...Diversity and Globalization in Wal-Mart Wal-Mart started in 1962 with one store in Arkansas. By 1970 Wal-Mart had 38 stores in a few states. The department store was and still is growing very fast. Wal-Mart employs a very diverse workforce with young people, students, varied ethnic groups, senior people, and both educated and uneducated men and women (Wal-Mart, 2009). In the 1960s Wal-Mart began with a simple discount store and over time evolved into supercenters, which have the original discount store but include a grocery section as well. The chain has grown considerably, from small town to Fortune 500, over many decades. Wal-Mart learned many lessons as they evolved such as how they can save money for the people and company regarding recycling and efficiency. Wal-Mart started off less environmentally conscious than they are today, paying significant attention to energy, fuel, recycling, resources which saves money and the environment. At Wal-Mart, management believes that business wins when everyone matters, and that the true strength of diversity is unleashed when each associate is encouraged to reach their full potential. Diversity then becomes the foundation for an inclusive, sustainable business that embraces and respects differences, develops our associates, serves our customers, partners with our communities, and builds upon an inclusive supplier base (Wal-Mart, 2009). Wal-Mart implements diversity as part of its business plan, ensuring we can continue to be a global...
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...John Edwards ENGL 1013 Composition 1 4/28/2012 Argumentative Synthesis “Up Against Wal-Mart” “Progressive Wal-Mart. Really.” Profiting an average of 1.8 million every hour, managing 2.2 million employees in over 11,000 stores in 27 countries, according to Fortune Global 500 list in 2014; Wal-Mart is the worlds largest company by revenue. Author Karren Olsson, “Up Against Wal-Mart”, hearsays for Wal-Mart employees and their supposedly unfair treatment. This opinion of Olssons is quite convincing; especially considering the borderline argument that Wal-Mart should become a union workforce due to their off the clock, low paid, overwhelming workloads. Sebastian Mallaby, author of “Progressive Wal-Mart. Really.” and columnist for the Washing Post, finds views such as Olssons comically dysfunctional. Mallaby’s brief article overrides these skeptical cruel theories towards Wal-Mart by explaining globalization. Wal-Mart’s globalizing economic decisions for the underprivileged leads Sam Walton’s idea wanting to not only build America but moreover, build the world. Confident in Wal-Mart being a cruel company, Olsson provides multiple miserable quotes from employees. For instance, introducing her essay is the portrayal of Jennifer McLaughlin, one that “wears wide-leg jeans and spiky plastic chokers, dyes her hair dark red, and works at Wal-Mart”(606). McLaughlin’s day-to-day demands from managers may be to “hop on a mechanical lift to retrieve something from a high shelf, catch...
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...According to walmartstores.com, Wal-Mart is committed to engaging all of their shareholders, both internally and externally, to become the most sustainable, responsible company they can. Wal-Mart believes that by listening to, and partnering with their stakeholders, they are truly saving their customers money so they can live better. Wal-Mart’s stakeholder group differs, in an effort to adapt to the changing needs, and issues that continue to evolve in the marketplace. As Wal-Mart pursues their corporate goals, they further strengthen relationships with shareholders in order to be transparent and enhance their relevancy with the customers and communities they serve. Markets Wal-Mart focuses on creating a low price appeal to its customers. The marketing strategy relies on word of mouth communication based on everyday low prices; consequently the focus market will be drawn to the low price guarantee. The low price strategy aligns well with its objective of minimizing operating cost while adding value for customers because of the savings from advertising, and these savings are passed onto the customer by offering products at a lower price than the competitor. Competition Because of Wal-Mart’s low price offering, low cost operations as well as their operational efficiency, Wal-Mart tops the list of retailers worldwide. While some retailers such as Dollar General offering a low price initiative with comparable low price offerings as Wal-Mart, Wal-Mart is still the leader in the...
