Wal Mart a Strategic Analysis
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Wal-Mart
Wal-Mart Stores Inc. was founded in 1962 and commenced operations with a chain of 15 stores. The company stemmed from a firm called Walton 5&10, ran by brothers Sam and Bud who operated Ben Franklin franchises during the 1940's and fifties. Sam Walton, Chairman of the Board of Wal-Mart until his death in 1992, based the Wal-Mart model on his experience working for JC Penneys and this model, coupled with his own personal leadership skills helped grow Wal-Mart into the largest retailer in the world.
The Wal-Mart business model aimed to provide brand merchandise at low prices. What differentiated this retailer from other discount retailers was its employee orientated approach. This is the central tenet of Wal-Mart's strategy and is founded on the belief that if the interests of the employees, or Associates as they were called, is put first they will respond to this treatment and in turn cause the business to be successful. The company's commitment to its employees created loyalty, and a dedication to the company on the part of its employees. This approach to personnel management and its benefits was personified in Sam Walton who it was said "instilled near-religious fervour in his people".
The Wal-Mart strategy involves calling employees "Associates", encouraging their participation at meeting and through a "Letter to the President" program, special awards programs which recognise individual, division and department achievement...