Case study: Wal-Mart STEEP analysis for Wal-Mart Wal-Mart is one of the world’s wholesalers providing its products at an affordable price. With regard to its STEEP analysis, several factors affect the store and have impacts on its performance. Sociocultural factors i. Sociocultural factors play a crucial role in influencing customer decision. People think of Wal-Mart as the best place to go shopping because of quality and low prices. ii. Differences in cultures especially in other countries negatively affect the company’s operations and revenues. For instance, when the company entered the Germany market in 1997, it experienced a lot of defeats due to people’s perception in the country. The company’s American employee management practices …show more content…
The company uses technology that is far from what its competitors use making its operations more effective. In particular, it uses modern technology to improve marketing and selling of its products. ii. The company has improved its supply chain and logistics management. Modern technology has also made communication and operation a lot easier by connecting all its stores via data, video, and voice communication. iii. The company’s use of Radio Frequency Identification (RFID) and inventory management through advanced Texlon barcode system play a crucial role in streamlining its supply chain management and keeping of inventory records. iv. The increasing pervasiveness of broadband internet access and the unabated growth of ecommerce in many countries have allowed the company to tap into more market through online platforms. Economic factors i. Economically factors such as inflation, high interest rate, unemployment rate, and weak housing market, changes in tax law, higher debt, and overall economic slowdown are detrimental to the store’s performance. These factors lower the purchasing power of customers and consequently the demand for the store’s …show more content…
The company’s use of strategies such as localized charitable giving and sustainability efforts have the impact of portraying the company as a responsible corporate citizen. iii. The company has also attempted to improve its corporate image by beefing up pro-sustainability, pro-community, and pro-health care information on its annual reports, television adverts, and on its website. Political-legal factors i. Political-legal factor can negatively affect the company’s performance because the government can change its rules and regulations at any time. For instance, the store experienced lower sales in 2013 due to delays in income tax refunds. ii. Some political-legal factors are beyond the control of Wal-Mart affecting its operations directly or indirectly. They include authority to work, war against terrorism, health issues, and geopolitical uncertainties. iii. The company’s consistent involvement in lawsuits has provided its competitors with ample fodder to inflict reputation damage on the company. Some of the company’s lawsuits and accusations include environmental violations, use of illegal immigrants by sub-contractors, violation of child labor law, and poor working conditions for its staff. SWOT analysis for Wal-Mart
As long as torts are committed in the line of duty then the employer is liable to some extend on the employees actions. Betty Duke’s malicious and criminal torts are within the category of respondent superior in law despite the fact that Wal-Mart could not have authorized the commission of the said acts (Toobin, 2011). This doctrine therefore makes Wal-Mart totally accountable for their employee’s acts. Wal-Mart is thus liable for any acts committed by the Betty Dukes and in a small way had control over her. This was somewhat associated with the Wal-Mart’s risk of conducting
In the essay the author challenges the credibility of Wal Mart’s product production and draws the emotions of the consumer with his logical approach. Before reading the article
Some people may wonder how, with such low prices, Wal-Mart can sustain such a large profit margin. Well according to Jim Hightower, that answer lies within Wal-Mart’s workforce. Hightower believes that Wal-Mart is tricking its workers into thinking they are, “one big, happy family,” when in reality those workers are being exploited. According to Jim, Wal-Mart is diverting their workers from the actual issues such as, “fair wages, hiring discrimination, or unionization.” This is backed up in the 2004 documentary aired by PBS called, “Is Wal-Mart Good for America?”
This is most likely because they choose to mistreat and exploit their employees for higher profit gain. Based on quotes from former and current Wal-Mart employees and Olsson’s own words, a union is definitely necessary for Wal-Mart. From reading this essay, I see just how obvious the mistreatment is; constantly overworked employees are struggling to keep themselves afloat as their superiors are pressuring them to work more with no pay. This has been illegal for well over 50 years and unionization was deemed lawful in the 1840s. This being said, I feel that Olsson’s claim of underrepresentation is completely
"Is Wal-Mart Good for America?" gives a provocative examination of the effect Wal-Mart has had on the U.S. economy. The documentary highlights the changing connection amongst makers and the purported "big box" retailers, exemplified by Wal-Mart, that has added to the insolvency of some American organizations and a developing unemployment rate. While Wal-Mart supporters tout the upsides of one-stop, ease shopping, others are frightened at both the outsourcing that has made these low costs conceivable and how extensive retailers influence littler, neighborhood organizations. Cutting edge inspects the champs and the failures as it archives how: Worldwide retailers are superceding makers in settling on choices about item quality, sort and cost.