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...Wal-Mart Goes International: Stepping into International Waters Abstract The vision set by Wal-Mart is to continue progressing in the retail business not only in the United States, but internationally as well. The company's mission, provide cheap products and services to the public, claims to be the driving force that makes the company aspire in retaining leadership in the retail industry. This paper will explore reasons behind Wal-Mart’s engagement in an aggressive effort to penetrate the international market to sustain its growth in the coming years. The strategies utilized by the Wal-Mart company focus on market penetration, specifically since Wal-Mart is a highly recognizable brand. It is a well-known reality that for a company to be completely successful in the industry it belongs, it must venture in the international arena. We shall look at the drivers of globalization and analyze the various forces (economic, financial, physical, environmental, socio-cultural, labor, political, and legal) which may have impacted the decision to go global. Additionally, we will evaluate whether Wal-Mart will taint international business with negative publicity. Wal-Mart Goes International: Stepping into International Waters Wal-Mart transcended into international waters in 1991 when the company opened a Sam’s Club near Mexico City. Two years later, Wal-Mart International was born. Today, Wal-Mart International is a fast-growing part of Wal-Mart's overall operations, with 4,082...
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...retailing: the case of Wal-Mart’s failure in Germany Susan Christophersonà Abstract Wal-Mart’s exit from the German market in 2006 after 10 years of attempting to achieve sustainable competitive advantage contributes an interesting case to the small but expanding literature on ‘failure’ in international investment. The work on the disinvest decision in all its forms has been critical to a re-conceptualization of the international investment process as dynamic rather than static, linear and inexorable. An important segment of the work on investment and disinvestment as dynamic processes focuses on the environment in which investment and disinvestment decisions evolve. While the environment of the host country market has begun to be examined, the market environment of the country in which the retail transnational corporation (TNC) originates also affects the international disinvestment process. To explore this ‘home country effect’, I examine the resources Wal-Mart brought into the German market and their ability to use those resources in the German context. WalMart’s resources were shaped by the market governance regime in which the firm evolved, and not insignificantly, over which it had and has influence. Within this theoretical frame, Wal-Mart’s reliance on the resources of network dominance and autonomous action that made for its success in the USA contributed to unsuccessful strategies in the German retailing market. Keywords: lean retailing, Wal-Mart, Germany, corporate...
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...at a moments notice. At Wal-Mart, top executives have learned to utilize the four traditional functions of management: planning, organizing, leading, and controlling. Through understanding the four functions, they have been able to overcome the internal and external factors that have threatened Wal-Mart’s place in their industry. However, Wal-Mart has experienced situations where internal and external factors have affected and, in some cases, enhanced their ability to use those functions. Now we will take a look at these five factors: Globalization, Technology, Innovation, Diversity, and Ethics and analyze their affects on the four functions of management. For Wal-Mart, globalization has affected the four functions of management. When the organization decided to go global in 1991, Wal-Mart experienced a huge shift in its ideas of planning. With the options of going into Europe, Asia, and other countries in the western hemisphere, Wal-Mart decided to first move into the South American markets. Ultimately, Wal- Mart chose to expand its organization globally in Mexico where it could gain knowledge and experience, and use this knowledge to continue to expand internationally. Globalization affected the company’s organization function of management as well. For Wal-Mart to expand further than South America and into Canada, the firm had to establish an organizational strategy. The corporation chose four main areas. (1) Work Force: Wal-Mart acquired a retailer...
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...Wal-Mart Business Analysis Part 2 Dr. Kenneth Edick Wal-Mart Business Analysis Part 2 This paper compares Wal-Mart’s financial health to its competitors such as Target and K-Mart, which are also designed in retail multi-shopping department stores. Further review will detail how Wal-Mart’s rates in comparison of profitability through its income statement, balance sheet, and cash flow in relationship to Target and K-Mart. Upon examination, this information will illustrate the future perspective success of Wal-Mart and determine areas of improvement such as sales, operating income, return on investments, liabilities, and cash flow. Further information will identify the processes that Wal-Mart has designated to comply with the Security Exchange Commission (SEC) regulations. Detailed evaluations will specify Wal-Mart’s financial performance and the principal tools of benchmarking analyses that differentiates Wal-Mart’s position in best practices, operational processes and procedures in the domestic and global markets as well as the technology advantages in relationship to Target and K-Mart (University of Phoenix, 2011). Financial Statements Wal-Mart implemented a new financial system, which reflects the retail method of accounting for inventory. This procedure affects the operating income and the consolidated net income for all comparable periods. Wal-Mart reclassified expense and revenue items within these statements of income for the purpose of reporting. However, the...
