Principles of Management (MGT 201)
Section – 05, Semester – Spring 2023
Assignment Topic: Walmart
Submitted toDr. Md Wahidul Habib
Assistant Professor, School of Business Entrepreneurship
Independent University, Bangladesh (IUB)
Submitted byName
Shaifur Rahaman
Md.Shourav Akram
Md. Robiozzaman
Md Shoumic Uddin Mahi
Student ID
2110975
2222149
2222314
2230033
Contribution by the Team Members:
Name
ID
Contribution
Shaifur Rahman
2110975
Executive summary, first half
pestle analysis. (pes)
Md Shourav Akram
2222149
Md Robiozzaman
2222313
Md Shoumic Uddin Mahi
223033
Company background, 2nd
half pestle analysis. (tle)
Shareholder, conclusion, Swot
analysis
mechanistic organic structure,
references , Swot Analysis
Letter of transmittal
Dr. Md Wahidul Habib
Assistant Professor, School of Business Entrepreneurship
Independent University, Bangladesh (IUB)
Dear Sir,
We would like to thank you for offering us the opportunity to work on this company report. In
response to the project, we were given as a part of our mgt201 course we have prepared this report.
Here we have analyzed several aspects of the company, focusing mainly on the content we
gathered. We request you to accept our report and hope it meets your expectations. We have tried
our best to make this report accurate and reliable. If you have any further inquiries concerning any
additional information, we would be very pleased to clarify that. Thank you.
Regards,
Acknowledgment
Our most sincere thanks are dedicated to our honorable Dr. Md Wahidul Habib
Assistant Professor of School of Business Entrepreneurship Independent University Bangladesh
(IUB) according to the guidelines in accordance with the instructions. We have tried our level
best to prepare this report according to the given structure. We hope we have done an adequate
job considering our level of experience, and expertise. We hope that this report’s information
would be good enough to get an idea about the Walmart company.
Research method
Our selected organization is "Walmart," which is the largest retail store in the United States and
the largest retail chain in the world. We went through a series of criteria while researching the
organization, assessing categories of procedures.
We looked at the organization's principal and most important website
(https://www.walmart.com/) to learn about the outlook and industries they are now working on,
and we read through various websites while investigating the background narrative of Walmart.
(See the reference section for links.)
We joined in on numerous group discussions as group members, expressing our perspectives on
the popular subjects in order to write a comprehensive report. Finally, we came to a resolution
after debating and investigating the consequences, effects, conditions, and future goals.
Executive Summary: Walmart Inc. headquartered in Bentonville, Arkansas, is an
American multinational retail firm that operates a chain of hypermarkets, cheap department
stores, and grocery stores. It is the largest retail company in the U.S also it is the world's largest
company by revenue, with $548.743 billion, according to the fortune Global 500 list in 2020.
This firm is the largest private employer in the world with 2.2 million employees in the US and
thus it is important to the country’s economy. Walmart jobs are absolutely important, making it
one of the most important corporations in the world. Its public affairs strategy enables the
corporation to develop into new markets and international countries. Gaining access to
politicians who can assist Walmart in achieving its objectives. Walmart International has more
than 5,100 retail units and approximately 550,000 associates around the world.
"Save money, live a better life. Walmart " is their slogan. It is a company that delivers on its
promise, which is to give goods that are needed in everyday life as well goods that people will
want, for example- a Halloween costume or a fan t-shirt of their favorite band, show, or anime
at a much cheaper price to its customers and also making it very accessible and hassle-free.
Walmart has become one of the most successful and popular retailers in the world as a result of
all of these business practices.
you can browse at Wal-Mart for whatever goods you want or need. You may go to the
supermarket chain and buy groceries for the week, electronics, have your car repaired, and
clothes all in one visit. It is unlike any other store of its kind in that it is genuinely a one-stopshop and it offers things at far lower rates than other shops, which suggests that purchasing a
product from here can save you money rather than buying it at a more locally owned store.
Other retailers are unable to compete with such low prices. This is can also be seen as a
disadvantage to locally sourced stores because they cannot compete with such lower prices that
Walmart gives.
Walmart has recently been criticized for refusing to let its employees form unions. The
company also has a very bad health care system. It's not that the corporation doesn't provide
health insurance to its employees; it merely does so at a high cost for minimum-wage workers.
