Walmart Internal and External Audit

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Strengths 1. Core competency/Cost Leadership- Walmart is known for their “everyday low prices.” This sets them aside from their major competitors such as Target. Walmart strives for "saving people money so they can live better." With the cost leadership strategy in effect, Walmart is ensured a steady and returning flow of customers to their stores. That understood, Walmart has a comparative advantage over their competition. Consumers are able to feel better about their purchases knowing they are at a discounted price. Walmart is therefore given a rating of 4 and weighted score of 1.0 in this category. 2. Economies of Scale- Walmart is rated a 3 with a weighted score of 0.3 in this particular category. Being the giant…show more content…
Factor in discount pricing, and it becomes nearly impossible. Simply put, consumers cannot expect to have a wide variety of products with high quality and lower prices; it just cannot happen. That understood, Wal-Mart is given a rating of 2 and weighted score of 0.40. 2. Large Span of Control- Considering the size of Wal-Mart, it is no doubt that they have a large span of control. While having a large span of control may be less costly, it also raises some important issues. For starters, there may be less supervision due to such a wide range, which makes disciplinary actions harder to enforce. This therefore can result in less control of employees and further entails a poorer quality of performance among the business. Moreover, it becomes incredibly difficult for the quality of management to stay consistent throughout the company, giving a rating of 2 with a weighted score of 0.2. 3. Concerns about Ethical Position- Over the years, Walmart has been questioned about their ethical stance regarding their workplace practices. It is noted that approximately 5,000 lawsuit filings are made every year against the big box store. Such abuses consist of “wage law violations, inadequate health care, exploitation of workers, and the retailer’s anti-union stance” ( Perhaps not all consumers are aware of such mistreatment
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