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Table of contents

Executive Summary 7

Introduction
Purpose & Method 11
Vision & Mission 12
Background 15
History 15
Milestones & Achievements 17
Findings
Strategic planning 19
SWOT analysis 21
Organisation’s strategies 23
Organisational structure 26
Hierarchical structure 27
Function-based structure 31
Leading 33
Generation of CEO 34
Organisation’s hero 35
Motivational environment 37
Controlling 39
Market control 41
Clan control 45
Audit control 46
Performance standard control 48

Conclusions & Predictions 49

References 51
“
If we can, we’ll lower the cost of
living for everyone, not just in
America but we’ll give the world an
opportunity to see what it’s like to
save and have a better lifestyle and a
better life… a better life for all.

-Dough Mcmillon
CEO, Walmart
 Executive summary
In the hustle and bustle of today’s society, the need for affordable products is
increasing substantially. Walmart is one of the largest retail and wholesale corporations
in the world which offers goods and services with “Everyday low prices” strategy. From
supermarkets, hypermarkets, department, discount stores and digital markets, Walmart
engages in a diverse range of marketing activities and also competes with its large rivals
such as Alibaba, Amazon. The potential of Walmart in the competitive market is huge
and undeniable, that is the reason why we should have a better understanding about how
the business has grown so fast in the last few decades. Market research is a good way and
marked as an initial step to develop business strategies and skills in the future for those
who are aiming at business fields. Especially, researching a leader market as Walmart can
be a golden opportunity to discover their successful strategies.

By providing a brief history of the organization and its mission following, this
report will sketch an overview of how Sam Walton found and developed Walmart into
the largest retail sales chain globally with the immortal slogan “Save money, live better”
throughout its long history.

In the next part, strategic planning is given to interpret the Strength, Weakness,
Opportunities, Threats (SWOT analysis) as well as organization strategies so as to
analyze how Walmart uses its competitive advantages to dominate and successfully grow
in the retail industry. While Walmart can benefit a lot from its advantages such as brand
recognition and global presence & fast expansion, the organization still need to be careful
in every move since there are a great deal of hurdles related to ethical, political and
technical issues it has to face so far.

Formal structure is also included with charts and statistics in this report. From
which we can know more about hierarchical structure where its CEO makes all the
crucial decisions for the company as well as the function-based structure used to
categorize employees in accordance to their skills.

Leadership information explains how the corporation is organizing and reaping the
rewards of success thanks to Sam Walton - the hero of the organization. This report
should not forget to present the motivational environment which give people an overview
of what inspires Walmart to come of age in the competitive market.

Furthurmore, the findings relating to controlling system will point out the
significance of its essence in operating the Walmart chain around the world.

The last part will conclude what the report has pointed out so far and give a
prediction from which we will have a broader idea of how Walmart will develop in the
future as well as the segments it likely to engages in down the road.

To prove the reliability of these findings, it is thanks to a great deal of contribution

from many writers, authors and journalists that we have gather from trustworthy sources
on the Internet. Hence, the references is an importance which will in turn, provided in the
end of this report.

For any reason, the ultimate purpose of this report is to give an overall
understanding of this large and diversified business in the whole wide world.
Introduction
Purpose Method
The purpose of this report is to In the analysis of the study, data
provide a managerial analysis of will be collected through the
Walmart. Note that this report will offical website of Walmart and a
specifically focus on Walmart in variety of online research which
general, discussions into details of include industry research reports,
Walmart divisions such as Sam’s individuals, and group study.
Club, Walmart U.S, will be
limited.
 Vision
While its vision is to make
“every day easier for busy
families.” Walmart defines
“busy families” as the bull’s eye
of its business strategy and
Walmart business model.

Mission
Walmart’s mission can be
summarized as “helping people
around the world to save money
and live better - anytime and
anywhere - in retail stores
through eCommerce.”
Walmart stores d
distribution
Background
Walmart is the world largest retail corporation
that operates a chain of hypermarkets, discount
department stores and grocery stores. As of July 31,
2022, Walmart has 10,585 stores and clubs in 24
countries, operating in 46 different banners. Walmart is
the world's largest company by revenue, with about
$570 billion in annual revenue, according to the
Fortune Global 500 list in May 2022. Walmart is also
the largest private employer in the world with
approximately 2.3 million associates worldwide, of
which 1.7 million are in the U.S.

