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Action Case Study Walmart - Essay Example

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Wal-Mart is not only the largest retail outlet in the United States but also has the privilege of being the biggest retailer in the world, including countries in Asia, Europe and South America. However, the fact that the local markets in the US saturated during the last decades…
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Action Case Study Walmart
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Action Case Study Walmart

Download file to see previous pages... “Net Sales” was “$405Billion”, operating income was “$24Billion” and employee strength was “8416 workers.” (Financial highlights, 2010, para.1).
Wal-Mart follows strict ethical and moralistic views in business. Its main guidelines are in terms of “Respect for the Individual”, “Service to our Customers and “Striving for Excellence.” (Our 3 basic beliefs, n.d, para.1). From a strictly ethical perspective, the circumventing of audit standards enforced by Mart auditors, Wal-Mart of the Ningbo Belfa Group are indeed reprehensible and was caught on three different occasions by the audit team. Speaks of the utter callousness with which this vendor views audit was caught on three different occasions; violating minimum wage and hours of overtime rules stipulated by the audit team.
While Wal-Mart could hardly be said to be a party in these misfeasance, its strategic alliance with Belfar Group could put it in a spot of real trouble, in terms of being associated with a company with human rights violation record. This could also reflect badly on the business image and reputation of Wal Mart too.
Walmart claims to have over 3800 food outlets in the United States and more than 2600 stores in the rest of the world. It has gained eminence as one of the market leaders in the retail trade and has completed streamline and reinforcement in supply chain management network by deliberating its pricing below competitive prices. Thus, it gained a major chunk of the middle class customers; who cannot afford high cost consumer products for daily use. Perhaps, one of the main reasons for the commercial success of Wal-Mart has been the success in online marketing and also its lower price than other brands. Also, it caters the needs of a large lower middle class segment of consumers, who would like to buy goods at cheaper rates than what is available in physical stores. Wal-Mart has attained a tremendous success in catering to this market. The factors that possibly ...Download file to see next pagesRead More
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