The production, operating, and purchasing for Wal-mart - Essay Example

8 October The production, operating, and purchasing for Wal-Mart To call Wal-Mart the largest retailer in the whole world would be injustice unless one mentions its strength as a cultural phenomenon, economic force, and a subject of controversies. The contemporary strategies of the Wal-Mart are fundamentally the outcome of the original philosophy of its founder Sam Walton who wanted to provide the consumers with products at cheaper rates than they would be able to have anywhere else. Wal-Mart’s magical ability to sell at cheaper rates than other vendors in the market is what shapes its culture and promotes its growth.

In the fiscal year 2005, the net worth of Wal-Mart’s sales summed up to $312.43 billion. The strength of Wal-Mart today can be estimated from the fact that more than 1.6 million people all over the world are employed by Wal-Mart, which is 0.2 millions more than the total population of the 39th most populous state i.e. Idaho (Wilbert). Wal-Mart produces everything from processed foods to fabrics, cosmetics, office supplies, paints and furniture. Wal-Mart is undoubtedly a big controller of the world’s economy.

Wal-Mart has fundamentally relied upon outsourcing to enhance the profitability of its business. Throughout its history, the company has been purchasing the services of vendors, local or imported, that would provide it with the cheapest services. “From the beginning, Walton had bought goods wherever he could get them cheapest, with any other considerations secondary. [Walton] increasingly looked to imports, which were usually cheaper because factory workers were paid so much less in China and the other Asian countries” (Ortega cited in Hornblower).

In his autobiography written in 1992, Walton wrote, “Were not interested in charity here; we dont believe in subsidizing substandard work or inefficiency, so our primary goal became to work with American manufacturers, and see if our formidable buying power could help them deliver the goods, and in the process, save some American manufacturing jobs” (Walton cited in Hornblower). Although Wal-Mart has tried to maintain its patriotic image in the media by emphasizing upon the need and its intentions to buy only American services and vendors, yet the fact that it has accommodated external vendors to reduce the expenses and increase the profitability of the business contradicts its own vision and statements.

This is the reason why Wal-Mart has been considered good for America by some and bad for America by others. According to the Professor Gary Geffery, Wal-Mart has performed far better as compared to other retailers in the whole history of America in the capacity of an efficiency machine (“The Wal-Mart Way”). Wal-Mart tries a number of strategies to find solutions to the issues with the inventory system, whenever there occur some. The company takes pro-active measures and prepares back-up plans well in time.

Being the world’s largest retailer, Wal-Mart is aware of the need to take measures to ensure green business and sustainable development. Therefore, Wal-Mart declared a coalition with the Carbon Disclosure Project (CDP) in 2007 with a view to estimating their energy use and carbon emissions (“Climate and Walmarts Operations”). Works Cited:“Climate and Walmarts Operations”. n.d. Web. 8 Oct. 2011. .Hornblower, Sam. “Wal-Mart & China: A Joint Venture.” 2011. Web. 8 Oct. 2011. .“The Wal-Mart Way.

” American Public Media. N.d. Web. 8 Oct. 2011. .Wilbert, Caroline. “How Wal-Mart Works.” 2011. Web. 8 Oct. 2011. .