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...Organization Strategy Paper Affordable prices, quality products, and competitive prices is what make’s Wal-Mart the leading retailer industry in the country today. To achieve desired business goals the Walmart organization practices strategic planning processes that defines advantages or developments within the company’s goals and expectations. Presently the Walmart organization has considered expanding the company operations; however, the company has three options to consider before the expansion takes place. These options include selling more stock, bonds, and merging with another organization. Without growth, success cannot be achieved. Growth is the ultimate goal of organizations. Growth benefits organizations in that it; funds new projects, increases market share and consumer awareness, attracts bright new minds, enhances the ability to develop new ideas and ultimately leads to financial success. Growth in an organization can occur naturally, but most often is created. The Wal-Mart Corporation must compare and contrast and make a recommendation about which strategy the organization must choose in making the best decisions. By doing this the organization must consider the following strengths and weaknesses, opportunities, threats, and effects of globalization. The Merger Option In contrast to selling stock or issuing bonds to raise capital, merging with another company enables firms to acquire less debt, and retain more equity. Investopedia (2012) explains...
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...Ethical Issues that Wal-Mart faced in India and China. Wal-Mart’s ethical business management is related to the global environment, which consists of financial markets, cultures, technologies and government policies. The market also consists of hyper competition from different countries such as China and India and regional players in the global environment. China has low cost offshore labor in the “flat world”, so that Chinese imports are so inexpensive to enter in U.S. So many factors lead most US manufactories to close the doors and eventually jobs are lost accelerate. The United States’ economic outlooks vary with regard to the global economy. In my opinion, the labor force is one of technologies in a developing country and it supports the globalization process. China as a global manufacturer and U.S. partner is a great source of world-class offshore technology services. Wal-Mart has its own external and internal stakeholders. WAL-MART Ethically wrongs its Employees * Wal-Mart executives have failed to pay workers overtime and admitted to being trained and told by their superiors to do so. One of the Wal-Mart mgr claimed that he/she has seen every Wal-Mart mgr change the hours other than the General Mgr. the 31 state lawsuits, and $50 MM class action payment in CO convincingly indicate that Wal-Mart violated the law, and in TX it was estimated that Wal-Mart cheated workers out of $150 MM. Another figure cited is that they underpaid 87,000 workers in the US by $34 MM prior...
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...Wal-Mart’s Internal and External Factors Jessica Kiernan MGT/230 May 26, 2014 Terrell Kennard There are many ways that internal and external factors affect the four functions of business. The four functions of business are planning, organizing, leading, and controlling. All functions are vital when running any successful organization and should be taken into account at all times. Globalization, technology, innovation, diversity, and ethics are some examples of the different types of factors that could affect these functions of management. Although they can affect them in different ways, they are all factors that have a certain standpoint in the business world. Successful strategic management depends on an accurate and thorough evaluation of the competitive environment to include the resources, the competitive market, and a product line that will meet the needs of the people where a new warehouse will be constructed (Bateman & Snell, 2011). However, external factors do exist such as potential growth of the industry, major competitors, social issues that could affect the industry, labor issues, technological needs, and economic factors. With this in mind, Wal-Mart believes that being the first U.S. retailer of these markets will give them a competitive advantage over the next decade because by the time the rivals enter the overseas markets, Wal-Mart will already have established a good presence and understanding of the culture and shopping needs...
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...ASSESSMENT COVER SHEET |Student’s name |(Surname) |(Given names) | | |JIANG |Yifan | |Student’s I.D. number |26094207 | |Unit name |Business ethics in global environment |Unit code |MGF 5020 | |Title of assignment |Task 1---Week 7 | |Name of tutor | | |Tutorial day /time | | |Presentation date | | All work must be submitted by the due date. If an extension of work is required, please complete and submit a Special Consideration application (in-semester assessment task) form to your examiner/lecturer/tutor...
