...effective supply chain model. This report primarily discusses the issues that Wal-Mart is facing in establishing and maintaining a sustainable supply chain. The report outlines the company's origin and its progress in the years, followed by describing the issue it is faces. The issue described is related to Wal-Mart's failure to develop a Green sustainable process and the effects it has on the environment. 2.0 Company Background - Wal-Mart The idea of retail business grew very popular in the United States in the early 1950's, and Sam Walton, founder of Wal-Mart was convinced that people wanted more than just retail showrooms. Hence he opened his own retail store providing large discounts (Reuters, 2013). Over the years he spread his business across the United States and set up his first Wal-Mart store in 1962. In the next five years he opened 24 more stores and in 1969 Wal-Mart established itself as an incorporated company under the official name, Wal-Mart Stores Inc. (Wal-Mart Corporate, 2013). Phenomenal transformation of national retail business into global retail chains were witnessed in the two decades of 1980's and 1990's. In 1983 Sam's Club was established and was ranked in the top retail chains by the Forbes, a magazine. In 1989, the first Super centre of Wal-Mart was inaugurated. Later it became a conventional shop in several countries all over the world. In the early 1900's Wal-Mart operated over 1400 stores and 123 Sam's Clubs which earned revenue of over $26...
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... do their strategies have anything to offer to the new entrepreneur starting their first business? Wal-Mart Corporation has been part of most communities for many years being the stable for everyday shopping. They carry everything from home goods to a full grocery store and most even have some type of medical office (optician to wellness center), making Wal-Mart a one stop shop for every consumer. Based on my own personal experience, Wal-Mart has been the store I chosen when something was needed during odd hours, in a rush, or when they have a special sale. One thing I have always noticed is the wide diversity of its work force and it’s cliental. From old to young, from every race on earth, Wal-Mart tries to make everyone fell welcome once you enter the store. The Target Corporation has been around since 1962 opening its first store in Roseville, MN. While I do most of my shopping here, I have found that when one of the retail companies makes a change, the other is soon to follow. In the area I live, both companies are very close to each other, and they are competing over the same dollar. Both Target and Wal-Mart offer the same commodities, yet each offer unique brands and lines of products that are tied to each of the corporations. In my personal opinion, I find that I prefer to go to Target over Wal-Mart any chance I can. I find that Target store seems to be more organized, helpful, cleaner, and the workers seem to...
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...Is Wal-Mart an ethical marketer? why or why not? I do think Wal-Mart is ethical marketer because they care about consumers needs and provide them better life by selling products at low prices compared to the competitors just as their slogan mentions "Always low prices". They have build trust with the specific demographic groups and have helped them better their lives. Although some of their practices such as low wages, higher costs to the suppliers etc come acrosss as unethical, I don't think they have done anything unethical. Based on the article, Wal-Mart has marketed their suppliers products very well where both of the parties have fair market share. Ofcourse, they do have a huge purchasing power but they don't seem to cheat their suppliers. Who are Wal-Mart Customers? Low income to middle income people who make $40,000 - $70,000 a year are the main customers for Wal-Mart. The demographics may include African-Americans, empty-nesters, Hispanics, suburbanites and rural residents. How do they communicate with them? Wal-Mart communicates to the customers mostly through direct marketing such as monthly circular and through TV advertising. Wal-Mart's advertising focus is always about everyday low pricing which has build certain trust with the customers. The title of the article contrasts low prices with high costs. What does this mean? Wal-Mart's low prices to the consumers means high costs to the suppliers and other small businesses who are forced to send jobs...
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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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...Assignment 3: Wal-Mart, 2005 MKTG 6301.PI1: Marketing for Managers Saturday, 4 August 2013 Summary “Give me a W! Give an A! Give me an L! ...” If you just listen close enough, you just might hear this cheer echoing in a neighborhood near you. The likelihood of this happening has increased right along with Wal-Mart’s growing global presence to 4,900 U.S. stores along with a global presence to 11 countries around the world. Lee Scott, CEO Wal-Mart, was quoted as saying, “Could we be two times larger? Sure. Could we be three times larger? I think so.” The question then becomes, is this healthy for the U.S. business climate as well as for Americans in general? Wal-Mart’s growth is two fold. First is their “Everyday low prices”(EDLP) model combined with their low-wage and little to no benefits model. Through maximizing these models, Wal-Mart has grown into the super giant they are today. This has created a reputation for them as the corporate bully or the wimpy rich kid who owns the bat and ball. Either way they control the game and the output. Which leads to our discussion today, where we will take a look at the company from a variety of angles and viewpoints, some of their key issues, review a SWOT analysis that will guide us to our decision and why we believe this is the best path forward for Wal-Mart. Questions to keep in mind as we go along are: “Does Wal-Mart know what’s best?” and “Do consumers even care?” Whether one is a fanatic of Wal-Mart, or resents the...
