Companies–including Walmart–Should Not Deviate from their Core Culture

The Walmart culture

According to the WSJ, Walmart will be reporting a second straight year of declining domestic same-store earnings. The cause is attributed to the company’s move from its core culture centered around the principle of providing everyday low prices to the American working class.

According to the Walmart website, they state that three simple principles that were part of their founding in 1962 are what make them great. These principles characterize the Walmart culture.

1. Respect for the Individual–We’re hardworking, ordinary people who’ve teamed up to accomplish extraordinary things. While our backgrounds and personal beliefs are very different, we never take each other for granted. We encourage those around us to express their thoughts and ideas. We treat each other with dignity. This is the most basic way we show respect.
2. Service to our Customers–Our customers are the reason we’re in business, so we should treat them that way. We offer quality merchandise at the lowest prices, and we do it with the best customer service possible. We look for every opportunity where we can exceed our customers’ expectations. That’s when we’re at our very best.
3. Striving for Excellence–We’re proud of our accomplishments but never satisfied. We constantly reach further to bring new ideas and goals to life. We model ourselves after Sam Walton, who was never satisfied until prices were as low as they could be or that a product’s quality was as high as customers deserved and expected. We always ask: Is this the best I can do? This demonstrates the passion we have for our business, for our customers and for our communities.

Walmart’s changes in their merchandise and even the look of their stores was designed to attract higher-income customers. Then they instituted discounts on select items while raising prices on others–not in keeping with their tradition–and part of their core culture– of everyday low prices.

The company Purpose–core to the Walmart culture– is simply stated by Walmart:

Saving people money to help them live better was the goal that Sam Walton envisioned when he opened the doors to the first Walmart. It’s the focus that underlies everything we do at Walmart.

Sometimes we get distracted from our roots in our attempts to grow and thrive. But when a company changes its central principles, then the company confuses its loyal customers and its employees. Changing core principles should be avoided unless it is required for survival.

Companies should define their vital Purpose and their distinctive and enduring Philosophy and understand that those attributes are their identity, and they should always be preserved.