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Wal-Mart Stores, Inc - Essay Example

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The essay "Wal-Mart Stores, Inc." analyzes the low prices price strategy coupled with concerted efforts to remain socially responsible that has seen Wal-Mart rise over the economic horizons has left negative imprints on its stakeholders such as consumers, suppliers as well as the environment…
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Wal-Mart Stores, Inc

Download file to see previous pages... Myriads of complaints have been leveled against once Americas most admired companies. The sheer magnitude of these claims seems to tumble leading giant in retail outlet if not considered by the management. The claims range from one outlet to another and from one country to another. The frequency and prevalence of such claims amongst states and different outlets point out to some truth. Perhaps one of the most conspicuous claims about Wal-Mart is its low price strategy and its unintended consequence of forcing other retail outlets out of the market. Arguably, it 's hard to compete with Wal-Mart. Many outlets that operate close to Wal-Mart concur on that fact. It has been no surprise that whenever Wal-Mart opens an outlet in town, other local retail outlets are forced to close their business or relocate. The competition is intense and most businesses have cried out about Wal-Mart negative pricing on the market prices. As part of the sustainability agenda, Wal-Mart requires its supplier maintain a set standard of sustainability. The move intends to save the consumers and others stakeholders from the high-costs associated with packaging and shipping expenses. This has, however, not worked well the supplier with most of them closing the business and turning to other areas. For instance, an analysis done by Wal-Mart suppliers indicated that 80 % of its suppliers are located in China. The bargaining power of the largest multinational has forced them to move to other regions. ...Download file to see next pagesRead More
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Wal-Mart Stores

The author states that Wal-Mart uses a perpetual inventory system wherein a good deal of technology is required. In this system, inventory quantities are updated continuously and subsidiary ledgers are updated after each transaction. Perpetual inventory provides a high degree of control, aids the management inventory levels.


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