CASE STUDY 7.2 WAL MARTS WOMEN STUDY
GUIDE 2026 QUESTIONS AND RATIONALES
◉ Walmart's history. Answer: -Sam Walton saw opportunity for
discount retailers in small towns
-emphasized low prices & high volumes
-smaller stores couldn't compete and he was able to expand
-he observed his competitors and adapted useful ideas including
self-service, company cheers, referring to employees as associates,
etc.
-COGS was still relatively high so he realized he needed to invest in a
big warehouse. --> developing its own set of distribution centers to
quickly & efficiently get merchandise to its stores
-Walmart made significant investments in IT... allowed the company
to see where in its distribution system any product was at any time.
-IT system also linked walmart's automated distribution centers to
stores and to suppliers...allowing the company to restock stores'
inventories precisely and quickly
-walmart also invested in communications, allowing company
managers to communicate quickly and easily with stores all over the
country w/ traveling to them, saving walmart time and money
◉ walmart's advantage. Answer: -advantage in its operating
structure compared to industry averages
, ◉ Walmart's operations. Answer: -structure and systems designed
for efficiency
◉ Key elements of walmart's operation strategies. Answer: -
distribution model
-relationships with suppliers
-human resources management
-marketing and merchandising practices
-store formats
-international operations
◉ Walmart's distribution. Answer: -distribution centers operate 24
hours a day
-receives hundreds of truckloads per day and serves roughly 150
stores within a 150 mile radius.
-products typically move through the DC w/i 48 hours
-cross docking procedures --> foods brought into the distribution
center exit the inbound truck and are loaded immediately onto an
outbound truck headed to a walmart store
-technological innovations such as the ability to track goods
-walmart devised a scan and pay system which meant that a
suppliers product was owned by the supplier until the product was
actually sold by walmart.
GUIDE 2026 QUESTIONS AND RATIONALES
◉ Walmart's history. Answer: -Sam Walton saw opportunity for
discount retailers in small towns
-emphasized low prices & high volumes
-smaller stores couldn't compete and he was able to expand
-he observed his competitors and adapted useful ideas including
self-service, company cheers, referring to employees as associates,
etc.
-COGS was still relatively high so he realized he needed to invest in a
big warehouse. --> developing its own set of distribution centers to
quickly & efficiently get merchandise to its stores
-Walmart made significant investments in IT... allowed the company
to see where in its distribution system any product was at any time.
-IT system also linked walmart's automated distribution centers to
stores and to suppliers...allowing the company to restock stores'
inventories precisely and quickly
-walmart also invested in communications, allowing company
managers to communicate quickly and easily with stores all over the
country w/ traveling to them, saving walmart time and money
◉ walmart's advantage. Answer: -advantage in its operating
structure compared to industry averages
, ◉ Walmart's operations. Answer: -structure and systems designed
for efficiency
◉ Key elements of walmart's operation strategies. Answer: -
distribution model
-relationships with suppliers
-human resources management
-marketing and merchandising practices
-store formats
-international operations
◉ Walmart's distribution. Answer: -distribution centers operate 24
hours a day
-receives hundreds of truckloads per day and serves roughly 150
stores within a 150 mile radius.
-products typically move through the DC w/i 48 hours
-cross docking procedures --> foods brought into the distribution
center exit the inbound truck and are loaded immediately onto an
outbound truck headed to a walmart store
-technological innovations such as the ability to track goods
-walmart devised a scan and pay system which meant that a
suppliers product was owned by the supplier until the product was
actually sold by walmart.
