Strategic Analysis of Walmarts Advantages in its Environment

Strategic Analysis of Walmarts Advantages in its Environment Strategic Analysis is to analyse Walmart macro-environmental and micro-environmental. The analysis methods use such as PESTLE Analysis, Porters 5 Forces Analysis, SWOT Analysis and Competitive Advantage to analyse the corporate business environment. PESTLE Analysis PESTLE is the structure to investigate the volatile business environments in which Walmart operates by discovering the forces that effecting the corporate operation. Political and Legislations Environment As Walmart operates in the global scale; the performances of the corporate are influenced by the political and statutory law of the country invested. For instance, the employment statutory laws of a country are to ensure investors provide varieties of jobs to its population at large from flexible, locally based low paid jobs to centrally located high pay jobs (Balchin, 1994). Besides that, the go global strategies has its impacts on the local retails market when a giant company such as Walmart penetrate into the country it causes local retails shutting down due to incompetent to compete in term of its predatory pricing policy (Basker, 2007). The author indictment that Walmart paying low salary to its employees; to protect its competitiveness in its retails market but it leading to high turnover rate of its employees. Economical Environment For the past four years, the world facing global economic crisis which leading to high unemployment, increases of fuel prices, and losing consumer confidence  [1]  . However, the crises assist Walmart to sustain its retail businesses even though the fuel price escalating above US$ 100/barrel because consumers becoming price conscious on seeking products value for money. The strategic uses by Walmart Canada: 1. sharing the truckloads with the suppliers to ensure all fully loaded, 2. switching manual stocking shelves to automatic tilted shelves which will deliver next item to the front, and 3. lowering the lighting and increasing the roof insulation, (The Star, 2008), as to reduce its operating costs. Socio-Cultural Environment As Walmart go globalise, the corporate has to adapt the changes of social and cultural differences because it can easily affect employees morale in workplace and consumer experiences. Based WPP (2008), Americanisation is not easy to establish in foreign countries because of the heterogeneity of perception, language, cultural and needs especially in European, Asia-Pacific and Africa (Sorrell, 2008). Environment and technological Environment Environmental and technological plays a significant part in the Walmart products/services developments because it improves customer satisfaction and perception in their shopping experience and observation. Besides that Walmart is one of the fastest retailer to adopt latest technology in their business operation. For example: radio frequency identification technology (RFIT) which reduces its out-of-stock goods with this technology (Wilbert, 2006) and using thin film solar technology to boost its renewable energy uses which could produce up to 22.5 million kilowatts hours of clean energy annually (Walmart Stores Web Site, 2010). Besides that, Walmart adopt eco-friendly products such recycle bottle, shirt made of transitional cotton and sustainable coffees (Walmart, 2008). Porters 5 Forces Analysis In order for Walmart to find an effective source competitive advantage; the Porters five forces analysis is uses to analyse its market environment to sustain and develop its customer foundation and ensure a profit (Collins, 2010). Threat of substitute goods and services Threat of substitution in supermarket/grocery store is lower on foodstuffs but moderate to high on non-foodstuffs. In food retailing industry the main concern is the convenience store and the greengrocers which easily substituted by the consumers. However, it does not position a direct threat to Walmart because their market size relatively smaller and compare to Walmart they are no match in term of the corporate cost leadership generic strategy and its predatory pricing of everyday low price which make difficult for a small retail chain to compete (Hayden et al., 2002). Nonetheless, Walmart is always looking for economical substitutes on the market and to retain its loyal customers. Threat of entry of new competitors In supermarket/grocery stores threat of entry is minimise as it required a lump sum amount of money to build up brand name and competitiveness. However, the renowned leading food retailers have already secured its brand name globally such as Tesco, Carrefour, Aeon, etc  [2]  . Besides that, in order Walmart to set up a new supermarket it required extensive time and resources before the proposal authorised by the government. In addition, government protectionism  [3]  on local goods, suppliers and retails industry might create unforeseeable threat of entry into new market. Intensity of competitive rivalry Rivalry in supermarket/grocery stores is commonly high due to direct competition against local supermarket, multinational supermarket such as Tesco, Carrefour, Aeon, etc. These retailers will compete against pricing, products, promotions and expansion of its stores occasionally (Duff, 2010). During post global recession 2010, Walmart profit boost 3.6 percent during second quarter from its cost cutting and strong global market growth in China, Brazil and Mexico (DInnocenzio, 2010). In additional, the reason Walmart growth is due its emphasis on foodstuffs which helps the corporate survive during recession period compare to others retailers which more emphasis on non-foodstuffs products suffer loses (Gregory, 2009). Bargaining power of buyers The buyer power is moderately high because goods especially the foodstuff in the retails can be easily substituted with other brand name since the switching cost is relatively lower. Besides that, most customers are price conscious which easily draw away by low prices since price can be easily compared and determined before purchase is done (Gregory, 2009). Bargaining power of suppliers The suppliers power is quite low because suppliers are always concern of losing its contract with giant retailers such as Walmart. Besides that, Walmart easily obtain lowest goods price from the suppliers since Walmart is the leader in retail industry (Chandran, 2003). SWOT Analysis SWOT analysis illustrates Walmart corporate strengths, weaknesses, opportunities and threats Strengths Competent supplier chain management practices. To ensure Walmart products price remain competitive; Walmart carry out few techniques to lower its products costs as shown below. Obtaining goods directly from the producers; to reduce intermediaries costs. Owning private transportation system; to reduce transportation costs. Practicing cross docking technique where goods obtained from producers delivered directly to customers and by this the corporate could reduce the handling, operating and storage costs. Providing the latest IT and communications systems; to ensure effectiveness of tracking sales and stocks besides that it helps the corporate to reduce unproductive stocks. (Chandran, 2003) Predatory Pricing. Walmart goals are to ensure all goods remain lower pricing. According to ICMR (2004) mentioned that Walmart goods is 20 percent lower compared to its competitors. Besides that, the corporate manage to boost its price-conscious customers loyalty based its pricing strategy Weaknesses Unable to adapt to different countries. Walmart penetration into China and Germany is a failure as the corporate incapable to recognise the macro-environmental differences in those countries. Walmart China  [4]   Walmart is facing difficulty in market protectionism and its regionalism governmental across China. Besides that, the government is also eyeing and controlling foreign retailers movement- to ensure Chinese goods are being sold in the market, and cause Walmart unable to monopolise its supply chain and business prospect leading to higher operating costs (Huffman, 2003). Walmart Germany  [5]  6 Walmart failed to comprehend with the local culture as the CEO (Rob Tiarks) ignore to learn German language and make English as official language in the management level (Knorr Arndt, 2003); Its action has offended their Germans employees which shows that the corporate are lacking of management skills and intercultural competence in foreign countries. High law suits against the company. According to Knorr Arndt (2003) remarks said that Walmart Germany has against the Germany laws and regulations by disclosing financial information, predatory pricing by selling below its cost price and failed to show shareholders its business activities. It is a serious matter where Walmart ignoring the key principles of its globalisational strategies. Opportunities Unemployment could be reduced as Walmart expanding its market. It will help to reduce unemployment rate and provides over 22,000 jobs locally and internationally (Walmart, 2009). Increase in consumer purchasing. Walmart as Everyday Low Price retailer could attract lower and middle income families for its cheaper goods price especially in developing countries in Asia, Latin America, Eastern Europe, and Africa. Threats Walmart facing bad publicity of their stagnant salary which never increases even though the corporate is earn profit. Based on UFCW statements saying that the salary paid unable to sustain a family, and besides that the organisation challenge Walmart of their worker rights, equal opportunities and corporate responsibility (UFCW Web Site, 2009) The competitors threats facing by Walmart is Kmart, Target, Home Depot, Kroger, Aeon, etc. Competitive Advantages Based ICMR (2003)  [7]  , Walmart has the most outstanding supply chain management with the use of the latest IT and communications system; e.g. barcode and RFIT to track sales and stocks inventories. Secondly, Walmart enjoy the benefits of low transportation costs as the corporate own the transportation system; to reduce costs. Thirdly, Walmart benefits from its bargaining power in buying large quantity of goods; to ensure the price remain competitiveness where the corporate can provide higher discounts to its customers. Lastly, the uses of the cross-docking system which is focus on the demand chain where goods only deliver upon customer request e.g. Walmart E-tailing (Chandran, 2003). [Words Count: 1486/1500]

