Wal-Mart Stores Your name




SamWalton is the founder of the Wal-Mart Stores in 1962. It has itsheadquarters located in Bentonville Arkansas. Wal-Mart Store is anAmerican – international retail company, that runs large warehouseand departmental stores. It is ranked as the largest privateemployer worldwide, having employed over two million people. It islocated in over 50 states in America. The company’s services areoffered in around 15 countries worldwide. It has around 8500 storesusing different names in the world. The company has been able to usethe four management functions to be able to achieve its goals. It hasbeen able to use the planning, organizing, leading, and controllingrules to make the company continue climbing the ladder and retain itsstatus as one of the leading companies. The company’s strategy ofsucceeding is offering its customers good services and selling itsgoods at lower prices. However, it believes in gaining its profit byselling its goods in large volumes.


Thereare different reasons why people open up companies daily. Wal-MartStores is the one of the leading retailer worldwide. Sam Waltonstarted it in 1962 in the rural area in Arkansas.It has employedover one million workers in the United States of America. In America,it has around 1,478 discount stores located in the 50 differentstates. It also has combined several Supercenters that have combinedboth grocery stores and discount outlets. There are around 530 Sam’sclubs. It also has over 60 Wal-Mart neighborhood markets. Inaddition, it has opened several branches outside the United States ofAmerica. For example, it has discount stores in Puerto Rico, Canada,China, Mexico, Brazil and many more (Hill&amp Jones, 2012).

Theorganization deals with retail stores, warehouse clubs, ecommerce,restaurant, and superstores. The company’s goal is to meet itscustomers’ needs by selling goods at discounted prices making thecost of the good very low. However, they still made profit throughselling volumes of its products.To get profit they cut costs onadvertising and have twelve annual promotions only. After the deathof its founder Sam Walton, in 1992, the company started facingdecline in its sales. However, in 1993, the company started pickingup again through the introduction of the Wal-Mart stores in differentstates (“TheWal-Mart Stores,” n.d.).This paid off as the company doubled its sale in 1995. In addition,by 1999 it had gone back to being the leading company in discountretailing. The company’s growth has faced different challenges asit has been criticized for its low payment to its workers and thefact that it is said to have wiped out the urban small retail shopsdue to its high competition. However, most companies in the worldcopy its merchandising techniques.


Thisis the process whereby the organization’s leaders decide the stepsthe company should take to be able to achieve its goals. The companyplans both the short term and long-term methods that would be able tohelp achieve the success of the company. Research shows that theWal-Mart Stores main goal is to meet its customers’ needs at thelowest price possible. The company uses three principles in itsplanning strategy. One of them is to offer good services and value toits customers, secondly is to develop good relationship with itsassociates and lastly the company involves itself with the community(Hill&amp Jones, 2012).

Thecompany has excellent logistic plans that help to achieve its goal.For example, it makes use of its management system and technology toensure that its stores offer goods at discounted prices to itscustomers. Wal-Mart Stores has its own transport services that assistin moving goods to the stores from the warehouse (“TheWal-Mart Stores,” n.d.).This helps in fast restocking of its products compared to itscompetitors. The company is able to serve its clients anytime andanywhere using social, mobile, and online capabilities. The companyis very keen on its capital spending and operational expenses.


Inthis stage, the organization designs its structure and assignsdifferent assignment to different groups within the organization, sothat they are able to fulfilling the company’s goal.Smallergroups within the organization work on different roles with theultimate aim of achieving the company’s goal. Research shows thatWal-Mart Stores employees people from the age of 16 years. It hasprofessional oriented and part time job opportunities ((Soderquis,2005).The company is divided into sections that creates the following jobopportunities cashiers, store associates, customer servicerepresentative, greeters, stock associates, maintenance assistance,sales electronic associates, stock associates, housekeepingassociates, pharmacy associates, associates in beauty sales,automotive technicians, truck drivers, associates of photo sales,cart retrievers, bike assembler, store managers and their assistantsand many more. Wal-Mart stores has supervisors and managers tosupervise the application process, hiring process, ensure customer’sfulfillment, and confirm the stores operations are maintainedefficiently (Bergdahl,2004).

Wal-MartStores Organizational Chart

General Manager

Co – Manager

Assistant Manager

Support Manager


Stockers/Cashier/ Sales associates

Inall Wal-Mart Stores worldwide, the management chart hierarchy areidentical in job categories For instance, stockers, cashier and salesassociates form the lowest level in the organization hierarchy. Theyare followed by CSM, and COS level. It consists of hourly positionsupervisors. The support managers of the company follow them. Thenext level is a level that has five months management trainingprogram that makes the employees become assistant managers. There areseveral assistant managers in every store worldwide. Co – managersfollows them in the hierarchy. This position is only present in largestores. Finally, the top most level is the manager in charge of thestore. Each store consists of around fifty departments.