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...Is Wal-Mart an evil empire? Wal-Mart is the largest retailer in the world, the biggest private-sector employer in North America, and one of the most dominant and influential corporations in the America. It has become one of America's most successful retail chains by offering everyday goods at low prices for working families, and despite all of its financial successes, the company can’t open a store without enduring -- and overcoming -- a flood of protest groups. These groups might defend the environment or local store owners, or they might defend the store’s future employees, since Wal-Mart’s reputation for unfair labor practices involves sexual discrimination, denying unionization and offering wages so terrible that some employees have to rely on social services to get by. Although Wal-Mart portrays an image of servitude and charity to the community, this multi-million corporation is responsible for inhumane, unjust and shameful practices in the United States and abroad, and whether people Love it or hate it, Wal-Mart is, in many places and for many people, inescapable. Much like work and taxes and eventual death. There is no question that Wal-Mart's relentless drive to squeeze out costs has benefited consumers, but Some experts contend Wal-Mart's "everyday low prices" are causing a clash between the interests of Americans as workers and the desires of Americans as consumers. "If people were only consumers, buying things at lower prices would be just good...
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...WAL-MART’S PROBLEMS IN Wal-Mart’s Problems in International Market Patiporn Kitlertphiroj University College of University of Denver Abstract Wal-Mart, the biggest retailer in the world, is spreading its power throughout the world, starting with nine countries in Asia, Europe and South America. The expansion has planed for more in the near future. With its attempt to penetrate hypermarket culture in every country which it enters, many severe problems are come into play. Acquisitions and joint venture with local businesses became a problem in nationalism country. Thus, strict governments’ rules and regulations blocked business operations. Misreading competitors and late in entry destroyed location opportunities the same as harmed relationship with local suppliers. Inadaptable to local culture become a big problem in global business. Moreover, low wages, unions and sex discrimination brought Wal-Mart to be an evil in employees’ perspective. Literature Review Wal-Mart is the largest Discount Store in the United States. Its magnitude is not only recognized domestically but also expanded to International Market. The company believes that one day this one will replace the United States position when the trend down (Molin, 2004). With this goal Wal-mart is encouraged to expanding stores into nine countries around the world and more in its plans (About Wal-Mart, 2001). Being number one in the United States does not always guarantee for being number one...
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...Wal-Mart: The Bane of my Existence Ashford English Composition II ENG122 Quiana McCoy-Taylor September 21, 2013 Abstract The domination of Wal-Mart is a perfect example of one of the consequences the society we live in produces. How a corporation can became a monopoly and become very dangerous to our nation’s economy and overall well-being. While Wal-Mart does provide employment for approximately 1.4 million Americans, it is how they treat the employee, the economy, and the environment that matters. Wal-Mart was started by Samuel Walton in 1962 in Rogersville AR at the age of 42. “Inspired by the early success of his dime store, and driven to bring even greater opportunity and value to his customers” ("Founder of Wal-Mart," p. 1) Sam Walton’s original store name was Wal-Mart Discount City store and located on 719 West Walnut Street Rogers, Arkansas. “Wal-Mart operates more than 10,900 retail units under 69 banners in 27 countries and e-commerce websites in 10 countries.”("Our Business,") The Suppliers Wal-Mart uses a Plus One bargaining system, which requires all suppliers and contractors to reduce their prices of goods, increase quality or increase speed of delivery every year. This bargaining system and the leverage Wal-Mart have in the world economy put the profit margins of the suppliers in jeopardy. It leads to suppliers and contractor to cut corners on labor and safety practices. As the world’s largest corporation and the driving force behind globalization...
