3 Basic Beliefs and Integrity Walmart Essay

Walmart was founded on three basic beliefs: service to our customers, respect for the individual and striving for excellence. Our adherence to these principles has created a unique work culture at Walmart. No matter where you go — to any of our stores and offices in any of our brands around the world — our associates live these values. * Service to our customers * Respect for the individual * Striving for excellence A Foundation of Integrity Our basic beliefs are built on a foundation of integrity — our values of honesty, fairness and objectivity guide how we apply these beliefs to the workplace. In other words, we strive to: * Be honest by telling the truth and keeping our word. * Be fair by using our business influence appropriately and creating an open environment for raising questions and concerns. * Be objective by making decisions based on Walmart’s interests, rather than personal interests, and by avoiding even the appearance of impropriety. 1. Service to Our Customers Every associate — from our CEO to our hourly associates in local stores — is reminded daily that our customers are why we’re here. We do our best every day to provide the greatest possible level of service to everyone we come in contact with. But what do we mean by service to our customers? * We serve our customers by making them our first priority. * We support our associates so they can best serve our customers. * We give to the local community in ways that connect to our customers. 2. Respect for the Individual From Walmart’s earliest days as a small discount store, we have emphasized the importance of respect for every associate, every customer and every member of the community. But how do we show respect for the individual? * We value and recognize the contributions of every associate. * We own what we do with a sense of urgency, and empower each other to do the same. * We communicate by listening to all associates and sharing ideas and information. 3. Striving for Excellence The key to our success is constantly looking for ways to improve ourselves and improve our business. We strive to lead not just our industry, but also each other to the next level of success. But how do we strive for excellence? * We innovate by trying new ways of doing things and improving every day. * We model a positive example as we pursue high expectations. * We work as a team by helping each other and asking for help. Business Model Value proposition Walmart’s value proposition is based on offering Everyday Low Price (EDLP). This is the core of Walmart’s Business Model, and the rest of the key features of Walmart’s Business Model are aligned to keep the everyday low price. This proposition implies that the customers do not need to wait for sales to have the best deal possible (Manning et al., 1998). Besides, not only the sells convenience is associated by providing the wide range of products and services to choose from, but also with one-stop is possible to make all the shopping needed, from groceries to pharmacy (Basker, 2007). Walmart’ customers save time and money. Distribution channel To deliver its value proposition Walmart communicates with and reaches its customer segments with its distribution channels which are owned and direct, and brings higher margin. Walmart also is corresponding with its customers mainly through mass media and other ways which have a low cost, such as internet. Customer relationships & Customer segment Walmart establishes a customer relationship is based on self-service and automated and towards co-creation of some products once it is possible. Walmart tends to reach to the mass market toward mass customisation. Walmart’s customers can be divided into three groups: â€Å"brand aspirations†, people with low incomes who are obsessed with brand; â€Å"price-sensitive effluents† wealthier shoppers who love deals; and finally â€Å"value-price shoppers† who like low prices and cannot afford much more (Barbaro, 2007). Key activities The key activities which are needed to run Walmart’s business model are: ï‚ · Purchasing goods ï‚ · Their delivery ï‚ · Total cost control Other activities would be to create products that will cover needs of a specific customer segment and to control the brand, which has been developing lately. Walmart’s technological edge is in its inventory control, logistics, and distribution (Basker, 2007). The ability to move products place to place quickly and efficiently keeps the costs down as well as the time system in combination with logistics force permits Walmart to have accurate time information of the products in the stores shelves that allows restocking automatically (Tierney, 2004). In addition the logistics involves the suppliers and workforce of 85000 employees, 147 far reaching distribution centers, transportation offices, more than 100.000 tractors and trailers and 8.000 drivers (Walmart logistics facts sheet). Key resources The key resources of Walmart classified in 3 categories. First, the physical resources which are owned by it like stores and logistics. Second its human resources, experienced managers and stores managers, and finally the company culture. Walmart culture is based on restless effort at constant self-improvement, discipline and loyalty (Fishman, 2006). Key partnership Key partnership is a strong buyer-supplier relationship in which suppliers were considered as close partners of Walmart. They also are part of the value chain of each other and it provides suppliers the chance of accessing to a large market. However it made suppliers, who wish to take advantages of its broad market, to keep their prices and costs low and therefore, suppliers give the control of their own business and negotiation advantage to Walmart (Parnell and Lester, 2008). Walmart also creates economies of scale that optimizes its cost structure. Revenue stream Walmart Revenue Streams that generated from its customer segments are basically come from retail sale, such as music downloading with fixed menu pricing. Walmart also drive revenue from selling its own brand, produces by others to cover a segment not cover by other suppliers. Moreover, it takes advantage of selling goods before paying to its suppliers. Cost structure The Cost structure is cost-driven model since it is focused on minimizing costs wherever it is possible and it is characterized by economies of scale. The expansion of Walmart allowed it to benefit from economies of scale and reducing its cost besides its technology let it to grow and caused to lower its costs; hence, economies of scale at both the chain levels and stores strengthen Walmart’s advantage, rather than being its root cause (Basker, 2007). Walmart’s financial discipline is well known as well as their tendency to pass operating costs to suppliers.