Wal-Mart Corporation is one of the largest retail stores in the world. They serve customers in meeting their needs with low cost saving items. On October 31, 1962, Wal-Mart was founded and incorporated by Sam Walton in Bentonville, Arkansas. Mr. Walton went into business because he felt that items sold were too high for the average customer to afford. His focus was to sell products at low prices to get higher volume sales at a lower profit margin. He bought bulk products from different suppliers so he could incorporate savings into his pricing to lower cost for customers. Under the savings cost concept, Wal-Mart grew rapidly and surpassed ...view middle of the document...
The concept “True leadership depends on willing service” is the principle in which all Wal-Mart stores are built on today. His vision has changed the face of retail and made Wal-Mart the top contender of retail stores around the world.
The mission statement explains why a company is in business and what their intentions are for their customers. The mission statement for Wal-Mart states “We save people money so they can live better.” “If we work together, we’ll lower the cost of living for everyone…we’ll give the world an opportunity to see what it’s like to save and have a better life” (Wal-Mart Corporate, n.d.). In my opinion the sole purpose of the existence of Wal-Mart is to produce a two-fold satisfaction for both customer and store. It equally accommodates both parties on a supply and demand curve. Wal-Mart understands the need for people to save money and have the flexibility to enjoy other things in life money can buy. Also, they understand their own need as a business to continue making profits. Reviewing the current stats of Wal-Mart (CNN Money), it is evident that they are meeting objectives of the people and the store. If Wal-Mart introduced brand name items, they would not be able to lower the cost for everyone which goes against what they stand for in accordance with their mission statement. Wal-Mart already has an established image, meaning that they have an image that captures the basic everyday needs. They are more focused on stretching the value of a dollar. The mission statement provides meaning to these core values which emphasis is taking care of people. It remains unchanged throughout years Wal-Mart has been in business. Focusing on meeting these core objectives has led to the overall success of Wal-Mart.
Similar to most big corporations, Wal-Mart has three primary categories of stakeholder called Capital, Product and Organizational stakeholders. All stakeholders are considered important to Wal-Mart because they contribute together to the overall success of Wal-Mart. Although all stakeholders are important to Wal-Mart, capital is place on the top priority list of importance. Satisfying the capital market stakeholders is top priority because Wal-Mart cannot adequately function nor survive without their monetary support. They consist of shareholders and major suppliers of the capital (i.e. banks, lenders ect.), which Wal-Mart uses to operate its operations. Without their investment, it will be difficult for Wal-Mart to meet demands and it may cause them to fail and go out of business. These shareholders are influential in determining the way the capital structure will align for Wal-Mart in the future (Hit, Ireland, & Hoskisson, 2013, p. 20). Suppliers and customers are both known as product market stakeholders (Hit, Ireland, & Hoskisson, 2013, p. 21). Wal-Mart deems product market stakeholders as equally important as the capital market stakeholders. They believe the customer is the most...