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...Wal-Mart Wal-Mart, a US public corporation that ran large discount department stores, was by revenue the biggest public corporation in the world.The company was established in 1962 by Sam Walton. On 31 October 1969, it was incorporated and, by 1972, it had obtained listing on the New York Stock Exchange .In the financial year ending in 2007, the global Fortune 500 list ranked Wal-Mart at the top of the list, with revenues of US$351 billion. Wal-Mart constantly emphasized its corporate philosophy of strengthening its relationships with employees, suppliers and customers. Building its own transportation systems had allowed Wal-Mart to enjoy transportation cost savings and had helped Wal-Mart to deliver products to its various stores within 48 hours. Taking advantage of its wholly owned transportation capabilities, Wal-Mart was four times faster than its competitors in replenishing its merchandise. The pricing of its products was economical and prices were allowed to vary daily. On the procurement side, owing to the huge volume of its purchases, the company enjoyed strong bargaining power. Reliably low prices of Wal-Mart ensured that sales volumes were consistently elevated. Wal-Mart’s retailing activities were operated by three primary subsidiaries: Wal-Mart International, Sam’s Club and Wal-Mart Stores Division US. In addition, Wal-Mart had nine different retail formats for its businesses: restaurants, cash-and-carry stores, membership warehouse clubs, apparel stores, soft...
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...sustainability and humanitarian efforts. CSR has evolved from companies donating corporate dollars to global non-profits, to sending employees into emerging geographical places to work directly with its initiatives partnering organizations. Wal-mart stores Inc., operates retail stores in various formats under various banners. It’s operations comprise of three reportable business segments, Wal-Mart U.S., Wal-Mart International and Sam’s Club in three categories; retail, wholesale, and e-commerce. Wal-Mart first opened in 1962 in Rogers, AK. The business is the result of its founder Sam Walton. His visionary leadership focused on helping customers and communities save money and live better. They feature a great selection of high quality merchandise, friendly service, and everyday low prices. Wal-Mart goal is to bring the best shopping experience to consumers. Wal-Mart business philosophy is based on the simple idea of making the customer No. 1. Wal-Mart as a corporation believe that by serving the customer’s need first the business would also serve its associates, shareholders, communities, and other stakeholders. Wal-Mart has one of the largest distribution operations in the world. In this essay one will look at the current status of Wal-mart corporate social responsibilities, stakeholders attitudes, and things they within the company to engage customers. With respect to their...
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...Businesses all over the United States are aggressive to stay modest and are looking for ways to rearrange their business and still deliver for customers the best likely prices. Businesses such as Wal-Mart do not have to alter their construction to fit the stresses of customers because it previously proposals its patrons brand name items at inferior prices. Wal-Mart’s basic construction has aided make it an influential retail trade, and a place customer’s love. Market Structure Wal-Mart Stores Inc. unlocked its first reduction store in 1962, Sam Walton had no impression his commercial would be the achievement that it is nowadays. The aim for Wal-Mart’s achievement is their aptitude to create a rudimentary construction for their business. Wal-Mart offers a diversity of famous brands and vends them at about 5-10% economy than other shops. This makes Wal-Mart an influential power in the selling business. Wal-Mart Stores is careful an oligopoly market construction. Colander (2010) describes oligopoly as a market disorder in which vendors are so few that the movements of any one of them will substantially touch price and have a quantifiable influence on contestants. With their sustained achievement, Wal-Mart’s market structure could also be careful a monopolistic modest construction. Wal-Mart has all the physiognomies of a controlling inexpensive structure as labeled by Colander (2010), they have many sellers, offer separated products, and they...
