Walton

1. Walton had a strategy combining ruthless cost reduction with respect for employees and customers. Don’t these two strategies conflict? Why or why not?

2. In 1947 Walton bought a distributor.
    A. Why?
    B. Was this ethical?
    C. Does Wal-Mart still pursue similar strategies today? Explain.

3. From the beginning, Walton focused on knowing competitors well.
    A. Is this important? Why or why not?
    B. Is the practice widespread in retailing today?
    C. Is it as effective for a large chain as for a small store? Why or why not?

4. Wal-Mart used stock bonuses as a way to retain employees and managers.
    A. Were they successful? Why or why not?
    B. Is this effective for most companies today?

5. Walton believed that personal communication with his employees was important.
    A. How did he accomplish this as the company got larger?
    B. Compare his approach to that of Mary Kay Ash.

6. Wal-Mart is known as a company where employees strongly identify with the organization.
    A. How was this accomplished? Be specific.
    B. Can this continue without Sam?

7. Technology can be important to an organization.
    A. Was Wal-Mart a leader, avid follower, or laggard in technology?
    B. Isn't new technology risky? How was this risk reduced at Wal-Mart?
    C. Give examples of specific technologies that were adopted. For each, explain the business purpose of the technology.

8. Almost all chains start in large urban areas and then (sometimes) grow into small towns (McDonald's for example). Wal-Mart did the reverse.
    A. What specific advantages were there to Wal-Mart's approach?
    B. What specific disadvantages?

 - R. S. Kulzick - Q1 - 1/23/2003 -

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