History
Walmart was founded by Sam Walton. Sam
Walton was born in 1918 in Kingfisher, Oklahoma. In
1942 at the age of 24, he joined the military. He
married Helen Robson in 1943. When his military
service ended in 1945. Sam and Helen moved to Iowa
and then to Newport, Arkansas. During this time, Sam
gained early retail experience, operating his own
variety store. In 1950, the Waltons left Newport for
Bentonville, where Sam opened Walton’s 5&10 on
the downtown square of Bentonville. They chose
Bentonville because Helen wanted small-town living,
and Sam could take advantage of the different hunting
seasons that living at the corner of 4 states had to
offer. Inspired by the early success of his dime store
and driven to bring even greater opportunity and value
to his customers, Sam opened the first Walmart in
1962 at the age of 44 in Rogers, Arkansas.
Milestones &
Achievements

1960s: Retail Revolution

Sam Walton’s strategy is built on an
unshakeable foundation: the lowest
prices anytime, anywhere.

1970s: Walmart goes National

In the 1970’s, a decade of incredible
growth, “Mr. Sam” began to take
Walmart national, providing his
vision’s widespread appeal.

1980s: Decade of Firsts

In the 1980s, the first Sam’s Club
opened, serving small businesses and
individuals, and the first Walmart
Supercenter opened, combining a
supermarket with general
merchandise.

1990s: America’s Top Retailer

By 1990, Walmart was the nation’s
No.1 retailer. As the Walmart
Supercenter redefines convenience
and one-stop shopping, Everyday
Low Prices goes international.
2000s: New Millennium
Walmart entered the new
millennium dedicated to offering
customers a seamless shopping
experience, whether they are
online, in a store or on a mobile
device.

2010s: People-led &

Tech-empowered
Walmart commits to serving
customers in a changing retail
environment, leveraging both
associates and technology to
make it happen.

2020s: Beyond
Traditional Retail
Walmart expands the ecosystem
that supports, enhancing
processes that enable them to
shop wherever and however
they choose.
 Findings
THE NO.1 RETAILER

KNOWN AS THE LARGEST RETAILER WORLDWIDE,

WALMART HAS A GREAT STRATEGY TO STRIVE
CONTINUOUSLY EACH YEAR. BY MAKING IT EASIER FOR
BUSY PEOPLE THROUGH E-COMMERCE, MORE
PROFITABLE FOR CONSUMERS BY OFFERING A LOW
PRICE, WALMART IS NOW GAINING ITS POSITION IN THE
COMPETITIVE MARKET.
Strategic planning
 Strengths Weaknesses
o Brand-name reputation; o Employee working environment and
o “Cost leadership” or “Everyday job satisfaction;
low price” strategy; o Race and gender discrimination
o Strong market power; pratices;
o Successful E-commerce adoption; o Overdependence on the US market;
o Efficient and effective resource o Bad reputation related to negative
management; publicity;
o Huge gains from best pratices; o Thin profit margins;
o Technology adoption; o Loss of corporate control.
o International presence;
o Workforce management.

SWOT
ANALYSI
Opportunities Threats
o Fake product controversy;
S o Quality standard improvement;
o Large range of rivals and potential o Enhancement in workforce
competitors; practices and innovation;
o New lawsuits related to political, o Adoption of AR and VR ;
legal and ethical issues; o Strengthen e-commerce;
o Risk of data breaches and safety o Cooperation strategy;
commitment; o Health-care service expansion.
o Technical issues on the website;
o Economic downturn.
 Strengths
Brand-name reputation: Millions of customers
visit Walmart as well as make purchases through
websites on a regular basis and thus, create a
prominent retailing brand in the world.
Strategy called or ‘Every Day Low Prices’
strategy, promising customers the lowest prices in
their store without having to use a coupon, waiting
for a sales event.
o Attractive trait to retain customers to
Walmart thanks to economies of scale
agenda.
o Fixed costs to millions of items sold.

Strong market power: With large

organizational size as well as capacity to sell
its merchandise at lower prices, Walmart holds
global power over its suppliers and
competitors.

Successful E-commerce adoption:

o By adopting technology, total revenue

has boosted substantially.
o Walmart is the second largest
eCommerce retailer in the United States
with eCommerce making up around
13% of its sales.

Efficient and effective resource

management:

o Distribution facilities.
o Information systems.
o Supply chain networks.
Huge gains from best practices:

o Walmart is doing good jobs in performing tasks, managing a large number of stores
globally, hiring and training new employees.
o By doing so, it can forecast the customer’s demand, track product movement, identify theft,
track the costs of each product, and last but not lease, minimize losses.

