Assignment

Introduction to Management

Walmart Inc: Overview

Grocery stores, supermarkets, hypermarkets, department and discount stores,
and local markets are all operated by Walmart Inc. (Walmart). Groceries and
consumables, health and wellness, technology, office supplies, entertainment,
hardlines, fashion, and home categories are all available at consistently cheap
costs in the company's locations. Additionally, it runs warehouse clubs, such as
Sam's Clubs. Equate, Bonobos Fielder, Mainstays, George, Onn, Parent's
Choice, Time and Tru, Wonder Nation, and No Boundaries are just a few of the
private labels and licenced brands that Walmart sells products under. The
business provides financial services, fuel, gift cards, money orders, prepaid
cards, wire transfers, money transfers, check cashing, and bill payment services,
among other connected goods. It distributes its goods via several e-commerce
websites in the US, Canada, Africa, Central America, China, Chile, Mexico, and
India. Walmart is headquartered in Bentonville, Arkansas, the US.
External environment: The external environment of a business involves all
external forces affecting the company over which it has no direct control.
Political factors: Wal-Mart has made sure that it is well informed about the
political climate in each nation where it conducts business and that it has a
positive stance on political matters. Wal-Mart is constantly prepared to handle
any issues relating to the political sphere. Walmart occasionally contributed to
political causes.
Economic factors: For years, Wal-Mart has maintained its financial
stability. Since the economy is performing well, they can endeavour to develop
their products and provide the finest service to their customers. Wal-Mart first
investigates the economic position of the country they are operating in before
deciding to open the branch there. Not only should the company's internal
financial situation be considered, but also the economy of the nation. The
economic climate plays a significant role in the techniques employed by
discount shops. Since 2009, the US GDP has risen gradually at a rate of 3.5%
yearly.
Social factors: Wal-Mart ensures that the things it offers are accepted by the
society in which it conducts business. Wal-Mart refuses to let the delivery of
some products that they are aware will provoke irrational reactions or
grievances from various social groupings. Even though some sectors of the
society have issues with them, Wal-Mart nonetheless maintains very strong
relationships with all of them. Additionally, Wal-Mart engages in social
initiatives that tend to improve relations among themselves, their customers, and
the society they live in.
Technological factors: Wal-Mart provided fresh ideas in its technical area
and unveiled fresh ideas for its sector. Wal-Mart uses better slot machines and
more modern cash registers. Wal-Mart employs an improved security system.
Wal-Mart continuously updates to the most recent technology and monitors how
it evolves because technology changes so quickly. Wal-Mart can adopt new
technology if other businesses do so to offer their services.
Environmental factors: Wal-Mart ensures that the products it sells are
known to have a minimal negative impact on the environment. Wal-Mart has
established rules on the kinds of products they will sell in their stores. Better
waste management techniques have also been implemented by Wal-Mart to
lessen pollution and create a cleaner environment going forward. Wal-Mart
makes certain that the design of their trash system accounts for human error.
Legal factors: Wal-Mart makes sure that it complies with the local
regulations of each nation where it conducts business. By breaking national and
international rules, the business does not intend to endanger the wellbeing of its
customers or damage its reputation. Wal-Mart ensures that the transactions they
conduct have a legal foundation and are recognised by national or international
judicial bodies.
Walmart’s Stakeholders:
The stakeholders of Walmart have an impact on the organization's strategic
direction. These stakeholders are the individuals or organisations that the
company either directly or indirectly impacts. As a result, they put pressure on
Walmart's operations to encourage the company to take their interests into
account. Based on their common interests, Walmart's stakeholders can be
categorised. Depending on the company's philosophies and procedures, these
stakeholder groups are also given varying degrees of attention. The primary
stakeholder groups Walmart takes into account in its CSR approach are listed
below, in order of importance to the business:
 Investors
 Customers
 Employees
  Suppliers
Investors: Profits are what most investors care about. They want Walmart to
make more money so that larger dividends or earnings per share can be paid
out. In connection with this, investors are also concerned with lowering the
business's operating expenses. Higher earnings typically result from lower costs,
which is advantageous for Walmart's stockholders. Investors are given priority
in Walmart's strategies. This is one of the factors influencing Walmart's
decision to keep expenses down, such as by cutting wages. According to theory,
making money is what businesses mostly want to do. Otherwise, there wouldn't
be any kind of business. Walmart simply achieves this hypothetical core
purpose of its business by prioritising investors as the key stakeholders.
Customers: In most businesses, customers are considered a stakeholder
group. In the case of Walmart, buyers are drawn to affordable rates or low costs
for products as long as these products are of acceptable quality. This is
especially true for American customers, who frequently shop at Walmart and
other discount merchants. Walmart addresses the stakeholder interests of its
customers. The business continues to pursue its generic cost leadership strategy,
which entails providing the most affordable rates. In reality, the business's
inexpensive prices are a big reason for its popularity. When it comes to
addressing the interests of customers as a stakeholder group, Walmart is
effective and successful.
Employees: When Walmart makes administrative decisions, it takes its
employees into serious account. Employment security and increased pay are the
two key concerns of employees. The promise that Walmart will keep the
employees on staff is known as job security. A common desire is for more pay,
particularly given that the company continues to pay its employees inadequate
wages. Walmart is only marginally successful in satisfying the stakeholder
interests of its employees. The organisation has policies and programmes that
significantly increase job security. Walmart, however, continues to advocate for
reducing wages. The company consequently fails to adequately meet the
interests of the workforce with relation to salaries.
Suppliers: Walmart’s Least Prioritized Stakeholders
Suppliers are interested in getting more of their products sold at Walmart stores
in a profitable way. This interest involves not just the selling of the suppliers’
products, but also the selling of these products at acceptably profitable prices.
As businesses, suppliers are stakeholders that want Walmart to sell their
products at higher prices. Even a tiny increase in prices can have a significant
benefit to suppliers. Suppliers are at the bottom of Walmart’s prioritization of
stakeholders. Suppliers provide the goods that the company needs at its stores.
However, as the biggest retailer in the world, Walmart has the business leverage
to influence suppliers. The company has more power than its suppliers. Thus,
suppliers generally do not get what they want. For example, Walmart requires
suppliers to offer their products at very low prices. Understandably, most
suppliers comply. Otherwise, Walmart would not sell their products.
Analysis:
The interests of the stakeholder groups of investors and customers are well
addressed by Walmart. However, because employees continue to get poor pay,
the corporation only partially serves their interests. The company also doesn't
respect the interests of its suppliers. Thus, Walmart's effectiveness in satisfying
stakeholders' interests is only about 50%. Walmart must make some
adjustments to its business model in order to increase its performance in
satisfying stakeholders. For instance, the business could raise wages little but
significantly across the board. Walmart may also strengthen its relationships
with its suppliers by finding a medium ground rather than imposing artificially
low prices. The company's reputation as a good corporate citizen and in
stakeholder management can be enhanced by these recommendations, even
though they can result in a minor rise in retail prices at Walmart locations.