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...History Wal-Mart has been selling groceries for a mere 16 years, making it a relative newcomer in the industry compared to most of its competitors. Wal-Mart’s Neighborhood Markets has huge effect on industry, Wal-Mart is traditionally known for its Supercenters, big-box stores that cover expansive square footage and offer extensive product selection. The Neighborhood Markets are significantly smaller and are intended to reach the local markets that aren’t always covered by a Wal-Mart big-box store. In many cases, these markets contain the customers that Albertsons has targeted as crucial to its success. Neighborhood Markets are strengthened by the same low prices and powerful supply chain that make the company’s Supercenters a seemingly unstoppable force. With 2,305 retail stores in 31 states, Albertsons is one of the largest retail food and drug chains in the world. Among these retail stores are 1,351 combination food-drug stores, 707 standalone drugstores, and 247 conventional and warehouse stores. Albertsons is working to reduce costs in the supply chain so that its stores can offer prices that are more competitive with Wal-Mart’s prices. It must dramatically close the profit margins if it is to become the number one grocer in the United States. Merchandise currently sells for 20 to 25 percent more on average than Wal-Mart’s product offerings. Wal-Mart’s Retail Link network pulls in point-of sale data from its retail stores every 15 minutes, giving suppliers incredibly...
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...Wal-Mart in China Executive Summary Wal-Mart Stores Inc. is the largest retail company in the United States and is larger than any other retail chain in the world. Wal-Mart is more than just the world's largest retailer. It all started with a simple philosophy from founder Sam Walton: Offer shoppers lower prices than they get anywhere else. That basic philosophy has shaped Wal-Mart's culture and driven the company's growth in the United States. This culture is most prevalent at the company's headquarters in Bentonville, Arkansas. Wal-Mart has had phenomenal success in the US due to a few key factors. First, a model based on cost control was centered around offering the lowest prices in the market, with an emphasis on beating any competitors’ price by an average of around 20%. Second, it targeted a niche by focusing on the customers that everyone else seemed to neglect, the small town shoppers. Wal-Mart started by concentrating on opening stores in small towns and introduced innovative concepts such as self-service. Their strong customer demand in small towns led to the rapid growth of Wal-Mart. The main reason for Wal-Mart's success in smaller towns was that it offered low prices and catered to the specific needs of the targeted consumer. The strategy was especially successful as it achieved instant market saturation leading to very strong loyalty. This strategy also helped Wal-Mart stay below the leading competitor’s radar while building up their competitive...
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...The Target Corporation: Strategic Analysis A Comprehensive Report By: Nick Gysberg Kelsey Lee Richard Cline Table of Contents: Target Analysis 3 Wal-Mart Analysis 18 Sears Holdings Analysis 27 Moderate Growth Strategy 39 International Strategy 42 Financial Data 43 Appendix 46 References 50 Strategic Profile The Target Corporation, founded by George Dayton, is now one of the top general merchandise retailers in the United States. The company’s mix of stylish products and everyday essentials at low prices give it a unique strategy; it is one of the only companies to simultaneously incorporate price leadership and differentiation as its strategic business model. Strong private label brands have allowed Target to capture high profit margins. The company also utilizes its large size to achieve economies of scale so as to better compete with merchandising giants such as Wal-Mart, one of Target’s main competitors. PESTL Analysis Political The ever changing international political situation affects both domestic and international firms. International trade policies, political movements and global events all affect the manner in which firms operate within the market. The general retail industry has greatly benefited from the liberalization of international...
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...Analysis Section A1 – Group 12 Peter De Boeck Alejandra Duran Ilan Hadass June Tan Christian Zapf 1 1. Define Wal-Mart’s strategy Traditionally, Wal-Mart has essentially had a low-cost, high volume strategy. The strategy aims at customer satisfaction through low prices and relatively good customer service. Here are the basic details. • Low cost: Wal-Mart has lower operating expenses than the industry average. The primary cost advantage is Wal-Mart’s superior distribution capability (location of stores, inside-out growth patterns, cross-docking, superior information management). Quantitative details on cost advantage are set forth in Section 3 below. • High Volume: Industry analysts watch Wal-Mart’s growth of sales figure very closely. WalMart’s prices are low by the industry standard, which, combined with its lower costs, indicates a strategy that aims at growth in volume through grabbing increased market share (cf. Dell). • Customer Satisfaction: Low prices, advanced data management and extremely motivated employees (“10 ft rule”, “sundown rule”) means a better customer experience than at other discount retailers, even though Wal-Mart remains a self-service retailer. In addition, the large size of the traditional Wal-Mart stores adds convenience by offering a one-stop solution by offering a wide range of products. In the words of Sam Walton, “Wal-Mart’s aims at creating a loyal customer base by lowering their cost of living through offering quality and other products...
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