Swot Analysis : Walmart Inc.

Walmart is known throughout the entire world as one of the most popular chain department stores. Actually, most have probably visited a Walmart store in the past week. Though Walmart stores seem to be a normal part of life the average person more than likely has little knowledge that pertains to Walmart’s success and business culture. This paper will guide one through the history of the organization, why Walmart is successful, what could threaten or open new opportunities, and how might they hold a competitive advantage.

Many reports have been written documenting the economic and eventual social and environmental degradation which occurs when Wal-Mart “comes to town”.

As we explore the history of this fast growing retail chain, the 1960s was known as the Retail Revolution for Wal-Mart. Under the visionary leadership of Sam Walton (founder), Wal-Mart opened it first store in 1962 in Rogers, Arkansas. By 1969, Wal-Mart was officially incorporated as Wal-Mart Stores, Inc.

Walmart also has had battles dealing with sexual discrimination regarding women and as well as members of the LGBT community. Another big issue affecting the welfare of the human population, which is crucial in the development of a stable society and ecosystem, are the work labor issues involved in Chinese factories. Taking a closer look at the issues will hopefully develop an idea of how hurtful Walmart truly is to the environment. From economic, developmental and environmental standpoints, Walmart is not the savior they claim to be.

Walmart has had a damaged reputation because, often it is criticized for fostering unethical practices such as poor and harsh conditions. Since the company offers low wages to employees, its reputation remains damaged publicly worldwide. The company has also been criticicized by the public that, it does conduct a proper and effective research before considering new stores opening in a new area. A negative publicity has been brought out in respect to the discrimination of females in the company's top management.

Challenges are considered the biggest issues for the Wal-Mart company. Even though there advantages, disadvantages

Wal-Mart is arguably the most dynamic corporation in the last 50 years in the United States, if not the world. Arising from its beginnings in Bentonville, Arkansas, it has grown to over 4,400 discount stores, super centers and corner markets worldwide. Wal-Mart continues to expand despite public criticism of its labor practices as well as complaints about their treatment of competitors. The many strengths of Wal-Mart, like their low cost production and marketing practices, will aid Wal-Mart as it continues to grow in the retail

Wal-Mart Stores Inc. helps individuals around the globe spare cash and live better - at whatever time and anyplace - in retail locations, online and through their cell phones. Every week, more than 245 million clients and individuals visit our almost 11,000 stores under 65 flags in 28 nations and e-trade sites in 11 nations. With financial year 2015 net offers of $482.2 billion, Wal-Mart utilizes 2.2 million partners around the world. (Wal-Mart Corporate) Wal-Mart is a superpower in the business world and has been that way for 50+ years. Understanding how it got to this point and how it has maintained its successful business model starts with its

However, when the company moved into China, it made some major labor concessions. Not only unions into China, it also allowed branch of the Communist Party at Walmart’s Chinese headquarters.

Wal-Mart will continue to find and edge, but not only to better it business through technology, but also to better itself to make more profits from consumers through technology. Wal-Mart has entered into a partnership with six major Hollywood studios to sell digital movies and television shows on its web site, www.walmart.com/videodownloads. The retail chain will partner up with some of the biggest studios including: Walt Disney, Warner Brothers, Paramount, Sony, 20th Century Fox, and Universal to become the first traditional retailer to sell movies and television downloads.4

I would argue that this is the largest current threat facing the company with businesses such as Amazon and Costco in the same market knocking on their door. Walmart just recently hired another CEO, the 3rd such move that I could find in my research for this case study and while replacing a veteran executive with an up-and-coming high performer has all the makings of a strategic shift, early indications suggest that the retail giant will be staying the course with McMillon at the helm. McMillon's decades of employment, deep institutional knowledge, and company loyalty have been credited as key reasons he beat out Bill Simon, president and CEO of Walmart U.S., an executive seen as more of an outsider for the top job. (Pelletier, 2013) Being a friend of the Walton’s, with deep Arkansas roots, and decades of experience doing things the Walmart way is not the hallmark of an incoming CEO who is going to shake things up at the world's largest retailer and America's largest employer. But, given the many challenges the company faces, change might be exactly what is needed. (Pelletier, 2013) The article goes on to talk about a disappointing third quarter when its largest revenue generator, sales from U.S. stores, dropped 0.3%. The company also has forecasted flat earnings during the critically important holiday season. Walmart still expects to see modest sales growth in FY2015 through the opening of smaller, more targeted stores, and its longtime strategy

Beginning with the cons, Walmart has been known for having low pay and unpredictable work schedules for their employees. Employees have held numerous protests regarding these issues about labor policy. The workers are being paid too little to afford to live at their accustomed lifestyle (low-class, middle-class, or high-class as discussed about in lecture). Additionally, the unpredictable work schedules often require employees to constantly work overtime, start early in the morning, or create difficulties with life outside of work (such as making an appointment). Alongside those issues, the most known problem about Walmart is that local businesses tend to close when a Walmart gets built in an urban area. Local businesses simply can’t compete with Walmart in the marketplace

With every company there come strengths, weaknesses, opportunities, and threats and Wal-mart is no exception. Wal-mart sits at the number one spot when it comes to retail businesses but they have had many issues; in particular labor law violations because they did not allow their employees to take required lunch and meal breaks.

Wal-Mart is certainly credited with changing the retail world as we know it with its low prices and big stores with huge selections but it has come at a price. They have struggled with issues that question the ethics as a company and legal issues that question how they manage people. These issues will continue to hurt their organization unless a complete change in management thinking and actions are changed. As a socially responsible organization, their management planning in this area is second to none. Lets hope they take the same effort in improving their image when it comes to ethics and legal issues.

Another problem that Wal-Mart faces is one shared by all people. There is a concern for the environmental well-being of the Earth. There is much press about corporations that have violated safe environmental practices. Their “receipt, transportation, handling, identification, recycling, treatment, storage and disposal” of hazardous material has been under scrutiny. Also their greatest associated environmental concern is urban sprawl. They have counteracted these problems by trying to become a greener company. They are working to reduce greenhouse