History of Wal-Mart - Essay Example

Assignment Company Analysis: History of Wal-Mart A Brief History of Wal-Mart Wal-Mart was founded by Sam Walton, who was an experienced retailer in the Arkansas area. In 1962, Walton started the very first Wal-Mart Discount City outlet at Rogers, Arkansas. In 1968, Wal-Mart stepped out of Arkansas with inception of its operations in Sikeston and Claremore. The company was incorporated in 1969 and it was listed in NYSE in 1970. By 1971, the company was functional in five states of USA: Oklahoma, Missouri, Louisiana, Kansas, and Arkansas.

Throughout the 1970s, Wal-Mart expanded inside USA and became a significant retailing power. However, the company embarked on a policy of rapid expansion very successfully in the 1980s. In 1988, Walton left the post of CEO and continued as the chairman of the highest decision making board of the company. After a period of tremendous success, Walton thus began to prepare his potential successors. Walton and Huey have elaborately explained this process of development and consolidation in the book Sam Walton, Made in America: My Story.

Anwar has aptly remarked on the next phase of Wal-Mart’s attacking expansionism. According to Anwar, “Since 1992, Wal-Mart has sought aggressive diversification by acquiring various retailing chains in Mexico, Canada, Germany and the U.K. This change in Wal-Mart’s core competence beyond the U.S. market signifies its future growth and expansion.” (101) In 2005, as per the observation of Matthew and Mark, the company had sales figures around $ 312.4 billion. It employed 1.6 million workers all over the world.

It emerged as the largest corporation in the world and stood apart as a highly developed, diversified, and efficient retailing chain. (15-25) Of late, Wal-Mart is striving to become an energy efficient company. It is concentrating on renewable energy, waste management, organic products, and power generation. During the recession of 2008-09, Wal-Mart continued to report solid fiscal figures with significant profits and revenue. Why Wal-Mart? Why should Wal-Mart be chosen for the purpose of company analysis?

The reason is obvious: It is a great company! First of all, Walton’s struggle and success stories are the ideal ingredients of a legend that depicts how American dream can come true. Apart from the high sales figures and annual turnover of billions of dollars, Wal-Mart has contributed significantly in the realm of corporate social responsibility. During the aftermath of the deadly Hurricane Katrina in the year 2005, Wal-Mart responded rapidly to relieve the affected population. It directed its logistical functionary and supply chain to send food, merchandise, etc.

to the people in immense difficulty. It donated $ 20 million outright. Moreover, in 2009, the company declared plans to come up with a global sustainable product index. Through several decades, the company is maintaining its position as a retailing giant. Although there are disputes in regards of industrial relations and expansionist attitude, Wal-Mart has continuously excelled in industry, commerce, and technology. In this context, we must make special mention of its achievements in the field of technology.

Its IT enabled like integrated delivery and information systems, intra network, and Wi-Fi Internet access are almost unparalleled throughout the world. Vance and Scott have rightly described Wal-Mart as a retail phenomenon in the corporate history of USA. It is an excellent example of power and innovation in multiple specialties related to the retailing industry. Works Cited Anwar, Syed Tariq. "Wal-Mart in Mexico." Rugman, Alan M. North American Economic and Financial Integration. San Diego: Elsevier Inc., 2004. Print.

Matthew, Zook and Graham Mark. "Wal-Mart Nation Mapping the Reach of a Retail Colossus." Brunn, Stanley D. Wal-Mart World: The Worlds Biggest Corporation in the Global Economy. New York: Routledge, 2006. 15-25. Print. Vance, Sandra Stringer and Roy Venon Scott. Wal-Mart: A History of Sam Waltons Retail Phenomenon. Farmington Hills: Twayne Publishers, 1994. Print. Walton, Sam and John Huey. Sam Walton, Made in America: My Story. New York: Doubleday, 1992. Print.