Technology adoption: Such as blockchain, sophisticated robots and automation tools.

o For example, customers can check their sizing through Walmart's app with a virtual fitting
feature that lets them select from 50 models of different heights, body shapes and skin
tones.

International presence: In a report of May, 2020, there are 11 484 stores in 27 countries around
the world. It is expected to expand more of its store chain beyond other continents.

Workforce management:

o Being one of the companies with the largest workforce, employee training is considered as
the key to Walmart success.
o Walmart is developing human resource planning and job design, and how these aspects
contribute to high performance among employees.
 Weaknesses
Employee working environment and job
satisfaction:
o Highly criticized employment policies such
as low wages and poor healthcare plan.
o In Wal Mart employees complained that
new employees were made to wait for long
before they could enrol in its health benefits
plan. What is more, ones who had retired
were not eligible to be part of the health
benefits program.
Race and gender discrimination practices: A
case in EEOC press such that “Walmart failed to
promote the employee to a management
position…due to her having a newborn at home.
Walmart also gave her an unsanitary storage closet
to express her breast milk, a facility that was
inferior to the clean office space it provided to a
White employee for the same purpose.”

Overdependence on the US market: There are a

large number of Walmart stores located in the US
(4700 out of approximately 12000 totals).
Bad reputation related to negative publicity:
Walmart's development strategies have a negative
impact on the environment, causing problems
such as habitat loss, water, and air pollution.
Thin profit margins: Walmart net profit margin
as of July 31, 2022, is 2.36%.
The speed of global expansion: - Walmart is
expanding its store chains too fast worldwide
 Opportunities

Quality standard improvement: Low prices

should take high quality into consideration which
can attract more customers and retain the loyal
ones.
Enhancement in workforce practices and
innovation: Employees play a crucial role in
Walmart’s performance. Hence, the corporation
should treat them equitably and fairly, motivate
them to think outside the box as well as create a
comfortable environment.
Adoption of AR and VR: Better shopping
experience.

Strengthen e-commerce: Since online shopping is

increasing dramatically, e-commerce should be
focused more to boost the revenue.
Cooperation strategy: Strategic partnerships with
other companies or global retailers can lead to the
win-win benefits for both parties.
Health-care service expansion: By broadening its
segment, not only can Walmart develop more of its
fields but also have more experience in taking care
of its staff.
 Threats

Fake product controversy: The likelihood of selling non-existing products.

o According to Insider, ‘out of the 47 products — all Nike Air Jordan shoes, Yeti travel mugs, Urban
Decay makeup, and UL-certified phone chargers — investigators bought from Amazon, Walmart,
eBay, Sears Marketplace, and Newegg, 20 were counterfeit.’
Large range of rivals and potential competitors:
o Walmart is a diversified business competing with different and large industries all around the world
such as Amazon, Costco, Alibaba, etc. The possibility of fierce competition is something that
Walmart has to be more careful in each step to keep its position in the market.
o Another problem is that there are so many potential competitors who are willing to take part in the
market and supply much better products than Walmart, which can be a threat to this company so far.
New lawsuits related to political, legal and ethical issues: On a regular basis, Walmart tries to supply
products without taking the health benefits and environment protection into consideration which result in
backlash from the public as well as the intervention of its government.
Risk of data breaches and safety commitment
Technical issues on the website: These problems can lead to a bad experience in shopping online and
inconvenience such as “ Nothing in stock” or errors in loading the website.
Economic downturn: Both small and large firms face slumping sales and decline in profits during a
recession.
o In an inflationary environment, unevenly rising prices inevitably reduce the purchasing power of
some consumers.
 Organisation’s
strategies
Whenever thinking about Wal-Mart strategy, “low cost
leader” or “Everyday low price” (EDLP) will come up in
mind instantly. This kind of strategy is defined as “price
management method or tactic that enables companies, brands,
and retailers to offer their customers consistently low-priced
products. [...] companies focus on providing consumers with
low-price products” (Prisync, 2021). This EDLP strategy is
originated from the Walmart CEO, Sam Walton - the pioneer
of modern retail who started the “Lowest Prices Anytime,
Anywhere” strategy in the year of 1994. Ever since they have
continued to develop and Walmart have been following the
strategy until now.

