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Walmart
Name
Date
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Conflicts in the family business

Conflict is a human condition and can neither be positive or negative but rather an
ordinary spectacle. The consequences of conflicts I family business can be severe if not
effectively managed. To effectively manage conflicts in a family business, it essential that
families understand nature and the reason for the arising conflicts. Conflicts do not arise because
of what has taken place but rather the perception humans accord to what has happened (Fahed,
2018). It is, therefore, appropriate to refer to the conflict as a clash between two or more
independent parties as a result of their differing opinions on particular issues or problems. From
the definition, conflict can be treated as a clash between individuals towards the same objective
(Fahed, 2018). Conflicts as a force of change can bring positive aspects to the business, for
instance, it stimulates curiosity and interest, challenges individual abilities leading to
improvement and aims at producing outcomes for the benefit of the company. There is also the
negative aspect of the conflict that makes it detrimental for example, loss of communication and
the need to strive for personal gain in the business.
Journal of family business strategy
The first journal article is about the emergent best practices in a family business. It
emphasizes the need for lessons to effectively govern and run a family business for successful
and outstanding business cooperation (Dana & Smyrnios, 2010). It reviews the experiences
characterizing family best practices by various researchers and establishes the meaning and
application of best family business practices and the demerits of use of each method (Dana &
Smyrnios, 2010). Given the detrimental nature of some traditions, there is a need to query
whether some transitional practices are justifiable. Since family businesses are unique as families
that influence them, the best family practices are skewed to particular families and each family
may use a given thing to their business advantage.
The second journal article is about how strategy as a practice, if incorporated in business
can help scholars develop skills and understanding about how to make strategies in business. The
strategy practice in viewpoint stresses that strategic work is different in organizations (Nordqvis
& Melin,2010). The ways of performing strategy fall in various routines and work sequences that
differ from businesses to businesses. The article focuses on the importance of strategic planning
as a specific strategic practice in a family business (Nordqvis & Melin,2010). There are three
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dimensions in strategic planning, for example, planning arenas, modes, and motives. Based on
the planning dimensions there exists a link between strategic planning to institutional and local
forces.
Introduction
Across the world, family-owned businesses have filed trebly, and some have led to the
separation of family members and even long court battles. According to Nerlekar (2017), about
70 percent of family-owned busses are sold or fail before they hit the second generation, while
about 90 percent of the family-owned businesses fail to hit the third generation. These businesses
fail due to poor succession planning, family conflicts, lack of trusted advisors, and different
visions between ages (Pope & Pope, 2015). However, several families owned businesses exist
and are successful over the years due to their capacity to navigate between stressful situations,
inflation, family conflicts, and any other factors that threaten the success of a family-owned
business (Smith & Crawford, 2019). In 1962, Walmart, A family-owned company, was born,
which is currently an American multinational retailer that operates a chain of grocery stores,
hypermarkets, and discount department stores across 27 countries.
Walmart is an exciting family-owned business to discuss because of the ten main ways in
which it has to change the world. One, the campy has been in operation for over 50 years. For
