...MGT/421 Individual Environmental Factors Wal-Mart Shirley A Everett April 24, 2012 Robert Stack- Facilitator Effects of Global Economic Interdependence Globalization in the economic context is related to the increase of individual businesses that operate in a range of countries. Therefore, Globalization stimulates economic growth, creates jobs and raises income levels. Globalization is marked by free trade, free flow of capital and cheaper foreign labor markets. Globalization has several facets, globalization of markets, merging historically distinct and separate national markets into one huge marketplace, and globalization of production, sourcing of goods and services from locations around the globe. There are still many challenges in the global market, for example; distance, time zones, language barriers, cultural differences, currency issues, as well as national government regulation issues, and business system improvements. Still, the world is looking smaller through globalization. In the case of the Wal-Mart as a Multi-National Corporation (MNC), the factors that affect its global and domestic marketing decisions are based on their striving to continue to dominate the retail market of the United States, and continue to build their presence around the world. The strategic planning of Wal-Mart approaches global expansion with a regionalized marketing campaign. Wal-Mart’s global focus is on finding low cost products from around the world, importing those products...
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...Powell Wal-Mart MKTG305-1301A Applications in Marketing Project Type: Unit 5 Individual Project March 17, 2013 Abstract For this assignment, Wal-Mart was chosen as my Fortune 500 Company. Let’s begin by describing Wal-Mart’s main line of business and provide the name of four different countries that Wal-Mart operates. Then clarify the putting into practice the 4Ps marketing mix theory by Wal-Mart and explain any differences following the carrying out of this theory from country to country. Wal-Mart Wal-Mart stores has maintained being at the top of the corporate ladder and had been on top for two years in a row for Fortune 500 and Global 500 (CNN Money, 2013). Sam Walton opened a Walton’s 5 & 10 store on Bentonville Town Square in Arizona in 1950; this little dime store was the beginning for Wal-Mart. This location is now Wal-Mart’s Visitor Center. Sam Walton opened the first Wal-Mart in 1962 in Rogers, Arkansas (Wal-Mart, 2012). Wal-Mart is all about helping people to save money so that they are able to live better lives. People are able to shop anytime, anywhere whether it is online, from their mobile devices, or in retail stores (Wal-Mart, 2012). Wal-Mart has locations operating in 27 different countries under 69 different banners. Four countries in which Wal-Mart operates are: United States, China, Argentina, and Japan. In the United States, there are Wal-Mart Supercenters, Sam’s Club, Wal-Mart Express, Neighborhood Markets, and Wal-Mart Discount...
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... Wal-Mart is one of the world’s largest retail stores across the nation. They are the leaders in employment opportunity, sustainability, and corporate philanthropy (Wal-Mart, 2012). Wal-Mart has 10,020 stores in more than 28 countries. They employ 2.2 million people and serve 176 million customers per year (Wal-Mart, 2012). This paper will look at Wal-Mart and analyze environmental factors that have effects on Wal-Marts marketing decisions both domestically and internationally. Global Economic Interdependence and the Effect of Trade Practices and Agreements Global Economics Interdependence is defined by the business dictionary as, “mutual dependence at a global level” (Business dictionary, 2012). This is where one country depends on another country and that country will depend on another country and so on; this will eventually mean global independence (Business dictionary, 2012). Importing and exporting different goods is a large part of Global Economic Interdependence. Wal-Mart does everything in their power to help the customers save money on the products and merchandise they purchase by offering these products at lower prices than many of their competitors. People throughout the world want to shop at a place that they know will save them money and even possibly time. Wal-Mart is continually increasing their customer base because of the low prices and one-stop-shopping. This is helping with the sustainability of Wal-Mart stores. Wal-Mart would...
