Essay on Walmart- Functions of Management

2070 Words Jan 11th, 2012 9 Pages
External and Internal Factors of Wal-Mart
Wal-Mart is one of the leading multinational discount department retail stores. One key characteristics of Wal-Mart is the diversity. Sam Walton’s goal was to help people live better by saving money. Wal-Mart is by far one of the most successful companies worldwide. Wal-Mart is a leader in diversity, globalization, technology, innovation, and ethics. Ethics plays a big role in the success of the company. Thru the ethical code followed, Wal-Mart hires, retains and promotes the right people into the right leadership roles. The ability to adapt to internal and external factors also helps them stay ahead of the game. Wal-Mart is a widely admired worldwide leader in the retail industry and
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Factors and Their Effect on Wal-Mart
Globalization
Wal-Mart became an international company in 1991 when it expanded into Mexico. Wal-Mart International was formed two years later in 1993. Today there are 4,774 international Wal-Mart stores located in 14 countries with planned expansion into Africa in the near future. http://Wal-Mart stores.com/AboutUs/
In 1996, after Wal-Mart had disappointing news for investors and the stock dropped, the company realized its mistake of having a weak, division-oriented planning process. John Menzer, Wal-Mart’s CFO at the time, and his team developed a high-performance planning process that encompassed the expansion to other countries (Barr, 1999). The international operations currently account for half of Wal-Mart’s profits. The planning process has allowed Wal-Mart to project ahead for long lead times on profitable growth and the difficulties of doing business in other cultures (Barr, 1999).
Wal-Mart has faced many organizational issues with the international expansion of the company: language and culture barriers, differing laws, regulations, and economies that affect business operations, and varying consumer desires. Wal-Mart has tackled the diverse workforce requirements by retraining their human resources division to attract and recruit innovative, talented, quality workers of various nationalities and cultural backgrounds to aid in the integration of the various…

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