Wal Mart Customer example essay topic

Many retail stores are created by an owner that has a very creative idea for marketing products. Not all stores seem to stay in business partly due to the lack of interest shown in later years of the business's growth. The chains that tend to succeed are of course financially backed but the owner of the stores stays creative and innovative in their ideas to keep promoting the chain. One of the best examples of an entrepreneur succeeding in their idea for success lies in one man: Sam Walton, creator of Wal-Mart. At the heart of Wal-Mart's growth is the unique culture that 'Mr. Sam' built. His business philosophy was based on the simple idea of making the customer No. 1.

He believed that by serving the customer's needs first, his business would also serve its associates, shareholders, communities and other stakeholders. The goal at Walmart. com is to bring Mr. Sam's culture and philosophy from Wal-Mart stores to the Internet. Sam Walton had three basic beliefs the company was built on. Sam Walton built Wal-Mart on the revolutionary philosophies of excellence in the workplace, customer service and always having the lowest prices. They have always stayed true to the Three Basic Beliefs Mr. Sam established in 1962: 1. Respect for the Individual 2.

Service to Our Customers 3. Strive for Excellence Sam Walton always knew he wanted to be in the retailing business. He started his career by running a Ben Franklin franchise store and learned about buying, pricing and passing good deals on to customers. He credits a manufacturer's agent from New York, Harry Weiner, with his first real lesson about pricing: 'Harry was selling ladies' panties for $2 a dozen.

We'd been buying similar panties from Ben Franklin for $2.50 a dozen and selling them at three pair for $1. Well, at Harry's price of $2, we could put them out at four for $1 and make a great promotion for our store. Here's the simple lesson we learned... say I bought an item for 80 cents. I found that by pricing it at $1.00, I could sell three times more of it than by pricing it at $1.20. I might make only half the profit per item, but because I was selling three times as many, the overall profit was much greater.

Simple enough. But this is really the essence of discounting: by cutting your price, you can boost your sales to a point where you earn far more at the cheaper retail than you would have by selling the item at the higher price. In retailer language, you can lower your markup but earn more because of the increased volume. ' Sam's adherence to this pricing philosophy was unshakable, as one of Wal-Mart's first store manager's recalls: 'Sam wouldn't let us hedge on a price at all. Say the list price was $1.98, but we had paid only 50 cents. Initially, I would say, 'Well, it's originally $1.98, so why don't we sell it for $1.25?' And, he'd say, 'No.

We paid 50 cents for it. Mark it up 30 percent, and that's it. No matter what you pay for it, if we get a great deal, pass it on to the customer. ' And of course that's what we did. ' And that's what we continue to do - work diligently to find great deals to pass on to our customers.

Thanks to the legacy of Sam Walton, Wal-Mart is a store you can count on every day to bring you value for your dollar. And that's why at Wal-Mart, you never have to wait for a sale to get your money's worth! Wal-Mart Stores are an irresistible (or at least unavoidable) retail force that has yet to meet any immovable objects. They follow three pricing philosophies: Every Day Low Prices, Rollback, and Special Buy. Bigger than Carrefour, Royal Ahold, and Kroger combined, it is the world's #1 retailer, with more than 4,500 stores, including discount stores (Wal-Mart), combination discount and grocery stores (Wal-Mart Super centers), and membership-only warehouse stores (Sam's). Most of its stores are in the US, but Wal-Mart is expanding internationally; it is the #1 retailer in Canada and Mexico.

Wal-Mart also has operations in South America, Asia, and Europe. Founder Sam Walton's heirs own about 38% of Wal-Mart. The difference between Wal-Mart and KMart is very telling. In 1991, Joseph Antonin i, then Kmart's chief executive officer, spent some $80 million on an advertising campaign to convince consumers that he and the company believed in customer service.

Few consumers believed him, however, and Kmart's sales increased by only 3 percent. During the same year, sales at Wal-Mart, which not only brags about its customer service but also actually provides it, increased by 26 percent. In 1993 and 1994, Kmart spent $3 billion on capital renovations, hoping to entice customers back. This was ill-spent money. Customers didn't flock to Kmart; they went to its competitor, Wal-Mart, which had undergone no expensive renovations, preferring instead to continue to provide the best possible service to its customers.

Kmart's dismal bottom line is directly related to its lack of customer service and its out-of-control operating costs. If the company had taken just 10 percent of its advertising or renovation budgets and used that money to train its employees in the art of customer service, Kmart might have realized profits similar to those of Wal-Mart. Sam Walton, founder of Wal-Mart, realized that customer service is critical to the success of any business. He stressed to his employees that they should do whatever it takes to satisfy the customer, and he believed that a dollar saved is a dollar passed on to the customer.

