This report includes a thorough analysis of Walmart Inc., a global retail giant that succeeds through cost leadership and massive scale of operations. This examines a Walmart’s corporate structure, governance practices, global expansion strategies, and technological innovations. Using Porter’s Five Forces and value chain for analyzing Walmart’s competitive position and operational efficiency, the report is prepared. In addition, it reviews Walmart’s ESG performance and how it manages to mitigate the reputation risk associated with recent controversies concerning the rollback of Diversity, Equity, and Inclusion (DEI) initiatives. Supply chain management, low cost business model and digital transformation are found as Walmart’s major strengths. Although this is improving customer satisfaction and managing ESG goals, it is posing challenges in sustaining ESG goals, improving customer satisfaction, and managing reputational risks attributed to DEI policy reversals. The report suggests the following recommendations for Walmart (1) to reinstate and fortify its DEI programs to restore stakeholder trust, (2) to invest in its greener supply chain policies to meet its emission goals, (3) to upscale its customer service to raise its satisfaction scores, and (4) to keep exploiting the use of AI and automation to attain higher levels of efficiency. Such strategic adjustment will enable Walmart continue to lead in global retail while mitigating the ethical, and environmental as well as competitive pressures.

2.0 Introduction of the company

2.1 Who We Are:

Founded in 1962 by Sam Walton, Walmart Inc. is one of the largest multinational retail corporations in the world, with headquarters in Bentonville, Arkansas, USA. Walmart is a global leader in retail and operates a chain of hypermarkets, discount department store, and grocery stores. Walmart currently has over 10,500 stores in more than 20 countries and employs more than 2 million people around the world (Walmart, 2025). Millions of customers go through both physical stores and the company e-commerce platforms.

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2.2 Vision and Mission:

According to Walmart (2023), the vision of Walmart is ‘to be the destination for customers to save money, no matter how they want to shop.’ This demonstrates its focus on the customer and affordable nature. This promise, as outlined in its mission statement ‘to save people money so they can live better’ is clear: It is to offer value to customers through low prices and an extensive range of products. This accessibility, community, and operational efficiency is shown in Walmart’s mission and vision.

2.2 Company Strategy

Choo (2024) reports that Walmart’s business strategy centers around offering everyday low prices (EDLP), operational efficiency, and scale. It leverages its extensive distribution network and supply chain management to reduce costs and pass savings on to customers. Walmart also focuses on customer satisfaction through a seamless omnichannel experience that integrates in-store, online, and mobile shopping. In recent years, the company has increasingly adopted digital transformation initiatives to enhance convenience and personalize the shopping experience.

2.4 Globalization and Innovation:

According to Ji (2025), Walmart’s globalization strategy is its expansion of operations to markets, which includes Mexico, Canada, Chile, China, and India. International expansion has been met with mixed results, but Walmart is continuing to pursue global expansion through acquisitions in India (Flipkart) and in Africa (Massmart). Thus, innovation is very important for Walmart’s successfulness. As a result, the company heavily invests in technology to smooth operations, improve supply chain logistics and to enhance customer service. To make its way in a quickly changing world of retail, Walmart has embraced automation, artificial intelligence, and data analytics.

2.5 Business Model:

A high volume, low margin model is what Walmart works by — affordability, scale, and efficiency. The wide range of goods, such as groceries, apparel, electronics, and household items, bring revenue to it. For instance, as illustrated in Figure 1, which shows 2019 income profiles of shoppers, 22% of shoppers making $25K–$49.9K prefer Walmart based upon its high volume, low margin model. On the other hand, 48% of $100K+ earners choose Costco, with another 40% opting for Amazon’s online convenience. The company uses its purchasing power and supply chain skills to bargain great deals with suppliers and reduce operation costs. Apart from selling goods, Walmart also earns money from e commerce, financial services, and its growing marketplace platform. Its Omni channel strategy integrates online experience with in-store experience, thus enabling customers seamless online and in store shopping and enhances customer engagement and loyalty. Therefore, Walmart’s robust brand name identity, human centered mission, and strategic backing of low expenses, worldwide ampleness, and advancement have established them one of the overwhelming retailer in the worldwide retail market.

