...Fiscal Policy ECON372 Fiscal Policy Fiscal policy is the government’s way of stimulating or slowing down the economy. Actions taken by the government can slow growth if things are moving too fast or stimulate growth if the economy is in a lull. Walmart, a major retailer in the United States, is one of the many organizations that are influenced by fiscal policies. Tax rates and spending can affect the organization’s ability to sell goods and services as well as create jobs for the economy. Based on fiscal policies implemented and economic predictions, there are a few recommendations that can be made to Walmart in order to positively influence the economy and their business. Federal Government Spending Fiscal policy is changes in government spending and taxes in order to influence the economy in some way. It works by changing the level or composition of aggregate demand (AD). Government spending in the United States has steadily increased from 7% of GDP in 1902 to almost 40% today (Chantrill, 2015). A decent amount of federal spending has gone for health care, education, pensions, and welfare programs. Defense spending in the United States has fluctuated in the last century, rising from 1% of GDP, peaking at 41% in World War II, declining from 10 percent in the Cold War to five percent today (Chantrill, 2015). Government spending on education has expanded from about one percent of GDP in 1900 to peak at 6 percent in the second decade of the 21st century. Government...
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...Interpreting Macroeconomic Conditions. Walmart Stock Performance During the 1970’s, Walmart offered common stock to the public. The stock was traded on New York Stock Exchange. The first cash dividend was declared. Shareholders were provided an annual dividend and paid quarterly every year (http://investors.walmartstores.com/ phoenix.zhtml? c). In 1970, Walmart offered 300,000 shares of its common stock to the public at a price of $16.50 per share. Since that time, Walmart have had eleven two for one stock splits. On a purchase of 100 shares at $16.50 per share on their first offering, the number of shares has increased. In March 1974, Walmart declared its first cash dividend of $0.05 per share. Walmart has increased its dividend every year since its first dividend (http://investors.walmartstores.com/ phoenix.zhtml?c). Walmart Current and Future Sales Revenue According to all the data that has been evaluated, Walmart is the largest retailer in the world. By the end of January 2010, Wal-Mart had more than $400 billion in revenue, $24 billion in operating income, about 8,500 stores, and nearly 1 billion square feet of space. According to statistics from the U.S. Census Bureau, about 10% and 20% total of retail and grocery sales in the US. The company controls the US retail surroundings and is growing globally at a fast pace. The company recorded revenues of $408.214 million during the financial year...
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...when Walmart was small and maturing business, they were an ideal company in the eyes of employees. But as the company grew into a worldwide empire, so did the number of ethical issues they faced. With promises of low prices to keep to its customers, they have made decisions which have impacted employees. People say Walmart has poor management, have poor wages for both local and outsourced workers. Many people would call these things uneithical, but Walmart claims otherwise. They claim they are helping people by creating jobs, which meet minimum wage standards, and they care about the ethics within their company. There is an abundance of arguments that call out Walmart as being unethical, but what people easily ignore are these lesser known ones that argue for Walmart’s ethical side. The most predominate unethical issue Walmart has received criticism over for countless years is their poor treatment of employees. The retailer is known for paying its store associates minimum wage. These low wages make it tough for an employee to support a family let alone themselves. Because of the low wages that Walmart pays its employees, many of them have to use government assistance such as food stamps in order to survive. This is not only bad for the employees but it is also costing taxpayers. Walmart does not offer benefits to their part-time workers who work less than twenty-eight hours a week. This can be seen as unethical because the employees are already being paid such a low wage that...
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...answering the following questions: Was there a correlational relationship between the leadership’s decisions make abilities and the events that led to employees rights? Was there a connection between Walmart’s business practices and the practices of senior leadership that effect the environment? How has the public’s perception of Walmart caused a reduction in the work force, and effecting surround communities? This paper will look deep into these issues and describe possible solutions Wal-Mart: The Economic Power House Walmart runs on small operating costs, it has low prices, it’s a gigantic company, the world’s second largest employer, families spend thousands of dollars a year there, and it has everything from apples to glue, and most people live within 20 miles of one. These facts represent an organization that has had expansive growth since its inception. With this expansive growth also comes problems in ethical practice, environmental sustainability, and economic power. Walmart was founded in Rodgers Arkansas by Sam Walton in 1962, it operates over 11,000 retail units in 28 countries. It employs 2.2 million associates around the world (Walmart, 2015). Wal-Mart is a company that most Americans are familiar with, a company with stores that offer everything a...
