...Can Wal-Mart Survive China’s Growing Middle Class? China’s rising standard of living and its impact on the discount retail market. Abstract This paper investigates published articles, financial information and books which discuss Wal-Mart’s recent business activities in China. The activity discussed includes Wal-Mart’s increasing impact and influence on the Chinese economy as a buyer and consumer of raw materials, a manufacturer of products, and as a retailer and employer in China. This paper discusses how Wal-Mart sources its finished products and raw materials in and from China, how Wal-Mart markets to China’s middle class, and how Wal-Mart manages China’s middle-class as both its primary customer and their source of labor in China. The intent of this paper is to provide readers with a high level understanding of how Wal-Mart is conducting business in today’s China and how Wal-Mart’s manages their exposure to the various supply chains in China, its increasing dependence on products and services sourced in China and how Wal-Mart is handling China’s growing middle-class and the nationally unionized workforce in their Chinese stores. Lastly, this paper discusses how Wal-Mart’s business strategy competes and compares with Target Stores, one of their leading competitors in the discount retailer marketplace. Keywords: wal-mart, target, china, supply chain management, sourcing, global marketplace Identification. This paper discusses Wal-Mart’s history in China...
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...of Contents Introduction2 Wal-Mart’s resources2 Tangible resources2 Intangible resources3 Human resource3 Wal-Mart’s capabilities4 Distribution4 Corporate function4 Operation4 Management Information4 Marketing5 Competitive advantages5 Knowledge management5 Distribution network5 Relationships strategy with suppliers and associates6 Financial management6 International operation6 Conclusion7 References list7 Introduction This project will analyze resources and capabilities of Wal-Mart and the linkage between two strands. According to Wal-Mart’s case, it can be divided Wal-Mart’s resources into three main types of resource: tangible, intangible, and human resources. Moreover, thanks to its resources, Wal-Mart’s capabilities comprises of distribution, operation, management information, marketing, and corporate function. If linkage between resources and capabilities can be indicated and understood, it enables Wal-Mart to produce many competitive advantages: knowledge management, distribution network, partnerships, and financial management. Through those advantages, Wal-Mart creates some strategies for the growth of its operation line within United State or extending over the world. Wal-Mart’s resources Tangible resources In terms of financial resources, the company has established in discount retailing format and become the largest and most profitable retailer in the world. It has been developing rapidly, as result; Wal-Mart produces much profit to reinvest...
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...Wal-Mart Organizing Paper MGT/330 Management Theory, Practice, and Application Wal-Mart Organizing Paper In the organizing functions of management it takes a familiarity of being able to put various systems together to work as one; these systems include knowledge, human resources, financials, and physical assets. All the systems are allocated to be able to reach any and all objectives possible for any company looking to succeed in any type of business. Knowledge is an aspect of organizing functions of management that requires not only acquiring but gathering as much information as possible, it also means that after getting the information the company must be able to correctly use the information. Technology on the other hand, as an organization function of management is of the utmost importance in this era of advanced technology where companies are storing information gathered, as well as their own personal information. Wal-Mart as an enterprise has used both knowledge and technology to help develop its business as one of the most important and well known business, proof of its viability Wal-Mart has over 3815 stores nationwide (Wal-Mart, 2011). Wal-Mart has created a structure that has brought much success to the organization. Knowledge as an organization function of management Wal-Mart has incorporated knowledge as a main focus to be able to grow. One way that Wal-Mart has used knowledge to its benefit is by knowing that firms nowadays increasing use of ethnical...
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...INTRODUCTION Wal-Mart Stores, Inc. branded as Wal-Mart, is an American multinational retailer corporation that runs chains of large discount department stores and warehouse stores. Wal-Mart is a retail giant. This company is the third largest public corporation in the world. Website link to the selected company, www.wallmart.com Background: Sam Walton, a businessman from Arkansas, began his retail career when he started work on June 3, 1940, at a J. C. Penney store in Des Moines, Iowa where he remained for 18 months. In 1945, he met Butler Brothers, a regional retailer that owned a chain of variety stores called Ben Franklin and that offered him one in Newport, Arkansas [1]. Walton was extremely successful in running the store in Newport, far exceeding expectations [2] .However, when the lease came up for renewal, Walton could neither come to agreement on the existing store's lease renewal nor find a new location in Newport. Instead, he opened a new Ben Franklin franchise in Bentonville, Arkansas, but called it "Walton's Five and Dime." There, he achieved higher sales volume by marking up slightly less than most competitors [3]. On July 2, 1962, Walton opened the first Wal-Mart Discount City store located at 719 Walnut Ave. in Rogers, Arkansas. The building is now occupied by a hardware store and an antique mall. Within five years, the company expanded to 24 stores across Arkansas and reached $12.6 million in sales [4]. In 1968, it opened its first stores outside...
