This website uses cookies to ensure you have the best experience. Learn more

Globalization Of The Wal Mart Essay

1030 words - 4 pages

Wal-mart is the biggest retailer of the world. They made every effort to achieve this success. In this essay I will focus on the Globalization of the Wal-mart and international organizations for trade which helped it grow.The first Wal-mart store was opened in 1962 by Sam Walton. Sam Walton always used only one business policy that is "Sell stuff that people need everyday just a little cheaper than everyone else, sell it at that low price all the time, and customer will flock to you". This policy gave Wal-mart enormous success around the country. With this policy they have attracted lots of customers and from one store started in Rogers, Arkansas they grew into nine super centers till 1990 and then to 888 super centers in 2000. It had opened an average of 7 new super centers each month continuously for 120 months. It was an outstanding achievement. After this achievement Wal-mart was looking for more expansion world wide. By introducing the discount policy into foreign markets, Wal-Mart hoped to achieve high sales and earnings growth while also increasing economies of scale among global operations. They thought that if they wait for long time to get into foreign countries there competitors will get a hold in the international markets which prompted Wal-Mart to aggressively seek international markets and in 1991 they opened up Sam's club in Mexico. Now, Wal-mart has grown up to 2,400 stores in 15 markets outside the US.Wal-Mart International currently includes many different stores, membership clubs and restaurants employing more than 400,000 associates in Argentina, Brazil, Canada, China, Costa Rica, El Salvador, Germany, Guatemala, Honduras, Japan, Mexico, Nicaragua, Puerto Rico, South Korea and the United Kingdom. Wal-mart succeeded in many markets and Globalization became beneficial to Wal-Mart because it increased their profits and expanded their marketplace. But in some markets it also faced challenges like differences in culture and managing business in international markets. The initial problem was small storage space in the stores. Wal-mart "one- stop" strategy depends upon its size but European customers experienced culture shock when confronted by Southern hospitality. They also disliked the greeters standing on the door because by customer's point of view they don't want to pay the salary of the guy standing on the door. Also Europeans are accustomed to come for shopping very often but buy fewer quantities each time they come and also that they are not in a habit of pushing around a large cart. These were all minor problems but regulations in those countries created more problems for Wal-mart like 24 hours stores are banned in Germany and Europe. A German court allowed employees to wear earrings and sport facial hair and when the retailer tried to ban English employees drinking habits on lunch break, the employees threatened a lawsuit. European laws are very firm about the sale of "Loss leaders" in which an item is sold at a price...

Find Another Essay On Globalization of the Wal-mart

Analysis of Wal Mart

2707 words - 11 pages Analysis of Wal Mart Wal Mart is the largest retailer in Canada , Mexico and USA. In addition to that Wal Mart has been known in USA not only for its dimensions but also for a very big number of reasons and good values. I think the best way to start an analysis about Wal mart strategy is to see where the company is now with the use of a brief Swot analysis. As far as the Strengths are concerned , I think that one of

Control Mechanisms of Wal mart Essay

1516 words - 6 pages Control Mechanisms of Wal-Mart PAGE \* MERGEFORMAT 3 Control Mechanisms of Wal-MartWithout the effectiveness of control, the successes of most companies would be easily faltered. Wal-Mart, being one of the World's largest retail chains, has established itself as a global leader, and not without having a defined plan of action. Through varying efforts and countless control regulation, this retail giant has secured itself within the industry

The World of Wal-Mart Discounting the American Dream

739 words - 3 pages The World of Wal-Mart: Discounting the American Dream I can say in my opinion was a very intriguing book. Being both informative and entertaining at the same time I was able to learn some history about Wal-Mart while not being bored to death with just dates and events. The book also gave me some insight about how other people view Wal-Mart as a whole. I thought people in general enjoyed Wal-Mart because it offers low prices and convenience but

Wal-Mart is the Enemy

1514 words - 6 pages Wal-Mart - The Corporate Enemy During the last 20 years, Wal-Mart has moved into many areas wiping out all the stores around causing people to loose jobs, slashing the tax base and causing many more disturbing problems to neighborhoods so people should stop supporting Wal-Mart for many of these reasons. Always low prices, does this sound familiar? Well this would be the slogan of the world’s most controlling company; Wal-Mart. Wal-Mart grew

Historical Bckground of Wal-Mart

2127 words - 9 pages Historical Background of Wal-Mart Walmart is an American multinational retail corporation that runs chains of large discount department stores and warehouse stores in most countries in the world. The company is the world’s second largest public corporation; Wal-Mart remains a family-owned business, as the company is controlled by the Walton family, who own a 48 percent stake in Wal-Mart. It is also one of the world’s most valuable companies