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...THE GLOBAL COMPANY OF WALMART WESLEY LEATHERWOOD MARKETING 205 AIU ONLINE SEPTEMBER 29, 2013 ABSTRACT The main line of business of Wal-Mart is allowing customers to shop anywhere anytime online, on mobile devices, and in stores. The vision is to create opportunities and bring value to customers and communities around the world. The marketing mix strategy changes in the different locations of business and it is important to know how to effectively and efficiently give the consumers what they need and want. Using a strategic marketing mix will make the company flourish and maintain a good business production. THE GLOBAL COMPANY OF WALMART Wal-Mart is a global company that is very popular from their slogan of “Every Day Low Prices”. The main goal of Wal-Mart is to provide the public with quality goods for lesser price than the competition. Wal-Mart has over 245 million customers with locations in 27 different countries and e-commerce websites in 10 countries. With employment of 2.2 million associates worldwide, you would expect for profits to be $466 billion in the year 2013 (Corporate Wal-Mart 2013) The main line of business of Wal-Mart is allowing customers to shop anywhere anytime online, on mobile devices, and in stores. The vision is to create opportunities and bring value to customers and communities around the world (Corporate Wal-Mart 2013). The company of Wal-Mart is the world’s largest retailer and is very popular with lower and middle class families. Wal-Mart...
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...Strategy Management: How Wal-Mart Keeps Its Competitive Edge The rise o f Wal-Mart to become a global business organization is a result of grand design and deep strategies aimed at making the retailer the best in the United States and the world. Below are some of the factors which play a great role in ensuring that Wal-Mart becomes a global player in the business. How Wal-Mart Keeps Its Competitive Edge Purchasing Since the retailer owns more than 50 percent of the market share, it is able to negotiate for greater economies of scale than its competitors since they buy most of their items in bulk. Also the retailer has instructed its sellers to use electronic modes of payment so as to reduce on the order entry and processing costs for it self and the vendors. Distribution Channels About 85 percent of all merchandise that Wal-Mart sold was shipped through its in-bound logistics. The store uses what is called saturation strategy for expansion of its stores. This is whereby a distribution Centre is strategically placed so that it could eventually serve 150 and 200 Wal-Mart stores in a day. Marketing Wal-Mart’s marketing strategy was to guarantee low prices to its customers as a way of attracting and keeping them. This marketing strategy involves not only advertising and promotions but as well as catalog mailing, build up of inventory before sale and mark downs on the unsold inventory. Stores Operations As part of its strategy, Wal-Mart operates better management...
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...Environmental Factors Many factors affect the marketing decisions of an organization. These factors can include trade practices, cultural differences, and the political systems in different countries. Wal-Mart, having expanded their operations to 27 different countries, must keep these factors in mind when making marketing decisions. Global economic interdependence and trade practices Global interdependence is mutual dependence at a global level. Wal-Mart maintains a simple and effective marketing strategy which it has managed to replicate globally. The Every Day Low Price (EDLP) is simple and eliminates unnecessary advertising trying to push sales, as Wal-Mart has successfully sold the concept to the customers, that it sells its products at the lowest prices, every day (Dutta, 2009). To provide commodities at low prices, Wal-Mart uses extensive foreign product importation. Its major trading partner is China, to which approximately 60 of its products are imported. Trade practices are methods of competition, operating policies, or business procedures common to members of a line of business or industry that may be formally adopted sometimes as a rule under government auspices. Wal-Mart has a policy to thoroughly check all regulatory requirements before attempting to import and export merchandise. They also have policies stating that documentation must be complete and accurate and internal controls must be established to ensure compliance with all regulatory requirements, including...
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...Wal-Mart is the number one retailer in the United States. Geographical growth opportunities are shrinking within the boundaries of the United States.The company needs to evaluate multiple options to determine the best strategy to deploy. The challenge is “keeping the world’s biggest retailer on its phenomenal roll and delivering the huge sales and earnings increases that investors had come to expect from Wal-Mart over the years” (Camerius& Hunger, p. 19-30, 2006). The company’s current strategic plan is tothrive in the followingareas: • Low costs, high customer service, and always low prices • Product mix • Logistics and supply-chain management • International markets • Domestic growth • Public relations I have developed multiple strategic alternativesfor the company. They are as follows: • Stability – Pause And Proceed: Pause physical growth then proceed with growth domestically and globally • Growth – Concentration: Concentrated Internet program to target domestic and foreign markets • Growth – Concentration: Horizontal Growth with International Entry for global geographical internal expansion The plan deployed must be consistent with the corporate strategy. Per Sam Walton (1918-1992), the company’s founder, “Our goal has always been in our business to be the very best and, along with that, we believe that in order to do that, you’ve got to make a good situation and put the interests of your associates first. If we really do that consistently, they in turn...
