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Wal-Mart Stores: “Everyday Low Prices” in China

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Unit 6 Case Analysis
Wal-Mart Stores: “Everyday Low Prices” in China
GB520-14M Strategic Human Resource Management

Introduction The following paper analyzes the Wal-Mart case study regarding the position of their stores in China. It also provides a thorough examination of the struggles faced by the organization to secure their position of their stores in China through an HRM perspective, as well as a set of recommendation. Wal-Mart’s strategies to retain and attract customers are based on a set of fundamental premises envisioned by its founder Sam Walton. These premises are: to provide excellent customer service to its clients, make every effort to attain excellence at all levels, and to always respect the individuals. To accomplish these goals Sam Walton established a rule for its organization, the 10 foot rule, in which every employee is expected to engage with every customer that they find within a 10 feet distance with the purposes of providing assistance with their purchases and provide the best possible customer service experience. The analysis of this case study attempts to point out and explain the challenges experience by Wal-Mart in China and to provide a series of possible recommendations for the organization to overcome such challenges. The goal is to provide them a series of strategies for the organization that will allow it to successfully compete in this market.
Analysis of the Situation and Pending Decision Problem Wal-Mart’s founder strongly believed that one of the best ways to serve its customers was by providing low prices every day (Farhoomand, 2006). To achieve this goal Sam Walton understood that the company had to always pursue avenues to control the operating costs so that these savings could then be passed through to their customers by the means of lower prices than its competitors (Farhoomand, 2006). Sam Walton also opposed to...

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