these years, the company has and continues to lay a foundation for an American business
institution that would reshape both the industry and the US as a whole (Caraway, 2016). As of
September 6, 2019, Walmart reported 11,695 stores across the world. Therefore, for a family
business to begin from a single store as Walmart did in 1962, to appoint the company command,
the world's attention is entirely remarkable. Additionally, Walmart's everyday low prices are
equally an exciting aspect of the company to discuss. Instead of offering quality goods and
services at some times in a year, the company decided to provide products and services
throughout the year (Pope & Pope, 2015). The slogan remained, “Always low
prices."Additionally, the cult of Walmart is something interesting to like the company for at any
given moment. Walmart developed a culture in it; one example was the7:30 am Saturday
Meetings, which ensured that the company instilled entrepreneurial spirit into the employees.
The company, due to its influential culture, become an inspiration to the imitators. The founding
father of Walmart, Sam Walton, become an inspiration to the family has he founded the
company on an elaborate work ethic. Walton’s work ethics was passed to his three sons Rob,
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John, Jim, and a daughter Alice. Walton’s selflessness as the founder and the CEO was the
catalyst towards his success as an entrepreneur not only in the US but also across the globe
(Smith & Crawford, 2019). Therefore, Walmart, as a family-owned business, has achieved both
economic and social goals to the societies they are connected to around the world.
History and Current Day
A family business is any business, which involves two or more members of a family. In
this set-up, the majority of the possession and control lies in the family. The family-owned
business is the oldest type of business organization. One of the best performing family business
is Walmart. Walmart is a company owned by the Walton family of Sam Walton (Barbara, 2018).
Besides, two brothers, namely Bob and Jim Walton, their sister Alice, sister-in-law Christy, and
other members of the family, run it. Walmart fits the definition of family business because the
majority of its possession and control is in the hands of Walton's family.
Walmart Background Information
Sam Walton opened his first Wal-Mart in 1962 in Arkansas. Sam's low price strategy for
retailers became an important model for all their stores across the globe. In the beginning, Wal-
Mart majored its operation in rural areas to avoid confrontation with established retailers such as
Kmart (Marcilla, 2014). As it grows, the company introduced new retail models such as Sam’s
Club discount stores and Wal-Mart Supercenter. By 1990, Wal-Mart becomes the largest retailer
in the US.
Financial issues of Walmart
Due to the size of Walmart, it can be challenging to increase its profits through a
measurable degree. Labor issues are not new to Walmart as a measure of reducing costs. The
company has been fighting with staff and labor unions since 1970 (Kolnick, 2019). For instance,
Walmart ran into financial issues such as unpaid overtime leading to an unhappy workforce
(Marcilla, 2014). However, Walmart made a turn-around plan for creating a conducive work
environment. Today, the company guarantees about $10 every hour as well as paid vacations and
efficient promotion opportunities (Philippon, 2012). So far, the company has implemented about
$2.7 billion turn-around initiative, but the hourly rate has been cut.
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Genograms
Genograms are essential in writing a family history. It also helps in the appreciation of
the efforts by family members toward the success of the business (DeMaria, Twist & Weeks,
2017). It shows the names and ages of family members, their dates of births, marital statuses,
and death. Genograms show the life cycle patterns, household structures, and relational patterns.
As shown in the figure below, Sam Walton was the founder of Walmart, but ownership has now
in the hands of his four children, namely; Rob Walton, John Walton, Alice Walton, and Jim
Walton.