Also, it is stated that they treat their employees very poorly and have faced a lot of lawsuits
from those who were abused and had their work hours and wages manipulated. Some
organizations also believe that the company is invading many more retail sectors than it should.
Company Background
Sam Walton launched the first Walmart shop in Rogers, Arkansas on July 2, 1962. The
corporation was officially incorporated in 1969, with sales of $12.7 billion. The 1970s were a
period of tremendous progress. We became a publicly-traded firm, opened our first Distribution
Center, and were listed on the New York Stock Exchange during this period. Walmart has
surpassed Sears as the nation's leading retailer by 1990. Everyday Low Prices expanded
globally as the Walmart Supercenter redefined convenience and one-stop shopping. Wal-Mart
is now the largest retailer in the United States, and it outnumbers every other chain in the world.
Wal-Mart currently has approximately 4,150 retail locations across the world. Furthermore, the
firm is the leading outlet in Canada, Mexico, and, as a result, the United Kingdom.
Wal-Mart provides general merchandise: family apparel, health & beauty aids, household
needs, electronics, toys, fabrics, crafts, lawn & garden, jewelry, and shoes. Also, the
corporation runs a pharmacy department, Tire & Lube Express, and a Photo processing center
also.
Wal-Mart's corporate management strategy involves selling prime quality and brand products
at a very cheap price (Vance, 119). so as to stay low prices, the corporate reduce costs by the
employment of advanced electronic technology and warehousing. It also negotiates deals for
merchandise directly from manufacturers, eliminating the middleman (Vance, 72).
Today, Wal-Mart has 1,636 retail stores. There are 1,093 Wal-Mart Supercenters, 502
Sam's Clubs, 31 Wal-Mart Neighborhood stores, and 1,183 international stores
(www.walmart.com). Its core retail business may be divided into four retail divisions:
Wal-Mart stores, supercenters, Sam's Club warehouses, and neighborhood markets. Wal-Mart
stores and Supercenters provide "one-stop family shopping"; combining groceries and general
merchandise departments. Sam's Club is the nation's leading members-only warehouse club.
Neighborhood Markets offer a convenient shopping experience for purchasers who need
groceries, pharmaceuticals, and general merchandise. Last year, Wal-Mart had revenues of
$191 billion. Wal-Mart's 2002 sales topped $218 billion, with sales growth of 13.8 %. Its 2002
net was $ 6.7 billion, a growth of 6 June 1944. Wal-Mart has 1,283,000 employees, as of 2002;
a growth of 11.2 %.
It really is worth noting that the majority of Wal-Mart employees do not receive
"generous" pay. Wal-Mart stores employ the vast bulk of the company's workforce. They are
part-time employees who are compensated according to local standards. Because it takes a parttime employee over five years to become eligible for benefits,profit-sharing, or other forms of
payment, most employees don't appear to be entitled to any.
Swot analysis
What is SWOT ANALYSIS?
SWOT stands for Strengths, Weaknesses, Opportunities, and Threats, and so a SWOT
analysis is a technique for assessing these four aspects of your business.
SWOT Analysis is a tool that can help you to analyze what your company does best
right now, and to devise a successful strategy for the future. SWOT can also uncover
areas of the business that are holding you back, or that your competitors could exploit if
you don't protect yourself. The SWOT analysis has some versions of the three C’s. In the
original form, it’s pretty straightforward. You look at a company from the three perspectives
of Customers, Costs, and
Competition.
A SWOT analysis examines both internal and external factors – that is, what's going on
inside and outside your organization. So some of these factors will be within your
control and some will not. In either case, the wisest action you can take in response will
become clearer once you've discovered, recorded, and analyzed as many factors as you can.
Strengths Of Walmart -
● A Legend in Retail
It is impossible to not know Walmart, it has solidified itself as a top-notch brand that is
not only known by US citizens but also known all over the world. if you are living, have
lived, or even only visited the United States. There are more than 4,756 stores in 50
states across America. Walmart has turned into one of the biggest retail companies in the
world that conducts retail operations in over 20 countries in the world and sources
products from more than 100 countries.
The company is considered a ‘legend’ in the retail industry due to its decades-old
history and its determination to keep going and grow rapidly.
