A Business Report of Tesco and Walmart Finance Essay This report aim to evaluate two food retailers under two different account standar GAAP and IFRS and prepare appropriate recommendations to the an investor wishing to invest for maximum capital growth in Walmart is a worldwide retail corporation, with over 8, stores in 15 countries, and is the biggest private employer in the world. The company was founded by Sam Walton in in Bentonville, Arkansas. Walmart became publicly traded on the New York Stock Exchange in as they started to expand throughout the US Aug 05, · We will write a custom Essay on Walmart Company’s Problems specifically for you for only $ $11/page. certified writers online. Learn More. Introduction. Walmart is an American retail corporation established in by Sam Walton. It operates large chains of department stores and warehouses where they sell products at discounted
Walmart Essay | Walmart Supply chain
We use cookies to enhance our website for you. Proceed if you agree to this policy or learn more about it. Type of paper: Essay. Topic: Walmartwalmart essays, TradeCompanyLawPoliticsBusinessDisciplineMarket. Pages: Words: Ever since the opening of its first store in in Rogers, ArkansasWalmart today has grown into the biggest retail chain, largest private employer and the biggest company in terms of revenue in the world, walmart essays. Currently, Walmart employs around 2. The company was officially incorporated in as Wal-Mart Stores, Inc. and went public in The company, which is into running supermarkets and hypermarkets in retail, wholesale and other formats operates under three major segments- Walmart U.
S: Operates in all the 50 states in the US, Washington D. and Puerto Rico in three formats and digital retail. Walmart International: Manages the operations in 26 countries outside of U. S and operates in walmart essays formats under retail, walmart essays, wholesale and other categories, walmart essays. The company is headquartered in Bentonville, AR and competes with other retail giants like Costco Wholesale, Amazon, Target, Home Depot etc, walmart essays. The government regulations that have been in existence over the years have played a significant role in shaping up Walmart to the position that it is today. Walmart, or most of the walmart essays organizations engage in lobbying with the Government quarters to get the policies and regulations formulated in their favor.
In an ideal free market walmart essays, the Government regulations will be minimal and the success or failure of a business house will depend on the market forces and the competitiveness of the organizations, walmart essays. However, in the real world, the Government has to walmart essays and formulate regulations to ensure a fair game and level playing field so that no company gets any undue advantages over the others. This section will look into some of the recent regulations that have impacted Walmart both positively walmart essays negatively. This law has put considerable strain on companies like Walmart, Home Depot and Target, but has spared the smaller ones.
Though Walmart had contemplated pulling out of DC, it has managed to run 3 stores in the city till date. However, the company has decided to abandon its plan to open two new stores in DC very recently. S and any move that upsets Walmart will prove to be walmart essays for the Government. Yet another point is the attempt made by Walmart to expand its financial service offerings and to operate as a bank, which remains unfulfilled due to unfavorable regulations. Walmart essays in the case of domestic environments, the various policies and regulations have impacted Walmart in their international operations as well.
As mentioned above, Walmart has operations in 27 international countries across continents and has had to face significant legal and policy hurdles in walmart essays of them. Walmart entered India in in a joint venture with Walmart essays Enterprises Ltd. by setting up the wholesale outlets named as Best Price. However, walmart essays, this partnership set up in broke in as Walmart found it too difficult and non-sensible to expand the business in India due to multiple unfavorable walmart essays including regulations. To make matters worse, this regulation was applicable only to the foreign retailers and not to the home grown well established retail business houses.
Walmart is one of the pioneers not just in retail, but across the industries, when it comes to the adoption of technology for streamlining the processes, cutting the flab and implementing the most efficient workflow systems. Technology adoption plays a critical role particularly in the retail and wholesale industry scenario as it involves satisfying the customer by offering them with the best and latest at competitive prices, walmart essays. Walmart has realized this long ago and has been the champion in adopting the latest in technology, which in turn has played a very large role in building the organization to become the largest in the world.
Currently, Walmart adopts a global approach in implementation of the enterprise wide applications. They have an in-house team dedicated to building, running and maintaining applications across their locations as well as outsource a significant portion of their technology and business process related tasks to third party vendors. Walmart continues to invest significant amount of money on newer technologies in an effort to improve their customer experience, e-commerce and digital initiatives. Similarly, Walmart has made considerable technology investments walmart essays mobile technology in its attempt to improve both in-store and online customer experience, as a result of which their global e-commerce sales witnessed a growth of over 22 percent during the last fiscal.
The company also targets greater customer experience and satisfaction in their walmart essays formats like online walmart essays delivery and pickup by providing the customers with access to their stores at any time of their choice, walmart essays. Walmart has been one of the earliest adopters of the RFID technology when the technology was its nascent stage during the early s. The company is reaping the rewards for this bold initiative as now they are able to serve their customers in the quickest possible turnaround time. The technology investments that the company is walmart essays in e-commerce is focused around four priorities- global technology platform, a highly efficient fulfillment network, talent and merger of online and walmart essays retail.
Clearly, walmart essays company banks a great deal on technology to reduce their operating expenses and streamline the process flow. The political legal barriers for Walmart in both the domestic and international environments will be discussed in this section, walmart essays. S, Walmart enjoys a considerable clout among the political circles. Walmart is considered as one of the top walmart essays donors in the country, the biggest beneficiary being the Republican Party. Walmart has been successful to a great extent in getting the various regulations in their favor Bribing International : One of the significant barrier that Walmart is facing in many international markets is the issue of bribes.