Overall, there is claimed that more and more companies starts the strategy with low-cost
offerings as well. This has lead to a competition among these big companies, including Walmart.
Hence, Walmart decided to fight for prices (or get an even bigger share of the pie) and focus more on
customer convenience to win over its rivals. It explains for the reason why operations and customer
service are raising through its stores. Even though the company keeps its purchasing and operational
costs lower than its competitors who offer the same kind of goods, it is still able to sell that same
goods at more affordable prices and increase the sales revenue. To do so, loyalty brand from its end-
users is a great advantage for Walmart to carry out the strategy without too much difficulties.
Understanding the fact that there are so many options today for shoppers to choose, Walmart
first sets EDLP with the standard commitment of product for suppliers. To do so, its suppliers have to
find ways to reduce the cost of producing such as technology adoption, decrease the number of
warehouse as well as the cost of shipping. Walmart, on a regular basis, strives to help them to improve
the supply chain. Though this process seems to time-consuming at first, it does good to the
organization in the long term, which motivates Walmart to keep low prices for all the items it sells.
The corporation also takes possibility for any customer’s concern about the origin of its
provided products: “We encourage our customers and members to always reach out to us if they have
any concerns or identify any product issues, so we can take swift action.”. Walmart, publicly, inform
the fair pricing and transparency of the pratice to the goverment (or state authority) before announcing
it to the customers. Besides assure the benefits of customers, its effort is to protect them in the time of
crisis.
 That is to say, Walmart accesses daily low cost
strategy which is enabled by the economies of
scale. It is operated throughout the organization
and thus, guides how the company allocates
resources effectively and efficiently. An example
such that the company devotes a crucial portion
of their resources toward information technology,
distribution and logistics.
Stability in improvements, price, access
and experience are all parts of the strategy. In
summary, Walmart attempts to offer as many
products as possible for the cheapest price, and
also gives its customers diversity of choice in
which the most effective channel is selected to
make the shopping experience more convenient.
Moreover, it’s a strategy that isn’t focused on
short-term success, but long-term benefit to the
customer. Since this type of strategy requires not
only the low cost but also

greater quantity of product, and importantly, high standard of material. That is the reason why while
retailer can offer a cheap price but ignore its quality, it can get high revenue in a short term, but in long
term, it is a big loss to the company since the benefits for customer plunged.

To achieve and run the strategy successfully, Supply Chain Management should be taken into
consideration. Walmart's supply chain composed of approximately 100,000 suppliers globally, many of
whom have their own suppliers. There is some interesting facts about logictics management of Walmart:
Its private fleet is known as the largest and safest. The skillful truck drivers drive 700 million miles day by
day to deliver to the stores and clubs. Organizational priority is reducing redundant miles by following the
most efficient routes. By doing this, Walmart can decrease the waste of time, lower fuel consumption to
protect the environment. The use of technology also plays crucial role for Walmart to continue the EDLP
strategy effectively since it helps lower costs and eliminating unnecessary manual process.

Let's take a look at Target, a big competitor of Walmart which owns many retailer store in the world
with ample types of goods and services (diverse sectors). While Walmart concentrates on Slogan “ Saving
People Money", Target takes another turn by providing as best experience for shoppers as possible by
paying more attention to “Shopping experience". Therefore, customer target of Walmart is for middle-class
people, Target is different, their potential target is high-end shoppers who earns a larger money every
month. Rencenty, Target is moving towars the strategy of offering products with cheaper price, which
seems to be a threat to Walmart as well as the existence of the EDLP strategy.
 Since February 2014, Doug McMillion - the CEO of Walmart has lauched significant turns in
business strategy in three different ways in parallel with EDLP:

1. Focusing more on services of customers. For example, Walmart announced to invest 1 billion
USD in the U.S. hourly associates to provide higher wages, more training as well as give more
opportunities to build a career with Walmart.
2. Enhancing groceries quality. Since health is a concern and major problem in the modern world,
Walmart is trying to offer organic options and fresh produce. This change is relevant to the US
market and thus, helps the company to release marketing communication message of the brand to
the world.
3. Improving the shopping experience. It is claimed that ‘Wal-Mart is working to integrate its
physical stores with the digital business’

Moreover, Walmart competitive advantage can be the sustainability in the global marketplace in
the long-run viewpoint.‘We Buy for Less’ programs saves $150 million in China, for instance. In short,
the vision of Walmart is to transform supply chain and food products to be regenerated, friendly to the
environment as well as protect and restore natural resources. The company has laid out a plan such that
by 2030, 50 million acres of land and at least 1 million SQ miles of ocean will be preserved and restored.
Nevertheless, this practice require more time and effort to reach since pollution and environment issues
are considered to be among serious problems in commerce and to the companies engaging in retail and
wholesale industry.
 Organisational
structure
Walmart adopted a matrix organizational structure, which is a
combination of hierarchy and functional-based features. Featuring the
hierarchy structure, CEO Doug McMillon is presently the unique
employee without a direct superior, and top-level management issues
orders. On the other hand, Walmart’s business model utilizes the
function-bases structure to classify personnel based on their skills and
experience.
 BOARD OF DIRECTOR

Doug McMillon
President and CEO,
Walmart Inc.

