Wal-Mart Stores, Inc. Wal-Mart Stores, Inc. is an American multinational retail corporation that operates warehouse and departmental stores. The company was founded in 1962 and has its headquarters in Bentonville, Arkansas, US. Since its inception, the company has grown by leaps and bounds. According to the data released by Fortune, the company had 8, 000 stores in 27 countries and an over-whelming 200 million employees. Mostly, the company operates using different names depending on the country it is based. In the US, the company operates as Wal-Mart, in Japan and Asad in UK. One factor that has enhanced its success is the competitively low price on the products offered coupled with a stimulating customer service. This low price strategy has saved consumers billions of dollars yearly.
The hand on experience of the renowned businessman Sam Walton in business first paid off with success in the local markets. The firm was able to compete effectively with the local retails stores and emerged as the most admired company in the year 2003 and 2004. Though, these statistics changed with time, Wal-Mart is still on the list of the most admired companies rating at 22 in 2012. After successfully capturing the local markets, Wal-Mart found its way to the international markets and has done well by establishing a store after a store.
Nevertheless, the low prices price strategy coupled with concerted efforts to remain socially responsible that has seen Wal-Mart rise over the economic horizons has left negative imprints on its stakeholders such as consumers, suppliers as well as the environment. Myriads of complaints have been leveled against once Americas most admired companies. The sheer magnitude of these claims seems to tumble leading giant in retail outlet if not considered by the management. The claims range from one outlet to another and from one country to another. The frequency and prevalence of such claims amongst states and different outlets point out to some truth.
Perhaps one of the most conspicuous claims about Wal-Mart is its low price strategy and its unintended consequence of forcing other retail outlets out of the market. Arguably, it ‘s hard to compete with Wal-Mart. Many outlets that operate close to Wal-Mart concur on that fact. It has been no surprise that whenever Wal-Mart opens an outlet in town, other local retail outlet are forced to close their business or relocate. The competition is intense and most businesses have cried out about Wal-Mart negative pricing on the market prices.
As part of the sustainability agenda, Wal-Mart requires its supplier maintain a set standard of sustainability. The move intends to save the consumers and others stakeholders from the high-costs associated with packaging and shipping expenses. This has, however, not worked well the supplier with most of them closing the business and turning to other areas. For instance, an analysis done by Wal-Mart suppliers indicated that 80 % of its suppliers are located in China. The bargaining power of the largest multinational has forced them to move to other regions.
The employees are unquestionably the coveted asset in any business. Wal-Mart has been in the news for the wrong reasons when it comes to employees’ welfare. Lately, cases of employees’ mistreatment have been rife within the Wal-Mart multinationals. Deliberate attempts are made to stifle employees’ efforts from joining trade unions. There have been cases of uneven hiring, job promotion and payment schemes with the majority of the female employees missing on managerial roles jobs.
These cases have tainted the relationship Wal-Mart has with the media with series of the lawsuit made by the company and the stakeholder vis-à-vis. In case there is no solution to these problems that has engulfed Wal-Mart, its future is under peril.
