Essays on Wal-Mart Family Run Business Case Study

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The paper "Wal-Mart Family Run Business" is a perfect example of a business case study. Wal-Mart is among the successful family-run business in the United States. The company ranked the largest retail and corporation in the world operating in more than 11,450 stores across 27 countries (Wal-Mart, 2015). The company has various retail shops across the world operating in more than 71 banners, of which the stores are booming economically. Currently, the company has employed more than 2.2 million associates across the world. By late 2014, the company's financial statements indicated a net sale increase of 1.9% to $ 482.2 billion (Wal-Mart, 2015). Findings Diversified products keep Wal-Mart competitive The Organization staff leaders from multiple industries of the organization, who are the team board members, are from the family of Sam Walton’ s, the founder.

Wal-Mart product ranges from food to non-food commodities. The products come with a variety of health and beauty products, electronics, fabrics, family apparel, jewels and shoe designers. In addition to non-food products, the company offers banking services and pharmacy stalls to diverse its reach to customers. The diversification of the products in the market places the company to remain competitive in society.

Companies, which specialize in a specific product in the market, are likely to be outshined by a new entrance or its closure if raw materials cease to exist Skilled Public Relation The Company maintains impressive public Relations. Employees and management use the open door policy for effective communication, which is a critical aspect that will always determine policies implemented to meet the interests of associates and customers. The company to listen to customers' and employees' views regarding Wal-Mart services through a system known as servant leadership policy (Wal-Mart, 2013).

The company introduced the fair pricing of commodities with intentions of helping customers around the world to save their money and live a better life (Wal-Mart stores Inc, 2015). Such desirable services win the hearts of its customers to remain loyal to Wal-Mart Company with more customers that are new are registered, hence maintaining its competitive strategy. The operation capacity of Wal-Mart challenges new entrants into the market. The company has diversified its services to different countries with many retail shops. The company is also able to accommodate more customers with enough commodities at a square foot of 185, 000 (Farfan, 2014).

With such structures, the organization has integrated technology equipment, which boosts the performance of services. Technology facilities contribute to selling off products online, saving time through the waiting line, reduce spending on manual services with the replacement of technology facilities and attractive advertisement for online shoppers. It is easy to access the shops and the purchase of products is 24hrs daily to weekly. Growth financial analysis                       The continuous financial growth of Wal-Mart indicates that the company is still competitive in the market.

Wal-Mart's net income has been on rising between the years 2012 to 2012. Pestle involves the political, economical, social and technological factors within the environment. Wal-Mart Company tends to adhere to all aspects regulated with Pestle to run efficiently without challenges. With the company following the advertisement of products law, it is working in line with strict measures of government law, which if gone against penalties are in place (Lister, 20140). Wal-Mart Company offers products that are consumer-centric, which favor all customers irrespective of their ethnic background.

The company is strategizing on how to recycle all of its waste products to maintain ecological conditions. Furthermore, to manufacture products that can sustain individuals and the environment (market and research, 2011). SWOT ANALYSIS OF WAL-MART COMPANY STRENGTHS Wal-Mart Company is the largest retailer in the world marketing (Farfan, 2014). The company has impressive outlets both international and locally which contributes to 50% higher sales compared to its competitors (Thomas, 2011). The company is also a price leader in winning the heart of the customers by providing for them a fair price product with changing economies.

The integration of technology in the company has boasted operation effectiveness, which saves time with a non-zero error of efficiency. The company does provide a variety of products hence it can still account for its profits if were the seasonal sales experiences challenge or ended. WEAKNESSES The company is fond of lawsuits. The lawsuits focus on misuse of employee’ s labor forces, unpaid overtime working jobs, poor working conditions and gender discrimination (Yglesias, 2013). Workers were exploited since they were voiceless. The company also received a child labor violation fine of $ 135, 540 of which these funds could have been spent for the company economic growth.

Low wages with due time will make the employees seek resignation from the company. If that trend, then the company will lose the market to its competitive retails. Different stores in different countries make certain weaknesses in the company. Financial crises or economic depreciation will challenge the financial responsibility of specific retail. Other retails will have to offer financial support yet the money could have been used for development. The quality of the product might be high to the challenges, with various claiming that currently, the products from Wal-Mart are not of quality (Reed, 2011).

Offering low pricing commodities has contributed to such complaints. OPPORTUNITIES Online retail sales are the current trend and Wal-Mart should merge the availability strategies to make sure online selling is fully exhausted. The current notch web win against its competitors like Amazon shows the potentiality of the company to fully integrate online services (shelly, 2014). The company brand should be expanded to the developing market with the interest of putting the retail shop in that location to tap availability on new resources.

Commercial banking should be motivated since the company and clients benefit from interest rates. Develop customer shopping satisfaction. This can be done with how goods are delivered, assisting customers while shopping, quality packaging of products and right descriptions of the purchased products. Such practices will certify customers and will always want to come back (Geisler, 2012). THREATS The company being displayed to the public of the ongoing lawsuits poses a threat to the continued gaining of more customers.

Instead, the majority of the customers will be tempted not to be associated with the company of its wrongdoings (Yglesias, 2013). Upcoming opposition groups, which include community, environment, political parties, and unions, pose threats to the company. If two countries differ with a fracture in its international relation, the likely hood of retail shops in countries of conflict will not function well. Wal-Mart 4R’ s investing in retail could not work out in Germany with people postulating it could be the above-mentioned reasons (Ashoworth, 2014). Global economic conditions with economic meltdown pose threats since the company lowering prices commodities find it cornered on how to make profits with keeping its loyal customers. Conclusion Conclusively, currently, Wal-Mart is the biggest retailer in the United States and the biggest company with employees worldwide.

With its size, the company benefits higher from the economic market scale. The integration of the technology system into its supply chain management reduced the cost spends on manual labor and wastage of time. The company has diversified its products from groceries to electronics, and gas stations. Diversifications as attributed for this company to be competitive in markets hence pushing out other companies, which could have specialized, on a specific product.

The main essence is to offer its products at favorable price to attract customers and maintain loyalty. In contraries, the company has a bad reputation, international barriers, and differentials strategy. This is a huge threat to the company and it requires a very skilled person to pull the company out of its mess. Recommendations                       The company should continue to come up with innovations to find ways of improving its service and quality of products.

In addition, innovations and skills should not alter the favorable prices of commodities to consumers. Rather than to continue opening the discount stores, the company should invest highly in supercentres stores which are known to be the pillar of Wal-Mart. The use of radiofrequency identifications of suppliers lowers the costs. Using this technology helps in distribution efficiency curbing challenges that were encountered during the unloading and checking of distributed products.                       After conducting research overseas, after failing to win Germany, the company should take risks and invest overseas where it can tap the majority of resources.


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Farfan, B. (2014) “Largest U.S. Retail Chains on the 2012 Global Powers of Retailing List – Top 100” Available online at:< www.> retrieved 22nd April 2015

Geisler, M. (2012) “International Marketing and Wal-Mart missed opportunity” University of Arkansas

Reed, A. (2011) “Wal-Mart Cuts Some Health Care Benefits” New York Times

Research and Market report. (2011) “Country Analysis report – USA In depth PESTLE insights” Available online at<> retrieved 22nd April 2015

Shelly, B. (2014) “Wal-Mart Notches Web Win Against Rival Amazon” The Wall

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Thomas, J. (2011) The diffusion of Wal-Mart and economies of density” Journal of the econometric society

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