directors
John T. Walton Chairman of Board of Directors
Sam Waltons Three Basic Beliefs
(Established in 1962 with the first Wal-Mart in Rogers, Ark.)
1 Respect the Individual
Every customer and employee deserves to be treated with respect and dignity
2 Service to Our Customers
Offer the lowest prices with the best possible service
3 Strive for Excellence
Find new and innovative ways to constantly improve
CUSTOMER SERVICE
"Let's be the most friendly offer a smile of welcome and assistance to all who do us a favor by entering our stores. Give better service over and beyond what our customers expect. Exceed your customers' expectations If you do, they'll come back over and over again." Sam Walton
Wal-Mart greeters have welcomed customers into stores since 1980. Greeters show customers that Wal-Mart is a friendly place to shop. They make customers feel welcome and help them enjoy their shopping experience. Greeters also provide directions and answer questions.
AWARDS & RECOGNITION
2003 Most admired company in America FORTUNE magazine 2002 Ron
Brown Award for Corporate Leadership
(recognizes companies for outstanding employee and community relations)
No. 1 on the FORTUNE 500 list 2001 Hispanic Business Magazine named Wal-Mart one of the 2000 No. 1 Corporate Citizen in America Cone/Roper Report
(an annual national survey regarding philanthropy and corporate citizenship)
Top 25 Diversity Recruitment Programs for its aggressive program to hire and promote Latinos.
1999 Retailer of the Century Discount Store News and
Mass Market Retailers
RETAIL DIVISIONS Wal-Mart Stores
The flagship retail division of Wal-Mart Stores, Inc. 36 departments including family apparel, health & beauty aids, household needs, electronics, toys, fabrics & crafts, lawn & garden, jewelry and shoes Some include a pharmacy, Tire & Lube Express, garden center, snack bar or restaurant, Vision Center and One-Hour Photo Processing Operate on an "Every Day Low Price" philosophy and are able to maintain their low price structure through conscientious expense control
SuperCenters
Wal-Mart stores with grocery departments that provide one-stop family shopping convenience Most include Wal-Mart Specialty Shops (Vision Center, Tire & Lube Express and One-Hour Photo Processing) Provide departmental directories, 24-hour service, and self-scanning registers for fast, efficient checkout service Average between 100,000 and 220,000 square feet of retail space
SAMS CLUB
Country's largest membership warehouse club operating with a renewed focus on serving small business owners. More than 530 Clubs in the United States serving 46 million members Sells business items, personal items including designer-label apparel, electronics, jewelry, furniture, seasonal merchandise, and restaurant-quality food and wine
Neighborhood Market
Offer groceries, pharmaceuticals and general merchandise Include fresh produce, deli foods, fresh meat and dairy items, health and beauty aids, one-hour photo, drive-through pharmacies, pet supplies, and household chemicals
Wal-Mart International
Operates more than 1,300 units and employs more than 303,000 associates in nine countries:
Argentina
China
Mexico
Brazil
Germany
Puerto Rico
Canada
Korea
United Kingdom
Wal-Mart operates 11 Supercenters and one distribution center and employs over 4,000 associates in Argentina
Wal-Mart has 31 stores in China employing more than 15,000 associates
Wal-Mart operates more than 625 units in 59 cities and employs 96,329 associates Wal-Mart de Mexico is the largest employer and the most important retailer in Mexico
Walmart.com
Official website for Wal-Mart, Inc.
Offers 24-hour online shopping
Provides company information to Internet users
BRANDS
Keepsake Jewelry Faded Glory Apparel No Boundaries Accessories GEORGE Ladies Apparel Mary-Kate and Ashley Girls Department Equate Health and Beauty One Source Vitamins Ol Roy Pet Food Puritan Clothing Great Value Food Sams Choice Food and Beverage
SPECIALTY DIVISIONS
Tire & Lube Express Wal-Mart Optical Wal-Mart Pharmacy Wal-Mart Vacations Wal-Mart Connect Wal-Marts Used Fixture Auctions
COMPETITORS Target Corp.
Wal-Marts primary competitor and the nations second largest retailer
Kmart Holding Corp.
Wal-Marts secondary competitor and the nations third largest retailer
WAL-MART STORES, INC. (WMT) STOCK PERFORMANCE COMPARED TO TARGET CORP. (TGT) AND KMART HOLDING CORP. (KMRT)
FINANCIAL INDICATORS
1,730 shares of WMT stock were purchased at $57.78 per share on September 17, 2003. On November 28, 2003, WMT stock closed at $55.64. As of November 28, 2003, $3,742.80 of the $100,000 invested was lost.
WAL-MART (WMT) COMPARED TO DOW JONES INDUSTRY INDEX- RETAILERS BROADLINE
Wal-Mart Stores, Inc. believes each Wal-Mart store, SAM'S CLUB and distribution center has a responsibility to contribute to the well being of the local community. Wal-Mart's Good.Works. community involvement program is based on the philosophy of operating globally and giving back locally.
Wal-Mart gave $3.1 million to charitable community organizations through the Volunteerism Always Pays Program
Wal-Mart Stores, Inc. encourages its employees to give back to their communities through the Volunteerism Always Pays Program (VAP). Wal-Mart makes donations to community non-profit organizations where Wal-Mart employees volunteer. In 2002, Wal-Mart associates volunteered more than 1 million hours.
