The company operates under the Wal-Mart name in the United States, including the 50 states and Puerto Rico. It operates in Mexico as Walmex, in the United Kingdom as Asda, in Japan as Seiyu, and in India as Best Price. Wal-Mart was constructed into a three product divisional structures and they are: Wal-Mart stores (U.S.), Sam’s Club (U.S.), and international stores. The store was built on three beliefs: strive for excellence, great customer service, and respecting other individuals. Wal-Mart Stores U.S. is the company's largest division, accounting for $258 billion, or 63.8% of total sales for financial year 2010.
Instances shall be seen when the two retail outlets practiced similar strategies. All the marketing strategies are aimed at helping the companies to realize maximum sales at minimum costs. Wal-Mart was initiated in 1940 by Sam Walton. Since that time, a small retail store has grown to form the well-known Wal-Mart International. This retail outlet has utilized various marketing strategies at different times.
(Wal-Mart Corporate Website) Huge turnover, large customer base and returning customers show that Wal-Mart has been able to achieve this goal in its 50 years of existence. Wal-Mart sources material from third world countries at low price. Very efficient supply chain management and bargaining power has enabled Wal-Mart to sell goods at low price. Company is also pursuing vertical integration strategy to lower cost. Answer-2) Wal-Mart Stores had turnover of $446.95 billion and net income of $15.77 billion in financial year ending
Not only do poorly treated workers typically make poor-quality goods, but U.S. companies that aren’t careful about sweatshops could face the costly job of reputation repair if a watchdog group links their brands to workplace abuses (Viedermann, 2007). Another ethical issue that must be addressed is the fact that environmental laws are less formal in the country of Frostburg. Environmental laws have a huge impact on the food industry. They affect the safety of the consumers who ingest our products. The chocolate products potentially manufactured in Frostburg would not be inspected regularly, nor, would the protective chemical and pesticides needed would not be available.
Managers took gamesmanship to improve their performance indicator without producing any positive economic effects. These problems had surfaced earlier, but the company top management fails to attach enough importance due to the following reasons. The setting of sales targets is not reasonable for all divisions at one rate.
There are many things that affect the major functions of management and all them have an impact rather it be internal, external, negative or positive. Wal-Mart grew rapidly becoming one of the world largest corporations overnight. The concern of the public was the negative effect that walmarts super centers had on local economies when smaller stores could no longer compete. This can affect all four functions of management planning externally. This would cause manegement to be more steategic in the placement of their stores.
One of the main reasons for Walmart’s lack of success in other countries is in trying to impose American values, cultures and shopping habits in other countries. Take Germany for example, where consumers felt that additional labor used to pack purchases added to the final cost of the product. Also, working hours for the attendants were way beyond what was allowed by the German government for such categories of labor. Walmart’s foray into India has not met with success either. Being a developing economy, local traders fear that a behemoth like Walmart would put them out of business.
While the traditional accounting methods are good to measure past performance and financial stature, it does not allow for managers to see the impact or value that marketing has on the bottom line. For a manager to evaluate the impact of marketing they will need view the current marketing expenditures, sales, and profits to make a conscious decision on what methods are working. While I think placing marketing as an investment is a good concept, determining the value is too biased without a common measurement between all companies in a similar industry. Without understanding the current value of marketing, the marketing budget will be one of the first items cut when the business is in a downturn. Technology in all industries has increased dramatically over the past 10 years so being able to understand the current value of marketing methods should not be as strenuous as it has been in the past.
Identify the possible causes of conflict which may arise in this situation. A cause of conflict would be that it is not fair on the taxpayer because they do not have say in the company; this is because they only own a minority share. The taxpayers are giving their money to bail out the banks and in return they may not receive a sufficient return on their share. Once again the taxpayer is being forced to bail out a major bank without it being in the interest of the taxpayer. This links in with an argument from shadow chancellor Ed Balls who claims that Nick Clegg’s proposal has not been thoroughly thought through, because it is not in the long-term interests of the taxpayer.
From a standpoint of a shopper I would evaluate the store as a confusing mess that seemed like a sale every time one shops. Sales are advertised but employees don't necessarily push the sales. The management goals reflect the employees' goals to let the products sell themselves. This hurts the company knowing that consumers can shop products on a "take it or leave it" attitude. Most people are aware of the lack of customer service Best Buy does not provide.