Wal-Mart Family Run Business - Case Study Example

WAL-MART FAMILY RUN BUSINESS Student name Subject Lecturer University Date Introduction Wal-Mart is among the successful family run business in United States. The company ranked the largest retail and corporation in the world operating in more than 11,450 stores across the 27 countries (Wal-Mart, 2015). The company has various retail shops across the world operating in more than 71 banners, of which the stores are booming economically. Currently the company has employed more than 2.2 million associates across the world. By late 2014, the company financial statements indicated a net sale increase by 1.9% to $ 482.2 billion (Wal-Mart, 2015). Findings Diversified products keep Wal-Mart competitive The Organization staff leaders from multiple industries of organization, whom are the team board members, are from the family of Sam Walton’s, the founder. Wal-Mart product ranges from food to non-food commodities. The products come with variety from health and beauty products, electronics, fabrics, family apparels, jewels and shoes designers. In addition to non-food products, the company offers banking services and pharmacy stalls to diverse its reach to customers. With the diversification of the products in market, place the company to remain competitive in society. Companies, which specialize on specific product in the market, are likely to be outshined by new entrance or its closure if raw materials cease to exist Skilled Public Relation The Company maintains impressive public Relations. Employees and management use the open door policy for effective communication, which is a critical aspect that will always determine policies implemented meet the interests of associates and customers. The company to listen to customers and employees views regarding Wal-Mart services through a system known as servant leadership policy (Wal-Mart, 2013). The company introduced the fare pricing of commodities with intentions of helping the customers around the world to save their money and live a better life (Wal-Mart stores Inc, 2015). Such desirable services win the hearts of its customers to remain loyal to Wal-Mart Company with more customers that are new are registered, hence maintaining its competitive strategy. Big operating capacity & strategy Operation capacity of Wal-Mart challenges new entrants into the market. The company has diversified its services to different countries with many retail shop. The company is also able to accommodate more customers with enough commodities at a square feet of 185, 000 (Farfan, 2014). With such structures, the organization has integrated technology equipments, which boost the performance of services. Technology facilities contributes to sell of products online, saving of time through wait line, reduce spending on manual services with replacement of technology facilities and attractive advertisement for online shoppers. It is easy to access the shops and purchase of products is 24hrs daily to weekly. Growth financial analysis The continuous financial growth of Wal-Mart indicates that the company is still competitive in market. Wal-Mart net income has been on rise between the years 2012 to 2012. The chart below displays Wal-Mart net Chart representation of Wal-Mart Net income from the year 2011 to 2013. PESTEL Analysis Pestle involves the political, Economical, social and technological factors within the environment. Wal-Mart Company tends to adhere to all aspects regulated with Pestle to run efficiently without challenges. With the company following advertisement of products law, it is working inline with strict measures of government law, which if gone against penalties are in place (Lister, 20140). Wal-Mart Company offer products that are consumer-centric, which favor all customers irrespective of their ethnic background. The company is strategizing on how to recycle all of its waste products to maintain the ecological conditions. Furthermore, to manufacture products that can sustain individuals and environment (market and research, 2011). SWOT ANALYSIS OF WAL-MART COMPANY STRENGHTS Wal-Mart Company is the largest retail in the world marketing (Farfan, 2014). The company has impressive outlets both international and locally which contributes to 50% higher sale compared to its competitors (Thomas, 2011). The company is also a price leader in winning the heart of the customers by providing for them a fare price product with changing of economies. Integration of technology in the company has boasted the operation effectiveness, which save time with non-zero error of efficiency. The company does provide a variety of products hence it can still account for its profits if were the seasonal sales experiences challenge or ended. WEAKNESSES The company is fond of lawsuits. The lawsuits focus on misuse of employee’s labor forces, unpaid overtime working jobs, poor working conditions and gender discrimination (Yglesias, 2013). Workers were exploited since they were voiceless. The company also received a child labor violation fine of $ 135, 540 of which these funds could have been spent for the company economic growth. Low wages