John Furner Judith McKenna Kathryn McLay

President and President and President and
CEO, Walmart CEO, Walmart CEO, Sam’s Club
U.S. International

EXECUTIVE TEAM

OPERATIONAL LEVEL

ABOVE-STORE MANAGERS

IN-STORE MANAGERS

IN-STORE HOURLY WORKERS

 ABOVE-STORE MANAGERS

Senior Regional
Marketing
Vice Vice
Manager
President President

IN-STORE MANAGERS
General
Hierarchical Structure Manager
(only in
Sam's
The major characteristic of this hierarchical
Clubs) structure is that managers have
primary responsibility for properly operating all functions. For example, anytime top
management develops a new policy, it is distributed to Co-various regional managers, who
subsequently distribute it to storeAssistant Manager
managers. This framework ensures effective control
(only in
Manager
over diverse functions. While senior managementlarger establishes the regulations and
stores)
procedures, choices must be taken by all levels of management within the firm. The
strategy is put into practice by giving workers more discretionary authority and allowing
them to concentrate on the objectives of the business (Sobratee and Bodhanya 2018 p58).
The goal is to increase both customer and employee satisfaction as well as professional
development. Although guided by the efforts of the respective workforce, the leaders in
this company are capable of MANAGEMENT TRAINEE
making difficult decisions. This empowers employees to
make decisions without fear of repercussions because the decisions they make correspond
to what the leaders want (Jones et al. 2016). As a result, communication channels are
open, allowing the organization to grow and involving all employees in decision-making.
IN-STORE
However, this structure HOURLY
is not flexible, WORKERS
and there is a lengthy communication procedure
that adds to the difficulty level.
Supportstores
In a nutshell, the CEO of Walmart Manager
is the highest authority, with presidents
of the other three main divisions reporting
Customer Surviceto him. There
Supervisors and is also a list of other chief
executives who report to him, suchMerchandise
as the CFO, Supervisors
COO, CCO, and general counsel (THE
ORG, 2019). This structure is then followed by the board of directors, which consists of
Cashiers, Stockers, and Sales Associates
ten members and is responsible for making company-related decisions.
As a result, the above figure depicts Walmart's organizational hierarchy structure
at the store level. It depicts store managers as the primary members, with general
managers and co-managers at the secondary level. At the third level, there are also
support managers and customer service supervisors. Cashiers, sales associates, and other
hourly workers are employed by various stores. Furthermore, because of the
organization's massive size and business diversifications in multiple countries, this
structure works in its favor. The company employs over 2.2 million people across its
various locations. As a result, the hierarchical structure is the best working structure for it
(Dudovskiy, 2019).
 Walmart

Custom Human Information

Production Sales
Relations Resources Technology
Department Department
Department Department Department

Function-based structure
The company has many employees who are in responsible for specific tasks.
While one employee assists customers in determining how to purchase certain products,
the other works as a cashier. Job specialization provides some benefits to the organization
by generating efficient, repetitive workflow (Jones et al. 2016 p105). Each department
has specific powers, allowing managers to monitor their employees and ensure that they
complete their tasks more easily. In fact, employees are aware of what is expected of
them and what their responsibilities are within the organization. Collaboration between
departments, on the other hand, should be done with caution due to the high risk of
miscommunication.
In addition, different Walmart store formats will have different departments. The
member-only retail warehouse Sam's Club, for example, will have some functional
groups that a Walmart Discount Store will not have. Walmart Supercentres, which
include banks, hairdressers, nail salons, pharmacies, restaurants, and optometrists, will
also include several departments that are not found in a typical Walmart Discount Store.
Leading
Generation of CEO

1962-1988: Sam Walton 1988-2000: David Glass 2000-2009: H. Lee Scott, Jr.

