STRATEGIC PERFORMANCE PROBLEMS

Strategic Performance Problems

Strategic Performance Problems

Introduction

Wal-Mart is one of the biggest discount stores in United Store. It is not only recognized domestically but it has also expanded to International Market. It is believed by the company that it would definite replace the United States position in the near future. This is the main goal of Wal-Mart and on the basis of this goal; Wal-Mart is encouraged to expand its stores into nine countries all around the world. There are several problems that are being faced by Wal-Mart in this highly competitive world of business. It does not seem easy for Wal-Mart to expand its business in international market and compete with its rivals. These problems are both form internal and external. One of the major reasons of these problems is culture difference and this was overlooked by this organization.

Discussion

Following are the strategic performance problems that are faced by Wal-Mart in competing with its rivals. Wal-Mart faces opposition at local level when it tries to expand its business and grow in international market. In 2007, it was decided by Wal-Mart to scale back its decision to expand its business as it got failed to enter in some of the major markets like New York City 5. It also faced several lawsuits involving gender discrimination class-action law suit in the history of nation. Wal-Mart still refuses to change its strategies and practices in spite of significant public criticism. Wal-Mart is in severe problems because of the issues like health benefits, wages caps and discrimination. The change in sales is measured by same-store sales. While in many cases, stock growth and revenue are considered as indicators of the progression and success of the company. Over a given year, same-stores sales are significant gauge for evaluating the overall performance of the company. The four measures of company performance are listed by Wal-Mart Zahra, Shaker, and Ireland, and Michael, 2000, pp. 925-50).

Wal-Mart failed to make connections with its local suppliers even though it has strong connections with American suppliers. Wal-Mart tried to apply concepts and standards as in United States but one common concept did not fit in all circumstances. Another factor that seems to be the reason behind the problems faced by Wal-Mart is government regulations. It is also stated by some of the sources that Human Resource Management is also one of the major problems that are faced by Wal-Mart and among them sex discrimination is the most controversial topic in international market as well in United States (Biddle, 2004). In the expansion of business into international market, Wal-Mart is facing management and marketing problems which result in severe problems in the international market.

Threat of New Entrants

The growth of Wall Mart has been slowed down because of complex economic conditions in U.S. this makes Wall Mart expands its business in different countries. Wal-Mart has a plan to expand its business in different countries. Wal-Mart as a new entrant will face threat from going too large in multiple areas that ...