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...Wal- Mart Jose Vasquez MGT 230 MAY 20, 2014 Melanie Behunin Wal- Mart In a variety of business environments around the world, four management functions are usually found. The four functions of management are planning, organizing, leading, and controlling. Planning occurs within these functions of a business, and it helps to deliver strategic value. Organizing will build a dynamic organization and leading will mobilize people. Controlling is part of learning and changing as the organization grows. All four functions of management are the key concept to effective management. Internal and external factors influence the decision-making process that affects management. The competitive landscape is constantly changing; therefore, managers must consider people and businesses around the world. These are used from top-level management to frontline or organizational management. Globalization, technology, innovation, diversity and ethics are factors that affect these business functions. One can examine almost any organization and find this to be true. Wal-Mart is one of the leading retail organizations in the world whose management functions are affected by these factors. Opening its doors in Rogers, Arkansas, Wal-Mart started a profitable business in 1962. The founder, Sam Walton, could never have envisioned where his company would be in the present. Earning approximately $30,000 in 1962, Wal-Mart has evolved into a multi-billion dollar company earning over $15 billion in 2011...
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...belief in some kinds of products. Take contraband cigarettes, for example. Not only is contraband cigarettes killing small businesses and threatening the livelihoods of many convenience store owners, but it is also robbing government millions of dollar every year because these are cigarettes that are being illegally imported among countries with absolutely no government inspection, testing, oversight and taxation. Moreover, many organized crime groups use the lucrative trade in contraband tobacco to finance other, more serious criminal activities such as contraband drugs and guns. As a result, we should avoid this type of business that causes severe damages to the development of worldwide economy. WAL-MART INTRODUCTION Wal-Mart's history is one of innovation, leadership and success. Wal-Mart was founded...
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...respectively). Over the next 65 years, Wal-Mart grew to be the largest corporation in the United States with over 5,000 stores and a staggering 1.2 million employees. In fact, Wal-Mart’s staff accounts for 1% of the United State’s working population (Blodget, 2010). Unfortunately, such an enormous presence, combined with negative reviews, has turned Wal-Mart into the country’s most hated retailer of all time (Picchi, 2015). As such, Wal-Mart is constantly investigated, scrutinized, and sued. The following essay analyzes Wal-Mart’s effect on local communities and the corresponding implications the effects may have. In this essay, a community is defined as the combination of local businesses and people surrounding a Wal-Mart store. The analysis is divided into three Parts. Part 1 analyzes Wal-Mart’s effects on local businesses. Part 2 analyzes Wal-Mart’s effects on local populations. Both Part 1 and Part 2 suggest the potential organizational/ethical implications associated with Wal-Mart’s perceived effect. Lastly, Part 3 outlines potential solutions to Wal-Mart’s problems. Part 1: Effect on Local Businesses Wal-Mart reduces the number of small businesses within a community. According to a Hunter College study, local discount stores’ sales decline an average of 10-40% after a Wal-Mart moves in (De Blasio, 2011). As a result, many of the affected companies go out of business or move locations. For example, in 2006, after a single Wal-Mart opened in Chicago, 27% of small businesses...
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...This article appears in the Nov. 14, 2003 issue of Executive Intelligence Review. Wal-Mart Is Not a Business, It's an Economic Diseaseby Richard Freeman and Arthur Ticknor(See also ``Wal-Mart Collapses U.S. Cities and Towns,'' Nov. 14, 2003; ``Wal-Mart Eats More Manufacturers, Jobs,'' Nov. 21, 2003; Wal-Mart Family Trust--The Real Beast of Bentonville, Ark., Jan. 23, 2004.)The Wal-Mart department store chain, which employs 1.3 million people at 4,700 stores worldwide, and in 2002 became the largest corporation in the world, is levelling economies of the U.S., industrial nations, and the Third World.Wal-Mart is a driving force behind the decadent Imperial Roman model of the United States. Unable any longer to reproduce its own population's existence through its own physical economy, the United States has, for the past two decades, used an over-valued dollar to suck in physical goods from around the globe for its survival. Wal-Mart is both the public face and working sinews of that policy. It brings in cheap pants from Bangladesh, cheap shirts from China, cheap food from Mexico, etc. Workers who produce these things are paid next to nothing.Not since the days of the British East India Company as the cornerstone of the British imperial system, has one single corporate entity been responsible for so much misery. At the core of its policy, Wal-Mart demands of its suppliers that they sell goods to Wal-Mart at such a low price, that they can only do so by outsourcing their work to low-wage...
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