● The scale of Operation
Walmart has a unique strategy of doing business. With its 60 million products in
its stores, the company displays a huge number of different, unique, and low-cost
products to its customers.
The number of the products will keep growing, the number of stores will keep
growing and therefore, the sales and revenue will also keep growing as well.
In addition to its national success, Walmart has grown its global operations as its
stores can be located in four different continents: North America, South
America, Africa, and Europe with more than 600 stores in the United Kingdom.
● The Business Strategy
Walmart uses the business model known as economies of scale which
provides cost advantages because of the increase in production and the decrease
in prices. As Walmart’s operations are so expansive throughout the world, the
cost of production can be divided between all of the goods. With this strategy,
the business flourishes as well as keep their customers satisfied.
The retail leader has an incredibly high volume output so it can keep the fixed
costs on a number of products and operations. That’s why Walmart became the
Walmart of today.
● Efficient Supply Chain
One of the advantages Walmart has over other retail stores is its supply chain of
the company. Walmart is doing an exceptional job with business processes with
the help of increasingly advancing technologies.
They are given the proper care, effort, time, and money for the processes of
keeping track of products, recording and updating inventory, and the statistics of
customer satisfaction.
They are given the proper care, effort, time, and money for the processes of
keeping track of products, recording and updating inventory, and the statistics of
customer satisfaction.
The monitoring of the records is so efficient that Walmart (should) never have
empty shelves in its stores. Products in each category should be always stocked .
Walmart has been the leader of this logistics system in regards to physical
stores, so much so that various other retail stores have copied the organizational
structure.
● A Wide Range of Products
Walmart has everything. It has known and popular brands of products . It has cheaper
options. With a wide array of Walmart products, it has its own private label. The company
ensures the customer can find whatever they want in Walmart from much demanding wellbranded products to reasonable, cheaper item which is affordable for all classes of customers.
That is a massive strength among its big corporate competitors and local shops.
Weaknesses Of Walmart -
The Healthcare Situation The healthcare options and the whole healthcare system in the
United States are already weak and unfortunately, somewhat nonexistent.
On top of that, the biggest retail store in the world can’t provide proper healthcare to its more
than 1.5 million employees in America. You need to pay a weekly or a monthly fee and a
certain amount of dollars will be deducted from each of your checks. The benefits are so few
that you can personally pay less for your own healthcare and get more benefits.
● The Working Conditions
A store that needs to be stocked on every aisle and on every product needs stealthy
workers. Managing the whole store needs a good number of employees. And when there
are as many branches as Walmart, the employee number for all the stores needs to be
good. Employees who are working full time have to work without off days and sick
leaves.
You need to work in as many different areas in the store as possible and if someone
took a sick leave from work, you need to cover their shift.
● Raises, Promotions, and Firings
You need to work every day as your last day, cover every area and operation in the
store, and get along with your managers to get a raise. You have to show your skills and
determination to get a raise.
It is still possible that you will not get a raise even if you do everything right and with
all of the energy you have. It is so easy to be fired and yet so hard to get a promotion.
● Gender Discrimination
In 2001, six female workers for Walmart filed a joint lawsuit against the company,
alleging that they were discriminated against in terms of bonuses and promotions. The
women were on track for salary raises and additional training opportunities, yet they
were not delivered.
The case represents 1.5 million women workers who have worked and are still working
for Walmart. It is the biggest workplace discrimination and gender bias case in United
States history and the case is still ongoing.
● Product Placement as Customer Pressure
You can see certain products on the corridors, at the entrance, and sometimes in the
corner sections of a Walmart store. Even though it looks like a ‘suggestion’ from the
seller, it is a deliberate business move by Walmart. The products Walmart promotes
provide discounts, and showcases on its stores are actually product placements.
And these products are chosen specifically based on the statistics and data Walmart
gathers from its logistics system and the IT department. They want the customers to buy
the products that can give them the most profit. If you have ever wondered why Walmart
keeps the essential stuff such as toilet paper, food, and pharmacy section at the back of
the store, it is because they do not make the most profit.
● The Cost Leadership Strategy
Walmart’s whole business model is based on the cost leadership strategy. The strategy
consists of setting the lowest cost of operation (thus the lowest price possible) for each
of the related products. This leads to minimizing the selling prices, therefore,
minimizing the profit margins as well. Walmart is known to have ‘thin profit margins.