As shown in the Genogram above, Rob, John, Alice, and Jim plays an essential role in the
management of Walmart. The immediate family of Sam Walton plays a role as members of the
board of directors. Rob, John, and Jim provider advisory to the company (Kolnick, 2019). In
addition, unlike his brothers, Alice has not taken an active role in running Walmart but instead
became the patrons of the art. Alice Walton, with her desire and passion for art, decided to start
Walmart's foundation and Museum (Marcilla, 2014). Rob, John, and Alice act as the family
business advisory team. Recently, Steuart Walton replaces his father Jim as the board of directors
in the family business.
Relationship between Walmart and the Family
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For a family business to thrive, there has to be a good relationship between owners and
business itself. A rogue relationship will result in the decline of the organization. Sam Walton,
who is the founder of Walmart, set up his family for financial success when he divided the
ownership of the business to his children (Wexler, 2011). In regards to this, Rob, Jim, John, and
Alice Walton understand their ownership in the business, promoting a healthy relationship not
only for the family but also for the business.

Walmart Competitive Analysis

Strengths Weaknesses
 Size; Walmart is the largest retailer in the Walmart's weaknesses result in issues on the
world and has a robust and reliable market power organization’s ability to withstand the threats.
compared to the competitors. Besides, it is the  Thin profit margins; this an impact of
largest private retailer in the globe with more than using the cost leadership strategy in the market to
2.3 million employees (Baroto, Abdullah & Wan, attract more customers (Stankevičiūtė, Grunda &
2012). It gets revenue of more than $500 billion Bartkus, 2012). Since the company reduces the
which far much more than the competitors selling prices of its goods, it must also reduce its
 Effectiveness; Walmart can utilize its profit margins and depend more on the number of
resources like information systems, skills, logistics sales. The strategy makes the company business
and supply chains, and knowledge and capabilities model easy to copy
of employees more efficiently and effectively  A simple business model that can be
 Use best practices; Walmart has copied; Walmart has does not have significant
determined advanced ways of performing business competitive differentiators apart from its size and
operations, managing stores and recruiting new prices.
staff (Baroto, Abdullah, & Wan, 2012). The  Disadvantaged on high-end specialty
company achieves huge gains by using these sellers, high-end specialty retailers can attract
operations in its vast network of stores quality-seeking customers who are not sensitive
 Economies of scales; Walmart can share its to the prices of the products (Stankevičiūtė,
costs over its products, which makes it one of the Grunda & Bartkus, 2012).
cheapest places to shop (Pahl & Richter, 2009). In
regards to this, the company can remain stable in
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the market giving them a competitive advantage

compared to their competitors
 Global presence; Walmart has about 6360
retail units in 27 countries outside the United
States of America. The international expansion
helps the company to expand and enhances its
leadership position.
Opportunities Threats
Organization’s opportunities are about expansion and The challenges to Walmart are related to the local market
enhance business operations. Walmart's opportunities are condition and the shifts in customer beliefs on the
connected to international situations. Also, human products being offered. These factors should push the
resources situations present issues are opportunities, company to make some informed competitive strategic
which allows the organization to improve. In regards to changes. Some of the threats to Walmart are;
this, Walmart’s chances are;  The need for healthy lifestyle trends; the
 Expansion in developing nations; Walmart changes in lifestyle trends affect the purchase of
has a more significant advantage in the market some products sold in the organization
because of its knowledge and experience in the (Casadesus-Masanell & Ricart, 2010). This is
international market. Expansion in developing because it affects a customer’s choice of products
countries presents an excellent opportunity for the  High competition in the market is a
company to improve its overall sales (Casadesus- significant threat to Walmart (Pahl & Richter,
Masanell & Ricart, 2010). Since the company’s 2009). Walmart has close competitors such as
prices are fair, they can attract more customers Carrefour and Costco.
 Advancement in HR practices to create  Online retailers; the growth of the online
competitiveness in the labor market. Having a business is affecting organizations like Walmart.
good team provide a platform for the company to
thrive (Casadesus-Masanell & Ricart, 2010). With
effective HR practices, the team can deliver better
customer services.
 Advancement in quality operations;
Walmart has been at the forefront of providing
quality operations to keep their customers. The
company has one of the best customer service
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operations

Conclusion
Sam Walton’s entrepreneurial skills brought to the world a multinational store that is a
testimony of a successful family-owned business. Sam Walton, upon the establishment of
Walmart on remarkable work ethics, passed the button to the family members. Besides, two
brothers, namely Bob and Jim Walton, their sister Alice, sister-in-law Christy, and other
members of the family, run it. Walmart fits the definition of family business because the majority
of its possession and control is in the hands of Walton's family. Despite the success that Walmart
has had over the years, Walmart has battled court cases over the years, including a corruption
lawsuit worth $282 million. As a multinational organization, Walmart has competitors such as
Carrefour and Costco among others, which keeps the Walton family n check to retain their
competition the management of the company. The company has the opportunity to advancement
in HR practices to create competitiveness in the labor market. The family of Sam Walton
therefore, must polish their management skills and reduce the family conflict to ensure that
Walmart remains the number one retailer across the globe.

References
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