The Case Of Wal-Mart

711 Words 3 Pages
Wal-Mart is an eminent American enterprise that operates retail stores including, discounts warehouse clubs, grocery and other all-purpose merchandising stores. The original Wal-Mart store, founded in 1962 by Sam Walton along with his wife Helen and younger brother Bud in Rogers, Arkansas (Walton, 2003). With all his experience within other stores Walton decided to come up with his own business model with the intention to be different from other merchants not only in relations of discount but he also focused on opening stores in small rural towns much like where he grew up. But Walton always felt that people were the main component of retail sales and they should be his main concentration. Wal-Mart looked-for devoted customers to buy their …show more content…
Walmart faces labor related lawsuits on a regular basis, which accumulates millions in debt cost the company. It is condemned for poor work environments, low earnings, promotions, unpaid overtime work and female discrimination. These are issues that should not be accrued at any rate by a company so large, especially when the customers and the employees are supposed to be desired priority. Along with litigation costs, company’s reputation has been damaged and experienced workers are not willing to work at this rate. Walmart suffers from low skilled, poorly waged jobs that account for a high employee turnover that increases organization’s costs, as it has to train new personnel more often. Walmart has no diversity paralleled to its contenders, which might damage the company in the future if average customer earnings or product prices would rise. Walmart is repeatedly scrutinized criticized for its problematic practices such poor quality products and work conditions and the unpaid wages and only hiring part time workers that do not receive benefits. Sales merchandise from other countries with discriminating labor laws. The adverse publicity damages companies’ reputation dealing with allegations of bribery. And the opposition in some cities due to the element that the company causes many small businesses to …show more content…
Wal-Mart should not underestimate the international challenges of the aggressiveness of local competitors, the frugality of native consumers, and the extent to which regulations, cultural variances, and labor unions would obstruct its ability to apply in other countries what had worked well for it in the United States. There are diverse preferences, tastes and customer patterns in different countries.
While breaking into international expansions, employees must be employed from the native area, or trained according to the culture. The employee must then represent Wal-Mart using the foreign customs, relative to the foreign country. If management practices and Walmart’s ethics doesn’t fit into the local cultural environment, it could end up being a downfall for the company. Another challenge that Walmart may well face is strong opposition from presently established stores that have a better understanding in local necessities and demands of the consumers.

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