2009-2013: Mike Duke 2014-Present: Doug McMillon

Organisation’s hero
Sam Walton, founder of Walmart, single-handedly built
Walmart into the biggest retailer in the world, transforming the
way Americans shopped and making himself one of the richest
men in the process. Thanks to his “aw, shucks” demeanor and
strategy of targeting rural areas, retailing giants like Kmart,
Sears and Woolworth’s never saw the scrappy, pickup-driving
country boy coming. And when they did, it was too late to stop
him.
Sam Walton didn’t invent retailing, just like Henry Ford
didn’t invent the automobile. But just as Ford’s assembly line
revolutionized American industry, Walton’s dogged pursuit of
discounting revolutionized America's service economy. Walton
didn’t merely alter the way Americans shopped, he changed the
philosophy of the American retail business establishment,
instigating the shift of power from manufacturer to consumer
that has become prevalent in industry after industry. His
pioneering concepts have paved the way for a new breed of
“category-killer” retailer the Home Depots, Barnes & Nobles
and Blockbusters of the world and forever changed the face of
retailing.
Sam Walton credited the expansion of low cost goods
and services, attracting his customers and also his associates.
He relied on them to give customers a great shopping
experience that would keep them coming back. In addition to
bringing new approaches and technologies to retail (automated
delivery: drones, Blockchain+IoT: to track the safety of foods),
he also experimented with new store formats - including Sam’s
Club and Walmart Supercenter, even making decisions to take
Walmart to Mexico. In 1992, Sam Walton was awarded the
Presidential Medal of Freedom by President George H.W.Bush.
Sam Walton passed away in 1992, shortly after receiving the
Medal of Freedom. To this day, Walmart remains a leader in the
retail industry, committed not only to expanding the business to
better serve the customers, but also to improving the
communities, in honor of Sam Walton.
“
The secret of successful
retailing is to give your
customers what they
want.
-Sam Walton
Founder, Walmart
Motivational environment
Walmart which is one of the biggest retailers of
the world has been very successful in motivating its
employees, by the use of both Intrinsic and Extrinsic
rewards.
Intrinsic reward is the reward achieved by having
motivation that is driven by an interest or enjoyment in
the task itself, and exists within the individual rather than
relying on external pressure or desire for reward.

“Individuals don’t win, teams do,” Walton once said. If you worked for
Walmart, Sam Walton was your partner, not your boss. Walmart takes all the
effort to make its employees feel like part of the company, this claim is proven
by the use of the term “association”, instead of “employee”, by referring the
employees as associates, they will feel more connected to the company.
Another fact is that all employees are called by their first name which is only
displayed on their ID badges. Sooner, from hourly associates to top managers
and even company founders refer to each other by their first name only, this
will facilitate a family-oriented business instead of a boss-oriented one. As a
result, people at Walmart are all respectable figures regardless of their
position.
Extrinsic reward is a reward such as money, gifts, and recognition.
These rewards are used by Walmart to motivate their employees, for extrinsic
motivations Walmart encourages their workers through healthcare benefits and
financial incentives. All associations at Walmart and their family can get health
insurance at a cheap cost which includes doctors, pharmacies, vision

