Discuss Global Business Community of Wal -Mart

Global Business Community of Wal -Mart

Wal-mart strategies and master plans are famous in the economy of retail strategy i.e. consistently reduced prices and high level of customer service. The company is currently the largest retailer in America and it has it branches in all the fifty states. Many commentators have been surprised by the way Wal-mart is growing very fast. The company has had number of effects that illuminates a large gap in our understanding of growth of many organizations. (Bianco, 2004)

Society has enabled the company to expand its investment and hence experiencing rapid growth. The company benefits society in that it sells its products at low priced due to the fact their little costs in production because of efficient and effective systems and master plans it adopted. Society has considered this company the best and research shows that consumers save $50 billion per year in food prices alone. This factor has made the company to make large volume of sales. The society has also forced local business to reduce the prices of their products due to competition from Wal-Mart. The company adopted the idea of stakeholders’ engagement through engagements, group efforts and outreach initiatives. (Lori, 2005)

The culture that the company ruins is the customer. Employees in the company are equipped with full knowledge concerning their payment and benefits package. Most members of the society do prefer working in the company hence it has huge force of labor than other companies. This enhances efficient production which enables the company to gain competitive advantage. It has been source of employment to many people in the fifty states of America. This has enabled the company to expand rapidly (Bianco & Anthony, 2004).

The managed economy of US and transformative economy has been made possible by technological advancement. Wal-mart has access supply-chain management software which fosters efficient consumer response through efficient production. The introduction of proficient customer response software technology brought remarkable growth in the company. The information pertaining sales could be easily transmitted and this enhanced constant regulation of the stocking and restocking. The new technologies in the US were employed by Wal-mart e.g. microprocessor as it was one of the transformative forces to the company. The new technologies also enabled the company to restructure supply chain. It adopted the IT in the storage and transport of goods which was more efficient hence leading to more profits which could be used to expand the company. The technology also enables the company to predict the number of employees at any given time hence there was no shortage of labor. Further more, the company persuades the suppliers to adopt electronic data interchange in order to regulate the volume of stocks. (Lori, 2005)

General environment is very important factor to any organization. Demographics are some of the elements of general environment and should be understood as it is quantifiable. Demographics comprises of elements such as rising or declining affluences, aging population, changes in the ethnic population, geographic distribution of people and income level disparities. Wal-mart designed products around certain key demographics (Bianco & Anthony, 2004). Demographic segmentation has enhanced effective marketing and advertising. The company identified has focused on opinions, likes and attitudes of certain groups. It has further created messages that cause people identify with those ideas hence the company has been able to respond to market demands. The company has derived value from this element in the sense that it managed to make more sales. Sociocultural forces have been designed to create value for Wal-mart of a society (Lori, 2005).

Reference list

Bianco & Anthony. (2004). Strength of Wal-Mart. Business Week. October 3. 140-157.

Lori G. (2005). Economy and Technology impacts on Wal-Mart.: Measuring the Costs. Institute for International Economics. Washington, D.C. 220-240.