Wal Mart Swot Analysis

1563 Words Jul 3rd, 2012 7 Pages
WAL MART SWOT ANALYSIS
By: Katie A. Bell
University of Phoenix

Wal-Mart Stores, Inc. was started by Sam Walton in Newport, Arkansas in 1946 in an effort to “help people save money so they can live better” and was achieved by keeping sales prices lower than his competitors by reducing his profit margin. From this simple concept the company has grown to nearly 3000 stores in 14 countries and is the world’s largest company in terms of revenue bringing in a staggering average of $401 billion annually. In addition to the Wal-Mart supercenters you now have the Wal-Mart neighborhood markets as well as Sam’s clubs that have begun to pop up all over since 1984. The ability to offer value and service to customers has largely determined their
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These companies offer limited stock but are local and cheap. They use efficiency when running with only 1000 or so stock items against the normal 20,000 to 30,000 items in Wal-Mart. Because Wal-Mart is so successful, they are open to attack on any ethical stance such as low pay, poor work conditions, and the supply of goods from cheap labor countries. Any large business has a group of individuals that are involved/invested in the furthering success of the company and they are referred to as stakeholders: Internal stakeholders include: all stockholders, the CEO, executives, and employees. The external stakeholders include: customers, communities/public, government and politicians, and suppliers. When you are looking at the stakeholders and trying to figure out if their needs are being met you basically want to look at three points:(1) Are they making a profit? (2) Are they doing it ethically? (3) Is expansion occurring? As far as the profits go you can’t help but see that the stakeholder’s needs are definitely being met as the profits have continued to increase year by year in spite of being in a recession. When it comes to the ethics of the company I would have to say that you can argue both sides. They employ over 2.1 million people and spend lots of time and money developing employees. On the other hand if you look at the average pay of the everyday worker its less than what is needed to be considered at the poverty level in the U.S.