Walmart is one of the biggest company in the United States. The company is worth nearly $260 billion, as well as having to managed more than 5,000 stores in 10 countries around the world and employed approximately 1.5 million workers. Unlike others, Walmart developed its purchasing power by eliminating the middlemen and building direct relationship with the suppliers. In addition, the company purchases the products in bulk directly from suppliers at a lower cost and then sell items in stores at a discounted price. Recently, Walmart had ventured into e-commerce, online classified services, auto and tire maintenance, vacation planning, financial services, because of this wide variety of services offered to its consumers, the retail gained
In 2005, around 5482 stores were operated in 16 countries and engaged 1.3 million associates in the United States and became the second largest employer after the federal government. Walmart was criticised on the various grounds out of which primary issues were as follows: 1. Spoiling the environment 2. Kicking out small as well as big traders out of business 3. Providing insufficient health care aids 4.
Being the world’s biggest retail chain with a great brand value, Walmart enjoys a huge purchasing power that helps it to control the suppliers, thus help to drive down the cost. They also have their own set of branded products. In order to mitigate the risk and to keep the suppliers in a check, Walmart has maintained multiple sources Integration among the elements All the above mentioned components are different pieces of the same puzzle i.e. Supply chain. The main objective of the company to sell in cheaper price is only possible by keeping the inventory cost low which again is possible if the information system is utilized properly, cross docking method is followed and the suppliers are given responsibility to maintain the inventory in warehouses.
YISHENG ZHANG MACROECONOMICS - WRITING ESSAY FEBRUARY 27, 2017 Walmart, as one of the world’s largest company it’s corporation contains grocery shopping, pharmacy, electronic sales, an outside garden etc. It is very convenient for people all around the world and low income families who are unable to afford other expensive goods made in the United States. Since Walmart is considered a world wide’s supermarket, it has investments outside of the United States such as in China, United Kingdom, and south America. When the prices are less, people are able to afford these products and throughout the century, it’s easy to tell that Walmart has made a huge impact in the United States economy. However, Walmart
Highly competitive pricing for its customers 6. Leading force in a highly competitive Global Market. Walmart’s operations management goal is to maximize productivity so as to support the minimization of costs. There are various quantitative and qualitative criteria or measures of productivity. These are: Revenues per sales unit, Stock out rate and Duration of order filling.
This added to the appeal of Walmart as a one stop location to shop for everything, at the lowest market prices Walmart’s success, although it has had major contribution, wasn’t only from the “buy cheap, sell cheap” business model. Walmart was becoming so efficient and good at moving goods that the system in place for labeling and pricing wasn’t good enough. This is where Walmart’s effect in retailing technology and information weigh in. Walmart started the use of universal bar codes. Universal bar codes are black strips we scan to get pricing, giving the retailers information of the volume being sold, of the products.
For instance, the wage for a cashier is now $11.55 which is only slightly higher than the minimum wages of $11.40 in Ontario. This causes high turnover rate as a lot of staffs are working as part time and frequently quite due to the low pay. A recommendation for Walmart is to develop a formal human resource program and fair performance review process to manage employee compensation. When employees perform at a higher level, their pay rate may be justified according to their performance appraisals. Providing faster promotions is another way to keep people motivated and improve their performance.
Walmart is American biggest retailer in the world. The company was created by Sam Walton in 1962. Walmart has extended broadly up to 11,703 stores and clubs in 28 countries, working under 59 different names. The performance of the company had been showing their successful to be one of the world’s most valuable companies by market value and for being U.S largest grocery retailer in 2016. Walmart first started out as a little chain of stores in country towns.
To remedy this problem what Walmart can do is invest into training and development programs for its personnel at all levels in the company. Leaders must also be trained as to how to motivate the employees that works under them. Taking care of the company’s human capital will only result into profitability for the company while giving the employees the feeling of being accounted for. 4. Bribery scandal After the scandal, there is no going back, the reputation of the company is already tarnished and putting the blame on someone else will not help Walmart achieve anything.