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Walmart DE& I Audit

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Walmart DE& I Audit

Introduction

Wal-Mart Stores, Inc. operates one of the world's largest discount superstore chains. It
was founded in Bentonville, Arkansas, by Sam Walton and his brother Bud. The company is
regarded as one of the most valuable companies in the world. It employs over 1 million
people worldwide and is the world's largest employer. The United States is home to 80% of
its stores worldwide. This research paper's goal is to conduct a DE & I audit for Wal-Mart.

Company Overview

In 1962, Sam Walton founded Wal-Mart. It was founded on the principle that
customers should be able to obtain services "at the lowest possible cost, at any time and from
any location." Their primary goal is to improve their clients' standard of living while also
lowering costs and benefiting the community. When the company was officially incorporated
as Walmart Stores, Inc. in 1969, it already had more than 24 stores open. Wal-Mart began
publicly trading on the Stock Exchange in 1972. After experiencing rapid growth, Wal-Mart
had 276 locations in 11 states by the end of the 1970s. In the 1980s, Sam's Club, a retailer
that caters to both individuals and small businesses, and the first Wal-Mart Supercenter both
made their debuts. In the early 1990s, the company topped the list of retailers in the country.
It debuted a year later in Mexico, followed by Canada in 1995, China in 1996, and the United
Kingdom in 1999, when it became a member of the European Union.

In 2005, Wal-Mart announced goals to be entirely powered by renewable energy,

produce zero waste, and sell goods that are good for both people and the environment. It also
promised to implement environmental measures to improve energy efficiency. The company
currently has operations in India, South Africa, and Chile.

DE & I Audit

Operational analysis

The analysis of the three strategic forces of location, operations and supply chain
procedures, and quality system is shown below and demonstrates how this retailer manages
its operations:
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 Location

The location of a store is critical to its success because it influences both suppliers’ and
customers' purchasing habits. It also has an impact on how suppliers deliver goods to the
store. Wal-Mart currently operates 4,205 stores in the United States, 633 Sam's Club
warehouse clubs (which are part of the Wal-Mart chain), 6,119 international stores, and 6,205
regular stores. The company operates 71 banners in 10,957 stores across 27 countries.
Walmart prefers to locate new stores near highways so that both suppliers' delivery trucks
and customers can easily access them. When a new store is opened, the company must
prioritize having large parking areas.

 Operations and Supply Chain Processes

Wal-Mart strives to provide high-quality goods to its customers at the low cost while
remaining profitable and generating significant investment returns. To achieve this, the
retailer must use highly effective operations and management to operate at a lower cost than
its rivals. When expanding into a new region, Wal-Mart always creates a new distribution
center in a strategic location to accomplish this goal. Later, nearby new stores are opened to
avoid delivery problems. It also enables the business to launch new locations at a reasonable
price.

The retailer's extensive control over the supply chain is another distinctive quality. In
order to keep costs down, the company buys in bulk to take advantage of quantity discounts,
bargains hard with suppliers to lower costs, uses bidding for contracts, and works with
vendors to keep inventories low using techniques like just-in-time ordering or vendor-
managed inventory. The business communicates with its suppliers using electronic data
interchange (EDI). With this system, purchasing items and paying bills are less expensive.
Each product's stock levels in each store are visible to vendors. Wal-Mart is now in charge of
managing the timing of product deliveries, ensuring a precise product flow between stores,
thanks to the use of this system. Because of this advantage, the retailer has developed a
system for replenishing stores twice weekly, whereas other direct competitors only do so
once every two months.

Additional cost-cutting measures include offering basic products in large quantities,

limiting service customization, and offering standardized products. Production costs can be
reduced by using fewer, more common components and producing fewer models.
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Costs are spread across a larger number of units of the product with this strategy,
lowering the overall unit cost. The company is ready to capitalize on scale economies and the
effects of curves. The company employs a cross-docking inventory system as well. In this , a
distribution center receives truckloads of goods from a specific supplier and unloads them all.
The contents of the truck are delivered to additional stores alongside other split lots from
other trucks using smaller trucks after being divided into smaller lots. Lower final prices are
the result of this strategy's significant storage cost reduction.