and dental. For financial incentives, workers are given a discount when purchasing stock from
Walmart, sometimes, workers can get extra income depending on the company's performance.
As a result of both extrinsic and intrinsic motivations. Walmart has created an exciting
workplace with respect, prospective and value.
 Controlling
Successful organizations frequently use planning and control mechanisms
to uphold and modify procedures and practices. To remain a global leader
in the industry, Wal-Mart utilises control mechanisms in its business
functions. Wal-Mart implements four types of control mechanisms:
market control, clan control, audit control, and performance standards.
Although these mechanisms focus on different aspects of management,
each has their own duty to perform; these control mechanisms have one
thing in common: they can be implemented before, during, or after an
activity. (Wal-Mart, p.6)
 Market control
Walmart's marketing strategy allows it to compete in
the retail industry, which is fiercely competitive, and many
businesses have failed to survive. Walmart's marketing
strategy has also assisted the company in dealing with the
onslaught of the e-commerce behemoth Amazon. Walmart's
management procedures ensure that the company runs
smoothly, and its success can be attributed to its marketing
mix. Walmart's target audience consists of low- to middle-
income rural families. These people prefer to do all of their
shopping in one place. They look for price and discounts
when they go shopping. Walmart was able to understand its
target audience and create stores based on demand trends.
The price of a product determines how successful and
long-lasting it will be in the future. It indicates how much
money will be made from the sale as well as how
competitive the product will be in the market. The higher the
price, the lower the volume of sales. Every company strives
to achieve the optimal price-volume ratio. Walmart has
refined its pricing strategy by applying the following
techniques:
o Walmart increases its revenue without overcharging
customers by keeping prices reasonable and
emphasizing large-scale purchases.
o Walmart is renowned for its excellent price-
negotiation techniques that help it maintain low costs.
o With diversification, it is ensured that if sales of one
product aren't doing well, sales of other products that
complement it will.
o The supply chain is made more efficient by universal
barcoding and stock-keeping unit (SKU) systems,
which allows prices to decrease.
o Furniture and other expensive items like appliances
are financed by Walmart. This maintains the
consumer law's initial outlay.
 At Walmart stores, a wide variety of items are for sale. They provide what the market demands.
It is simpler to market and sell a product that consumers are interested in than it is to introduce a brand-
new product. Walmart uses the following techniques to decide which products to sell:
o They have a substantial selection of products in almost every category. Food, tools, furniture,
appliances, goods for your health and wellbeing, and enjoyable activities are a few of these.
o To save money and benefit from economies of scale, they purchase in bulk.
o Their working relationship with their suppliers is excellent.
o Only Walmart stores can sell goods under the Walmart brand.
Walmart applies the following strategies to increase consumer interest in or knowledge of its
goods:
o At various times throughout the year, Walmart holds sales with discounts.
o To entice customers, the store uses catchphrases like “Save money, live better”; “lowest price
store”; “worry-free fresh”; and “everyday low pricing.”
o Walmart advertises in a variety of ways, including TV commercials, billboards, social media,
and e-commerce websites.
o They provide secure shipping options that provide the highest level of customer service for
online shoppers.
o Customers can feel secure knowing that Walmart backs the majority of its products with
trustworthy warranties and replacement guidelines.
 Clan control
Clan control influences individuals and groups
Every business must consider its location. Customers are very
within an organization via shared values, norms,
concerned with a business's location and accessibility. Walmart applies a
behavior standards, and expectations. Clan control has
variety of strategies to ensure that all location, which is effective and
a competitive advantage since it defines values and
efficient and is a component of the marketing mix:
norms to inspire and enforce employee attitudes and
o People in
behaviors can ways
purchase items
that without organizational
improve visiting a physical store thanks
to an effective
(operational) eCommerce platform.
performance. Walton established
o A well-run system of distribution
Walmart's values, culture, and norms points
to that makes it simple for
engage
companies
employees at alltolevels,
pick referred
up orders and"associates,"
to as deliver goods directly to
and customers.
to encourage them to develop work behaviors
o The on
focused business can monitor
providing quality whether
customerthey are in The
service. stock or on the way.
o The Rule"
"10-foot majority
is of
oneWalmart stores are"companions"
of the standard located in profitable areas in
expected to follow.
the United This standard, in Walton's words,
States.
encourages associates
o Transporting goodstofrom"I door
solemnly promise
to door is madeand
simple by a fleet of
declare that every
delivery customer that comes within 10 feet
trucks.
ofo me,
ToIincrease
will smile,
brandlook themWalmart
recall, in the eye, greet them,its various stores.
differentiates
and ask if I can help them.". The "Sundown Rule"
Walmart has a trusted brand because of its effective marketing
states that employees should make every effort to
tactics. Walmart is able to outperform the competition thanks to the
respond to customer inquiries during the day, before
consumers' trust when making purchases there. The business has been
sunset. Moreover, Walmart cheers ("Give me a W,
able to stand out from the fierce competition by using the appropriate
give me an A," etc.) are used throughout the
price, location, promotions, and product. The other Ps, including people,
company's stores.
process, and so forth, are included in the Walmart marketing plan. Their
hiring strategy of selecting the best employees gives it a competitive
edge, especially when compared to Amazon, which is accustomed to
being embroiled in disputes over working conditions.
Audit control
Walmart is doing a respectable job of In order to record sales and update
keeping its accounting records accurate and inventory figures simultaneously. The latter
free of fraud when it comes to accounting system assists Walmart in accurately
procedures. In its audit committee charter, recording sales data and updating inventory
Walmart pledges to carry out financial audits to so that vendors can make wise decisions
guarantee that the financial statements (Shichor, 2017). Because data is updated
delivered are accurate and accurately reflect its simultaneously, any attempt at theft can be
operations (Walmart, 2021). Walmart easily detected and tracked, which reduces
guarantees the division of responsibilities as fraud and inventory shrinkage. Checkout
part of its auditing process. For instance, the controls are the most important internal
auditing process at Walmart involves three controls in a retail establishment. Thefts at
distinct parties: the audit committee, internal the register are likely to come from both
auditors, and external auditors. Additionally, customers and employees. Walmart
and as a multinational retail behemoth, therefore employs AI-powered cameras to
Walmart upholds various privacy policies that monitor any suspicious movement.
govern its operations in various nations. Peterson (2019) claims that Walmart
Walmart must put in place efficient measures to cameras can identify problems like items
track inventory because it is a retail company. slipping past a checkout scanner without
The Walmart Vendor-Managed Inventory being scanned and alert checkout staff to
Model, according to Greenspan (2019), assists act.
with inventory tracking and updates as According to the newest report
required. The model entails giving suppliers about Walmart’s performance evaluating
access to information about Walmart's current by financial evaluations, such as: profit
inventory levels and the rate at which products ratios, liquidity ratios, leverage ratios, it
are sold. Suppliers can decide when to send can be concluded that its finance health is
more products to Walmart's inventory as a quite positive and managers are doing well.
result. Walmart has four different inventory
types as part of its efforts to put strict controls
in place for managing inventory. These
inventories include transit, buffer, finished
goods, and anticipation inventories. Walmart
can track inventory items by type and quickly
determine when inventory needs to be
replenished thanks to this classification
(Greenspan, 2019). Walmart uses Walmart's
Retail Link®, a tool used to pull Point-Of-Sale
data.
In the profitability ratios sector,
the operating profit margin ratio
improved from 2020 to 2021 and
from 2021 to 2022, which
improves that Walmart used its
resources efficiently and
economically. The improvement
of the ratio also shows that
Walmart has been building a
competitive advantage.

