Organizational Life-Cycle

WAL-MART

Group A15
 Product Life Cycle

Birth Growth Decline Death

 Wal-Mart



 In 2010 it was the world's largest public corporation by revenue (Forbes
Global 2000).

 More than 8500 stores across the world.

 One of the largest employers in the world.

 Employs more than 1.9 million people worldwide across 15 countries.

 Only the People’s Liberation Army of China, the National Health Service
of the UK and Indian Railways employ more people!

 The Birth of Wal-Mart

 Started in 1962


 Had the first mover advantage in the retail shopping sector


 Introduced the concept of Every Day Low Prices.

 This discounting strategy helped in the initial sustenance of
the company.
 Survival Strategies

Wal-Mart pursued an r-Generalist strategy.

 The Growth of Wal-Mart

 Phase of growth started in 1970’s



 Opened its first Distribution Centre.



 Went public in 1970.



 By this time its stores had increased to 38 and had 1500

employees.


 It also adopted the Hub and Spoke model of distribution

Hub and Spoke model

Goods were ordered centrally

Assembled at a hub

Dispatched from the hub to different

centre

This structural change resulted in

increase in total sales to $340.3
million
 Growth Stage contd.

Growth through Direction

 Sam Walton adopted the hub and spoke structure to meet the
growing needs of the organization.
 Increased its employee strength to more than 7500.


Growth through Creativity

 introduced Sam’s Club scheme.
 Started new innovative methods like “people-greeters” .


Growth through Coordination

 incorporated various offices like inventory, sales etc.
 also introduced barcode and radio-id tags to keep track of a
large inventory.
Wal-Mart over the years.

Growth of Net Income and Revenue

Thank You.

Awesome -15