Wal-Mart is multinational retail chain that started its operation in 1962 in Rogers as a single store (Wal-Mart, 2012, p.3) with a strategy of reducing their prices compared to other stores thus increasing sales and revenue…
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From that time the company has attained massive expansion and is currently operating under different brand names. It is one of the most successful groups with operations in 27 countries, has more than 10,000 stores with different departments and employs over 2 million people. (Wal-Mart, 2012, p.3). The aim was to improve the lives of the people by saving their money while making profit through reduced expenses and improved management. They operate as supercenters, food and drug store, restaurants, general merchandise stores, warehouse clubs, small markets, discount stores human and cash and carry stores. Its strategic management has been based on five principles: resource development, reduced expenses, online shopping services, satisfied customers and social and environmental responsibility (Sullivan, 2010, p. 156).These have led to the rapid growth in revenue, customer base and workforce. Like any other large international companies, there need to develop a proper management strategy to ensure the business fulfills its mission.This paper will critically analyses the challenges facing Walwart international and gives its recommendation on how to overcome these challenges with keen consideration of seafood supply chains. Challenges of Wal-Mart’s supply chain Employees The company employs over two million employees across the world and has been accused of violating their rights. According to Marshall (2012, p.3), their employees went on strike in Los Angeles after several months of trying to reach out to the company’s executives with success. Prior to this strike, there was also demonstration in other regions, with the employees complaining of low wages, healthy risk and poor treatment while at work. There has been case of firing of workers that are actively involved in their trade union OUR Wal-Mart (Marshall, 2012, p. 4). OUR Wal-Mart has filed several cases on unfair treatment of the workers Such as termination, warnings or reduced working hours. Most complain seem to be a strategy by the executives to reduce the cost of labor and eventually reducing the operational cost. The reduction in expenses is supposed to increase in sales and revenue. Staff reduction can hinder proper management of day to day activities in the stores as well as in factories. Each outlet has different management and this has worsened the situation, some stores lack proper safety facilities, do not give employment contract to their employees, and poor sanitation. Poor working conditions can affect the quality of their products especially food and this pose greater health risk to the consumers. Thestrikes, demonstrations and poor working conditions, not only have negative impacts on the employees but also create a negative image of the company thus affecting business. Competition Like any other company in profit making business, Wal-Mart faces stiff competitions from other large stores, small stores and international companies and sometimes has been forces to close down their stores. This has forces them to change their mode of marketing as well as their mode of doing business. Being an international company poses greater challenges because of different ways of doing businesses in these countries and also different cultural back grounds of their customers. Sea food store in China almost closed down due to the way chines prefer to choose their sea food, they were forced to display them while uncovered and this led to high sales. According to Ellickson at el (2012. P 750) Wal-Mart has changed the pricing strategy of supermarkets to reduce completion. Its entrance in the market led to closed down of other business but this is just one sided opinion since it has also faced competition. Their low price strategy has worked well for
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From the turn of the century until post-World War II, it was common practice for retailers to deny removal of merchandise from retailer shelves, instead providing in-house talent to assist customers directly at the store counter (Hesterly 2008). The expense of providing top quality, customised customer service was no longer worth the return on investment for human capital development and training as department stores began to emerge in the 1950s, representing an abundance of new competitive threats.
In the age on increased business competition, it has become very vital to ensure organizational efficiency. One such example can be found in the business strategies of Wal-Mart. Wal-Mart is the global retailer in the retail industry and has a niche for itself in the market. The history of this company can be traced to the year 1962.
There has been a growing pressure on companies to keep a check on the environmental and resource utilization results which result from their operations and processes. The outcomes challenges include integrating environmental, health and safety concerns. (Susops, 1998) The Wal-Mart’s strategy on Sustainability (Wal-Mart, 2010) states that sustainability is a key element for business like supply chains.
The essay explores is Wal-Mart a completely negative member of society because its low prices cost its employees too much. Wal-Mart is like any other company that offers advantages and disadvantages as a business. Sebastian Mallaby opposes the sentiments of Olsson in the article, “Progressive Wal-Mart. Really".
Preparing a business management plan helps in the allocation of resources properly, making good decisions and handling of unseen or unexpected complications that may become hurdle in the future development of the business. One of the important aspects of business management is that it provides organized information about the company and importantly a good business plan helps in attaining FDI, joint ventures and franchises.
Wal-Mart is well known for its every day lowest prices products.Furthermore, Wal-Mart has also come to be known for its initiatives in sustainability. The company started this initiative in 2005 as Lee Scott, the CEO, believed that “being a good steward of the environment and being profitable are not mutually exclusive.
Should the allegations turn out to be true, Wal-Mart will be guilty of violating a law that was drafted in the United States and adopted by several countries worldwide, including Canada, the law having being urged by officials of the United States.The allegations could be a major blow to the chain store.
It is evidently clear from the discussion that Wal-Mart is a multinational retail chain that started its operation in 1962 in Rogers as a single store with a strategy of reducing their prices compared to other stores thus increasing sales and revenue. From that time the company has attained massive expansion and is currently operating under different brand names.
This report looks at the present concepts and models pertaining to supply-chain management and purchasing at Wal-Mart. However, it was found that none of these models could actually explain in detail the business models employed by Wal-Mart. Porter’s value-chain model, Reck, and Long model were found to have a closer resemblance to Wal-Mart’s present model.
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