WalMart Inc.

A CASE STUDY ANALYSIS

Submitted to: Prof. Mark Alex Cadiao

The biggest retail chain in the United States and the biggest retail chain globally is Wal-Mart.
Overall, Wal-Mart runs more than 4,150 retail locations throughout the world. Moreover, the
business dominates the retail market in Canada, Mexico, as well as the UK.  In accordance with
the Fortune market index of the wealthiest and most powerful firms in the world, Wal-Mart
maintains the top one slot, based by its own overall sales. However according to Fortune, the
corporation is indeed the 2nd recognized in the world. Wal-Mart serves personal items like
family clothing, cosmetic, healthcare products, toys, tools for home, textiles, handicrafts, lawn,
accessories, as well as footwear. Besides, the firm operates its community pharmacies division,
Tires and Repair Services, and even a photography processing facility.
Once Sam Walton originally formed Wal-Mart around 1962, he said that the organization should
now be characterized by three stated aims: first, respect for people; second, providing
outstanding customer service; and third, pursuing innovations. The objectives of Wal-Mart's
involvement are to provide customer happiness, get involved in neighborhood services, and
offer scholarships. Children and environmental issues are prioritized. According to the
corporation's expansion, Wal-Mart saw fast growth in the 1980s. The company's main
assumptions of Wal-Mart somewhere at time was ever to offer "increased," full title products at
reasonable rates and to operate areas in small villages. Years leading up to attempting to
expand towards big cities, Wal-Mart targeted on smaller cities. As this was happening, several
stores focused primarily on more crowded urban areas. Moreover, the individuals increasingly
relocated to smaller towns and villages because they developed economically mobility, and they
became prepared to move further to obtain products at reasonable prices.
Some unhappily assert that perhaps the growth of Wal-Mart adversely affects many established
local retail stores. These neighborhood business associations supported Wal-Mart following
concerns that it removes small-town opponents. As an outcome of local enterprises adjusting to
the shifting corporate environment, several chambers of industry also claim that perhaps the
entry of Wal-Mart generated employment for individuals and started opening more opportunities
for them. As they stated the community economic gains, officials claimed, through Wal-Mart.
There are 1,636 retail locations for Wal-Mart today. There are 1,093 Wal-Mart Super Centers,
502 Sam's Clubs, 31 Wal-Mart Community Locations, and 1,183 overseas stores. Its company's
current business operations could be dissolved into Wal-Mart store locations, super
establishments, Sam's International factories, and general stores. Fresh produce as well as
retail sales sections are combined in Wal-Mart stores and Supermarkets offer "one-stop family
shopping." In regards of participation warehouse clubs, Sam's Club is indeed the best in the
country. Individuals who really want foodstuffs, prescription meds, or even daily products can
purchase conveniently at general stores. By clearing out all the intermediaries and just doing
business closely with suppliers, Sam's Club offers its own representatives significantly bigger
discounts. Sam Walton, as founder and chairman, acknowledged that providing customers
heavy discounts and reasonable prices might encourage them select his shop above others.
Much farther, Sam Walton attempted to implement extreme discount, which has been
established to guarantee consumers discounts somewhere between 40% and 60 %.  He
therefore highlighted also on operations of supermarkets and pharmacies.
Wal- Mart's management tactics place a significant emphasis on its employees and company
environment, which is based on morality conservatives, religion, and family values. Wal-Mart
puts a strong emphasis on the way it pays attention to the requirements of its own employees
so that everyone could recommend changes to corporate procedures and policies. Sales
associates at Wal-Mart are known as the "colleagues," as well as the firm even produced "Wal-
Mart World," the institutional publication for its own workers. Via revenue agreements including
company stock options, the organization provides generous financial advantages for its own
personnel. Also, the organization gives broad training sessions for the employees.
Notably, most Wal-Mart personnel don't really receive "excellent" salaries. Wal-Mart shops are
the places where majority of the employees of the company are engaged. They are
compensated the federal minimum wage as part-time laborers. The part-time employee should
work for even more than five years before they become qualified for insurance, potential
revenue, or even other forms of incentives, thus many staff really aren't qualified to any of these
benefits. Many of these individuals hadn't ever acquire the necessary level of qualifications and
experience because of the high turnover rates among them. The local minimum hourly wage is
typically much lower than the poverty threshold.

