This presentation file includes facts, issues and operation management for Walmart

1. WELCOME

3. Company background

5. Walmart has 8,446 retail units under 55 different banners in 15 countries.

6. The largest private employer

7. Sales of $405 billion in 2010,

10. Strategy

11. Operation Strategy Capturing market share with “everyday low price” strategy. “the process of creative destruction”. Responding competitors strategy. (opened “Pennies-n-Cents” stores in against dollar stores). Cultural adaptation. Training employees because people are key to Wal-Mart's business Buy at less to sell at less. Withdrawal strategy.

12. Competitive Strategy Different shop design for each demographic groups. All product in one store. Competence in use of information technology for logistics system. Highest customer satisfaction

13. Productivity

14. Productivity Creating more than 210,000 jobs in the U.S. Saves working families more than US $2,500 per year. Discounting on food alone boosts the welfare of American shoppers by approx. $ 50 billion per year.

15. Industry Environment - Porter's five forces of competition

16. 1.Rivalry of Existing Competitors: · Wal-Mart has a strong competitive advantage against its competitors Kmart and Target. · Rivalry in this industry is not as strong for the competitors compared to Wal-Mart.2.Barriers to Entry: · High because it is hard to form a large organization that will be competitive at the same size as Wal-Mart with such low prices.· This industry has high barriers because it is too expensive for new firms to enter and to be competitive.

17. 3.POWER of Buyers:· Weak because basically the prices are low from the beginning so there would not be any potential for buyers to bargain with.4.POWER of Supplies:· Weak because Wal-Mart uses its own distribution centers that are located close to its stores. · Wal-Mart is also far and away the biggest customer of virtually all of its suppliers. It's scale of operation allowed it to bargain...

18. 5. Substitutes:· Medium because it depends on where you live and what type of Wal-Mart stores are closer to you. · Substitutes would be going to another grocery store, a toy store, a hardware store; basically going to specialty stores instead of going to one store that has everything in one, as a Wal-Mart can.

19. Wal-Mart product and service design

21. Service Layout

22. Wal-Mart Shelf management

23. Capacity Planning for Wal-Mart

26. Product & Service

28. Operating in 5 0 states

29. 4,3 0 0 facilities for all sort of outlets

30. Around the globe

31. 14 countries

32. 4 0 81 stores Shop location Shop layout Shop Si z e Warehouse Si z e Warehouse layout

34. a full-service supermarket

35. Discount stores

36. discount department stores

37. Neighborhood Markets

38. Shop for daily necessary goods

39. Sam’s Club warehouses

40. membership based storesShop location Shop layout Shop Size Warehouse Size Warehouse layout

42. Varies between 51,000 sft to 51,000 sft.

43. Average size 102,000 sft.

44. Discount stores

45. Varying from 98,000 to 261,000 square with an average of 197,000 sft.

46. Neighborhood Markets

47. Averages about 42,000 sft.

48. Sam’s Club warehouses

49. Average club size of 133,000 sft.Shop location Shop layout Shop Size Warehouse Size Warehouse layout

51. Covers all stores of a state

52. Also has warehouse for Sam’s club which is a membership based store.Shop location Shop layout Shop Size Warehouse Size Warehouse layout

54. A networked connection with store inventory with suppliers for inventory supply when needed.Shop location Shop layout ShopSi z e Warehouse Si z e Warehouse layout

55. Product and Service Factor Price Sales Suppliers Every day low price. Lower price than competitors (price leadership). Lower price due lower operational cost.

56. Product and Service Factor Price Sales Suppliers Net Sales of walmart in 2009-2010 Wal-Mart U.S. $2 58.2 billion Sam’s Club $ 46 .7 billion Wal-Mart International $ 100.1 billion Worldwide Total $ 405 billion

59. 1.4 million employees only in U.S.

62. Employs senior citizens who needs supplemental income.

63. Employs Students who needs skill and experiences. Number of employees Age, Gender and sexual orientation Skill Wages

65. Wage of $ 1 2 per hour for semi skilled employees.

66. Higher wage rate for skilled employees and in urban outlets.

71. SUPPLY CHAIN MANAGEMENT “ Supply chain management involves the flows of material, information and finance in a network consisting of customers, suppliers, manufacturers, and distributors”

74. THE REASON! Efficient supply chain Deals with suppliers for e.g P & G Service Differentiation- different deals with different customers. Sets different service policies, such as service intervals, or delivery times, for different groups of accounts and often products. key to providing excellent, consistent service at a reasonable cost

75. Just in time (JIT) Lowers holding cost Lowers ordering cost Wal-Mart has made ordering small batches with greater frequency a profitable reality. R educes safety stock and EO Q R educes lead time

76. RFID

77. RFID Radio frequency identification Keep track of goods at any point in time, and also tells you where it is. Eliminates physical counting of inventory Is in line wit JIT. As soon as inventory levels go down, Walmart can re-order. Implemented in 2 0 0 5.

78. Why RFID ? Reduce the possibility of inventory shrinkage and out-of-stock situation. Improve fulfillment rates. Improve the customer service. Reduce inventory and labor cost. Eliminate many manual process and improve the operation efficiency.

79. RECOMMENDATION

81. Increasing wage rate for employees

82. Keeping high quality products.

84. ANY QUESTIONS?