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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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...Responding to Internal and External Factors; Wal-mart Analysis Abstract; this report examines the ways in which Wal-mart responds to internal and external factors such as globalization, new technology, innovation, diversity, and ethics. Wal-Mart is a successful industry giant, so it stands to reason that they are proficient at responding to internal and internal factors and thriving . In this essay we explore Wal-Mart’s programs and initiatives and access if we could use their examples to learn from and grow as managers and business owners. There are various internal and external factors that affect the four functions of Management positively or negatively. Organizations need to pay close attention to these factors because it can enhance the company’s success when used appropriately. The most prevalent factors that management has to be concerned with in this era are globalization, new technologies, innovation, diversity, and ethics. Wal-mart is a big player in the nation nal and global market and must stay reactive to these internal and external factors to stay on top. Wal-mart is addressing each of these issues directly. Globalization has raised numerous questions about the credibility, leading to perceptions. Wal-Mart is one leading store serving millions of customers globally and continues to do so by opening more stores worldwide. Globalization has a great impact on the company. It has broadened their market structure and also increased profit margin. Even...
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...Business Analysis Shonte Holmes BUS 620 Managerial Marketing Pamela Gordon June 18, 2012 Retail Business Analysis When it comes down to choosing a retail establishment that can supply all of the household needs of the family with just one stop, there is no place more profound than Wal-Mart. With the fast past of life taking essence every day, no one has enough time in their day to shop individually within various locations for groceries, household items, personal hygiene toiletries, clothes, shoes and etc.. Thank goodness for Wal-Mart for making it possible for the majority of your demands to be met within one location. However, although Wal-Mart can meet the majority of your needs within one establishment, it is imperative for Wal-Mart to modify and re-implement both their generic marketing and segmentation strategies. This paper will explore and expound on how the generic marketing strategy and the segmentation strategies that Wal-Mart has adopted can be improved to impact the overall successful marketing of organic fruits and vegetables. Wal-Mart is one of the world’s largest companies falling in at number 16 on Forbes, “The World’s Biggest Public Companies list.” According to Forbes, Sales for Wal-Mart tally at $447 billion, profits $15.7 billion, assets $193.4 billion and a market value of $208.4 billion. Upon assessment of the local Wal-Mart in the community of Rincon Georgia, it was discovered that Wal-Mart is committed to bringing consumers the lowest possible...
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...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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... For many years, Wal-Mart has climbed the business ladder to become the largest retailer in the world. Wal-Mart has been unstoppable and undoubtedly unbeatable in its pricing when compared to its competitors. Many mom and pop stores have fallen victims having to close up their doors when a new Wal-Mart has opened in their neighborhood. With such high volume of sales, and an ever demanding stockholders standard of high dividend payouts year after year, Wal-Mart unfortunately went through many years where it put dollars ahead of its corporate responsibilities. Numerous organizations were created to keep a watch on Wal-Mart’s practices with its employees, and just as importantly, with the products it sells to unsuspecting customers. Wal-MartWatch (n.d.) stated “Wal-Mart is famous for its low prices….making customers forget about everything except low prices. The reality is much harsher than the company’s marketing would have consumers believe: these low prices often come at a deadly cost” (p. 1). Wal-Mart continues to be a target and placed under a microscope to ensure its ethical behavior improves along with the merchandise it provides. The Evil Empire Since its founding, Wal-Mart has made great efforts to establish itself as a reputable company in the United States and around the world. Customers have flocked to the giant retailer in hopes of finding a bargain they may not otherwise find at a local store in town. According to Wal-Mart (2005), “Last year, more...
