Presentation Content Overview môn Principles of Management | Trường Đại học Quốc tế, Đại học Quốc gia Thành phố Hồ Chí Minh

*NOTE: The yellow-coded content is the material we only use for the presentation
and does not appear on the presentation slide. PRESENTATION CONTENT PART 1 ● Walmart's Name:
Walmart, in full Walmart, Inc., formerly Wal-Mart Stores, Inc., “Wal-
Mart” was likely an abbreviation for Walton’s Market (Sahinturk, 2020)
(Walmart | History & Facts | Britannica, 2023) ● Logo: ●Establishment:
On July 2, 1962, Sam Walton opened the first Walmart store in Rogers,
Arkansas. The Walton family owns 24 stores, ringing up $12.7 million in sales.
The company officially incorporated as Wal-Mart Stores, Inc. (Walmart History, n.d.)
●Type of enterprises:
Walmart Inc (Walmart) is a retailer that operates grocery stores,
supermarkets, hypermarkets, department and discount stores, and neighborhood markets.
●Main products and services:
The company’s stores offer grocery and consumables, health and
wellness, technology, office and entertainment, hardlines, apparel, and home
categories at everyday low prices. It also operates warehouse clubs, including
Sam's Clubs. (Walmart Inc Company Profile - Overview, n.d.) ●Targeted customers:
The target audience of Walmart is low to middle-class rural families.
These people want to shop conveniently in a single location. The price and
discounts are something they look for while shopping. Walmart has been able
to understand the target audience and created its stores as per the demand
trends. (Walmart Marketing Strategy, 2023) PART 2
●Vision statement: the term is used to express the organization’s aspirations,
strategic goal and plan for the future. (Sears, n.d.)
The vision statement of Walmart is “Be the destination for customers to
save money, no matter how they want to shop”. The company’s investor
community conference in 2017 publicly expressed this aim. (Ferguson, 2022)
Due to this statement, we clearly notice their desire for convenience,
affordability, and a customer-oriented organization.
First, Walmart has been a giant retailer in the U.S. since 1962. As a
result, they have formed a huge network with suppliers all over the world to
provide customers with lots of different and suitable choices for their budget.
Secondly, the most important factor is affordability, which influences
consumers’ attitudes toward the firm. They apply “Everyday Low Pricing”
(EDLP) to adapt to the whole society’s requirements regardless of social hierarchy.
Thirdly, Walmart continually develops their firm by administering
technological advancements. They have progressed in e-commerce to
encourage customers to purchase from anywhere at any time. That proves for
their components “save money”, “no matter how they want to shop” as they
already mentioned in the vision statement. (Ferguson, 2022) (Walmart Mission
and Vision Statement Analysis, n.d.) (Walmart Mission Statement 2023 |
Walmart Mission & Vision Analysis, n.d.)
●Mission statement: a brief summary of the organization's purpose and reason
for existence. It seems as a foundation for determining the vision statement,
brand identity, and approach. (Sears, n.d.)
The mission statement of Walmart Inc. is “To save people money so that they can live better”
This statement is synonymous with the retail company’s mission statement,
which we usually see below the logo: “Save money, live better”. Through this,
they can create discerning purposes for saving money and improving living conditions.
First, Walmart is able to import products at low prices. Consumers can
purchase quality goods at Walmart at competitive prices compared to other
retail stores due to three pricing strategies: the everyday low pricing strategy,
the market-oriented pricing strategy, and the flat-rate subscription strategy. (Ferguson, 2019)
(Use to answer if the lecture asks about those strategies. Everyday low pricing
strategy - firm promise to provide products with consistently low price without
sale events (CPI Team, 2022). Market-oriented pricing strategy - firm sets the
price depending on comparing their competitors price of the similar or even
the typical products. (Campbell, 2020) Flat-rate subscription - the subscription
model that firms charge their customers per month or per year for getting
access or products. (Campbell, 2020) )
Second, they focus on improving the living standard through the quality
of food people consume, providing opportunities for labor, and contributing to encouraging sustainability.