Walmart has been in difficult situation in countries like Mexico, China and India in the past. Some of the other regulations that has affected Walmart in both the domestic and international markets include regulations related to food safety, walmart essays, employment and tax law reforms, walmart essays. Similar to the political and legal factors, there are several similarities and differences in the social and cultural factors between the various nations that Walmart is operating walmart essays. S has been with the countries that have a similar culture and economic environment like Canada and U, walmart essays. Walmart essays though Mexico shows no cultural or financial similarity with the U. The reason cited for this has been the admiration of Mexican public towards the brands across their border.
S, but the very same strategy proved to be an utter failure in China. In China, consumers are more vigilant about the authenticity and quality of products rather than price. Most often, walmart essays, they associate low price with low quality and try to stay away from the stores that make such offers. However, China, still is one of the better run international locations of Walmart and they operate their stores there respecting the Chinese customs and traditions. Another classic example is the case of Germany, where Walmart had to exit after walmart essays decade long unsuccessful struggle to establish themselves in the market.
Also, as in the U. Also, walmart essays company had to instruct its staff, particularly the sales clerks to stop smiling at customers and also had to scrap the Walmart chant as these were proving to be counterproductive in Germany. Not to forget some of the legendary blunders committed by Walmart like trying to sell golf clubs in Brazil or ice skates in Mexico. Height of racks, exposed ceiling, absence of locals in the senior management, selling frozen meat in markets that prefer to buy fresh meat from the butcher etc. are some of the practices which Walmart tried to blindly replicate in the foreign markets and failed.
S is with regard to the relation between prices and wages. The critics of Walmart have always pointed out the high handedness of Walmart when it comes to its employee wages, supplier margins and its impact on the local economies. On the contrary, the supporters bank on the walmart essays prices offered by Walmart to offset any other arguments against the retail giant. Another argument in favor of Walmart is regarding the number of jobs that it create when they start operating a store in a locality, walmart essays. However, it has been proved that the local businesses in that locality run out of business quickly and will be forced to stop their operations. With globalization in force, retailers like Walmart sources goods from the cheapest locations from various parts of the world.
S with a comparatively walmart essays cost advantage, loses out here as Walmart walmart essays not find it economically viable to source goods from the local market owing to its high costs. This point brings us to the case of India and China. This walmart essays puts the company in a disadvantageous position vis-à-vis the local retailers in India who do not face any such restrictions. Whereas in China, the company sources as high as 85 percent of its merchandise from the local market, walmart essays. Another phenomenon that has been widely observed is the lowering of wages across the retail industry whenever Walmart expands into a particular location. Collectively the wages of those in the retail industry witnesses a dip and that definitely is impacting the living standards of those resources.
This may be true when the prices of groceries and other household items are considered. However, when it comes to the things which cannot walmart essays brought from Walmart like healthcare, housing and education whose prices are consistently on the rise, the employees at the retail stores including Walmart are at a disadvantageous position. Many of the success factors of Walmart in the U. S gets applicable to its international segment as well. Technologically advanced supply chain systems, economies of scale, advanced walmart essays methods, a unique culture etc. are some of the critical factors to succeed. However, the company should be careful about the various PESTEL factors in international markets, so that it can avoid any further disasters like walmart essays happened in Germany, walmart essays.
Internationalization- Framing the future strategy by focusing only on the U. S market may not be sensible any more. The important decisions to be made include identification of the markets, strategy for the markets and the mode of entry. Expansion of online retail- One of the greatest threats walmart essays the retail houses including Walmart is the widespread expansion and ever rising popularity of online retail, walmart essays. Walmart is already into it and now should focus on expanding it further and bringing it mainstream. The current idea of the blend of online-in store package seems to be working well for the company. Now is the time to tighten this combination package, walmart essays. De-centralizing the strategies- The Company can share the vision, mission and general policies, walmart essays.
However, the strategies that worked wonders in one country may not always repeat itself in walmart essays geography. The company has to be careful in devising the strategies and has to consider many political, legal, social, economic, cultural and environmental factors that are suitable for a particular walmart essays. Walmart has to ensure the decentralization in order to avoid the repeat of Germany experience. Maintaining the USPs- Irrespective of the geography, the company should ensure the hallmark of Walmart everywhere- price, access, assortment and experience. Barrett, D. Wal-Mart Facing New Challenges from DC Council. Walmart financial services hampered by regulation. Wal-Mart Drops Ambitious Expansion Plan for India.
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, time: 12:28Walmart Company's Problems - Words | Essay Example
Jan 04, · Walmart is the largest retail market in the world according to the Fortune Global list of and was founded in by Sam Walton. According to Fishman (, p. ), the company has more than million employees worldwide working in its various chain hypermarkets, department stores, and grocery stores all over the world Aug 05, · We will write a custom Essay on Walmart Company’s Problems specifically for you for only $ $11/page. certified writers online. Learn More. Introduction. Walmart is an American retail corporation established in by Sam Walton. It operates large chains of department stores and warehouses where they sell products at discounted Essay on Walmart ( words) As Walmart is trying to find a growth engine to increase its sales and revenues, after deep analysis, the business development team came up with the express format strategy; a small-format store found in densely populated areas that offers the size, efficiency, and convenience needed for the customers
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