This paper will explore Walmart particularly its logistics and value chain and discuss about the certain practices, which make it a non-socially responsible company, and at the same time will highlight the areas in which Wal-Mart can improve its social and economic responsibility…
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The intention of this study is Walmart as a retailing giant. Walmart’s overseas operations can be viewed in two different categories. One is its direct operations of retail stores and other is the indirect operations of its supplier units. That is, Walmart’s direct overseas operations under the name Walmart International consist of running of “more than 5,200 retail units in 27 countries outside the U.S.”. The net sales garnered from this Walmart International exceeded $109 billion in fiscal year 2011 and that constitutes one-fourth of Walmart’s total revenues. The entry mode Walmart adopted in its various international operations differs, and it is based on local conditions. For example, in countries like Canada, Argentina, Brazil, and United Kingdom, it operates wholly owned stores (although in UK, it operates under ASDA, the name of its acquired entity). In other countries, it operates in association with local partners in order to fulfil the governments’ regulation and also as a business strategy. “More than 90% of our international stores operate under a banner other than Walmart.” Interestingly, the supply chain of these international stores exist in those countries itself and importantly in certain Third World Countries. That is, Walmart operations in United States depend on supplier network in various foreign countries, apart from its local sourcing. On the same lines, its foreign stores also depend on local and importantly foreign suppliers to supply it with the products and other services. Thus, as mentioned above, Walmart’s overseas operations include operation of stores as well as supplier network, and if it is particularly focused on its value chain and logistics, the supplier networks play a major role. That is, with these overseas supplier network providing products to United States stores, other countries’ Walmart stores as well as their local Walmart stores, they play a major role in Walmart’s value logistics and value chain. Walmart’s logistical and value chain strategies in overseas operations, particularly in relation to social and environmental responsibility and theories As the
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(“Walmart: Logistics and value chain, overseas operations, social and Assignment”, n.d.)
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(Walmart: Logistics and Value Chain, Overseas Operations, Social and Assignment)
“Walmart: Logistics and Value Chain, Overseas Operations, Social and Assignment”, n.d. https://studentshare.org/business/1393214-walmart-logistics-and-value-chain-overseas-operations-social-and-environmental-responsibility-and-theories.
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