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...Wal-Mart’s Organizational Structure Damaris Medina MGT/230 September 13, 2012 Dan Kassmeier Every company has their own form of organizational structure. Whether the business is big or small, an organizational structure is needed in order to have a successful business. An organizational structure helps put the business in order to make sure there are no problems in the future, but what is an organizational structure? It is how the reporting structure is organized. There are many types of organizational structures. Some examples of organizational structures are, the functional, matrix, and divisional structures (Bateman & Snell, , 2011). When business owners are planning a structure for their business, it is important to know just how complex the business will be. If the business is a major corporation, such as Wal-Mart, then the structure should be able to support the complexity of the business. When a major corporation does not have a structure that supports their complexity, they are likely to have issues with the organization of the business. Thus causing for the business to lack the proper management and potentially fail. An organizational structure will determine how all employees work together. If the business is not under a strong structure, then there will be confusion throughout the whole business. An organizational structure also determines the decisions that the business will make as a whole (, , 1991).If there is no structure, there is no business. There...
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...Running Head: Business Synoptic BUSINESS SYNOPTIC Customer Inserts His/her Name University Name Table of Contents Question 13 Question 2…………………………………………………………………………………………5 Question 3…………………………………………………………………………………………9 Question 4………………………………………………………………………………………..13 Question 5…………………………………………………………………..................................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...
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...brothers decided break away and opened their own store in Rogers, Arkansas which was the start of the first Wal-Mart Discount City store. Their approach was to open stores in populations with 5000 to 25000 people. By the late 1960’s the Walton brothers has 18 discount stores and 15 Ben Franklin franchises which became incorporated in Wal-Mart Stores, Inc. (Tell me the history of Wal-Mart). During the 1970’s the Walton’s incorporated many changes to how they do business which laid the foundation to cut cost to gain more control. They implemented a warehouse distribution strategy of constructing their own warehouses so they can buy merchandise in great volume, and positioned its stores 200 square miles from each distribution point. By 1977, Forbes had Wal-Mart ranked #1 in return of equity, return on capital, sales growth, and earnings growth over all other discount and variety stores (Tell me the history of Wal-Mart). Wal-Mart’s continued expanding and in 1978, its stores included a pharmacy, auto service center, a shoe department, and a jewelry division. By 1979 Wal-Mart was in 11 states and sales had skyrocket from $44 million in 1970 to $1.25 Billion by 1979 which became the fastest company to reach to $1 Billion. In 1987 Sam expounded on an idea that he got from a French entrepreneur and referred to it as “Hypermart USA”, which later became known as Wal-Mart Supercenter”. Sam introduced a...
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...place on the world where you could replicate Wal-Mart's success in the U.S." Davis Glass former CEO of Wal-Mart Stores said. However, reality indicates that Wal-Mart is facing many difficulties in Asia. Wal-Mart and other foreign organizations are subject to a number of adverse situations and government restrictions. Some of those difficulties are: rigorous cost control in comparison to local companies, toll fees and charges, high transportation and distribution costs and lack of IT reliable infrastructure among others. In addition, domestic stores have existed for long and enjoy support from the government. Many foreign chains exist in the market, and were performing better than Wal-Mart. As a result, Wal-Mart expansion in China was slow. In this case, we will address the main issues that Wal-Mart China is facing and propose possible solutions and recommendations. Issues/Problems Currently, Wal-Mart is facing a range of challenges in China's retail market. Chinese business environment is changing rapidly. In the last two decades, China’s retail industry and its distribution and logistical infrastructure have significantly decreased government regulation. Wal-Mart will need to identify what issues it will face in the short and long term to set up the new business vision and strategy in this market. The U.S business model will not be able to be implemented in the Chinese market since for instance U.S., Wal-Mart places stores in small towns to gain a competitive...
