Wal-Mart Management

Critique on the contributions and detriments of Wal-Mart

Table of Contents

Introduction1

Mission1

Objectives1

Performance Analysis2

Contribution of Walmart to the America2

Sam Walton's Passion and Dedication towards his dream3

Financial Success3

Adherence to Strategic Decision, Mission and Vision Statement4

Operations Strategy Framework4

Detriments of Walmart to the America5

Employee and labor relations5

Wage Rates6

Ethical Dilemmas6

Working Conditions6

Child Labor7

Illegitimate Workers7

Issues of Local Communities7

Allegations of predatory pricing and supplier issues8

Conclusion8

Critique on the contributions and detriments of Wal-Mart

Introduction

Wal-Mart Stores, Inc., functions as the chain of discount departmental, largest grocery retailer store and warehouse. The company plan was initiated by Sam Walton in 1962. In 1972, it was incorporated in the New York Stock Exchange list and was branded as Walmart in 2008. According to the Forbes Global 2000 list, Wal-Mart Stores, Inc. is considered as 18th largest public corporation and one of the largest public corporations as per the revenue generation, of United States of America.

It is also considered as one of the largest employer around the world with almost 2million people working under the banner of Wal-Mart. Wal-Mart Stores, Inc., run around 8500 stores (approximately) in 15 different countries around the world, with different retail names. In USA, it functions under its own name, whereas in some states like Mexico, it operates as Walmex. Internationally it operates as Asda (UK), Seiyu (Japan), Best Price (India) and many more. Its operations in Korea, Germany had been unsuccessful.

Mission

To provide everyday low-prices on their products as well as a customer friendly store environment with a strong emphasis on customer satisfaction.

Objectives

To grow at double digit rates for the foreseeable future and boost Wal-Mart's revenues by 2010.

Performance Analysis

In the retail sector, performance is influenced by issues such as cost of goods, the level of consumer debt, economic conditions, customer preferences, the level of employment, inflation, fluctuations in exchange rates, oil prices and climate trends. In 2009, the world economy has experienced its strongest growth since 2005, from which the retail sector has benefited. In 2009, most distributors end up the year with a solid growth rate rising to 6.7%. Retail sales are around $ 8 billion, of which 2.6 billion were made by the 250 largest companies. North American distributors dominate the market, both in number of companies (41.6%) than turnover.

However, the strongest growth prospects are now outside the USA. Economic recovery, coupled with productivity gains related to investments in technology, which enabled a satisfactory level of profitability (Longo, 2004). The market situation is rather good: there is indeed, as the first 250 groups, only 15 recorded a net loss in 2003. Similarly, the rate of average net profit rises to 3.3%, besides all these growth factors, Wal-Mart had to reshape its strategy in the year of 2005, as the largest grocery giant had to keep offering the lowest price.

Contribution of Walmart to the America

Sam Walton's Book “Made in America” focuses on his research for better and valid ideas. He researched on everything that he could do for the deliverance of his dream. He learned closely from the competition and asking ...