Personnel Shock: WAL-MART'S Healing

The most intense since entering China

It looks too smart - at WAL-MART.

The truth is not the case.

According to the survey, Luo Shicheng and Luo Ruilan did not take the initiative to quit their jobs, but they were invited out by the US headquarters. Besides, the list was not only there, but also included several executives who worked in WAL-MART for 19 years, vice president of China in charge of operation, and vice president of China, who was in charge of Finance in China.

This is the most volatile and volatile situation of WAL-MART since its entry into China.

Why is the headquarters of the United States angry?

According to the insider, several names

This can be seen as a result of the rapid changes in WAL-MART over the past three years.

Since February 2007, China's president Chen Yaochang took office, so far, all the management personnel have been updated.

The company's high turnover is beyond reproach, but under the continuous pressure from the headquarters, WAL-MART China has to take the strategy of pulling the plug.

A manager who has worked in WAL-MART for more than ten years sighed that WAL-MART has regarded China as the most potential market since its entry into the Chinese market in 1990s. However, it has not been able to make profits because of the problem of mode, and the speed of opening shop has not been speeded up.

In the past two years, WAL-MART has also experienced a bottleneck in sales volume in the United States, and hopes for more growth in emerging markets such as China.

To a large extent, Chen Yaochang's appointment is to solve WAL-MART's profit problem.

Therefore, although the subsequent changes (such as supplier payment) and WAL-MART's insisting practices are different, the US headquarters is willing to give time to wait and see.

More and more performance pressure has further squeezed the survival space of WAL-MART culture.

The mode of charging to suppliers and a series of "scissors" measures, including layoffs, have hidden dangers.

Although the violation is an individual phenomenon, in the atmosphere of too much anxiety and bustle, the original pparent and upright corporate culture is virtually ignored.

The signs this year have given WAL-MART an opportunity to reflect deeply.

In the turbulent May, WAL-MART launched a two month "good faith season" campaign, not only promoting cultural development inside the company, but also issuing a letter of appointment to the customer representative, "integrity supervisor", which will be promoted throughout the country.

It can be seen that under the crisis, WAL-MART is developing a return to tradition.

unbalance

Before reform, there is still a need to recall how WAL-MART is out of balance in speeding up development.

"In just over three years, the change of WAL-MART has been earthshaking."

A WAL-MART management lamented to this magazine.

The iconic WAL-MART blue is no longer emphasized in stores. Goods display, promotional signs and commodity price tags have already lost the WAL-MART characteristics that were easy to identify at the first glance. The quality of service that has been commended before is also declining.

"Some of my old colleagues have entered the mall, but they can't recognize that this is WAL-MART mall, and there are two kinds of other stores."

The employees said.

Under the pressure of cost and competition, WAL-MART is losing its original personality.

When Chen Yaochang came to power, he began to drastically reduce costs.

Some of the stores that deliver customers are cut down directly.

Layoffs for staff at the store did not stop because of the "optimization" incident that was highly regarded and criticized in April 2009.

It is reported that in the past, the number of employees in a WAL-MART store was around 400, and now it has been cut to 270, or even less than 240.

The expired salted duck incident also reflects the cost pressures that are hard to resist.

WAL-MART, who always believed in the compliance culture, regularly inspecting stores and selling goods or personal products, and employees were relatively self disciplined.

But this time, Chongqing stores have to control costs and sell outdated products in order to reduce losses.

When costs are low, profits must also be increased.

"Chen picked a relatively simple way."

The old WAL-MART employee said, "why do you ask purchasing?"

Collecting accounts every day. "

In fact, this Carrefour style has disappointed many of the old staff, but is also very helpless because Chinese suppliers are reluctant to reduce the purchase price in order to control the price and prefer to pay the entry fee.

This is more prone to employee bribery.

In WAL-MART, such behavior was immediately dismissed.

But the huge train was out of control at the speed limit.

In the past two years, many sites that had not been approved in the past years have been approved for the simple pursuit of the number of stores. But the sales performance is not good, and the daily sales volume is less than 100 thousand yuan (this is a figure close to the bottom line of profit).

At the same time, the impetuous atmosphere permeated the company, and WAL-MART became a keen participant in various exhibitions. The arrangement of the exhibitions often cost tens of thousands or even tens of thousands of dollars. For the meager profits retail companies, "how many bottles of coke do we have to sell to pay for these fees?"

WAL-MART used to advocate frugality.

The old employee said.

Management is also keen to show off all kinds of government activities in a high-profile manner. It advocates WAL-MART's efforts to attach importance to women leaders and sustainable development. These are indeed affirmative, but WAL-MART's compliance culture is rarely mentioned.

In fact, the personnel concussion is not bad enough for WAL-MART. The retailer, who aims at a better life, is not unaware of these problems.

The timely removal of the "malignant tumor" and the declaration of solemn position from the top to the bottom show precisely the determination of WAL-MART to return.

Now, in all sectors of the company, "return" has become a stressed theme.

According to WAL-MART's official statement, Mario-Jos e Medina, the chief financial officer of WAL-MART and Chile, will be the senior vice president and chief financial officer of WAL-MART China, and Del Sloneker, a senior vice president of the WAL-MART department store Limited, will be the chief operating officer of the mall of WAL-MART China store.

Next, the new team will lead the example of the retail industry to solve the problem facing foreign retailers: how to coordinate the contradiction between short-term profit and long-term development?

When can we find a way to abandon local profit making to suppliers?