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...WALMART INC Consolidated Balance Sheets Walmart’s Statement of Financial Position on January 31, 2012 is given below together with some transactions reported during the fiscal year 2012. |(Amounts in millions) |January 31, 2012 | |Assets | | |Current assets: | | | Cash and cash equivalents |$6,550 | | Receivables |5,937 | | Inventories |40,714 | | Prepaid expenses and other |1,774 | | Total current assets |54,975 | |Property and equipment, at cost: | |...
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...Is Walmart Ethical? Walmart Stores Inc. is an American-based public multinational corporation which runs a large number of discount retail stores. In recent years, Walmart has become the world’s largest public corporation. It owns over 8400 stores and employs more than 2.1 million people (Answers.com par. 1). But, with the extreme popularity, and continuous media attention, this world-leading company has faced numerous criticisms regarding its unethical business practices. On the contrary, Walmart is a business, and like any other business, its main focus is to maximize profits, and outperform competitors. Although Walmart has been negatively judged, it has not been recognized for the various positive contributions it has to offer. While Walmart may not conduct business in a solely ethical manner, most companies are guilty of this as well. Walmart’s business practices may not be the most angelic, but it still serves its owners, customers and employees in a moral and sufficient way, and therefore should not be criticized. Low wages is one of the criticisms that Walmart faces, although employees are aware of their pay before they agree to work. Also, Walmart has been accused of unjust business practices, but in reality they are just an expanding corporation that thrives on their price-leading strategy. A lack of Corporate Social Responsibility is an additional misconception the public has regarding Walmart, as the corporation has multiple initiatives concerning the environment...
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...investment evidently reduces unemployment in the host country, which is shown in the graph below: AS WL2 WL1 Wage Rate AD1 AD No.of Workers QDL2 QDL Walmart demands Indian labor to function and hence there is an increase in aggregate demand for labor from AD to AD1. Now the macroeconomic goal of lower unemployment has a better probability to be achieved than before. The increased employment and earnings may have a multiplier effect on India that might further stimulate economic growth. Developing countries including India tend to suffer from savings gap and this presence of FDI further emphasizes the stimulation of economic growth. However, we cannot consider this as a strong point. It is argued that Walmart would bring their own management teams and use low-skilled workers from India. They may not actually provide training and education to Indian workers. It is also anticipated that the profit earned by Walmart would be reinvested in India. Unless and until an agreement is made between the Indian government and Walmart that the profit must be reinvested in India, there is no assurance that this would happen. One of the major concerns against Walmart’s investment in Indian economy is its effect on the small Indian retailers. Walmart would be charging lower prices than the domestic retailers and hence the consumers of these might move towards Walmart....
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...Walmart: The Main Street Merchant of Doom Sam Moore Walton, founder of Walmart, opened the first Walmart store in 1962 in a rural town using an idea he acquired while working at JCPenney. Since then the company has grown tremendously. In 2001 Walmart was considered the “world’s largest retailer” surpassing big retailers like Sears, JCPenney, Target and Kmart, its “net sales had grown to $408 billion” by 2010, and today it “operates over 11,000 retail units” throughout the world (Carroll and Buchholtz 599-600) (Walmart Stores, Inc). However, since Walmart is the largest and most known company in the world, it has become a target of criticism to many groups and individuals. Some people see Walmart as a socially responsible company, while others see it as a “billion-dollar parasite” that should be banned from communities; and these different views create perceived conflicts of interest (Carroll and Buchholtz 602). Such conflicts, coupled with society’s criticism towards the biggest retailer, include business closures, traffic congestion, and urban sprawl. In fact, to be further discussed throughout this paper, Walmart’s opponents are already trying to hinder its expansion since the company is not fulfilling all their social responsibilities and the economy could suffer long-term consequences. To be objective, a brief analysis of the company’s CSR (Corporate Social Responsibilities) using the four-part CSR model, can provide a better understanding of why it is causing problems...
