RESEARCH REPORT

Wal-Mart Sustainability Report



Wal-Mart Sustainability Report

Introduction

Wal-Mart has undergone many growth stages since Sam Walton first decided to be the best retailer in the world. His initial strategy was to target low-income families in rural areas by offering significantly lower costs. When David Glass took over in 1988, Walton's mission was truly realized through the use of technology in distribution and supply chain logistics, which allowed Wal-Mart the opportunity to cut costs and lower prices for end users. Lee Scott took the reins in 2000 to steer Wal-Mart toward sustainability. Scott's business model to strengthen supply chain management processes by “going green” was a strategic decision that positively impacted Wal-Mart's growth, distribution techniques, and corporate identity. His knowledge of distribution systems and push for sustainability has transformed the company into an ecofriendly powerhouse that continues to cut costs and remain at the frontier of distribution systems technology. Wal-Mart is at present experiencing continuing growth as it has since its creation. The reason for this continued growth is that through the years the company has stayed consistent with its mission of serving both its customers and associates and also maintaining its objective of being the very best in discount retail stores. Currently Wal-Mart is the number one discount retail store in the United States followed by Sears, K-Mart, Target and Kohls's, respectfully, operating in all 50 states. Wal-Mart is pursuing different target markets with the with the Wal-Mart Stores, Neighborhood Markets, Sam's Clubs and International Division. The company operates on procuring products with rigorous negotiations for the lowest price and economies of scale in turn to sell at thin margins and offer the customer the lowest price possible. Wal-Mart uses a top-of-the-line communications and information technology system for point of sale tracking and accounting. Wal-Mart's International Division is operating in 10 counties other than the United States.

Background

Wal-Mart leadership has done well to put the right people in the right seats on the bus to drive the company forward. Founder and original Wal-Mart CEO Sam Walton strategically chose his successor David Glass to lead the company in 1988. Art Turock claims that “the most impactful decision Sam Walton made during his reign was to select and develop successors equipped to lead Wal-Mart to the next level of complexity” (Turock, 2004). From 1988 to 1999, CEO David Glass transformed the company from just a retailer into a retail distributor, using technology to develop Walton's original goal while staying in line with his core values. While Sam Walton built his strategy on low prices to the masses, CEO David Glass enhanced his growth strategy through the use of technology.

Sophisticated technology boosted supply operations such that Wal-Mart's efficient retail stores became the manifestation of a fast and flawless distribution business. When Glass succeeded Walton, he believed that “technology would ultimately drive this business to be the size that it is” which was the fundamental difference that set his approach apart from that of Walton's (Turock, ...