Walmart Business Success - Essay Example

Walmart Business Success Before we start evaluating the rise of Walmart in American business arena, it is inherent to acknowledge that Walmart is the largest private company in the US soli and employs over 2 million people. Since its inception in 1962, the company has risen through the economic and social thickets to become the largest retail store in the world. Emergence of Walmart as an economic giant in America marked the transformation of the nation from an industrial to a service economy. Immediately after the First World War, the north dominated the US economy, as the producers of industrial goods and the majority south were the consumers. However, the post war climate changed to address the imbalance in resource distribution around the country. It is noteworthy that the American population started to re-embrace the ideologies and principles of capitalism. Concerned American business enterprises actualized this theory of capitalism by implementing the elements of free trade in their business practices. Wal-mart was in the front of moving the production dynamics to establish a service economy characterized by capitalism, social responsibility, and ethics (Moreton 78). The rise of Walmart during the post war economic climate can be attributed to the aspect of technology and innovations in the business sector. Logically, technological logistics played a substantial role in bolstering and streamlining the business activities practiced by Walmart stores. However, the integration of capitalism and some social values like ethics and religion contributed immensely to the rise of the retail store. Walmart’s management appreciated the aspects of free enterprise, Christianity and family values in the company’s business activities. These aspects of capitalism and social responsibility could be seen in their production, supply and the employment relationship to the larger southern population of the American community. Degradation of American capitalism during the World War 2 affected the south. The post-war economic climate created resource imbalance within the state whereby the north dominated productivity while the majority of the south got disadvantaged. In this regards, Walmart undertook to rejuvenate capitalism and address economic injustices experienced by the rural population. As a result, the store’s management implemented the values of Christianity, family values and free market in their business relationships with the society (Moreton 87). Free enterprise refers to an economic state where the forces of supply and demand influence business activities. According to Moreton, the consumer population follows the availability of the desired products in the market. In addition, the demand forces and the necessity level of those products in their lives influence their consumer behavior. In the context of Walmart, the stores embraced the need of employing free market policies in their production lines protected by the capitalistic state of US economy. Though capitalism was part the US economic pillars, the consequences of World War 2 affected its operation. Based on this, Walmart moved to meet the demands of the society' members residing in the rural areas including other members concerned with the issue of free enterprise. As a result, the forces of demand guided the production and supply lines of the store. Walmart strived to avail exactly what the consumers required at economically friendly prices. Walmart allocated some resources to marketing research exercises meant to provide the actual picture of the consumer demands in each market segment. Upon identification of their needs, the stores responded by availing the goods to the population. In addition to the practices of free enterprise, Walmart left the forces of supply and demand to guide their pricing activities. Consequently, the capitalistic aligned members of the society embraced the free enterprise practices of the company (Moreton 45). The rural population liked the free market activities of the company; hence the stores gained a competitive advantage. According to Moreton, Walmart studied the market segments and employed the appropriate distribution channels to reach every member in the identified segments. The diversification of Walmart to every potential market segment couples with their principles of free market facilitated their success efforts as a retail company (Moreton 51). Moreton postulates that Walmart proved responsive to its customers by availing their products as per the forces in the free market environment. In addition, Walmart employed competitive practices in the field. As a result, fair competition ensured maintenance of the store's position in the market. According to Moreton, advertisements and excellent customer relations enabled Walmart to remain at a competition advantageous position and enjoyed a substantial percentage of the US consumer market share (Moreton 81). In her writing, Moreton asserts that Christianity is the other aspect responsible for the success of Walmart. Walmart acknowledged that America is a Christian nation. In the US, Christianity plays a crucial role in determining people’s actions and economic practices. In this regard, Walmart blended some Christian values into their business practices, especially their relations with the society and the consumer public. Moreton argues that the store promoted a sense of helping one another in the community by destroying the boundary that existed between women and men in the society. In their practices, women employees in the stores could be seen doing some jobs, which belonged to men in the past and vice versa. Walmart promoted the sense of dignity among all its employees. It created a sense of inclusion and respect between both genders in the work place. This served to respond to the Christian needs and values of the employees. In addition, Walmart did not promote the concept of self-indulgence. The stores availed goods that suited the Christian values of members in every market segment. In this case, their business practices conformed to the principles of Christianity hence they gained a competitive advantage in the US consumer market (Moreton 67). Family values and women inclusion is another social aspect integrated by the retails stores in their business environment. During the post war period, the US was sensitive on the issues of family and rights of women in society. Women were fighting for equal economic activities with their male counterparts in social institutions. In the past, the US was a patriarchic nation dominated by men occupying all the crucial positions of the nation’s economy. In the macro-economic environment, women were underemployed or underpaid (Moreton 82). Based on these facts, Walmart moved to employ women as store workers especially in the stores found in the south rural population with the highest level of patriarchy. Once employed, the company’s management acknowledged women’s presence in their human resource element and presented them with opportunities to move up their career ladder. According to Moreton, women hold lower and middle management positions in the company. This recognition of women in the workplace promoted the aspect of family values in the society. Walmart gained a competitive advantage by winning majority of the female consumers in their market segments (Moreton 92). Moreton used three themes to support her thesis. These themes carry different weights depending on the persuasive efforts employed by the writer in each theme. According to my evaluation, the most persuasive theme is the free enterprise. On the comparison of Christianity and free enterprise, the later seems to be more persuasive based on the supporting evidence supplemented by Moreton. Free market practices determine the potential viability of a business enterprise in a capitalistic economic environment. In this context, every business enterprise should conform to the rule of supply and demand. The theme of Christianity serves to respond to the religious principles of community. However, the aim of a business enterprise is not to promote Christian values in the society but to respond to the economic needs of the population. Therefore, the integration of religious values into business practices did not bear considerable benefits compared to free market practices in Walmart’s capitalistic economic environment. In this case, the free enterprise theme is more persuasive that the theme on Christianity (Moreton 42). On the other hand, the campaigns on family values and gender equality were active only during the post war period. However, women’s contributions started to be acknowledged during the 1970’s and 1980’s. However, the influence of gender equality in the economic environment has declined over the recent years. In this regard, the theme of family values was beneficial and practical during the 1960's. On the contrary, Christianity continues to strengthen in the US. Currently, Christian values emerge in almost every social and economic institution. Therefore, the continual presence of Christian values in Walmart business practices is more beneficial in ensuring the retailer’s business success. In this case, the theme of Christianity carries more weight than family values. Work Cited Moreton, Bethany. To Serve God and Wal-Mart: The Making of Christian Free Enterprise. Cambridge: Harvard University Press, 2009. Print. Read More