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...keep up with the needs of their customers. If you are the owner or the manager, you know that you need a change, but you are uneasy about the challenges that you may face, or unsure as to how to go about making the change happen. One organization that is constantly changing is Walmart. It is considered to be the largest retailer in the world (http://www.viewamerica.net/art/en-walmart.html). For a large organization such as Walmart they need to be able to keep up with the needs of the customers by reinventing themselves through change. Being relevant to customers and maintaining their high standards has been one of the reasons why Walmart has been so successful. Over the past eight years, I have had the opportunity to get a first-hand look at how the company has changed using different approaches such as Kotter’s eight step method – create an urgency, form a powerful coalition, create a vision for change, communicate the vision, remove obstacles, create short term wins, rebuild on the change, and anchor the changes in corporate culture. The history of a company is important to change, knowing where the company began and how that company has gotten to their current position through the change process. Walmart began in 1962 with the vision of one man, Sam Walton, wanting to sell products for less and to give excellent customer service. He believed in leadership through service and had a servant leadership...
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...UNIVERSITI KUALA LUMPUR BUSINESS SCHOOL ECB30103 STRATEGIC MANAGEMENT GROUP ASSIGNMENT: WALMART PREPARED BY: GROUP MEMBER 1) NURSYAHIDAH BINTI RAZALI 62283113720 2) NURUL NABILAH BINTI RAZALI 62283313248 3) NURUL ZAITUN BINTI ABDUL MALIK 62283313168 4) UMMI KHALSUM BINTI RAHMAT 62283313053 PREPARED FOR: LECTURER’S NAME: MOHD HAIZAM BIN MOHD SAUDI 1. What is the nature of the company business? What are their product lines? Wal-Mart is the World's largest retailer. It has over 11,500 stores in 28 countries across the globe. Wal-Mart is an American multinational retail corporation that operates a chain of hypermarkets, discount department stores and grocery stores. Walmart products include discount stores, cash and carry wholesale, warehouse club, super-center, supermarket and superstore and also an e-commerce business. 2. Develop a suitable vision and mission statement for the company. Vision i. To be the best retailer in the hearts and mind of consumer and employees. ii. To promote ownership of Wal-Mart ethical culture to all stakeholder globally. Mission i. Saving the people's money so they can live better. ii. If we work together we will lower the cost of living for everyone. iii. Save money. Live better. 3. Using the following template, develop EIGHT (8) core business objectives in fulfilling the stakeholder’s expectation. Please refer...
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...Case 1: Wal-Mart’s Wage Hike As discussed in class a few weeks ago, Wal-Mart announced a sweeping wage hike. Some are calling this the revolution of minimum wage, others refer to it as a pitiful and costly PR attempt, and yet some say it will have no bearing on society or the company at all. In your opinion, how will this wage increase affect the retail giant’s retail strategy? How will it affect their retail mix? Do you feel this is a positive move for the company? For the workers? For the economy? Do you agree with Wal-Mart’s decision to increase the bottom-tier worker wages? Be sure to explain your opinion in detail and to utilize outside research to support your views. You should reference at least 5 sources in addition to the links I have provided below. This case should be approximately 5 pages, double spaced, with in text citation, and no greater than size 12 font and no more than 1 inch margins. (I do not usually specify but after some of those SWOT cases I feel the need to be very detailed.) Some articles and an interesting blog to get you started: “Exclusive: U.S. minimum wage hikes to affect 1,400-plus Walmart stores” By Nathan Layne; 12/24/14 http://www.reuters.com/article/2014/12/24/us-walmart-wages-idUSKBN0K20AE20141224 “Walmart's wage hike gets CEOs' attention” By Matt Krantz 2/26/15 http://americasmarkets.usatoday.com/2015/02/26/retail-ceos-dish-on-wal-marts-pay-raise/ Blog by Daniel Gross on 3/9/15 “Inside Wal-Mart’s Wage Hike” http://www...
