Ben F. Soares
September 13, 2013
Wal-Mart, Inc. is a retail store that sells everything from clothing and groceries, to electronics, and computers. Established in 1969, the company employees 2.2 million workers, and operates 10,130 stores across 27 countries, which makes it the largest retail company in the world (www.marketline.com, 2013, p. 3-4). Wal-Mart’s net profits decreased by 4.2% to $15,699 million from 2011 to 2012, however; the company continues to grow, which is a tribute to their sound strategic and operational plans (www.marketline.com, 2013, p. 3).
Wal-Mart runs its business under …show more content…
Wal-Mart mission statement, slogan, and vision indicate that Wal-Mart wants to provide quality merchandise, at low costs. Wal-Mart has accomplished this goal by implementing an operational strategy of cost reduction. These cost cutting efforts include efficient logistics and inventory management systems. Efficiencies in both these areas have helped Wal-Mart restock stores more rapidly, and have “…reduced inventory carrying costs, transportation costs, and costs associated with order fulfillment and materials management” (St. Onge, 1996, p. 33).
Internal and External Stakeholders:
Wal-Mart’s internal stakeholders are their employees, management team, board of directors, and investors. The internal stakeholders are directly affected by Wal-Mart’s strategic and operational plans because the success or failure of these plans, directly affect the company’s profitability. Wal-Mart’s cost reduction strategy will affect profitability, which will affect bonuses, incentives, dividends, and stock prices. Wal-Mart’s external stakeholders are their customers and suppliers. However, and external