 Quality System

Customers have contact with retail establishments after they make a purchase, not
suppliers. They bear the most responsibility because they are the last member of the team to
deliver the product to the customer. Despite the company's recent efforts, much work has
been done to improve Wal-reputation Mart's for having low-quality products. The company
has implemented numerous quality control measures and has mandated the same quality
standard for its suppliers.

Aside from the GFSI Standards, the company has completed the following projects:

 Deli meats: Employees adhere to the company's no-bare-hands policy, as well as

sanitation protocols, hygiene training, and other policies. Furthermore, for all deli
meats, a natural inhibitor that prevents Listeria from growing into a log-sized
organism during the meat's shelf life must be added to the production process.
 Initiative for Beef Safety: The retailer implemented a program that required all beef
suppliers to implement measures to reduce pathogens. Wal-Mart has stopped selling
sprouts because sprouted seeds are frequently linked to outbreaks of foodborne
illness. However, in order to create a safer product, the company is collaborating with
the market and academics.

Marketing mix analysis

To understand Walmart's market mix, here is a breakdown of the four marketing Ps:
price, product, promotion, and place (distribution).

 Pricing strategies

The pricing strategy of Wal-business Mart is based on low costs. Due to its industry-leading
low operating costs, the company enjoys a competitive advantage. This is the reason why the
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company has been able to keep its product prices low (Ferrell & Hartline, 2011). Since the
retailer has the lowest costs in the industry and can offer its customers the best prices, it also
employs a price leadership strategy. Wal-Mart charges less than rivals, according to a number
of recent studies. In a 2002 UBS Warburg survey, 100 food and nonfood products were
analyzed in five grocery stores spread across three markets, both of which had and did not
have Wal-Mart grocery stores. Prices at Wal-Mart were discovered to be 17–39% less
expensive than those at rival stores.

 Promotion strategies

The main strategy is to offer customers the "lowest price always." Wal-Mart spends 1%
of its budget on advertising, compared to the industry average of 2.1%. Wal-Mart has
invested heavily in social media marketing. Electronic newsletters, mass mailings, website
promotion, television commercials, yellow page ads, and circulars are all part of the
advertising campaign. Aside from running advertisements in Vogue, the company has toned
down its iconic Smiley character in TV commercials, which is associated with its low-cost
marketing items. The retailer employs discounts, coupons, samples, and other marketing
strategies.

 Distribution Strategies

The company sells through traditional retail outlets as well as online (e-commerce
format). The following categories describe how its stores work. As previously stated, Wal-
physical Mart's stores account for the majority of its sales. Shipping is free if the purchase
price exceeds $50. In addition, the business emphasizes opening retail locations abroad
(Faarup, 2010). Another distinguishing feature of Wal-Mart is its accessibility. Customers
can contact them at any time of day or night, seven days a week, thanks to the availability of
online purchases, which contributes to the company's overall customer satisfaction rate.

 Product strategies

Typically, the retailer does not differentiate its products. However, the retailer's efforts to
improve the quality of its products through supplier purchases are commendable. The
company also sells its products under its own brand, referred to as "house brands." Great
Value.

Conclusion
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The largest employer in the world and the biggest retailer in the US is Wal-Mart. It is the
top-ranked company and it currently operates in over 27 different nations, with more being
added annually. Due to the size of its operations, the company's main strength is its ability to
take advantage of economies of scale. Wal-Mart is currently the most affordable option
available due to its investments in logistics and information technology.
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References

Faarup, P. K. (2010). The marketing framework. Aarhus: Academica.

Ferrell, O. C., & Hartline, M. D. (2011). Marketing strategy. Australia: South-Western

Cengage Learning.