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Posted: February 2nd, 2025
The chosen topic for the research project is “Effects of globalization on Wal-Mart “. In the 20th century, advances in industrial development, means of transportation, and communication combined with the will of people to work together and progress in life has turned the world into a global village. Making perfect use of these factors of globalization some companies have shown immense growth in recent times. Wal-mart’s name tops all of them.
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This project seeks to find out how Wal-Mart, being a retail giant and a U.S. based company, has achieved and is sustaining global presence through commitment, hard work and a set of wise strategies. This report is designed to look into the essential business procedures that Wal-Mart has employed and the benefits it has gained out through them. This has definitely ensured successful boost in sales because of the whole globalization occurrence. The report will also rely on ratio analysis for getting to know the ways in which Wal-Mart’s global operations have had an impact on its financial liquidity and profitability. Yet again the negative aspect of globalization will be discussed to fully understand its impact across the diverse regions Wal-Mart has been operating in.
Table of Contents
Wal-Mart is the largest retail store in the United States, and it is way larger than any other retail store around the world. Given below is the timeline introduction of the corporate giant, marking the trail of its success.
1962 Wal-Mart opened the first store In Rogers, Ark.
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1970 Wal-Mart opens first distribution center and home office in Bentonville, Ark.
1970 Wal-Mart traded stocks as a publicly held company
1971 Wal-Mart in five states: Arkansas, Kansas, Louisiana, Missouri and Oklahoma.
1972 Wal-Mart approved and listed on the New York Stock Exchange.
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1973 Wal-Mart in Tennessee.
1974 Wal-Mart stores now in Kentucky and Mississippi, Texas becomes 9th
1977 Wal-Mart entered Illinois. 11th state: Alabama.
1981 Wal-Mart opened at Georgia and South Carolina.
1982 Wal-Mart opened at Florida and Nebraska.
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1983 First SAM’S CLUB opened in Midwest City, OK People Greeter implemented at all stores. Wal-Mart enters Indiana, Iowa, New Mexico and North Carolina.
1984 David Glass named company president. Wal-Mart enters Virginia.
1985 Wal-Mart has 882 stores with sales of $8.4 billion and 104,000 Associates.
1986 Wal-Mart enters Minnesota. 1988 David Glass named chief executive officer of Wal-Mart Stores, Inc. First Super center opened in Washington, Mo. 16 Wal-Mart distribution centers in operation.
1989 Wal-Mart is now in 26 states with the addition of Michigan, West Virginia and Wyoming.
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1990 Wal-Mart becomes nation’s No. 1 retailer. McLane Company of Temple, Texas acquired Wal-Mart enters California, Nevada, North Dakota, Pennsylvania, South Dakota and Utah.
1991 Wal-Mart enters Connecticut, Delaware, Maine, Maryland, Massachusetts, New Hampshire, New Jersey and New York. “Sam’s American Choice” brand products introduced. International market entered for first time with the opening of a unit Mexico City.
1992 Sam Walton passes away April 5.
S. Robson Walton named chairman of the board April 7.
Wal-Mart has entered 45 states with the addition of Idaho, Montana and Oregon.
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Wal-Mart enters Puerto Rico.
1993 Wal-Mart enters Alaska, Hawaii, Rhode Island and Washington.
1994 Wal-Mart enters Canada by the acquisition of Woolco, and takes over 123 former Woolco stores across Canada. It opens 96 stores in Mexico. Three value clubs open in Hong Kong.
1995 Wal-Mart enters its 50th state – Vermont – and builds three units in Argentina and five in Brazil.
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1996 Wal-Mart enters China.
1997 Wal-Mart replaces Woolworth on the Dow Jones Industrial Average 2000s
2000 Wal-Mart ranked 5th by FORTUNE magazine in its Global Most Admired All-stars list (Wal-Mart Corporate, 2009).
There are several reasons why I was a little too enthusiastic about choosing Wal-Mart as my focus of study. These reasons are well listed below:
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Wal-Mart is undoubtedly the largest retailer of today’s world. In 2010 the corporate giant reported net sales of $405 billion.
The global workforce of Wal-Mart totals up to over 2.1 million approximately.
The world’s greatest retailer has 8970 retail outlets in the world.
Being a huge multinational retail chain, Wal-Mart’s knowledge is widely available in books, magazines, internet and journals. The information is also relevant, sensible, updated and comprehensible for the readers.
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‘The Wal-Mart Effect’, a book by Charles Fisherman smoothly narrates that Wal-Mart is much beyond being just a retail store. Indeed, it is a corporate giant that has turned into a worldwide phenomenon and has affected lifestyles of millions of people throughout the world.
Since Wal-Mart has been connected with the lives of so many people globally, whether in terms of wages or rate of inflation, it is the company that can get easily affected by globalization. Wal-Mart aims to expand its reach and globally spread their business (Hill and Jain, 2009).
“Wal-Mart reaches around the globe, shaping the work and the lives of people who make toys in China, or raise salmon in Chile, or sew shirts in Bangladesh, even though they may have never visited a Wal-Mart store in their live”(Fishman, 2006). This defines the global positioning of Wal-Mart clear enough. “In business, there is big and there is Wal-Mart” (Sullivan, 2002).
Now popularly known to be the cathedral of consumption, Wal-Mart is viewed to be as successful as other corporate giants like Coca Cola, Walt Disney, Apple and even Mc Donald’s.
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The prime motive of preparing this research report is to determine the reasons that lead Wal-Mart into establishing itself as an extremely successful and popular global corporate giant. The research seeks to conclude the grounds on which Wal-Mart has been gaining ethical, social and professional success and why are the business practices of Wal-Mart bench-marked for other companies?
Since our report is relevant to the topic of globalization, another research objective is to look into the benefits that Wal-Mart has gained from the different factors globalization and also their negative implications. The strategies that the company employed along with its financial performance will also be discussed in this report.
No research can take place without a streamlined set of questions. The questions for this research are designed to investigate the Wal-Mart keeping in view the impact of globalization. The questions are listed below:
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