Since 2006, Walmart has continually donated more than 7 billion
pounds of food to the Feeding America food banks (Healthier Food for All,
n.d.). They invest in lots of programs to boost small farmers and entrepreneurs’
livelihoods and provide many positions for women in the product supply chain
(People in Supply Chains, n.d.). In the effort to save the environment, they set
the goal of zero waste and aim to reduce plastic bags by 2025 ●Philosophy
Every firm owns its philosophy as the secret key to success, including
Walmart. Sam Walton, who constituted Walmart, conceived that quality
customer service and low pricing were the core ingredients for a prosperous
company. He has devised the 10-foot rule which means if there is a customer
within a 10 foot radius, his employees must greet the customer with a smile and
request help with pleasure. Moreover, he believes that you should not wait for
tomorrow to do what you could do today. Those solid beliefs are the main
reasons for his peak success. (Lohia, n.d.) (Touchstones of Walmart Culture - Bentonville, n.d.)
●Core value is the state of fundamental values and beliefs that is seen as the
“guiding light” for customer service and the employees’ behavior. (Silva, n.d.) (guide, 2021)
Walmart’s core values are “service to the customer, respect for the individual,
strive for excellence, act with integrity” (Governance and Values, n.d.). With
those beliefs, Walmart always gives priority to customer service. Their
frontline employees are always being inventive and making an attempt to deal
with different situations with agile responses. Their exceptional performance is
expressed through accountability, honesty, and fairness. (Walmart Mission and
Vision Statement Analysis, n.d.) ● Culture
With the purpose of creating an energetic working environment, Sam Walton
instituted the Open Door Policy and the Walmart Cheer.
Firstly, the Open Door Policy says that whenever an employee has a
challenge in the working process, they can express those issues with the
manager and, after that, ask for an ultimate solution. This policy allows face-to-
face communication, maintaining mutual understanding between employees and managers.
Secondly, when Sam Walton had a chance to visit a Korean tennis ball
factory in 1975, he was surprised that the laborers there were energized by a
company cheer. Fulfilling with excitement, he can not wait to immediately
apply it to his firm. Hence, The Walmart Cheer was invented.
Those methods have successfully created an amazing working environment and
enhanced the communication opportunities for different working levels in the supply chain.
Picture for The Open Door Policy Picture for Walmart Cheer
(How Can an Open Door Policy Impact Your Business?, 2021) (Touchstones
of Walmart Culture - Bentonville, n.d) ● Strategic goals
The four-fold offers an overview of Walmart’s strategic goals.
First, they have the ambition to dominate the retail market in a specific
area. Walmart is known as a gigantic competitor in the retail industry, they
offer quality products to customers and earn profit through extensive customer purchases.
Second, the strategic goals are set out to achieve an expansion locally in
the U.S. and internationally. As reported by the 2015 Walmart Annual Report,
their stock was able to not only afford direct customers in the U.S., China, and
Brazil but also provide through the E-commerce form.
Third, they put effort into creating worldwide recognition. By
emphasizing the key term “low prices always”, they remind customers
whenever they mention affordable and quality products.
Lastly, development in other aspects involved in pharmaceuticals and
automotive repair is always their top desire due to the increase in population.
When they invest in two majors, they can both fulfill their vision to increase
the total well-being of society and earn enormous revenue as a result of high
demands. (Walmart Company's Strategic Goals | Business Paper Example, n.d.) PART 3
● Organization Structure
Walmart has a hybrid hierarchical-functional organizational structure,
otherwise referred to as a matrix structure that combines multiple approaches. On the
one hand, Walmart follows a hierarchical structure, where the current CEO Doug
McMillon is the only employee without a direct superior, and directives are sent from
top-level management. On the other hand, the function-based structure of Walmart’s
business model is used to categorize employees according to their particular skills and experience.
Walmart has a hybrid hierarchical-functional organizational structure,
otherwise referred to as a matrix structure that combines multiple approaches.
Walmart utilizes the hierarchical structure which means that current CEO Doug
McMillon is the only employee without a direct superior. Directives are sent from top-
level management to regional managers, district managers, middle managers, store
managers, and store team members when required.
The function-based structure of Walmart is used to categorize employees
according to their particular skills and experience. Examples include sales, marketing,
human resources, customer care, and production. ● Level of Management
Walmart has a three-tiered management structure, which includes top-level, middle-
level, and lower-level management.
● Top-level management: The CEO and other senior executives are responsible
for setting the overall strategic direction of the company, making major
decisions about investments, mergers and acquisitions, and other important
business matters. They also communicate the company's vision and mission to
all employees, investors, and stakeholders.