with due time will make the employees seek resignation from company. If that trends, then the company will loose market to its competitive retails. Different stores in different countries make certain weaknesses to the company. Financial crisis or economy depreciations will challenge the financial responsibility of a specific retail. Other retails will have to offer financial support yet the money could have been used for development. The quality of product might be high to the challenges, with various claiming that currently the products from Wal-Mart are not of quality (Reed, 2011). Offering low pricing commodities has contributed such complaints. OPPORTUNITIES Online retail sales are the current trend and Wal-Mart should merge the availability strategies to make sure online selling is fully exhausted. The current notch web win against its competitors like Amazon shows the potentiality of the company to fully integrate online services (shelly, 2014). The company brand should be expanded to the developing market with the interest of putting retail shop in that location to tap availability on new resources. Commercial banking should be motivated since the company and clients benefits the interest rates. Develop a customer shopping satisfaction. This can be done with how goods are delivered, assisting customers while shopping, quality packaging of products and right descriptions of purchased product. Such practices will certify customers and will always want to come back (Geisler, 2012). THREATS Company being displayed to public of the ongoing lawsuits poses a threat to continue gaining of more customers. Instead, the majority of the customers will be tempted not to be associated with the company of its wrong doings (Yglesias, 2013). Upcoming oppositions groups, which include community, environment, political parties, and unions, pose threats to the company. If two countries differ with a fracture in its international relation, the likely hood of retail shops in countries of conflict will not function well. Wal-Mart 4R’s investing in retail could not work out in Germany with people postulating it could be the above-mentioned reasons (Ashoworth, 2014). Global economic conditions with economic meltdown pose threats since the company lowering prices commodities find it cornered on how to make profits with keeping its loyal of customers. Conclusion Conclusively, currently Wal-Mart is the biggest retail in the United States and the biggest company with employees worldwide. With its size, the company benefits higher from the economy market scale. The integration of technology system into its supply chain management reduced the cost spends on manual labor and wastage off time. The company has diversified its products from the groceries, to electronics, and gas stations. Diversifications as attributed for this company to be competitive in markets hence pushing out other companies, which could have specialized, on specific product. The main essence is to offer its products at favorable price to attract customers and maintain loyalty. In contraries, the company has a bad reputation, international barriers, and differentials strategy. This is a huge threat to the company and it requires very skilled personal to pull the company out of its mess. Recommendations The company should continue to come up with innovations to find ways of improving its service and quality of products. In addition, innovations and skills should not alter the favorable prices of commodities to consumers. Rather than to continue opening the discount stores, the company should invest highly on supercentres stores which are known to be the pillar of Wal-Mart. Use of radio frequency identifications of suppliers lowers the costs. Using this technology helps in distribution efficiency curbing challenges that were encountered during the unloading and checking of distributed products. After conducting research in overseas, after failing to win Germany, the company should take risk and invest overseas where it can tap majority of resource. References Ashworth, W. (2014) “The 4 R's Of Investing In Retail” Investopedia. Available at retrieved 22nd April 2015 Farfan, B. (2014) “Largest U.S. Retail Chains on the 2012 Global Powers of Retailing List – Top 100” Available online at:< www. retailindustry.about.com> retrieved 22nd April 2015 Geisler, M. (2012) “International Marketing and Wal-Mart missed opportunity” University of Arkansas Reed, A. (2011) “Wal-Mart Cuts Some Health Care Benefits” New York Times Research and Market report. (2011) “Country Analysis report – USA In depth PESTLE insights” Available online at< www.researchandmarkets.com> retrieved 22nd April 2015 Shelly, B. (2014) “Wal-Mart Notches Web Win Against Rival Amazon” The Wall Street Journal Thomas, J. (2011) The diffusion of Wal-Mart and economies of density” Journal of the econometric society Wal-Mart. (2013) Wal-Mart Corporate. Available at retrieved 22nd April 2015 Wal-Mart. (2015) Wal-Mart stores, Inc. viewd from< corporate.walmart.com/our-story/> retrieved 22nd April 2015 Yglesias, M. (2013) “Is Wal-Mart inTrouble?”Slate available at retrieved 22nd April 2015 ‎ Read More