Wal-Mart as an American Based Multinational Retail Business Corporation - Research Paper Example

? Research a Fortune 500 Company This paper intends to determine the different management and marketing strategies along with the diverse life cycles that Wal-Mart endured. Moreover, any major accomplishment and setback of the company would be analyzed. In addition, the management style, the procedural strategies and whether the company is at the end of its life-cycle or not will also be discussed. The democratic along with laissez-faire management style that possesses by the company contributed in supporting the company towards weathering the recession by a certain level. Introduction Wal-Mart is regarded as an American based multinational retail business corporation. It is one of the top companies which regained its position in the Fortune 500 list as per the 2012 report. The company emphasized providing quality products to the customers at a reasonable price which supported it to regain its position in the market (Duke, 2012). The management and the marketing strategies that adopted and used by Wal-Mart have a great impact on its increasing sales and the revenue earned. The foremost reasons for the success of Wal-Mart include its effective management, making deliberate efforts to attain its vision and growth among others which are in turn providing the business of the company an edge over others. Management and Marketing Strategies Wal-Mart developed a business model which focused on providing greater satisfaction to the customer with the deliverance of low price products to them. The management of the company followed upon developing its marketing mix strategy. In terms of analyzing management strategies of Wal-Mart, it can be viewed that the management of the company took steps to offer reasonable prices to the different product ranges that they deliver to the customers. The management segments the product type based on the buying capacity of the individuals. In relation to marketing strategies, the company emphasized promoting its broad assortment of products through using hoardings, leaflets and offering special discounts. In this regard, it can be affirmed that the management of the company desires to attract the customers by creating a positive brand name and recognition in the business markets where it operates. Relating to marketing strategy, the management team of the company developed a slogan as a way of promoting its varied products i.e. "Everyday Low Prices."  Continuous innovation and the use of technology for making the customers more satisfied are the other managerial approaches that used by Wal-Mart. It can be apparently observed that technology innovation at Wal-Mart typically involves process and service invention that helps in reducing operational costs and time at large. In this context, the management followed three policy goals i.e. respect for individuals, facility to customers and determination for excellence (Hayden et. al., 2002). Different Business Life Cycles that Endured By Wal-Mart The Prosperity Phase- This phase is regarded as the growth phase of any company which is marked by strong economy and market presence. In this similar concern, Wal-Mart maintained this particular phase by offering "high-quality," along with branded products at low prices and also by forming several stores in small towns. Wal-Mart uses the discount merchandising strategy in order to increase the demand and the sales of its products and hence accomplished superior competitive position over others. In relation to this particular phase, the company is growing rapidly due to diversification strategy that it follows and expanding its outlets in small towns. Another reason for the company to flourish in this modern business market is focusing on delivering high customer services. Due to excessive demand of the products, the management of the company absorbed more employees during this phase (Hayden et. al., 2002). The Recession and Recovery Phase- This is the business phase which exhibits expansion by a significant level. This particular phase represents the time when the products and the business reach the saturation limit. Wal-Mart too faced this phase when the demand for its products increased and reached the saturation limit. During this phase of business, Wal-Mart started taking initiatives to hold the market share and the growth in terms of applying the strategy of charging low costs to the customers. In the recession period, it can be viewed that the sales of the company declined as per its expectations and hence managers had to experience unfavorable consequences during this period. However, due to increased brand loyalty and deliverance of effective services to the customers, the company has been able to recover the situation at large (Hayden et. al., 2002). Major Accomplishment and Setback The company endeavors to enhance its existing operational procedures and the application of innovative strategies in order to attain high sales and revenue. In this regard, one of the major accomplishments of Wal-Mart can be apparently viewed as making highest sales in the year 2000. It can be affirmed that due to the adoption along with the execution of effective pricing and product strategy, the major accomplishments of the company can be determined (Hayden et. al., 2002). The setback of the company can be determined based on having perception that it is the only retailer which delivers goods or services at lowest prices. Specially mentioning, drastic downfall in the sales and subsequent rise in the competitors’ market share eventually made Wal- Mart to experience major setback in developing its overall performance. The company seemed to make deliberate efforts in order to recover this phase of business by reengineering its overall operational procedures (Hayden et. al., 2002). Management Style Wal-Mart follows two sorts of management style that include democratic and laissez-faire style. In relation to these particular management styles, the management of the company accepts the feedback of the subordinates in order to achieve its success. Moreover, the employees of Wal-Mart are provided with the opportunity to deliver their individual ideas along with opinions for the betterment of the organization. This form of management style of Wal-Mart ensures the formation of a healthy and an effective communication between the employees and the management. Also, employees’ ideas and views are given much importance by the company when formulating any strategy (Hayden et. al., 2002). Subsequently in Wal-Mart, the employees are given the scope of making their own decisions and managing their work accordingly. The management of the company strongly believed that better the performance of the employees, better will be the sales and hence the profit of the company will increase by a considerable extent. Company Enduring Recession Wal-Mart maintained its strategy of providing high quality goods at low prices throughout the years. The company preserved to sustain its brand name and recognition through making regular strategic marketing activities. This eventually raised the sales of the company and broadly supported to address and weather the recession that it experienced while conducting business. Specially mentioning, the deliverance of effective services to the customers and the maintenance of sustaining its brand image facilitated Wal-Mart towards weathering the recession by a greater extent (Hayden et. al., 2002). Opinion According to my opinion, Wal-Mart is not at the end of its business life cycle. This can be justified with reference to the fact that the company can be viewed as the leading ones in the List of Fortune 500 Companies. The company has ranked first in the chart as its revenues and profits are more than the other companies. The company is again in its prosperity phase with high demand of goods and increase in sales volume. Though in the current situation, the company is facing a high competition from its competitors, the company might be in the phase of ending its life cycle in future by a certain degree. Due to diversification in the geographical areas and expansion in the product lines, the company is trying hard to hold its position in the business markets where it operates which might in turn make the company at the end of its life cycle (Hayden et. al., 2002). Conclusion From the above analysis, it can be concluded that Wal-Mart through its different leadership approaches and unique pricing strategies is able to maintain its dominant position in the respective industry. The company can be at the stage of ending its life cycle due to the prevalence of immense business market competition and gaining momentum of globalization along with internationalization among others. References Duke, T.M. (2012). Wal-Mart Stores. Retrieved from http://money.cnn.com/magazines/fortune/fortune500/2013/snapshots/2255.html?iid=F500_sp_lead Hayden, P., Lee, S., McMahon, K., & Pereira, M. (2002). Wal-Mart: staying on top of the Fortune 500. 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