Itis also known as influencing, directing, or motivating. The managersfind methods of how to motivate the employees in the company, be ableto do different things that help attain the goal of the company. Itsmain purpose is to increase productivity of the company. Researchshows that Wal-Mart Stores due to the different managers it had ithas enjoyed different leadership styles in its organization. Forexample, the founder Sam Walton used the charismatic leadership stylewhereby he believed that for the company to be able to achieve itsgoal the employees must be handle with care. He claimed that happyemployees would make the customers happy too. He also believed inrewarding his employees as a sign of motivating them. For example, heallowed employees to enjoy the profits the company by buying Wal-Martshares. This makes the employees feel a sense of belonging to thecompany. This motivates the employees to do their best to be able toachieve the company’s goals.

Inaddition, Sam Walton created high goals for the company, and thenallowed competition among the employees to see who would be able toachieve them. He would then keep scores of their performance. Afterwhich the people that won the challenges or bets would be reward bypaying them money (Soderquis,2005).He also allowed managers from different sections to change their jobpositions. This helped the mangers to gain experience and improve theway they handle different challenges and make them be better leaders.

SamWalton believed that there should be clear information flow betweenhim and his employees. He believed that when employees have goodinformation they would work better for him through understanding(“Wal-MartStores,” n.d.).He believed that because of the communication between him and hisemployees it brought respect and trust among there union. He believedthat without there being trust between him and his employees then hewould not succeed in his goal. Lastly, Sam Walton believed inappreciating his employees by telling them. This made the employeesfeel valued and hence performed better to achieve the company’sgoal. This strategy helped him stay on top of the game. As theemployees would report to him what is happening and is required onthe ground (Hill&amp Jones, 2012).


Inthis stage, the managers get information that establishes thecompany’s performance. They then compare it with previousestablished performance norms. Finally, they decide the next stepthat the performance parameters should follow or modify to be ableto achieve the expected goals. From research the main goal of theWal-Mart stores is to better the lives of its customers throughselling its products at a lower price while selling its products inlarge volumes.

Sometimesthe business has to adjust its strategies to ensure that they arestill leading in the world. Research shows that for the past severalyears there has been emphasis on performance parameters in the areaof financial priorities (Bergdahl,2004).The priorities are returns, leverage, and growth that should bemanipulated to better the performance of the business. Currently thecompany is investing more in the addition of physical and digitalretails. This is a long-term growth plan for the company. The companywill continue to grow by it increasing more clubs and stores. Thecompany is trying to find ways of increasing cash flow by equalizinggrowth and returns. For instance, the company will keep on providingreturns to its shareholders through dividends and repurchasing ofshares.

Discussion/ Conclusion

Fromthe above research, it is evident that for a business to prosperthere are rules that it should set and follow. The saying that saysfailing to plan is planning to fail is very true in the businessworld. Sam Walton the founder of the Wal-Mart Store when he wasemployed to work at Ben Franklin’s franchise tried to propose tothe owners his idea of selling goods to the customers at a reducedprice, while aiming at making profit from selling the products inbulk, but they did not accept his concept. Once he was able to openhis own company with an aim to be successful while meeting the needsof his customers he made it. This was because of the managementprinciples that he followed while striving to be excellent at hiswork place.

Heestablished three believes that have worked for Wal-Mart Stores foryears to date. First was respecting people, secondly was serving yourcustomer, and lastly was striving for excellency (“Wal-MartStores,” n.d.)..The three believes helped him to focus and achieve his goal withease. Wal-Mart store has faced challenges just like any otherbusiness but it has been able to stand due to the differentleadership styles and business principles that it has been able touse over time. For example, it receives a lot of criticism from itscompetitors and other institutions but has accepted it positively andturned it to the advantage of the company.

Thegoal setting principle and sticking to it has been a very importantstep in ensuring that the company stands. This is because the companyis forced to find ways to overcome obstacles like ensuring that goodsare readily available to the different store to meet the customer’sneeds. The way they treat their employees as an asset to the companyand given them different motivational incentives has really played abig role in meeting the company’s goal as it has made the employeesfeel part of the company and that they are valued. Another thing thathas helped the company to grow is the fact that it has well laid downstrategies on how to meet its goals through the division of tasks todifferent departments within the company.

Fromthe above research that I carried out, anybody can start a business,but it is important to note that, it is not by chance that a businessprospers and meets its goals. However, it is through following setrules and guidance in the different business principles that willhelp them.


Soderquist,D. (2005).&nbspTheWal-Mart way: The inside story of the success of the world`s largestcompany.Nashville: T. Nelson.

Hill,C. W. L., &amp Jones, G. R. (2012).&nbspEssentialsof strategic management.Australia: South-Western/Cengage Learning.

Bergdahl,M. (2004).&nbspWhatI learned from Sam Walton: How to compete and thrive in a Wal-Martworld.Hoboken, N.J: John Wiley &amp Sons.

Wal-MartStores, Inc. (n.d.).&nbspMergent`sDividend Achievers,&nbsp292-292.

TheWal-Mart Stores, Inc.: An American Dream That Touched the World.(n.d.). Retrieved October 5, 2015, fromhttps://www.questia.com/library/journal/1G1-397579892/the-wal-mart-stores-inc-an-american-dream-thatLeadershipStyle at Walmart (ManagementParadisecom Forums Your MBA Online DegreeProgram and Management Students Forum for MBABMS MMS BMM BBA studentsaspirants RSS)