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...P E S INSTITUTE OF TECHNOLOGY BANASHANKARI 3RD STAGE BANGALORE. Term paper submission on “SUPPLY CHAIN MANAGEMENT AT WALL-MART” -SUBMITTED BY SUJAY C 1PB12MBA51 INDEX S.NO DESCRIPTION 1. INTRODUCTION TO SUPPLY CHAIN MANAGEMENT 2. LEVELS OF SUPPLY CHAIN MANAGEMENT 3. HISTORY-WALMART 4. WAL-MART INTRODUCTION AND ITS BUSINESS PROCESSES 5. SUPPLY CHAIN MANGEMENT AT WAL-MART 6. PROCUREMENT AND DISTRIBUTION 7. LOGISTICS MANAGEMENT 8. INVENTORY MANAGEMENT 9. COMPETITIVE ADVANTAGE AND BUSINESS MODELS USED AT WAL-MART 10. RFID IN WAL-MART 11. EFFICENCY IN SUPPLY CHAIN WITH RFID 12. CONCLUSION Introduction to Supply Chain Management Supply Chain Management is the discipline which encompasses the end to end business activities carried out in any business, independent of the manufacturing or service sectors. It is the synchronization of a network of facilities and distribution options that performs procurement of materials, processing the materials into finished products, and distribution of the products to customers. SCM is seen as involving five fundamental processes. These include planning, sourcing, making, delivering, and returning. Typical supply chain showing interrelations...
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...assignment from the following student: Student Name | Module No.: 205KM(Submission date & SCOPE stamp) | Programme Title & Programme Code: PROGRAMME - BSC (Hons) Business Information Technology | | SCOPE ID Numbers (from your SCOPE student card) | | Lecturer: | Tutorial group: | Module Code and Title:205KM Management and Organisational Behaviour | Due Date: 20 Dec 2013 (Fri) 5:00 pm 1. Hand in one hardcopy to SCOPE Reception Counter at Academic Exchange Building (AEB)2. Upload a softcopy to Turnitin "205KM-Assign2"(no need to print the Turnitin report) | Assignment No. / TitleReport#2 | Extension & late submissions allowed: | Coursework cover sheet – be sure to keep a copy of all work submitted Coventry University Have you attached the cover page information on page 1 to 4 including the “Marking Scheme” together with this assignment? ___Yes ___No Section A – To be completed by the student – PLEASE PRINT CLEARLY & IN SINGLE PAGE Student Name | Module No.: 205KM(Submission date & SCOPE stamp) | Programme Title & Programme Code: : PROGRAMME - BSC (Hons) Business Information Technology | | SCOPE ID Numbers (from your SCOPE student card): | | | | Lecturer: | Tutorial group: | Module Code and Title:205KM Management & Organisational Behaviour | Due Date: 20 Dec 2013 (Fri) 5:00 pm 1. Hand in one hardcopy to SCOPE Reception Counter at Academic Exchange Building (AEB)2...
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...SUPPLY CHAIN MANAGEMENT Supply Chain Management University of Maryland University College ITEC610 Section 1142 Semester 0809 Abstract This paper defines the concept of technology in Supply Chain Management used to promote planning, analyze and account for the operations of a supply chain business with the goal being increased profits as well as a satisfied clients. This paper will discuss how to accomplish the benefits of cost, and profits through the use of a Supply Chain Management system. A thorough examination between buyers and sellers, along with the supply chain will be evaluated. This paper will investigate and analyze the ways in which the inventory management at Wal-Mart helps in its business processes. This paper will also look into the characteristics of supply chain management, including risk-management, inventory strategies and decision-making, and customer relationship aspects. Finally, it will look at the importance of sharing data by utilizing information systems. Supply chain is a network of retailers, distributors, transporters, storage facilities and suppliers that participate in the production, delivery and sale of a product to the consumer (Kietzman, 2008). Every effort involved in producing and delivering is looked at in supply chain, from the final product supplier's supplier to the customer's customer. A Business depends on supply chain to provide them with what they need in order...