● Middle-level management: Regional presidents, market managers, and
department managers are responsible for overseeing the operations of Walmart
stores in their respective regions. They work closely with store managers and
other lower-level managers to ensure that the stores are running smoothly, that
sales targets are being met, and that customer satisfaction is high. They also
communicate with top-level management about regional performance and
provide input into major decisions about store operations.
● Lower-level management: Store managers, assistant managers, and team
leaders oversee the day-to-day operations of individual stores and departments.
They are responsible for managing inventory, hiring and training staff,
scheduling shifts, and ensuring that customers have a positive shopping
experience. They also communicate with middle and top-level management
about store performance, sales trends, and other important information.
The company is known for its emphasis on strong leadership and management
development programs, which help develop the skills of its managers and leaders. ● REPORT LINE
The reporting line in Walmart is hierarchical, with each level of management
reporting to the level above it. For example, store managers report to market
managers, who report to regional presidents, who report to the CEO. This allows for
better control and coordination of operations and enables Walmart to quickly respond to changes in the market. ● SPAN OF CONTROL
Walmart has a wide span of control, which means that each manager is
responsible for overseeing a large number of employees. Store managers, for example,
may be responsible for overseeing hundreds of employees. To help manage this wide
span of control, Walmart uses a team-based approach, with each manager responsible
for leading a team of assistant managers and department managers.This approach
allows managers to focus on developing and supporting their team members, ensuring
that they have the resources and support they need to succeed. PART 4
● Hierarchical-functional organizational structure: Hierarchical Aspect:
Enables quick decision-making and efficient communication: managers can quickly
make important decisions without needing approval from higher-ups.
Provides clear lines of authority and accountability: each employee knows who they
report to and who is responsible for their work. Functional Aspect:
Allows for flexibility and integration of different functions: employees can work
across departments and collaborate on projects, leading to innovative ideas and
solutions and different departments can work together effectively, such as marketing and logistics.
Enables employees to specialize in a particular area of expertise: employees can
specialize in areas like marketing, logistics, or human resources, becoming more skilled and knowledgeable.
Overall, Walmart's management practices and leadership have been instrumental in
the company's success. By emphasizing strong leadership, a hybrid structure,
centralized reporting, and a wide-but-manageable span of control, Walmart has been
able to maintain its position as a leading retailer.
● Customer Satisfaction
Despite Walmart's past efforts, they still face lots of comments which verify the low customer satisfaction:
The department store giant came in last place in ACSI (American Customer
Satisfaction Index) suggesting thousands of customers are less than satisfied with Walmart's shopping experience.
‘Low-price leader’ Walmart doesn’t always win on prices:
As a shopper, it's important to be aware that Walmart's reputation as a low-price
leader doesn't always hold true. While Walmart does offer many great deals,
competitors may sometimes offer lower prices on the same items. Thanks to online
shopping, it's easy to compare prices, and customers are becoming more aware of these price differences.
Product Availability Concerns:
Customers often have trouble finding what they need when shopping at Walmart due
to improperly stocked shelves, missing items, and messy displays. This can lead to
frustration and inefficiency, as Walmart is often seen as a one-stop shop for household
necessity, customers may have to leave without all the items on their lists. Employee Satisfaction:
Walmart's poor customer service may be one of the reasons for its low customer
satisfaction scores. Customers often struggle to find assistance from employees,
leading to frustration and longer wait times at checkout and return lines. Overall,
customers may not receive the friendly and helpful service they expect when shopping at Walmart.
Walmart's Merchandise Quality:
Customers may be disappointed with the quality of merchandise offered by Walmart,
despite the low prices. They may be better off paying more elsewhere for higher-
quality items that function better. (Hill, 2015)
To sum up, customers have criticized Walmart's management for prioritizing low
prices over other aspects of the shopping experience.
However, it's worth noting that Walmart has made efforts in recent years to improve
its in-store experience and expand its online offerings by investing in technologies and
services to make shopping easier for busy families, such as Scan and Go at Sam's Club and Walmart Pay.
Additionally, Walmart also focuses on offering products that make a difference in
communities, supporting American jobs, selling produce sourced from local farms,
and sharing profits with associates. References
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