Corporate Governance at Wal-Mart

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Case Details:

Case Code : CGOX013
Case Length : 16 Pages
Period : 2004
Pub Date : 2004
Teaching Note :Not Available
Organization : Wal Mart
Industry : Retail
Countries : US, UK

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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

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Introduction

In 2003, Wal-Mart was the world's leading retailer, with about 4,700 stores, including 2,900-plus discount stores (Wal-Mart), combination discount and grocery stores (Wal-Mart Supercenters in USA and ASDA in the UK), and membership-only warehouse stores (SAM'S CLUB).

Most of its stores were in the US, but Wal-Mart was also expanding internationally. It was the leading retailer in Canada and Mexico. Wal-Mart also had operations in South America, Asia, and Europe. Wal-Mart was famous for its low prices and its breadth of merchandise. The chain offered food, clothing and a range of other items including electronics, health and beauty products, sporting goods, toys and prescription drugs.

Corporate Governance | Case Study in Management, Operations, Strategies, Corporate Governance, Case Studies

Wal-Mart had plans to start offering unlimited Internet access, and it was testing the sale of household appliances and bedding in some stores. It also sold products online. To fuel its global expansion, Wal-Mart had plans to add 800,000 workers worldwide over the next five years and up to 130 new stores in existing markets in 2003.

In the US up to 165 stores were slated to open in 2003 and some 170 properties would be modified or expanded. By the end of 2003, Wal-Mart expected Supercenters to outnumber traditional discount stores for the first time.

Background Note

Sam Walton began his career as a management trainee at J.C. Penny. He later leased a Ben Franklin-franchised dime store in Newport, Arkansas, in 1945. In 1950, he relocated to Bentonville, Arkansas, and opened a Walton store. By 1962, Walton owned 15 Ben Franklin stores under the Walton 5 & 10 name...

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