Walmart Organization

Walmart Organization

Introduction

According to BARBERÁ (2014), Walmart Inc is the world’s leading company in terms of revenue. Formally known as Wal-mart stores Inc. it is an American multinational retail cooperation with its headquarters at Arkansas. The company also controls the other 11, 503 subsidiaries in other parts of the world (BARBERÁ, 2014). The organization deals with chain stores such as hypermarkets, departmental stores and grocery stores. In the plight to ensure the organization soars high, the management focuses more closely on the forces that affect the operation of the firm, whether directly or indirectly with an attempt to improve them. An analysis of these factors like technological, social-cultural, political, and legal ensure the firm is at toes with its goals..

Firstly, in terms of technology, the firm needs to address trends that would enhance its operations. Through increasing automation in the company, there will be an ease in the activities hence an increased level of outcome (Roberts & Berg, 2012). Likewise, emphasizing on the use of mobile devices by customers will ensure convenient services are availed to them, thus yielding more satisfaction. Alternatively, Walmart Inc. may major in online marketing which secures a wide range of customers in a short time (BARBERÁ, 2014). This helps boost productivity and marketability of the firm’s services; hence more revenue is generated.

Secondly, BARBERÁ (2014) states that the political and legal factors often affect the operations of Walmart Inc. Political forces entail government policies and political interest groups. For its success, the firm needs to ensure high political stability, by adhering to government policies (BARBERÁ, 2014). Likewise, safeguarding and respecting the opinions of the interest groups is a factor that will boost the organization tremendously. Also, the firm may politically support globalization which may help market its services and efficiencies at a higher rate. The legal forces, on the other hand, constitute the laws and regulations that govern its operations as a corporation (Roberts & Berg, 2012). With measures set aside such as food safety regulations and tax law reforms, the company needs to ensure total adherence for its success.

Additionally, Walmart Inc considers the social-cultural environment as an onset factor that would impact its success. These forces constitute the client tastes, preferences and perceptions regarding the products of the fir (Roberts & Berg, 2012). By fostering the production of more healthy products, the firm will attain a higher margin of consumer response than ever (BARBERÁ, 2014). Diversifying its products to suit the various preferences of people from different cultures is also a significant step to venture. Likewise, BARBERÁ (2014) recommends that shifting its location to more urbanized areas would help cover a more considerable margin of more cultural demands as well as lengthening its market.

Moreover, Walmart Inc. also takes a great deal in looking out for task forces that influence its success daily. For instance, the organization’s customers determine their success more often (Greenspan, 2015). The firm is faced with a challenge of a population of diversified and increasing customers. To counter this, BARBERÁ (2014), Walmart Inc. aims at increasing its productivity levels to suit the rising demand as well as diversifying its products to ensure consumer satisfaction.

Roberts & Berg (2012) state that the competition force is another determinant for the success of Walmart Inc. With an existing threat of new entrants in the market and already existing competitors, the company aims at remaining outstanding. For instance, entry of retail firms in the market cuts down its markets and automatically lowers the level of turnover. In ensuring its success, Walmart Inc. should aim at moderating the costs of brand development that tends to boost the prices of its products (Greenspan, 2015). Alternatively, the firm intends to lower the cost of operations, thereby moderating capital costs.

Conclusion

From the above factors, Walmart Inc. management ought to consider them to ensure the success of the company. For instance, observing the regulations set and ensuring political stability will create a serene environment for the success of the business. Also, coming up with criteria to counter competition will provide the firm maintains its position in the retail market. Alternatively, diversification of products will suit the demands of clients from various cultures.

References

BARBERÁ MARCILLA, L. A. U. R. A. (2014). Business analysis for Wal-Mart, a grocery retail chain, and improvement proposals (Doctoral dissertation).

Greenspan, R. (2015). Walmart: Five forces analysis (Porter’s model). Panamore Institute.

Roberts, B., & Berg, N. (2012). Walmart: Key Insights and practical lessons from the world’s largest retailer. Kogan Page Publishers.