In 2003 Wal-Mart will contribute more than $1.7 million to local schools through Environmental Grants.
Every Wal-Mart and SAMS CLUB location awards an Environmental Grant of $500 to a local school for a project to clean up an area, landscape a community property, or beautify a portion of its community. Wal-Mart has been awarding environmental grants since 1990.
Wal-Mart has given $80 million in scholarships since 1979
Every store and club awards a $1,000 Sam Walton Community Scholarship to two collegebound high school seniors. In addition, the Wal-Mart offers scholarships to associates and their dependents.
Talia Glover Recipient of the Higher Reach Scholarship
Wal-Mart has donated more than $184 million in 19 years to United Way chapters
In 2002, Wal-Mart and its associates contributed more than $19 million dollars through employee and company contributions to support local United Way chapters across the country.
At each Wal-Mart or SAM'S CLUB grand opening, a check is presented to a local United Way.
Wal-Mart raised more than $265 million in 15 years for Children's Miracle Network
In 2002, Wal-Mart Stores, Inc. raised more than $34 million for Children's Miracle Network, which is the highest amount contributed by all Children's Miracle Network corporate sponsors. Every dollar raised is distributed to a local CMN-affiliated hospital. Children's Miracle Network hospitals treat millions of children like Nicole Takemura and Calum Ahmed each year.
Wal-Mart donated $100,000 to the Fort Campbell Army Emergency Relief fund, which provides financial help to soldiers and their families in times of need. Community Bike Giveaway Wal-Mart donated 75 bicycles with minor imperfections to the Boston Society of Vulcans (an organization of firefighters), who repaired the bikes and gave them to children in their community. Wal-Mart expects to provide $20 million in funding to charitable organizations across the country this year to match the $20 million raised during the 2002 holidays.
STRENGTHS
Family Orientated Edited CDs No Playboy Generous Americas largest corporate cash giver Gave $150 million in 2002 to support communities and non-profit organizations Diverse staff Many job opportunities for communities Employs the highest number of African Americans and Hispanics in the United States Convenient Everything customers need in one place Many locations worldwide Inexpensive Always low prices. Always.
WEAKNESSES
Lower quality products Compared to stores like Target that sell products at a slightly higher price Hurts smaller businesses Local shops cant compete Stores are too big, disorienting Customers cant find what they need Some employees do not speak English Not helpful to customers Lower average pay Sales clerks average only $14,000 a year Fewer health benefits Pays 30% less for health care coverage than industry average Sells many foreign-made products Imported $12 billion in goods from China in 2002
OPPORTUNITIES
Publicize higher quality products that the stores sell at a low cost Increase concentration on the elderly and the Hispanic population, two of Wal-Mart growing customer bases Gain support from people who have neutral feelings about Wal-Mart in their community Publicize the new fashionable clothing options Wal-Mart has for women GEORGE new brand of fashionable business apparel for women Use celebrities with name brand products at Wal-Mart to publicize those products An example is Mary-Kate and Ashley Olsen Publicize philanthropic efforts
THREATS
Employing illegal aliens and paying them unfair wages Pending lawsuit involving discrimination against women People questioning if WalMart is too powerful Anti-Wal-Mart sentiments Community campaigns to keep Wal-Mart out of towns Government complaints At least 60 government complaints concerning possible Wal-Mart antiunion activities
RECOMMEDATION Publics
People who are opposed to Wal-Mart People who support Wal-Mart People who have neutral feelings towards Wal-Mart
Objective
Increase support for Wal-Mart in communities where Wal-Mart stores are currently present or may eventually be present by 15% before December 31, 2004
STRATEGY
Begin a nationwide campaign to create positive sentiments within communities about the presence of Wal-Mart stores using face-to-face communication
TACTICS
Town meetings
Wal-Mart Representatives attend meetings to gage the sentiments towards Wal-Mart in communities and build positive relationships with all publics in each community Discuss benefits of Wal-Marts presence in communities Discover communities concerns regarding the presence of Wal-Mart and discuss mutually beneficial solutions
Community events
Sponsor local events to strengthen relationships and create positive attitudes towards Wal-Mart Use these philanthropic events to show how Wal-Mart positively contributes to communities
Continue current philanthropic programs
STRATEGY Use one-way communication to publicize local philanthropy and inform publics of the benefits that Wal-Mart provides in communities
TACTICS
Printed Media
Distribute press releases to newspapers and other local publications about Wal-Marts participation in local events and community contributions Use newspaper inserts to publicize philanthropic programs
Utilize opinion leaders who support Wal-Mart such as governors, mayors and other local leaders to influence their followers
EVALUATION
Distribute surveys at town meetings and conduct focus groups comprised of randomly selected members of each community to gauge local sentiments towards the presence of Wal-Mart Use surveys at town meetings to ascertain public sentiment before and after the campaign Focus groups will be held before the campaign (December 2003), during the campaign (June 2004), and after the campaign (January 2005) to determine the progress and success of the campaign Keep records of opinions voiced at town meetings or in the local media concerning Wal-Mart to follow public opinion regarding the presence of Wal-Mart in communities
