The company has over 11, stores in 27 countries, under 55 different names. It has been traded in the Mexican Stock Exchange since as Cifra. The company was founded in as Cifra by Jer?? The company grew and in Cifra and Walmart Stores, Inc.
Prologue Wal-Mart is an American company, it has been a dominant force in the United States Retail market and more specifically, it operates and sells itself as a discount chain. Sam Walton the founder of this corporation had a vision, or Introduction to business walmart essay would be more accurate to say he had a different approach towards achieving his goals.
Sam Walton chose to sell products at a low price, thus reducing his profit margin, however, he decided to rely on a high volume of sales in order to attain profits.
Wal-Mart began its operations almost sixty years ago, it started with a single store in Arkansas, USA. The Wal-Mart Corporation currently owns over store worldwide, with outlets in the United States alone. The corporation operates stores in the Americas not counting the USAin locations in Europe, and locations in the Asian continent.
Examine exhibit 2, Wal-Mart case study, Yoffie Wal-Mart has achieved Billion Dollars in sales inmaking the company the largest corporation in the world considering sales, and not to mention being the largest retail corporation in the world.
Wal-Mart faces stiff competition in both its domestic and international markets; however, Wal-Mart has a huge lead over its competitors. Wal-Mart has used its rapid expansion and efficiency as a edge over the other retailers, but can this growth spurt that has lasted over half a century continue much further?
There are several elements, both external as well as internal, that would affect the answer of those questions. In order to fully comprehend these forces, we need to analyze the situation using certain tools.
Overview It is difficult for Wal-Mart to maintain Introduction to business walmart essay level of growth they had, but as the SWOT Analysis showed, the company has what it takes to do it. Prologue It is essential that all companies have a form of strategy that would enable them to regulate, control, and plan their growth.
That strategy would dramatically differ from one type of business to another in the sense that the requirements and elements needed to be considered for each type of business can vary.
The importance of those strategies is that the stakeholders in the company would often view the growth of the company as a main indicator for its performance, so they judge the company by the level and consistency of its growth. In the Wal-Mart case, this has been true since the beginning; Wal-Mart has always been aggressive in its pursuit of growth as well as using the perception of amazing and fast growth to their advantage.
But the question is, what are the limits to Wal-Marts growth? The PESTLE categorizes those elements into six different forces, which are the political, economical, social, technological, legal, and environmental forces.
Political Forces The political aspect of a PESTLE analysis would analyze the implications of the new political system and its effect on the corporate models of an international company. Wal-Mart has become a symbol of the American culture and it will become a target for any political faction that opposes the political views of the United States.
Economical Forces When discussing economic forces in the PESTLE analysis, we refer to how different states of an economy such as an economic surge or a depression would influence multinational corporations and their business within that specific economy.
Wal-Mart is always sensitive towards this aspect, their sales model which depends on low margins of profit and a high volume of sales, could alter relatively fast. As a result of the previously mentioned points, Wal-Mart should conduct a thorough study before entering an unbalanced economy.
Social Forces This aspect defines the characteristic of the social forces when analyzing a foreign market and the society in which it is present in. In regards to Wal-Mart, this element could prove to be crucial, due to the fact that Wal-Marts model was tailored to suit the American society and their attitudes towards retail shopping.
That mentality would inevitably clash with the attitudes of clients in foreign countries fueled by social differences.
It is well known that technology changes all the time and people are always creating better, faster, and more efficient ways of doing things.
Companies that can integrate those changes the fastest would have an edge over those who cannot. Wal-Mart has always been a leader in implementing and integrating new technologies to improve its efficiency. However, when venturing to other countries, those systems are sometimes unusable.
Change could take a different amount of time to reach different countries, and companies would have to take that into consideration before venturing into a new market. That means that Wal-Marts growth would be limited to the countries that can support those technologies.
Legal Forces The legal factor that could affect organizations willing to enter foreign markets is the different laws, and corporations are forced to abide by those laws should they enter a foreign market.
This is a powerful force due to the various implications it creates, companies could venture into other countries for the sole purpose of taking advantage of certain laws in those countries, for example, companies would usually go to a developing country with a less developed legal systems, and set operations to avoid more strict laws in their home countries Labor laws, environmental laws, safety laws.
Wal-Mart has received criticism that it uses this loophole to keep its prices low. Environmental Forces The environment is a major concern for multinational corporations; this is because large corporations are accused of destroying the environment and the exhaustion of natural resources on a regular basis.
Wal-Mart has had an environmental issue before; they sold furniture that was produced from using wood from a natural reserve. They were heavily criticized and were eventually pushed into dropping the product line completely.
As a result of that issue, their growth in that field was halted. Overview From my point of view, I think that Wal-Mart are close to their limit of growth in their domestics market, thus, it is inevitable that they seek international expansion.
Prologue Companies that operate internationally have an advantage when it comes to their risks and opportunities, international companies do not rely solely on their domestic markets for profit. As a result of that, an economic shift in that specific market would be less threatening to them than it would be to a purely domestic company.
Moreover, an international company has more opportunities to take advantage of, for example, if the domestics market becomes overly competitive or saturated, or in the event that laws and regulations made it not economically feasible to continue to function in the domestic market, an international company could always shift its operations to the foreign markets and try expanding there.
This global reach that some companies possess would also give them a footing to enter easily into other markets.Free Observation essay example on WalMart.
Observation on Wal-Mart. Average Wal-Mart customers are males/females aged and are featured by the high consuming demand for purchasing new products and items. Walmart argumentative essay.
Example essay about introduction myself english write college personal essay northwestern university, academic essay purpose list Essay of criticism vedas in hindi character essay outline word templates. «9 Ways Business Consulting Will Help Your Business. Jul 29, · Walmart in China Introduction Walmart, founded by Sam Walton in , is the largest retail company in the world.
The low cost strategy and hence the “Every Day Low Prices” (EDLP) strategy allowed Walmart to outperform competitors in the US.
Introduction Wal-Mart Stores, Inc. branded as Walmart, is an American multinational retail corporation that runs chains of large discount department stores and warehouse stores.
Being the world’s third largest public corporation, Walmart is the biggest employer in . Gender Discrimination at Walmart - Walmart, the world’s largest retailer and private employer, has established a highly profitable business centered on a low-cost strategy that utilizes logistical efficiencies to create a competitive advantage.
Gender Discrimination at Walmart - Walmart, the world’s largest retailer and private employer, has established a highly profitable business centered on a low-cost strategy that utilizes logistical efficiencies to create a competitive advantage.