Walmart Issues

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…
Walmart has expanded on the opportunity by incorporating the neighborhood grocery stores to increase revenue from this movement. When one looks at the format of the new neighborhood store, Wal-Mart’s format seems to try to hold to its same low cost products. One also has to consider that using the tactics of the “neighborhood” store really seems to be an effort of trying to relinquish to the Sam Walton primary vision for Walmart by positioning grocery type stores in rural areas or small towns similar to where he grew up and giving the customer a what they need at a lower

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