Too many other companies, including Kmart, believe that a dollar saved is a dollar passed on to their executives. Many people think Wal-Mart has the best customer service. For example, here is a letter written by a Wal-Mart customer. To: Wal-Mart I believe in letting people know when they " ve done a good job, which is why I'm writing this letter. I wanted to tell you about a recent experience that made me quite happy. Specifically, I am writing about your returns.

I purchased two different dog harnesses made by Rose America Corporation. (I cannot find them here or on the Internet; perhaps you can pass this along.) Neither harness fit the dog for which it was intended, although I had measured the dog each time and bought the appropriately labeled harness. I finally gave up, returned them, and wrote to you via the Wal-Mart web-site about this. Several days later, I got an e-mail from Sarah Bell at Rose America. She was very sorry about my frustration, and offered to send me a replacement harness. I gave her the dog's measurements (explaining that neither of the two previous harnesses had fit either of my two dogs), and thanked her for her concern.

Yesterday I received two harnesses. (Mind you, I'd originally wanted only one harness for one of the dogs.) They fit each of my dogs. Not only had she sent harnesses -- she also enclosed two leashes! I think this was just wonderful of her, and definitely shows 'going the extra mile' that is so important in retaining customer-loyalty. Thanks to you for letting Miss / Mrs. Bell know about my dilemma.

And thanks, too, for treating my returns (and my frustration) in so kind a manner. This incident reminded me why I think so highly of your stores. I usually visit your store three to five times per month, and generally spend $51-$80 each time. I have every intention of shopping at your store in the future, and I definitely plan on telling others to shop there.

I hope everyone responsible for this great service gets their due credit. Keep up the good work! From: Jan E. Ketchikan, AK Walton also realized the importance of treating his employees well. That doesn't necessarily mean paying them well. Wal-Mart employees are among the lowest paid in the country, but they know they are valued and respected-and that's how they treat their customers.

How do those customers respond? They keep returning to Wal-Mart. Kmart's customers, on the other hand, voted with their feet and their pocketbooks-and took them elsewhere. Wal-Mart has been a source-tagging partner since December 1998. Over 11,000 SKUs are currently being protected by source tagging and growing every day. Over 250 suppliers currently participate in Wal-Mart's source tagging program.

Wal-Mart manages its program, including import items at the SKU level. Targeted SKUs are selected as a result of store inventory data. Wal-Mart requires placement of EAS labels within 3 inches of the UPC bar code inside packaging or product itself. The quality and durability of packaging remains an important part of the overall effort to reduce shrinkage. Except under rare circumstances, Wal-Mart does not accept fractional tagging.

Special merchandise considerations should be presented to Wal-Mart Operations Development for evaluation. "We have seen shrinkage drop by over fifty percent with loss prevention", said Brad Elvers ton, Director Loss Prevention Operations Development. Along the path to success, Wal-Mart has remained No. 1 by staying true to Sam Walton's basic values and beliefs. They accomplish this by bringing bright, active people from diverse backgrounds together. Wal-Mart has always been an organization whose strength lies in the belief that extraordinary results can come through empowering ordinary people. In the history of major U.S. corporations, few are more passionate about principles.

The Assistant Manager Trainee Program is a formal 17-20 week program that provides hands on experience and knowledge to compliment your hard-earned college degree. The Assistant Manager Trainees focuses on three major areas of responsibility: Merchandising, People Development and Operational Controls. Upon the successful completion of the program, trainees are assigned to a store as an Assistant Store Manager. The Assistant Store Manager will be in charge of a portion of the store that may be operated as their own Store-Within-A-Store. Assistant Store Managers have all financial, merchandising, as well as, human resource responsibility for their areas. The minimum requirements for an interview are a Bachelor's degree with at least a 2.5 GPA.

The student should be flexible to relocate and have a strong desire to work with people and provide a high level of customer service. Based on company performance, Hourly and Management Associates are eligible to receive a percentage of their wage as additional income. Associates are also eligible for merit increases throughout the year. These are based on performance. Hourly and Full-Time Associates also may receive a holiday bonus, based on length of service with the company.

Many other incentives can be offered on an individual basis. Wal-Mart's health plan covers most major medical expenses. The company contributes to the cost of health benefits and we offer affordable Associate plans. There is no limit for most health coverage. 60% of our Associates say they joined Wal-Mart because of our benefits. We also offer dental coverage, company paid and / or dependent and optional life insurance, business travel accident insurance, long and short term disability, and an illness protection plan.