Figure 1: low-cost business model of Walmart (Source: Ban, 2021)

3.0 Corporate Governance at Walmart Inc.

3.1 Board of Directors

The company’s Board of Directors is responsible for overseeing the strategic direction of Walmart Inc. and for holding management accountable to shareholders. At present, there are 12 members in the board, consisting of 5 independent and 7 management directors (Walmart, 2024). The board of directors as per 2025 is shown in Figure 2. Chairman Gregory B. Penner brings over two decades of experience in technology and finance. The company President and CEO Doug McMillon is also a board member, giving an insight into its day to day operations. The board is composed of people with a range of backgrounds, including Bob Moritz, former chair of PricewaterhouseCoopers, who brings global business and financial acumen (Walmart, 2024a). In his position, he is responsible for overseeing Walmart’s business strategy, risk management, and the long term success of the company. They are parties to the direction of the company, monitoring of performance and excellence in corporate governance. The board composition emphasizes diversity with members coming from various disciplines and backgrounds providing different kinds of expertise to the table. The diversity of the board helps tremendously in taking decisions that are based on the interest of both the shareholders and the stakeholders.

Figure 2: Walmart’s Board of Directors. (Source: Databahn, LLC, 2025).

3.2 Board Composition, Structure, and Policies

The structure of Walmart’s board is to foster good governance and strategic oversight. Most of the board of directors are independent, thus making decisions based on objectivity. Independent nominees have now comprised 8 of 11 nominees, and 10 of 11 of those nominees have also been non-management directors (Corporate Governance, 2019). Corporate Governance Guidelines, which operate as a flexible framework for the responsibilities of the board, are also in place. They include an annual review of board leadership structure, a policy to join women and ethnically and racially diverse candidates to every new candidate slate for director, and a 12 year minimum term for independent directors subject to board approval for exceptions. However, the board is well balanced in experience and fresh views with the median age aging 54 and median tenure of 8 years. Corporate Governance (2019a) further reports that overall 98% attendance rate at the board and board committee meetings is reported by the board which shows it is actively engaged. By maintaining this structure and abiding by governance policy, the board is able to stay effective when guiding Walmart to its optimal strategic direction as well as overseeing management.

3.3 Role and Responsibility

Walmart’s board is led by the primary responsibility to oversee Walmart’s business strategy and strategic planning; and to oversee the management of material risks that could affect Walmart (Sec.gov, 2023). Their job is to pursue shared value, meaning shareholder and stakeholder value over the long term in a sustainable fashion. The management of Walmart carries out the business strategy effectively as ensured by the board and determines possible opportunities and risks. While acting as a board member, Walmart expects them to follow Walmart’s Code of Conduct. The board also has responsibility for succession planning, ensuring that the company has the right leadership in place to take the company through future tests. The board plays an important oversight role through its job of helping preserve Walmart’s reputation and financial health as well as making sure the company adheres to its mission and values.

3.4 Role of the Committee Members

Walmart’s board conducts its work through a number of committees, each imposed with certain duties to further the efficiency of governance. The Audit Committee, consisting of solely independent directors, monitors financial reporting, internal controls, and adherence to legal and regulatory requirements (Q4cdn, 2024). Compensation and Management Development Committee’s job requires them to measure and appraise executive compensation with the aim of bringing it to a level connected to company performance and doing right by the beneficial interests of the shareholders. The Nominating and Governance Committee is concerned with board composition, assessing candidates for director positions, and corporate governance issues. In addition, the Technology and eCommerce committee towards technological progress and online tactics (Walmart, 2024b). Every committee is crucial in contributing to fulfill overall governance duties by the board, in their assuring that the Walmart functions with integrity and accountability.

3.5 Executive Performance Evaluation and Succession Planning

Walmart puts major effort in assessing executive performance and helping plan for leadership succession. It regularly assesses executive performance along with aligning compensation with company performance and clearly defined strategic objectives (Fontinelle, 2016). Board…….

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