The cost leadership strategy can be considered a ‘winning’ model because Walmart has
been so successful for so long. However, it has always operated on low volume profit
margins.
Opportunities of Walmart
1. Expansion into developing countries:
Walmart has expanded into a number of foreign markets. But it can continue this streak to
remain successful and find itself in more corners of the globe.
Nearly 59% of Walmart’s stores are found outside The United States (Statista)
2. Increase quality standards of its products:
Budget-friendly does not always translate to high quality. Despite low-profit margins, Walmart
can continue to invest in the quality of its product to ensure continued customers trust.
3. Create strategic alliances with other companies:
Partnership with third-party vendors and other corporations can be immensely helpful in
achieving new levels of success. Walmart could collaborate with many different kinds of
vendors to create new avenues for profitability and sales that would be benefitted for both
companies.
4. Advertising:
Digital advertising is a large opportunity for advertisements. This market has long been
dominated by two tech giants Google and Facebook. If Walmart advertises its products on
such platforms then it would be a great move for more people to know about the product and
company. Walmart has started working on this and they are ambitious hoping to expand its
advertising business over the next few years.
5. Marketplace:
Walmart is quite far behind in terms of its own third-party marketplace. To increase
marketplace sales Walmart is offering marketplace sellers services to make their job easier.
One of those services is; Walmart Fulfillment Service; which allows sellers to transfer
responsibility for logistics activities like picking, packing, and shipping to Walmart so they
don't have to conduct these activities by themselves.
6.Walmart+
Walmart launched a subscription delivery service called; Walmart; Paid subscripted members
of Walmart receives unlimited free and next day or two-day shipping with no minimum order
limitations, get discounts, cashback voucher, etc. This service makes the customer's user
experience better and more satisfying.
7. Healthcare services:
Walmart healthcare clinic provides a number of services including primary care, Dental
services, counseling sessions, Laboratory work, X-rays facilities, etc.
Walmart is committed to making healthcare services more affordable and accessible. And they
are planning to launch Health & Life Insurance services as well.
8. Fintech services:
Walmart is also creating a fintech company. This new startup will create affordable financial
services for Walmart’s customers. It could also provide core banking activities such as sending
money, saving, borrowing, investing, etc
Threats of Walmart
1. Aggressive competition in several sectors:
Other companies can still provide strong competition in the market even against a corporate
giant like Walmart, online powerhouse Amazon still commands a strong segment of online
sales. Other super retailers have positioned themselves as a premium alternative while Walmart
still provides low-cost options.
2. Other retailers perform better in the online space:
Amazon is just an example of a company that performs better online with dozens of others
rising to the challenge in the virtual space. One major reason for this is that Amazon and other
similar companies were purpose-built to be online companies and even with Walmart's massive
reach there are still many products that are easier to find on Amazon.
3. Victim of multiple product controversies:
Low-quality products are only the tip of the iceberg when it comes to consumer controversy.
Some products offered at Walmart have caused PR problems for social justice concerns, created
political firestorms, etc.
Walmart should take great care to ensure that none of its products causes any offense or worse
put consumers in harm's way.
4. Frequently website issues:
Walmart is continually improving the online shopping experience for its customers, but its
website frequently crashes due to consumer demand or has errors and bugs based on poor
design or construction.If this continues the frustrated shoppers will simply move their business
elsewhere.
Pestle analysis
Walmart continues to endure the possible negative consequences of threats to its business in the
political, economic, social, technical, legal, and environmental (PESTLE) areas as a retail sector
leader. This achievement, however, needs ongoing assessment of the retail industry's
environment. Let's look at how these things affect the leading retail Walmart:
Political:
Changes in government laws and policies affect business operations worldwide. Walmart's
manufacturers and suppliers are directly affected by policies too . There are also cases where
the government favors and subsidizes a company's operations. It's a regular occurrence for
locally owned or partially owned government brands. Walmart also spent a good amount to
influence government authorities to make favorable policies for its business. Now, These laws
may differ from one country to the next In the U.S.A. Walmart's operations could be hampered
if it doesn't operate in politically stable areas. In Chongqing, China, Walmart, for example, lost
money. When one retailer offered forbidden products to the Chinese public, the authorities
acted quickly to stop not only the sale of that product but all Walmart products as well
(temporarily). When a corporation fails to follow policies, governments can be eager to
intervene.
