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Wal-Mart Stores Inc. is in the discount, variety stores industry. It was founded in 1945, Bentonville in Arkansas which is also the headquarters of Wal-Mart. Wal-Mart operates locally as well as worldwide. It operated 1209 discount stores, 1980 super centers, and 567 Sam’s Club by January 31, 2006. It has also extended its operations to many international countries. It runs its retail stores in two forms: Sam’s Club and Wal-Mart Stores. The Sam’s Club sells assorted product lines such as hardwares, electronics, jewelry, and to mention a few. The Wal-Mart stores also offer similar products in addition to the following: health and beauty products, apparel for women, men and children, household appliances etc (www.yahoo.finance.com). The Vision Statement, Mission Statement, Values and Code of Conduct, Corporate Governance: Directors, Executive Management, Committees and Stakeholder will be the key elements that will discussed in this report as it relates to Wal-Mart. In addition to that, the major trends in the general/macro environment and industry will be analyzed.
Wal-Mart has been one of the most successful companies in the world. The success of Wal-Mart can be traced with its vision statement concerning globalization. According to Hitt, Ireland, and Hoskisson in their text book, "Strategic Management," a vision statement is a statement that describes the organization and points out what the organization wants to get in the future (19). Thus, vision statements focus on implementation of strategies and decisions which pave the way to a successful business in the future.
Wal-Mart is now operating globally, and its main vision is for additional global expansion of operation and "promotion of ownership of ethical culture" to all of its stakeholders worldwide (www.walmartstores.com). The idea of Wal-Mart’s vision on ethical culture is key in globalization. Wal-Mart has had good reputation and competitive advantage worldwide because it has been able to embrace culture and diversity in its operations across nations. In promoting ethical culture, Wal-Mart helps its customers and stakeholders to take the right decisions and to do the right thing.
Currently, Wal-Mart does not have a formal mission statement, but its main mission can be tied to its (3) basic beliefs which are Respect for the Individual, Service to Customer, and Strive for Excellence (www.walmartfacts.com). Thus, based on its core values and beliefs, Wal-Mart’s mission is focused on providing exceptional services and "everyday low prices" to its customers.
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Its mission and vision have provided management the main foundation to take effective decisions and to implement them. Also coming up with a competent and challenging mission is very key since it steers and directs the affairs of the organization.
Values And Code of Conduct
According to the text, “Strategic Management,” Corporate governance can explained as the ways the relationship among stakeholders are managed in order to check and control the strategic direction and organization performance (302). Corporate governance ensures that effective and efficient strategies are taken. Directors, Executive Management, and Stakeholders of
Wal-Mart will be discussed in this section.
Directors, Committee, and Executive Management of Wal-Mart
Wal-Mart has been a successful company because of its organizational leadership. The top leadership is mainly composed of the Chief Executive Officer (CEO), Board of Directors, and Senior Officers. Scott Lee is the CEO and the President of Wal-Mart. Among some of the Board of Directors are Aida Alvarez, James Breyer, Michele Burns etc. In addition to the Board of Directors, there are also Senior Officers and included are the Executive Vice Presidents of different Divisions (www.walmartstores.com). One interesting fact about the leadership is the use of human capital. Also, Wal-Mart has been criticized years ago of not having women in its top leadership. However, now some women are given the opportunity to be part of the top management.
Good relationship needs to be built between the top executive management in order for the organization to be effective in its strategy implementation. Thus, top executive management is paid awesome amounts of money to better serve the needs of the firm and its shareholders. For instance, Mr. Scott Lee Jr., 58, CEO and Chairman of Executive Committee according to research on Yahoo Finance website, is paid $5.23 million. Executives and Board of Directors are paid very well due to the scope of the job and mainly to act in the best interest of the firm.
Boards of Directors are elected by shareholders to act in the interest of the firm and its owners. Wal-Mart can attribute its success to its organizational leaders with coming up with better decisions and strategies for achieving competitive advantage in its industry. With Scott Lee and the Board of Directors working hand in hand, the interest of the shareholders is achieved. Wal-Mart has seen profits and good performance in the past years of its operations, and it continues to prosper due to its management. For instance, the stock price of Wal-Mart has been fairly good which motivates people to invest in the company.
The top leadership works well because they are accountable to some people. These people are the stakeholders are “individuals and groups who can affect, and are affected by, the strategic outcomes achieved and who can have enforceable claims on a firm’s performance (21).” Wal-Mart as a big company has stakeholders whose interests are taken care of by the executive management.
Stakeholders can be shareholders, primary customers, and employees who have interest in the company. Thus, Wal-Mart has a big responsibility in maintaining its stakeholders by having effective strategic leaders.
“Global Ethics Office” Vision Statement. 25 Feb. 2007.
“Sustainability.”Overview. 25 Feb. 2007.
“Wal-Mart Stores Inc.” Business Summary. 2007. Yahoo Finance. 25Feb.2007
Hitt, Ireland D. et al. Strategic Management. Ohio: Thomson: 2007