IST 301 Exam 2: Walmart Case Exam
Questions And Answers
Wal-Mart Intro -
correct answer ✅- Largest retailer in 2006
- Earned $312.4 billion from 2006 sales
- Wal-Mart's supply chain is a key enabler of its growth
- Voted "Retailer of the Decade" in 1989 but by 2006, competitors
were catching up
- Company had been unable to meet its self-imposed target of
holding inventory growth to half the level of sales growth
- Johnnie C. Dobbs, new executive vice-president of logistics,
wondered what he could do to ensure that Wal-Mart's supply chain
remained a key competitive advantage
Wal-Mart Background -
correct answer ✅- Based in Bentonville, Arkansas and founded by
Sam Walton
- World's largest retailer
- More than 6,500 stores
worldwide
- 1.3 million employees
- Served more than 138
million customers each
,IST 301 Exam 2: Walmart Case Exam
Questions And Answers
week
- Strategy was to provide quality merchandise and services at
"every-day low prices" (EDLP)
Development of Wal-Mart's Supply Chain -
correct answer ✅- Before Wal-Mart, Walton owned a successful
chain of stores under Ben Franklin Stores banner
- Able to selectively purchase merchandise in bulk from new
suppliers and then transport these good to his stores directly
- Walton realized "discount" retailing was a new trend
-Decided to open up
large, warehouse-style
stores
-Needed to step up his
merchandise
procurement efforts
-No suppliers were
willing to send their
trucks to his stores in
rural Arkansas
, IST 301 Exam 2: Walmart Case Exam
Questions And Answers
- Self distribution was
necessary
- As Wal-Mart grew 1960 to 1980, it benefited from improved road
infrastructure and the inability of its competitors to react to
changes in legislation
Purchasing cont'd -
correct answer ✅- Every quarter, buyers met in Bentonville to
review new merchandise, exchange buying notes and tips
- Buyers toured stores 2 or 3 times a week
- Wielded enormous power over its suppliers
-When negotiating, Wal-
Mart insisted on a single
invoice price and did not
pay for cooperative
advertising, discounting
or distribution
- Globally had around 90,000 suppliers
Questions And Answers
Wal-Mart Intro -
correct answer ✅- Largest retailer in 2006
- Earned $312.4 billion from 2006 sales
- Wal-Mart's supply chain is a key enabler of its growth
- Voted "Retailer of the Decade" in 1989 but by 2006, competitors
were catching up
- Company had been unable to meet its self-imposed target of
holding inventory growth to half the level of sales growth
- Johnnie C. Dobbs, new executive vice-president of logistics,
wondered what he could do to ensure that Wal-Mart's supply chain
remained a key competitive advantage
Wal-Mart Background -
correct answer ✅- Based in Bentonville, Arkansas and founded by
Sam Walton
- World's largest retailer
- More than 6,500 stores
worldwide
- 1.3 million employees
- Served more than 138
million customers each
,IST 301 Exam 2: Walmart Case Exam
Questions And Answers
week
- Strategy was to provide quality merchandise and services at
"every-day low prices" (EDLP)
Development of Wal-Mart's Supply Chain -
correct answer ✅- Before Wal-Mart, Walton owned a successful
chain of stores under Ben Franklin Stores banner
- Able to selectively purchase merchandise in bulk from new
suppliers and then transport these good to his stores directly
- Walton realized "discount" retailing was a new trend
-Decided to open up
large, warehouse-style
stores
-Needed to step up his
merchandise
procurement efforts
-No suppliers were
willing to send their
trucks to his stores in
rural Arkansas
, IST 301 Exam 2: Walmart Case Exam
Questions And Answers
- Self distribution was
necessary
- As Wal-Mart grew 1960 to 1980, it benefited from improved road
infrastructure and the inability of its competitors to react to
changes in legislation
Purchasing cont'd -
correct answer ✅- Every quarter, buyers met in Bentonville to
review new merchandise, exchange buying notes and tips
- Buyers toured stores 2 or 3 times a week
- Wielded enormous power over its suppliers
-When negotiating, Wal-
Mart insisted on a single
invoice price and did not
pay for cooperative
advertising, discounting
or distribution
- Globally had around 90,000 suppliers