Economic:
Most companies are dependent on the nation's economic conditions to determine how much
they should invest in the country. Even when a country has a good trade relationship, its
economic stability can be another factor to consider
Economic shifts can put a lot of pressure on Walmart. The country's macroeconomic climate
and economic stability, as well as changes in tax rates, unemployment rates, interest rates, and
other economic difficulties, will have a direct impact on the company's revenue. Many of
Walmart's products are available at low costs. Everyday Low Price (EDLP) is their main
strategy to provide. It employs a largely automated supply-chain management system to carry
out this plan. Walmart is significantly reliant on its valued consumers' sales and consumption
rates. As a result, Walmart's long-term viability is dependent on its capacity to generate sales
and income. The company will face difficulty in manufacturing and obtaining items if the
economy weakens or shrinks, forcing the corporation to maintain an unwelcome price hike.
Consumers may be dissatisfied, and future customers may be discouraged from shopping at
Walmart, whether in person or online.
Social factors:
When a company does business in a particular area, its socio-cultural condition significantly
impacts the company. Otherwise, the company may fail to interest more customers. The
company offers a one-of-a-kind low price and "American" sales strategy. Because Walmart is
now a global brand, such a one-sided strategically influenced approach might be quite costly.
However, when going worldwide, there are some sectors that must be followed. Pork, for
example, is prohibited in
Muslim-dominated areas. Alternatively, you cannot offer things that are permitted in the
United States but not in that particular region. It is critical to adapt to the natural world and
social acceptance.
Walmart, for example, failed in Japan for a variety of reasons. One of the most crucial is that
Japanese consumers have a wide range of tastes. Despite being a global power, Walmart was
unable to harness its bargaining power in Japanese local marketplaces. While a new Walmart
store may provide job possibilities for local residents, it may harm small businesses. Many
small firms were unable to compete with it on a local basis, and as a result, many people lost
their jobs.
Technology:
Walmart is one of the businesses that has been substantially influenced by technology.
Walmart has recently made tons of effort to keep up with technological advancements.
There are two major technological variables to consider.
1. AUTOMATION & ROBOTICS
Walmart has lately introduced an automation system with robots for cleaning, order fulfillment,
and production. This type of digital transformation would enable the corporation to be more
efficient in various business activities and to compete more effectively in the tech world.
Walmart has amazing potential with this new technology since it lets its employees focus on
selling things and helping consumers. It has decided to invest roughly $14 billion in its supply
chain, automation, and other areas of the business in the fiscal year 2022. The goal of this large
investment is to boost sales in the long run. According to one estimate, the corporation has used
robots and other high-tech equipment to automate around 650 stores.
2. ONLINE SHOPPING
The new young generation does shopping either from their laptop, mobile phones, or tablets.
They prefer to do everything online whether it’s payment, shopping, or surfing. This creates a
huge opportunity for e-commerce businesses like Walmart to expand market share and sales,
such businesses can use websites and network marketing methods to attract clients. For online
shoppers, Walmart now has a smartphone app. It has a lot of features that help clients have a
better experience. It also allows customers to keep track of their orders, check out different
location points of Walmart in a particular region, and what products they’re offering. Walmart
expects its e-commerce revenue to go over $100 billion in the next couple of years and $200
billion in the few years.
Legal: Walmart is one of the largest retailers in the world, with 28 locations and millions of
consumers each week. Walmart is required to follow local rules and regulations in many parts
of the world. Walmart has continually been in the headlines due to new legal charges and
issues. Discrimination laws, employment restrictions, food and safety regulations, and data
protection laws are just a few of the legal factors that could harm Walmart. The following are
the most important factors:
1. GENDER DISCRIMINATION LAWSUIT
In 2011, a group of women sued the company's management, alleging that they discriminate against
women in terms of salary, promotions, and job changes. Despite the fact that the court decided in
Walmart's favor,
2. LOSS OF $65 MILLION LAWSUIT
Former Walmart employees have filed a lawsuit alleging that the company's management fails
to provide them with adequate seating for long shifts. The complaint was filed in California,
and the corporation agreed to pay over 65 million dollars to 1000 employees.