II. Statement of the Problem

Due to the low prices of its goods, Wal-Mart has already been able to reach essentially iconic
status. It is believed that Wal-Mart constantly preserves innovative supply chain and cheaper
labor costs, providing the organization an advantage over its competitors. But even so, it could
be claimed that perhaps the corporation's method of dealing with revenue as well as its standing
as a competitor inside this retail business are also at the core of the issues the firm is currently
facing. In addition, the concern of market share might be said to make various manufacturers
and retailers increasingly vulnerable to competitors. There seems to be proof including both
current and long-term difficulties that corporation has faced in the present matter.
In spite to the above, various issues also may occur because of the company's failure to
compensate their employees a sufficient wage or other type of compensation and benefits due
to their cost-cutting style or method.
III. Objectives

1. To continue to focus on a marketing plan that will assist Walmart in recovering from its
decreasing revenue.
2. to create a marketing strategy to boost market share
3. To create a creative advertising campaign for Walmart to enhance brand recognition.
4. To work on improving Walmart's core strengths.

IV. Alternative Courses of Action

Based on the specific case, there are several alternative approaches that might be recognized
to address Wal- Mart's issues.
In terms of cost or even an expense approach, it must be acknowledged that Wal-Mart need to
be able to employ a new pricing technique which will benefit the corporation while also allow it to
benefit enormously. With all of this, the company might think about using expense control. This
will be beneficial in ensuring that the firm continues to maintain low product prices as well as low
operational cost.
A great marketing and inspirational approach also serve as an alternative solution to their issue.
It is then suggested that the company establish methods to ensure that one established policy,
including employee promotion, were indeed performed in accordance with executives. Decision
makers should still publish all employment opportunities and interact effectively with employees.
Those employees should be aware about the standards for progression. Besides, most qualified
employees should be given an equal opportunity for the available position. Training and
education or seminars which can help employees improve shouldn't be restricted to a select
few. Employee motivation should always be facilitated by the availability of a higher authority
with whom they may discuss about their complaints.
V. Recommendation

The suitable recommendation for achieving this is to have raised the significance of their low
costs through business expansion. The corporation would then be advised to ensure that they
are able to evaluate regardless of whether their price corresponds to the quality of their goods
and that this will not have an influence on overall Wal-Mart's brand image. Furthermore, the
company is encouraged to reassess its workforce policies and ensure that organization stays
true to them to prevent discriminatory practices.
According to this case study analysis, this is relevant to suggest that Wal-Mart integrate a
valuation and job enrichment strategy, as these are the primary factors influencing its
advancement and growth. With all of this strategic plan, Wal-Mart can drive revenue by
reconfiguring or improving its own existing services and goods. The above procedure has
already been recommended due to its potential to aid the firm's capacity to penetrate new
markets. The said strategic approach will have an impact on several market segments at Wal-
Mart. Based on the findings, it is acceptable for the corporation to begin development including
its primary product offerings.
As a result, the organization will have enough resources to support other appropriate initiatives
in the future. Wal-Mart will now be able to enhance the position in the marketplace of its various
market segments through this strategic approach, resulting in a more powerful standby upon
those businesses.

VI. Conclusion

In conclusion, Wal-Mart continues to operate in many countries all over the world and is
expanding to new ones each year. Wal-Mart has also been expanding its retail operations and  
yearly, Wal-Mart discovers new ways to expand and provide more services to their
customers. The number of individuals who own a piece of Wal-Mart grows. Because Wal-Mart
actively discourages its employees from joining unions, the union members are bringing more
legal claims against by the retailer. The importance of Wal-Mart's affairs committee will rise
because of the retailer's expanding scale and broad range of services. As Wal-Mart develops
into new market segments, there will be additional regulations opposing them, and their public
information department will have to intensify its efforts to guarantee that Wal-Mart can keep
expanding.

Wal-Mart will have to make additional efforts to uphold its good name as the opposition against
them rises both nationally and globally. The Wal-Mart Organization will play a greater role in
giving back to the local community in the future. Wal-Mart will be required to have better
management when it comes to their stakeholders and ensure that they protect their image if
they wish to remain at the forefront of their game, adhere to the corporate strategies, and
accomplish their primary policy objectives.