As a Wal-Mart Associate, you " re part of a continuously growing, global family. The key to their culture's effectiveness is our Open Door Policy. Every Associate is encouraged to bring any suggestions to their supervisor. They also administer a company-wide Grass Roots Survey, which allows Associates to confidentially raise difficult issues about their Managers, policies and the company in general. All Wal-Mart Associates become eligible to share in the company's profits through our Profit Sharing Program, after one year and 1,000 hours of service. This is funded entirely by Wal-Mart and is primarily invested in Wal-Mart stock.

Both full-time and part-time Associates are eligible to share in Wal-Mart profits. The company has contributed more than $2.7 billion toward Associates' profit sharing and 401 (k) accounts since 1972. At Wal-Mart, diversity means respect, equality, opportunity, cultural exploration, growth, fair treatment and understanding. As America's largest private employer, Wal-Mart strives to attract, retain and develop the best people. Wal-Mart continues to flourish because of their strong commitment to diversity. We believe that success requires both an environment where people are respected and valued, along with a talented workforce that reflects our diverse customer base.

This ensures we offer the products our customers want in an environment where they feel welcome. We also believe that valuing differences extends beyond our stores and workplace to our relationships with our suppliers and communities we serve. They are committed to ensuring a diverse workplace that provides opportunities for growth and development. Wal-Mart solicits feedback from all of our Associates annually through our Grass Roots survey to better understand their opinions toward Wal-Mart's working environment and policies. We also provide our Associates other opportunities to discuss issues and seek support through our Open Door Policy and Ethics Hotline, as well as our Disaster Relief Program.

Wal-Mart's recruitment goal is to ensure a diverse workforce through external recruiting and internship programs. Recruiting new talent is key to meeting the needs of continuous growth. We believe it is important that the company's local population reflects our local customer and Associate base. Attracting qualified candidates from differing backgrounds is important to the future success of our company. The number of women and minorities in management positions with Wal-Mart has increased steadily throughout the company. From the diversity of our Board of Directors and senior management to our front-line supervisors, everyone has a unique opportunity to pursue the career of their dreams.

Whether your talents are in merchandising, operations, transportation, computers, aviation, marketing, graphic design or other fields, you have a chance to grow at Wal-Mart. What better way to represent the personality of each community than to hire locally, representing the diversity and uniqueness of everyone's hometown. As the demographics of the nation have changed, so has our family of Wal-Mart Associates. Our Associates represent every age and walk of life. More than 15 percent of our Associates are over the age of 55, and we are the nation's largest employers of Hispanics and African-Americans. They are truly a mosaic of cultures, lifestyles and heritage.

The outcome of working at a Wal-Mart in a different country might not be the same as in the states. Exploited Vietnamese immigrants in the U.S. territory of American Samoa recently won a few victories. Two-hundred and fifty women paid to travel to American Samoa and work for an official wage of less than $2.55 per hour at Daewoosa Samoa, which contracts with major American retailers JC Penny, Sears, Wal-Mart, and Target. Once there, the women worked and lived in terrible conditions and were not paid even the wage they were promised. When they organized to receive back wages, goons hired by Daewoosa beat them. As of the end of March, JC Penny agreed to pay back wages for the women.

Furthermore, Daewoosa's owner, Kil soo Lee, was arrested in Hawaii and charged with holding the workers under conditions of 'involuntary servitude and forced labor. ' These victories came after a publicity campaign launched by various reformist groups exposed the situation at Daewoosa and demanded that American retailers to pay back wages. Wal-Mart, Sears, and Target have not agreed to pay back wages. Wal-Mart tends to hire very faithful, hard-working employees. They tend to stay in the company over their whole career.

Brenda Whitlock, a Wal-Mart co-manager, stated, "There haven't been any recent changes in our upper management or change of ownership". She also stated that they were only hiring for cashiers at this time due to their successful upper management. She wouldn't release the information pertaining to their computer and distribution systems due to their high regard towards their IT department. Wal-Mart has shown a steady surge in annual revenues - reaching the level of $1 billion in annual sales in 1979. Today, it often sells that much in a single day in 2001. In 2002, Wal-Mart - with its $220 billion in revenues - topped the Fortune 500 for the first time ever, overtaking Exxon Mobil and General Motors.

Wal-Mart started off as an innovative idea and later became a marketing and sales success.

Bibliography

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