Environmental:
Disasters have a direct influence on Walmart's business and stakeholders. They have disrupted
the company's operations in some areas, putting the lives of its employees and customers in
jeopardy. A few years ago, the world's largest store, Walmart, was charged with illegally
dumping dangerous fertilizers and pesticides into sewer systems.
Walmart is constantly attempting to resolve such issues. They are doing
ECO-FRIENDLY ACTIONS. Walmart has taken a number of environmentally friendly actions
over the years in order to win customers' hearts as well as contribute to environmental
protection. According to the corporation, it has been utilizing a 28 percent renewable energy
source. Walmart also intends to use clean energy to the tune of 50% by the year 2025. Walmart
also claims that it has reduced harmful land waste by 78 percent. Walmart has also developed
initiatives such as "Gigaton," with the goal of reducing 1 gigaton of damaging emissions into
the environment by 2030.
Stakeholder engagement
A stakeholder in a business is any group or person who can gain or lose from the activities of a
business. The usually accepted stakeholders are business owners (shareholders), staff, and
managers.
Walmart has the highest number of employees in the world. The company is said to have
about a 2.1million employees across 14 countries. The company has a relatively large number
of stakeholders which includes its top management, employees, consumers, and shareholders.
Walmart follows transactional and transformational leadership at Walmart which describes the
leadership style that changes significantly the life of people and the society in which the leader
operates. The stakeholders of Walmart can be divided into two groups: The Market and
nonmarket stakeholders. The market stakeholders are owners, partners, investors,
shareholders, and employees. This group of internal stakeholders has a financial interest in the
successful planning of business goals. The nonmarket stakeholders are groups or individuals
that are outside of the organization and have no financial interest in the company. 1)Market
Stakeholders
a)The stockholders
The investors are the stakeholder group with Walmarts first and highest priority. These are the
people who own a share of the company and therefore receive a return on their investment.
Investors want Walmart to earn more profits as a result, they are also interested in minimizing
the operational costs of the company. Lower costs lead to higher profits which are advantages
for its investors.
b)The Walmart Executives
The top management of Walmart also has an economic stake in the company. Many of the top
executives receive stock options as part of their salary so they will want their stock value to rise
as a large part of their compensation comes from how Walmart stock is performing in the
market.
c) The Employees
Walmarts third priority is its employees and they are involved in the company's managerial
decision making. While there are some employees who have stock in the company, many of
them have an economic stake in the company just because their job is their primary source of
income. They want Walmart to succeed in the market because then they will be able to keep
their job and get pay rises.
d)The communities of Walmart
Each of the communities have a stake in how well the company is performing where Walmart
is located. Many of these communities rely on Walmart not only for the jobs but also because
Walmart offers lower prices to its consumers. Without Walmart in these communities, there
would be an increase in expenses for families as they have to pay higher prices for their needs
and wants and an increase in unemployment.
e)Customers
Customers are considered Walmart's second priority. In the case of Walmart, customers are
interested in purchasing acceptable quality goods at lower prices. As a result, many people rely
on Wal mart for their groceries. The company maintains its cost leadership generic strategy
which offers the lowest possible prices. In fact, the company has grown its popularity because
of its low prices.
f) Non-Profit Organization
Many nonprofit organizations have an economic stake in how well Walmart is doing in the
market. According to the Walmart Good Work Foundation,97% of their fund goes to non-profit
organizations in the communities where their stores are located. The foundation provides funds
to programs that deal with community, education, environment, and children.
g)Other Retailers
have a stake in how much they are expanding in the market. If Walmart moves into the
community, other retailers may not be able to compete with Walmart because they cannot
match Walmarts low prices and Walmart is the largest retailer in the US and ranked top on the
Fortune 500 list.
h)Gasoline Retailers
In the year 1996, Walmart made its first partnership with the gasoline industry. Presently,
Walmart has made contacts with companies such as Murphy Oil, Sunoco, and Tesoro
Petroleum.
i)Online Retailers
Walmarts profits in e-commerce can be seen in its results.Walmarts eCommerce revenue was
up 79% in 2020 and increased by 1% in 2021 on the back of strong growth in the prior year.