1. In the broader context (not specific to Dollar General), what is KKR’s investment strategy? What are the challenges KKR will encounter to make its investment in Dollar General successful? How could KKR add value to Dollar General?
The author goes on in detail about Walmart’s employee selection process and the unique attributes they look for. Walmart looks to employee staff that will not look to unionize the company and employees that are afraid they wont be able
It appears that Wal-Mart is ruthless and unforgiving in their demands from manufacturers, even at the cost of a long-standing business relationship with a highly respected American company. Ostensibly, Wal-Mart promotes the consequentialist ethical methodology with “better consequences”. As the book states, “Better
‘Is Wal-Mart Good for America?’ On PBS Frontline, May 11, 2015 ‘Is Wal-Mart Good for America?’ is a documentary that examines the relationship between Wal-Mart’s rapid growth and its impact on the US economy ever since it blossomed in trade productivity in the mid 20th century. The documentary, published on February 2014 by PBS Frontline, conveys a deep understanding of how Wal-Mart changed the living standards of many Americans and took consumerism and retail logistics in the U.S. to another level; by cutting costs through offshore outsourcing to China and employing cheap Chinese labor. The documentary focuses on the changing relationship between big retailers and manufacturers and the transition in pricing and decision-making.
In the essay titled “Labouring the Walmart Way”, author Deenu Parmar explains the unhealthy effects of Walmart, how to stop them, and the challenges of doing so. Parmar begins by detailing how Walmart has done little for local economies. By hiring financially vulnerable people, the franchise insures that no one would dare to unionize; thus ensuring employees will only earn the bare minimum, and thus out-competing local competition. Parmar also goes on to explain how a local community removed Walmart. They were able to do this through the use of fierce union protests that made the store unprofitable.
New opportunities mainly come from power of suppliers and inter-firm rivalry. Wal-Mart should utilize its bargaining power with suppliers to lower its costs. In that way, it may provide high quality products for its consumers. It may also grow stronger and more unique through competition between firms in the same industry.
Economic factor Economic factor examines the outside economic issues that can play a role in a company’s success. Economic factor has a significant influence on how company does business and how profitable they are. Items to consider include interest rate, exchange rate, economic growth, inflation, monetary policy, unemployment, income distribution, infrastructure costs and availability, consumer expenditure, foreign direct investment (Jeff, 2008). Economic factor impacts directly Starbucks performance through the income distribution in Vietnam market. The
"We are not in business to make maximum profit for our shareholders. We are in business...to serve society. Profit is our reward for doing it well. If business does not serve society, society will not long tolerate our profits or even our existence." Kenneth Dayton, former Chairman of the Dayton-Hudson Corporation 1.
I. Introduction Walmart Stores, Inc. - the American corporation which was established in 1962, is well-know for the globe’s largest multinational retailer (Walmart 2016). Walmart owns a chain of grocery stores, discount department stores and hypermarkets with about 11,500 retail stores over 28 countries. In 1998, Walmart entered Germany with the acquisition of Wertkauf and Interspar chain (Louisa 2006). Despite having the strongest economy in Europe and the third largest retail market in the world, Germany was not an ideal place for Walmart to achieve its ambition (Knorr and Andt 2003). After nearly a decade struggling to grow, Walmart decided to pull out of German market in 2006 with the loss of one billion dollars (Mark 2006).
UNIQLO, 66-year-old Fashion and Retail industry was established in 1949 in Japan. It is a wholly owned subsidy which was bought by Fast Retailing Co Ltd since November 2005.With its head quarters in Tokyo it has managed to expand its clothing business in fourteen countries globally. An article from the Business Insider says that this Japanese chain has become the envy of retailers worldwide. It started in 1949 in Hiroshima as “Unique Clothing Warehouse”. The words were later joined to make “UNIQLO”.