Swot Analysis of Wal-Mart

3324 words - 13 pages Outline I. Summary of Wal-Mart A. What is Wal-Mart B. Economic Factors of Wal-Mart C. Customer Relations D. Employees II> External Analysis A. External opportunities B. External Threats C. Competitors D. Foreign Markets III. Internal Analysis A. Internal Strengths B. Human Resource C. Quality products For as long as I can remember I have seen Wal-mart stores up in almost in every town that I have traveled through. The store started by Sam

Strategic Audit of Wal-Mart

2685 words - 11 pages Strategic Audit of Wal-MartOverview and General Performance -The Wal-Mart Corporation is divided into three segments, those being Wal-Mart Stores, Sam's Club, and the International Division. The Wal-Mart Store segment is by far the largest sector of the organization actually accounting for 68% of sales (based on figures compiled on Jan 31, 2004 regarding sales figures from 2003). This area of business consists of all of the domestic business

Wal-Mart: The Real Identity

1305 words - 5 pages its worst-ever sales period. Many people today proclaim that Wal-Mart has just lost sight on the main goal, making money. While trying to attract more upscale shoppers, the retailer effectively turned its back on its blue-collar customers. Apparently, Wal-Mart does not care, and is attempting to deceive their usual, everyday customers by incorporating more upscale and pricy items into the inventory of the store (Duke 426). Wal-Mart’s everyday

The Retail King Wal-Mart

1170 words - 5 pages Wal-Mart has quickly become the world's largest company with its one stop shopping convenience and low prices. There is no debating that Wal-Mart is a dominating force in the American and world economy. However, there is a clash between two different views of how Wal-Mart achieved this status. The defenders of Wal-Mart say that they are so successful because they are market savvy and make good economic decisions. The other side argues that Wal

Wal-Mart: The Challenge of Making Relationships with Stakeholders

1161 words - 5 pages 1. Evaluate how Wal-Mart has ranked and responded to various stakeholders. 2. Why do you think Wal-Mart has had a recent number of ethical issues that have been in the news almost constantly? 3. What do you think Wal-Mart could do to develop an improved ethical culture and respond more positively to its diverse stakeholders? Question 1 Many groups have a stake in what Wal-Mart does. Stakeholders can be broken down into two

Wal-Mart and The Nine Principles of Sustainability

983 words - 4 pages According to Marc J. Epstein (2008), to help understand what sustainability is in the context of corporate responsibility, [Epstein has] broken it down into nine principles. These nine principles… highlight what is important in managing stakeholder impacts (i.e. the impact of company products, services, processes, and other activities on corporate stakeholders). (p. 36). Evaluating a large company such as Wal-Mart against these nine

Similar Essays

The Ethics Of Shopping At Wal Mart

1009 words - 4 pages One has to work hard to consider their values in particular issues and how strongly they feel. This is the choice many people make when they invest in mutual funds, and have no idea where their mutual funds are invested. Many vocal opponents to shopping at Wal-Mart might discover they hold investments in the Wal-Mart. There are 1050 mutual funds that are invested in Wal-Mart, some of the largest mutual funds in the world. There are many people

The High Cost Of Wal Mart Essay

2036 words - 9 pages There is a new welfare queen on the block and this one is richer, bigger and even greedier than any account of the 1990s welfare queens that led to the Personal Responsibility and Work Opportunity Act of 1996, which hampered the ability for the 90s narrative of welfare queens to become a reality. The new welfare queen is Wal-Mart and it is costing the American taxpayer a substantial sum each year. Each year Wal-Mart costs the American taxpayer

Company Of Wal Mart Essay

1406 words - 6 pages Wal-Mart Stores Inc. is the largest retail company in the United States and has been ranked number one on the Fortune 500 Index by Fortune Magazine. However despite the fact that the company is big, it has not survived or evaded the normal challenges that corporations go through, irrespective of whether private or public (David, 2012). For instance, the living wage bill of the United States resulted in Wal-Mat threatening to close down its

The Wal Mart Effect Essay

1292 words - 5 pages “Our competitors are better because Wal-Mart exists” stated by the chief financial officer of Wal-Mart. Wal-Mart is a retail store, which provides groceries, electronics, household appliances, and high quality items to consumers. The retail chain has made a household name within every house by selling products all over the world at a bargain price. Wal-Mart’s strength and pace of growth contributed to a retail store in every city and state