Walmart is now the second-largest e-commerce retailer in the USA making up around 13% of
its sales. 2) Non-Market Shareholders
a)Labor Unions
Labour unions have a political stake in Walmart has a strict policy about not having their
workers unionized. Walmart takes the responsibility that they are able to take better care of
their employees and provides them with the best benefits and compensation plans.
b)International Retail Stores
One of the Walmarts important policy issues has been to move into international markets and
open stores in other countries. Past year, Walmarts International's revenue increased by 41%.
Walmarts cooperate in china, Korea, the United Kingdom, Brazil, Germany, Canada, and
Mexico. Walmarts have acquired companies already well established in those countries and has
made sure that 90% of their international products are locally sourced.
c)Politicians
Politicians have a non-market share in Walmart for many reasons. Firstly, a politician may or
may not want Walmart to open in their state. On one hand, it would bring many advantages for
the community of that area. However, the politician may not want
Walmart in that location also they may rely on Walmart for campaign funding. During the
2001 cycle, Walmart contributed $752500 to various committees and candidates
Mechanistic or Organic
Walmart used to have an organic structure however it has changed its organizational structure to that of
a hierarchical functional. It now has a high degree of centralization where decisions are centralized to
the CEO and other high executives. There are hierarchy and function-based levels to this structure, and
many multinational companies use this structure to deal with divisional and functional structures at one
time. Also, it allows corporate managers to influence the organization as a whole.
Walmart uses a hierarchical functional organizational structure to help the company achieve goals,
provide consistency, and see better performance and operational results. Walmart deals in both retail and
eCommerce, so it needs a structure that will allow it to be as flexible as possible and achieve different
goals depending on what activity is going on. Furthermore,
Walmart has Sam’s Club, specialty stores, Supercenters, Walmart Realty, and Walmart International
under the umbrella of its corporation. So, since Walmart has four different types of stores, it needs a
structure that can improve and guide the company as a whole, which is what the hierarchical
organization structure does well.
In the hierarchical organization structure, each store Walmart operates, and all of the employees that
work there have one supervisor they directly report to. Additionally, this supervisor is the person that
holds everyone accountable who works for that particular Walmart location and is responsible for
moving employees up the corporate ladder. Further, the CEO is the leading position in this structure, and
the CEO is the supervisor of all store supervisors. Also, regional and district managers oversee the
operations of Walmart stores, so each store manager will be held accountable by the regional or district
manager. However, each store still has independence and can run the store according to the needs of the
customers and community, but will still function as part of the whole company.
What type of leadership is recommended?
A transparent leader who would be able to report to the workers or those who work under him to know
exactly what is going on in the market and their surroundings, so that they tackle and respond to it
accordingly. Having more transparency in a company helps lower in the hierarchy to know and
understand the business model and strategize their tactics for dealing with risks and struggles. Also, the
leaders must help with decision-making for the employers and help them come to a rational conclusion,
and this can be through subtle coaching or rigorous training.
Conclusion
Walmart is the number one retailer in the United States of America and is at the peak of fortune 500
listings. They operate on various continents in many countries globally and enter markets in new
countries every year. Walmart is also expanding as a retailer. They have expanded into many other
departments of the marketplace including groceries, gas stations, electronics, and auto maintenance.
Every year, Walmart researches different markets and finds ways to grow and offer the best services to
their consumers. Walmart has been around for over 54 years and it is still going.Every year, the number
of people who have a stake in Walmart also increases. There has been a complaint made against
Walmart by small independent retailers that they have been forced out of business. More and more local
businesses are unable to compete with Walmart and have been shut down when Walmart moves into
town. The unions are filing more claims against Walmart as they do not support or encourage their
workers not to join unions. The company has also been accused of using child workers and foreign labor
and it is been estimated that over 50% of Walmart products come from overseas suppliers. Walmart also
provides poor healthcare for workers. It has been found that the employees of Walmart tend to be sicker
on average than most American workers and it's no wonder why even though the company took various
steps to provide cheaper insurance. In order for Walmart to compete against other retailers and remain
top of its game and follow the company strategy to achieve its business goals, they are going to better
deal with their stakeholders and make sure they protect their goodwill well.
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