EMAD RAMADAN KHAMEES

Wal-Mart

1. What are Wal-Mart’s key objectives?

Wal-Mart’s key objectives include respect for the individual, service to customers, and
striving for excellence.

2. How have Wal-Mart’s managerial philosophies and principles enabled it to pursue

these key objectives?

Wal-Mart’s philosophies and principles have enabled it to pursue their key objectives. Wal-
Mart’s slogan that “our people make the difference” shows how important the individual
worker is to them. Their philosophy of maintaining the highest customer service is shown
with their three critical elements of the “sundown rule,” the “ten-foot rule,” and the
“everyday low prices” rule.
Trying to lower prices everyday will increase the volume of sales, as well as bring added
value for the consumers.

3. How do planning and controlling seem to be linked at Wal-Mart?

The top managers at Wal-Mart have planned and controlled everything to manage to stay
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ahead of the competition. Controlling when and where the company adds new stores is key
to their success. Preserving their values help thousands of new associates to embrace the
Wal-Mart culture and helps the company continue to grow. This is made possible through
planning ahead and controlling all aspects of the company.

The short essay answers:

1. Explain how the various elements of Sam Walton’s cultural legacy

contribute to the company’s ethical orientation.

Sam Walton’s elements of the traditional format of an organization, employee

commitment, cost control, carefully planned locations for new stores, and attention to
customer needs and desires enable them to enjoy continued success. Today’s managers at
Wal-Mart continue to follow in Sam’s philosophies and that is why they continue to be
successful.
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2. Sam Walton’s 1992 book Made in America identifies ten key factors in building a
business. These factors are identified on the company’s Web site,
http://www.walmartstores.com. How do these factors relate to Wal-Mart’s culture
and success?

Sam Walton believed running a successful business boil down to 10 simple rules and they
helped Walmart become the global leader it is today:

1. Commit to your business: Believe in it more than anybody else.

2. Share your profits with all your associates, and treat them as partners: In turn,
they will treat you as a partner, and together you will all perform beyond your wildest
expectations.

3. Motivate your partners: set high goals, encourage competition, and then keep score.

4. Communicate everything you possibly can to your partners: The more they know,
the more they'll understand. The more they understand, the more they'll care.

5. Appreciate everything your associates do for the business.

6. Celebrate your success.

7. Listen to everyone in your company.

8. Exceed your customers’ expectations: Give them what they want — and a little more.

9. Control your expenses better than your competition: This is where you can always
find the competitive advantage.

10. Swim upstream: Go the other way. Ignore the conventional wisdom. If everybody
else is doing it one way, there's a good chance you can find your niche by going in exactly
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the opposite direction.

Sam’s rules include helping out your associates which means more than giving them a
paycheck. Telling them you appreciate them and giving them a voice in the company relate
to the culture and success of Wal-Mart. This rule ties in with respect for the individual.
Another rule of exceeding customer expectations is met with Wal-Mart’s policy of customer
service. Providing beyond what is necessary is crucial to the success of a business