Wal-Mart Stores, Inc.: On Becoming the World’s Largest Company (2002)
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Wal-Mart Stores, Inc.: On Becoming the World’s Largest Company (2002)
CASE ABSTRACT
Wal-Mart Stores, Inc. is an American-based discount retailing concern headquartered in Bentonville, Arkansas. In 2002, Wal-Mart Stores, Inc., of Bentonville, Arkansas, operated mass merchandising retail stored under a variety of names and retail formats, including Wal-Mart discount department stores; Sam’s Wholesale Clubs, wholesale/retail membership warehouses; Neighborhood Markets, small grocery/drug store formats; and Wal-Mart Supercenters, large combination grocery and general merchandise stores in all 50 states. It was not only the nation’s largest discount department store chain but also had surpassed the retail division of Sears, Roebuck and Co. in sales volume as the largest retail firm in the United States. Much of the success of Wal-Mart was attributed to the entrepreneurial spirit of its founder, Sam Walton. Sam Walton built the company from the ground up. Many considered him one of the most influential retailers of the century.
In the International Division, it operated its own stores in Canada, Mexico, Argentina, Brazil, Germany, South Korea, United Kingdom, and Puerto Rico, plus stores in China operated through joint ventures. It was also considered the largest retailer in the world, as measured by annual revenue, with sales for the year ending January 31, 2002 of approximately $217.8 billion.
Kmart Wal-Mart______ Sales
Net Income
Sales
Net Income
FY 1990
$32,070,000,
$756,000
$32,601,594
$1,291,000
FY 2000
$37,028,000
($244,000)
$191,329,000
$6,295,000
FY 2001
$36,151,000
($2,418,000)
$217,799,000
$6,671,000
Wal-Mart experienced sales growth of 20% in the fiscal year 2000. This impressive increase is a direct result of the company’s expansion program.
Kmart shows an increase of $4,081,000,000 or 12.72% while Wal-Mart’s sales increased to $217,799,000,000 (an increase of $185,197,000,000 or 568.1%), in fiscal year 2001.
Decision Date: 2002
2002 Sales:
$219,812,000,000
2002 Gross Profit:
$10,751,000,000
(2002 Fiscal Year was February 2001 to January 31, 2002)
CASE ISSUES AND SUBJECTS
Mass Merchandising Industry
Corporate Governance
The Marketing Concept
Genesis of an Idea
Foundations of Growth
Becoming National
The External Environment
Domestic Corporate Strategies
International Corporate Strategies
Decision-Making in a Market-Orientated Firm
The Growth Challenge
STEPS COVERED IN STRATEGIC DECISION-MAKING PROCESS
Strategy Formulation
Strategy Implementation
Evaluation & Control
1A 1B 2 3 4 5A 5B 6
Ш Ш X Ш X X X X
Ш = Emphasized in Case X = Covered in Case
CASE OBJECTIVES
To discuss Company Philosophy
To discuss Products and Services
To discuss Marketing Strategies and Distribution Methods
To discuss Facilities and Operations
To discuss the company’s competitors
To discuss the company’s market segments
To discuss Patents, Trademarks, and Licenses
To discuss the Finance issues
DISCUSSION QUESTIONS
What are the strengths and weaknesses of Wal-Mart Stores, Inc.?