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...the 21 century in the United States we are very concerned of political correctness and fairness. We love the whistle blower and protect those who speak out against these injustices. Walmart will be the subject of discussion for list unethical behaviors. Walmart is the community super store, able to provide everything a shopper needs in one stop shop experience. From groceries to home and garden to optical care, Walmart is a powerhouse as a provider. Along with having multiple locations in major city and counties they have employed 1% of Americans. Walmart employs an astounding 2.1 million people. In the United States alone, the company employs 1.4 million people. This is a staggering 1% of the U.S.'s 140 million working population. Being a power house with employing just a vast amount of Americans they had many back lash with how they manage and treat these employees. But not limited to the locations in the United States, etablishments in Bangladesh, Mexico and 26 other countries worldwide. Cases dealing with exploiting workers, by increase the profits for the owners at the expense of their workers. Tax loopholes, to avoid paying taxes in the United States, while raking in billions in profits. Bribery/blackmail paying off individual to benefit the company by back room trading. In 2014 Walmart was under scrutiny for over working their workers to the point endangering those around them. You may think this look place but it did not it was the logistic department that made national...
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...STRATEGIC MANAGEMENT MGMT E -5000 WALMART CASE ANALYSIS BY Indhu SEPTEMBER 19th, 2012 SWOT Analysis of Wal-Mart: (2008- 2010) EXTERNAL ANALYSIS: Significant findings on the PESTEL analysis were:(Refer Fig 1 ) * Socio Cultural factor: One of the most important concerns among consumers during that period was price. Since its establishment Walton focused on Everyday low prices (EDLP) and always geared towards the low- income groups of the society. This provided Walmart better opportunities and helped them gain a competitive advantage in the industry. * Demographic factor: Another opportunity facing the industry was that Consumers (working Mothers and other American workers) wanted ease of shopping (fast, efficient and one-stop shopping). Walmart provided its customers with what they want in the Walmart supercenters combined with its wholesale unit “Sam’s Club”. * Technological Factor: Heightening of Internet users (70% of the population) and more people were comfortable shopping online. This yielded both favorable (lower over head costs and convenience to the customers with wide choices of items and prices that were appealing) and unfavorable (Walmart has invested heavily on the infrastructure like the EDI links and POS systems) circumstances. * Economic Factor: Domestically the U.S market had a very slow growth. Although the economy was said to be in recession it favored the growth of the organization because it offered consumers commodities at a...
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...Proposal New and Improved Walmart I would like to thank the executives at Walmart for giving me the opportunity to provide insight and expand upon Walmart’s horizons for the 2014 business year. I graciously accept the appointed board member position with great integrity and plan to maintain the company’s great successes for this year and the future. While Walmart is a well renowned super store, it has been scrutinized for its labor rate as well as its overall unfair treatment of employees. The scrutinized label of this establishment allows me to offer an alternative perspective and therefore propose a solution to preserve the Walmart name. The possible future operations and procedures which I would like to see changed within each practicing Walmart is related to employee’s salary, pay, manufacturing and labor. My proposals incorporate much consideration in regards to maximizing the return to shareholders, providing for employees and serving the larger community and overall society as a whole. My considerations and proposals will also serve the consumer portion of the community because when employees are satisfied, customers are satisfied. Previous to my appointed role as a board member for this company, I made assumptions regarding the way Walmart operates and functions as a business. Walmart has always been about saving, which in my mind is not only great for the people, but it is great for business. It is great for the people because the goods that Walmart provides are affordable...
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...……………………………………………………………………3 Choice of Organization - Walmart……………………………………………………………….5 Environmental Analysis………………………………………………………………………….6 Divisional Effectiveness Measurements...……………………………………………………….8 Final Report………………………………………………………………………………………9 Cultural HR Issues……………………………………………………………………….10 Emerging HR Issues………….……………………………………………………….....12 Five Year Action Plan……………………………………………………………………………16 References………………………………………………………………………………………..17 Executive Summary Walmart is one of the world’s largest retailers, serving communities worldwide and employing millions throughout their growing organization. This global organization has faced large amounts of scrutiny over the years and has seen legal repercussions from failure to comply with labor laws. Continuing to grow and rise above competitors, Walmart’s strategic HR plan needs to address some of these key opportunities and set the right employees in place to deliver on the company mission and vision. An effective strategic plan will also benefit the organizations reputation and image, both internally and externally. Ongoing pressures and cultural HR issues Walmart faces includes environmental preservation and the companies initiatives to “go green”, as well as the organizations reservations and discouragement towards unionization. These are issues Walmart can address through communication and training. In addition, Walmart faces many emerging HR issues including topics such...
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