In the liquidity ratios, the current ratio improved from 2020 to 2021, then slightly
deteriorated from 2021 to 2022; however it has been always smaller than 1, which means
that Walmart has the resources available to meet the claims of short-term creditors. The
quick ratio improved from 2020 to 2021, and from 2021 to 2022, which means that the
company can pay these claims without selling inventory.

Walmart’s financial
leverage increased in
2019 (3.0x, +15,2%),
and 2020 (3.2x,
+4,7%), which means
that it used more debt
than equity.
Performance standard control

Walmart is committed to providing both in- Walmart’s key measures of quality

person and online customers with a cutting-edge, service include:
outstanding customer experience. The demand for
formal standards to guarantee a consistent shopping  90-Day Order Defect Rate <2%
experience for all customers on Walmart.com has  On-Time Shipment Rate >99%
increased along with the number of Walmart  Valid Tracking Rate >99%
Marketplace sellers. Walmart updated its seller
You can track seller metrics and
performance standards in 2017, which outline the
keep tabs on their general performance
key seller metrics and anticipated targets they've
using the analytical tools provided by
found to be crucial indicators of good service.
Walmart Seller Center. Walmart
Meeting these goals accomplishes more than regularly evaluates seller performance
just keeping sellers in good standing with Walmart. and may penalize underperformers, but
These metrics quantify the services that customers it won't suspend accounts without prior
value. A higher score indicates that the seller is notice and sufficient time for sellers to
taking the necessary steps to increase customer trust make the improvements. However, if a
and loyalty, increase sales on Walmart Marketplace, seller's account has been suspended
and give them the competitive edge. Additionally, because they didn't meet performance
the higher ranked Walmart products are, the more criteria, they can submit an appeal to
sellers sell. Because of this, profitable Walmart Walmart Partner Support by outlining
sellers constantly check their seller scorecard and their situation and what they've done to
strive to improve their business practices. improve.
Conclusions and
Predictions
Conclusions
Based on the preceding analysis, an overview of
Walmart managerial system has been thoroughly
displayed. With this, many consumers as well as
associates can fully understand the body structure
of Walmart: the driving principles of the
organization; its strategies and its impact on the
retail industry around the world. Furthermore, they
will be able to realize the environment that
Walmart offers: a convenient, safe, consumer
friendly atmosphere for customers and a friendly,
innovative-encouraging ground for employees.

Predictions
Based on preceding analysis, there’re
some predictions that for Walmart’s future with:
o Greater customer satisfaction and
influences: With the expansion of
Walmart’s scale and the integration of a
variety of technology, customers will not
only save money but also save more time.
o Bigger demand for goods and services
around the world: Easier access to
products from many foreign countries at a
reasonable price.
o Shared value: Benefits shareholders and
society: Social and environmental
sustainability will be engineered into the
system that strengthens the community
they operate and serve, which appeals to
stakeholders.
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