Wal-Mart Stores Inc. is the largest retail company in the United States and has
ID: 378730 • Letter: W
Question
Wal-Mart Stores Inc. is the largest retail company in the United States and has been ranked number one on the Fortune 500 Index by Fortune Magazine. Wal-Mart is the largest retail store in the United States, and is larger than any other retail chain in the world. Currently Wal-Mart operates over 4,150 retail facilities globally.
Wal-Mart provides general merchandise: family apparel, health & beauty aids, household needs, electronics, toys, fabrics, crafts, lawn & garden, jewelry and shoes. Also, the company runs a pharmacy department, Tire & Lube Express, and Photo processing center as well (www.walmart.com).
Wal-Mart Stores Inc. decided to start its operation in Saudi Arabia. The Company hired you as CEO of Wal-Mart Stores Inc. Saudi.
Q1: Organizational culture is important for a US based company to operate in Saudi Arabia. What functions does organizational culture serve in Wal-Mart Stores Inc. KSA? (300 – 400 words)
Explanation / Answer
Walmart, as discussed in the case, is the largest retail store in the United States and by far the leading retail giant of the world. Walmart boasts of serving more than 200 million customers each week globally across its 11,000 retail stores covering more than 28 countries. Walmart’s first discount store opened in the year 1962 and since then, it has remained true to its philosophy of “Serving the customers and saving them money”. It is not by accident that inspite of growing and expanding globally, the culture and values of the organisation has remained intact across the organisation even after 5 decades of its operation. You walk into any store of the Walmart across the world and you will find the same level of customer service everywhere. You interact with any Walmart associate in any of their store and you can hear them saying, “Walmart has the ability to change the world”. This is how Walmart has built its organisational culture over the years and the CEO of the Walmart Inc. in Saudi Arabia will be expected to spread the universal Walmart culture in Saudi as well. Some of the key insights, regarding the organisational culture of Walmart that might help the new CEO to enable his employees understand and adapt to the Walmart culture, are discussed below:
Inclusive Culture: Walmart has more than 2 million associates in its retail stores, e-commerce business, discount stores, logistics, and other important areas that are relevant to serving customers. Across all these business units, one thing that is common is the culture that is inclusive in nature. Walmart treats every employee, every associate as equal and everyone in the organisation has the equal freedom to voice his/her opinion. In fact, Walmart believes that its best ideas that separates it from its competitors have often come from its frontline associates. The ground level employees who are the face of the organisation knows the best what a customer wants and what are his expectations, as these associates are the ones who interact with the customers everyday in its stores. At Walmart, every associate is regularly taught about offering the best services to the customers and providing the highest level of satisfaction.
Consistent and Regular Communication: At Walmart, the culture and values of the organisation are constantly communicated to their employees through different channels. For an organisation that operates in more than 28 countries, it is important to keep a consistent and regular communication with its employees so that all of them are on the same page when it comes to knowing and abiding by the organisational culture. It helps the company scale and grow efficiently when its employees are well aware of company’s values and when they abide and live by these values. Walmart also engages with the leaders at the local level providing them the necessary tools they need to communicate efficiently with their teams.
Culture as the Core Competency: What separates Walmart from its competitors is the fact that Walmart utilises culture as its core business competency. It imbibes trust and faith in the customers that Walmart is a company that values its customers. When customers feel valued, their belief and loyalty towards the organisation increases. Walmart has successfully integrated its culture of “Customer centric approach” in every aspect of its business and it reflects in the work and conduct of its every single associate across the organisation.
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