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... Wal-Mart Stores, Inc. is an American public corporation that runs a chain of large discount stores and a chain of warehouse stores. It is the world largest public corporation by revenue, according to the Forbes Global 2000. Wal-Mart has 8500 stores in 15 countries, with 55 different names. The company operates under its name in the United States, including 50 states. Wal-Mart operates in Mexico as Walmex, in the United Kingdom as Asda, in Japan as Seiyu and in India as Best Price. It has wholly owned in operation in Argentina, Brazil, and Canada. Wal-Mart investment outside North America have had mixed result: it operation in the United Kingdom, South America, and China are highly successful, while it was forced to pull out of Germany and South Korea when ventures there were unsuccessful. Wal-Mart operates in three business segments - Wal-Mart U.S., International, and Sam's Club. For fiscal 2010, Wal-Mart U.S. accounted for 63.8% of total net sales, the International segment generated 24.7% of the company's net sales, and Sam's Club accounted for 11.5% of net sales. International competitiveness Internal analysis – Micro environmental factors affecting international sales P.E.S.T analysis – Macro environmental factors affecting international sales. Fortune magazine front cover featuring Wal-Mart. Conducting business internationally will never be easy as doing business at home. It is likely to stretch managerial skills and resources to...
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.............................15 References………………………………………………………………………………………..17 Q – 1) Compare Wal-Mart experience in countries such as Germany and South Korea on one hand, and China on the other. What determine Wal-Mart's success or otherwise in these markets? What lessons should Wal-Mart learn from these experiences? Wal-Mart Wal-Mart is an American public corporation that runs a chain of discounted stores throughout the world. Wal-Mart was founded by Sam Walton in 1962 in Rogers, Arkansas. The main head office of Wal-Mart is in Bentonville, Arkansas. Approximately 2,100,000 employees work in the Wal-Mart stores around the world. About 100 million customers each week visit the stores; Wal-Mart provides its customers low prices for their products. The slogan for Wal-Mart stores was low prices always. Now the new slogan is saving the people’s money so that they can have better lives. This slogan basically shows the 3 groups 1) Hispanics, 2) African-Americans and 3) rural residents of the country, which makeup of the 100 million customers who visit the stores each week. (Wal-Mart, 2010) Wal-Mart in Germany Wal-Mart is not a success in Germany. The organization is having communication problems with its employees. It has been speculating in the retail market that Wal-Mart is still not quite able to understand the $370 billion German market. It’s being 15 years since Wal-Mart has entered the German retail market (i.e. in 1997), and still the company has approximately 2 percent...
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...location of the first Wal-Mart in the Fortune Global 500 for the year of 2001 to 2002 turnover of 219.81 billion dollars. Wal-Mart is the largest company in the retail in the world. The company was much larger than its competitors in the United States - Sears Roebuck, Kmart, JC Penney and Nordstrom combined. In 2002, Wal-Mart operates more than 3,500 discount stores, Supercenters and Sam's Clubs in United States and over 1,170 stores in major countries around the world. The company also sells products online via the website, www.walmart.com. Wal-Mart is one of the largest private employers in the world, with the use of force about 1.28 million. The founder, Sam Walton (Walton) has always focused on improving sales continue to reduce costs, adopting efficient distribution and management systems and logistics innovative information (IT). According to analysts, Wal-Mart has been able to achieve a leading position in the distribution, following effective management of the supply chain practices. "Consumers who shop at Wal-Mart want a quality product at a great price," says David Schwartz, CEO of Framingham, MA-based Productive Environments, Inc. (PEI), a licensor of stationery products. "But at the same time, they need better products just as much. They will know a good price value when they see it. It is expected that programs that build this value-added into their brand will sell up with increased margins and strong volumes." A key strategy of Wal-Mart is to dominate the...
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