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...The Key to Wal-Mart's Success The Key to Wal-Mart's Success The Key to Wal-Mart's Success In 1962, San Walton founded Wal-Mart in Roger, Arkansas. "As in all things, in our people practices, we take to heart our core belief to strive for excellence. That means constantly looking for ways to improve, whether it's connecting executive compensation to diversity goals or improving the supplier application process. Improving these vital relationships is key to a better Wal-Mart and a better world" (People, n.d., ¶2). The key to Wal-Marts success can be attributed by the way management evaluates performance through motivation, ethics, and conflict management. Applying Motivational Principles Sam Walton had a vision for building a business and four decades later Sam's vision became a successful reality. Wal-Mart's associates have enabled the organization to become the largest retailer in the world consisting of "2,700 Wal-Mart stores, 495 SAM's Clubs and 1,150 international stores currently in operation" (Divisions, n.d., ¶1). Sam's dream of a global retailer also became a reality by meeting the needs of customer's worldwide. The secret to the Sam Walton's success is attributed to the rules and principles that are used to run the organization. Sam Walton used 10 motivational principles or otherwise known as Sam's Rules for Building a Business. The rules have helped the organization focus on the principles used for four decades and are factors of the company's success...
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...technology is Wal-Mart. Wal-mart Wal-Mart is operating in as many as 10 countries outside the United States. Asian market has provided Wal-Mart with diverse opportunities. The company has already started its operations in Japan, Korea, and China. In the European Market, Wal-Mart has started its operations in British and German market. In addition, the company is also operating in Mexico, United States, Canada, and Puerto Rico (Lohr, pp. 10). Wal-Mart has operated successfully in the United States market. The aggressive supply chain strategy of Wal-Mart i.e. ‘pile it high and sell it cheap’ has not worked successfully in all foreign markets (Cassidy, pp. 6). The differences in market conditions and consumer preferences had a significant impact on the expansion plans of Wal-Mart. The structure of European markets differs from that of North American markets. The productivity of European markets is less than that of North American markets (Freeman et al, pp 486). The differences in market-structure have influenced the success of Wal-Mart operations in different countries. German market has been characterized with an oligopolistic structure. The German market has been concentrated by key market players. In addition, the market structure of Germany does not offer profitable opportunities to retail stores. Wal-Mart failed in the German market because of its blunders including entry-by-acquisition strategy and bad publicity (Gosman and Mark, pp. 179). Wal-Mart also confronted...
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...coming across the organization process of Wal-Mart, Sam Walton was the creator in 1962 in Rogers, Arkansas (Wal-Mart Corporate, 2012). The organizing process is described as the management function of pulling together and synchronizing human financial, physical information and other assets required to accomplish goals (Bateman & Snell, 2009). In 1972 discount sores such as Kmart expanded. Sam Walton at that point in time had 15 Wal-Mart stores and did not have the funds to increase the amount of stores, so he offered Wal-Mart stock to the New York Stock Exchange. For the reason of the large profit that toke place from the sales of stock, Wal-Mart was able to expand. By the 80s hit Wal-Mart had 276 stores Wal-Mart Corporate, 2012). Organizing contains numerous organizational resources, physical assets, knowledge, funds, and human resources. In this paper we will talk about human resources and monetary of Wal-Mart. Human Resources of Wal-Mart Managing and upholding of the human resources section is imperative while assessing how effective the organizing function is. “People are assets not commodities” (Bateman & Snell, 2009). The supervisors as well as the businesses have to work collectively to take into service the correct people for the occupation. Human resource management is in charge of recruiting, training, performance evaluations, rewards, labor relations, earnings, and benefits (Bateman & Snell, 2009). Wal-Mart provides work for about 2.1 million associates...
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...Wal-Mart- A Case Study of MIS Strategy Walden University Wal-Mart – A Case Study of MIS Strategy Management information system is all about people using technology to work with information as they support the organization in its quest for a competitive advantage (Haag & Cummings, 2008, p. 29). Researchers and authors have discussed management information systems and technology over the decades. The concepts of competitive advantage, technology, outsourcing etc. have been theorized, yet discussion on the subject matter continues. While MIS strategy formulation has seen advancement, organizations are evolving and constantly changing their operating models. An example of such organization is Wal-Mart, the global retail giant. This research seeks to pin-point Wal-Mart’s key management information system strategy, while providing a deeper understanding of the organization’s management information systems strategy and its impacts. Further it aims to investigate knowledge management, e-commerce strategy, and the impact of database management which are aspects that can be incorporated into the MIS strategy formulation. To achieve this objective the literature survey was conducted to explore available published papers in the sphere of IS/IT strategy formulation. Considering that the applicability of information systems and technology is mission critical, the research design focused on the qualitative approach. The primary method of data collection was through semi-structured...
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