Environment is our surrounding

Environment is our surrounding which includes everything from a non-living to a living being. There are two kinds namely the natural environment and Built environment. In actual parlance if one has to describe a natural environment it is one that has natural existence and the built is one that man is responsible for like the dams cities etc. The natural atmosphere is being polluted due to the unnatural factors. While natural causes like volcano's have its own turn in causing pollution it is the man made ones that are more rampant. It is the reckless and the caustic human ature that is primarily responsible for the environmental pollution.It is the self centered humans that are causing more destruction to the environment. It is natural for every human being to live in the circumstances they are born and any changes to it causes a lot of trouble. Built environment, which lacks natural components, has become quite significant in today's era. There is a lot of environmental peril that ha s been responsible for the problems associated with mother earth like Global Land degradation and pollution ,water polution,wast of forests,expended desertsveen ouse effect,global warms and polar ice cap melting.Global Warming is defined as the increase in the average temperature of the earth near surface air and ocean since the mid 20th century and its projected continuation. There is a lot of heat caused to the earth due to the green house gases that get rapt in the suns rays thereby causing global warming. The growth in population and also the economic advancement that has added to pollution as well is the causes that affect the environmental corrosion . Every living and non living thing is being affected by this so ne must understand that biophysical environment is meant for all and understand the importance of ecological balance.I think that everyone can take steps to control all the essential things affecting the pollution. The consumption of petroleum has to be brought down b y one and all. The first step towards reducing our dependence on petroleum is to understand what products are made from petroleum. It is necessary that one takes sufficient measures to reduce the environmental degradation. It is better that we look for natural solutions like shift to a more fuel efficient vehicle make se of paper bags try to economize by using the car pool or public transport, go by walk or use a bicycle, recycle things etc.It is the responsibility of every person in checking the causes that affect the environmental disaster and play a positive role in improving it and these things have also got to be mentioned. One must realize the importance of a healthy environment and that it is for his own benefit to protect it and to take measures to make the world clean and green because as the proverb says â€Å"We wont have a society if we destroy the environment†. Environment is our surrounding By Procop8

All About the 12 Labors of Hercules

The American Dream The 10 Principles Of Concentration Of...

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To just ify this Chomsky uses different types of evidence like the U.S. constitution, excerpts from Adam Smith, and ideas for James Madison. â€Å"...nevertheless felt that the United States system should be designed, so that power rests in the hands of the wealthy.† (pg. 1) This quote proves that, from the beginning and throughout history, the wealthy, powerful and elite society have created a system so they are always in power and people who aren’t a part of the elite struggle to achieve powerful status. As well as using extensive amounts of evidence Chomsky uses rhetorical strategies to convince the readers that he is right. Loaded language, comparing and contrasting, and cause and effect are some of the strategies he uses. 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