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Walmart Essay

2126 words - 9 pages

Summary of Case
Table of Contents
Summary of Case
History Overview:
* Vision, Mission, and Goals
Major Issues
Swot Analysis
CSR Analysis
- “Buy American” program and “Environmental Awareness” program
Sam Walton: A motivational Genius?
Walmart’s responsibility to it employees
Stakeholder analysis
Competitors Ethical Practice towards Walmart
Walmart’s and the international arena
Critique
Recommendations
References
History Overview
Walmart’s mission statement is “We save people money so they can live better.”
Walmart's vision statement is to 'promote ownership of Walmart's ethical culture to all stakeholders globally.’ Walmart Corporation has guidelines to help associates ...view middle of the document...

SWOT Analysis
Walmart has many strengths, weakness, opportunities and threats. Its Strengths are: 1.Scale of operations: Walmart is the largest retailer in the world with more than $400 billion in revenue and 10,130 stores. It makes Walmart the giant that no other retailer can match. Due to such large scale of operations, the corporate can exercise strong buyer power on suppliers to reduce the prices. 2. Competence in information systems: The corporate achieves significant cost savings because of its extensive information systems that tracks orders, inventory levels, sales and other related information in real time. 3. Wide range of products: Walmart can offer wider range of products than any other retailer. Cost leadership strategy: has helped Walmart to become the low cost leader in the retail market. 4. International operations: Walmart does not rely on sales from US stores only as its competitors do. It has earned $135 billion in sales in 2013 from its international operations, which grew at a much faster rate than sales in the home market.
Some of the threats are 1. Increasing competition from brick and mortar and Online competitors: Competitors like Target, Costco, Amazon and Tesco (in UK) are putting huge efforts to eliminate price differences that Walmart enjoys. 2. Increasing resistance from local communities: Walmart superstores have a negative impact on local retailers and communities. Some of the strongest opposition against Walmart stems from the concern of what their presence would do to existing businesses. Small merchants have to close down their businesses because they cannot compete with Walmart. Because of the low prices that Walmart offer consumers, they no longer go to but their products from the smaller merchants. Individuals believe that Walmart should help out these small businesses by supplying to them. They could sell at a price above cost but below selling to small merchants to sell to consumers, thus making a profit. 3. Rising commodity prices: As prices go up, the cost difference between the retailers decreases and competition shifts from price to product and service differentiation.
Some of its weaknesses are 1. Labor related lawsuits: Walmart faces labor related lawsuits every year, which costs millions of dollars for the company. 2. High employee turnover: The business suffers from high employee turnover that increases firm’s costs, as it has to train new employees more often. 3. Little differentiation: has no differentiation compared to its competitors. 4. Negative publicity: often criticized for its questionable practices such as bribery of authorities or poor work conditions.
Some opportunities are 1. Retail market growth in emerging markets: Retail markets grew by at least 5% on average in emerging markets in the last year, opening huge opportunities for Walmart’s revenue growth. 2. rising acceptance of own label products: Walmart has an opportunity to increase the number of private label products...

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