Walmart Principles of Business

Wal-Mart is a brand that is well known around the world, especially in the USA. It has gradually developed into the largest retailer in the world. Wal-Mart’s globalization efforts have been happening rapidly. But have they been successful in all aspects of their international expansion or not? This is the main thought that is going to be discussed in this essay. The questions I will be looking at are based on a case called “Wal-Mart takes on the world” from the book of International Business The Challenge of Global Competition eleventh edition – Ball, McCulloch, Geringer, Minor, and McNett. Questions are the following:

grew at a compound average growth rate (CAGR) of 30.38%, which is unprecedented growth. The company’s profit growth rate of 30% is exceptionally attractive and clearly shows the profitability and sustainability of its strategies. The increase in the number of stores is quite lagging and this is an indication of Wal-Mart’s expansion potential. Overall, Wal-Mart’s financial results indicate that the company is doing exceptionally well.

Walmart is known throughout the entire world as one of the most popular chain department stores. Actually, most have probably visited a Walmart store in the past week. Though Walmart stores seem to be a normal part of life the average person more than likely has little knowledge that pertains to Walmart’s success and business culture. This paper will guide one through the history of the organization, why Walmart is successful, what could threaten or open new opportunities, and how might they hold a competitive advantage.

Discuss: Laws are set rules that may help guide our conduct but they do not always agree. Some ethical issues are not legally required, but ethically warranted. We have recently seen a prime example of someone standing by their ethics, but breaking the law in the recent case of the Kentucky woman refusing to provide a certificate of marriage to a gay couple. There is a connection between ethical behavior within an organization and its chances of long-term survivability. Any unethical issues will come to light at some point and they will destroy the company. Although some unethical behaviors may not be unlawful, they can destroy a brand. Kathy Lee Gifford did not do anything illegal by allowing children in other country to sew her clothing

Walmart is one of the biggest companies in the world, but it also has extremely tough competitors. Currently Walmart is the largest retailer in most countries of the world for numerous reasons. For one, they supply a wide variety of items to be purchased that include entertainment, groceries, health and wellness, hardware, furnishing, apparel and many more. Walmart also has over 11,100 stores in over 27 countries according to Market Realist. These two reasons alone give Walmart a huge advantage over its’ competitors. Walmart has both strengths and weaknesses when it comes to its’ competitors not only across the nation, but across the world as well. Some of the main domestic competitors of Wal-mart consist of Target, Costco, Amazon, and the dollar store trinity. Along with that, Walmart has international competition such as Carrefour in France, Metro in Germany, Tesco in the United Kingdom, Loblaw Companies in Canada, and Ahold in the Netherlands. Although Walmart has competitors with all of these companies worldwide, it still remains the “#1 retailer in Canada and Mexico and has operations in Asia (where it owns a 95% stake in Japanese retailer SEIYU ), Africa, Europe, and Latin America”, according to Hoovers. Strangely enough, Walmart is growing more overseas than it is in the United States. Even with all these companies it has to compete with, Wal-mart’s total sales are still almost 5 times its’ competitors. As it generates a net sale of over $483 billion in one year,

customers every day by providing a broad assortment of quality merchandise and services at every day low prices (“EDLP”), while fostering

As a small electronics retailer competing against Walmart, I would clarify my target customers, streamline the number of products I sell, and expand the types of services I provide my target customers. To begin with, I would conduct a Strengths, Weaknesses, Opportunities, and Threats (SWOT) Analysis to ensure I have made a complete, thorough, and objective assessment of my business and the competitive landscape (Parnell, 2008). Secondly, I would identify, review, and analyze my sales history, existing client list, and subscribe to a reasonably priced, Customer Relationship Management (CRM) service that would assist in analyzing my past, current, and potential customer base (Solomon, Marshall & Stuart, 2012). Lastly, after reviewing the CRM

The development of the Internet and more specifically the business website has seen brand recognition by consumers escalate to never before seen heights. Because of this brand recognition, it has become important for businesses to design their websites to reflect their overall marketing strategies. This is especially important in the retail world. All retail businesses have a similar overall marketing strategy of generating sales and retaining the customer for future sales. Most of the retail giants still greatly rely on the success of their brick and mortar stores to turn a profit. However, internet sales for these brick and mortar stores have increasingly risen over the last few years to compete with the retail stores like Amazon that are strictly internet based businesses. Brick and mortar retail stores, such as Walmart, Target, Kmart, and Nordstrom, have each designed their websites to reflect the overall retail marketing strategy as well as the individual marketing strategies that have made their brick and mortar businesses successful.

After analyzing the video on whether or not Jim's actions were ethical by not reporting the injury incident, I would have to imply that his dilemma was not only morally unethical, but lawfully unethical as well. By utilizing the deontology model that states to uphold certain underlying principles whether right or wrong and regardless of the circumstances, it is clear this ethical stand-point of "rule-based" approaches has been breached and a company's standard operating procedures were not met. This scenario and terrible decision could possibly result into a world of trouble for Wal-Mart Corporation that can be timely, expensive, and disruptive. Whether illegal or not, because the proper steps were not taken, the injured employee can legally

An employee spends several hours a week on her cell phone talking with her children and their associated caregivers, schools, and friends

The five generic competitive strategies are low-cost provider, broad differentiation, focused low-cost, focused differentiation strategy, and best-cost provider strategy. According to the textbook, “a company’s competitive strategy deals exclusively with the specifics of management’s game plan for competing successfully” (Gamble, 93).

The operating profits increased, with a slight drop in 2009, with operating profit margins of 5.02%, 4.86%, and 5.13% for 2008, 2009, and 2010. Wal-Mart also had increased net profits from $12,731 in 2008 to $13,400 in 2009 and $14,335 in 2010. The net profit margins are 3.41% for 2008, 3.34% for 2009 and 3.54% for 2010, which signifies the company improved on turning sales into profits. (Walmart Corporate, 2010).

There are so many organizational behavior concepts to take into consideration for the success or failure of any organization, business or company. The way these concepts are handled by management and employees will either keep the business open or these same concepts could end up in closure of this same business or organization. Management and employees are the people who will make the "win or lose" situation occur. Communication, motivation, and power and politics are some of the concepts that will cause a business to succeed or fail. Businesses must be competitive to stay alive, or these same businesses will

I would argue that this is the largest current threat facing the company with businesses such as Amazon and Costco in the same market knocking on their door. Walmart just recently hired another CEO, the 3rd such move that I could find in my research for this case study and while replacing a veteran executive with an up-and-coming high performer has all the makings of a strategic shift, early indications suggest that the retail giant will be staying the course with McMillon at the helm. McMillon's decades of employment, deep institutional knowledge, and company loyalty have been credited as key reasons he beat out Bill Simon, president and CEO of Walmart U.S., an executive seen as more of an outsider for the top job. (Pelletier, 2013) Being a friend of the Walton’s, with deep Arkansas roots, and decades of experience doing things the Walmart way is not the hallmark of an incoming CEO who is going to shake things up at the world's largest retailer and America's largest employer. But, given the many challenges the company faces, change might be exactly what is needed. (Pelletier, 2013) The article goes on to talk about a disappointing third quarter when its largest revenue generator, sales from U.S. stores, dropped 0.3%. The company also has forecasted flat earnings during the critically important holiday season. Walmart still expects to see modest sales growth in FY2015 through the opening of smaller, more targeted stores, and its longtime strategy

1. What is the ethical dilemma facing Wal-Mart in this case ? Do Wal-Mart’s associates also face an ethical dilemma? If so, what is it ?