Analysis of Walmart

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The sales of walmart declined by 2.2% on average of 2 years.

In order to improve the situation, the firm increase investments in the regions.

CHINA :

In China, the company’s problems are much deeper. Even after 18 years of operation, WalMart’s Chinese business has grown to just 405 stores. The retailer has had problems in understanding discerning Chinese consumers as their buying decisions aren’t always price driven. The company is closing 2 underperforming stores and has a bad reputation of it’s food, qualified of unsafe.

BRAZIL :

In brazil, the firm is faced to competitors like carrefour and casino that embraced Brazilians’ penchant for shopping around for the best deals.

SOCIOLOGICAL

It’s important to know that Walmart model is based on the American way of life and their attraction for mass purchasing. Then the best part of the world where the company makes more profit, its obviously the USA. As many Big firms, they are faced socialogical constraints. These constraints may change in functions of economy of the country and also culture. For example a developed country will be mor interested to the respect of environment standands, with less polluting products. While in some countries this matters desn’t have importance comparing to the price, people looking for less fair price.

The clash of cultures, languages, and habits that has now become the norm is also illustrative of potential problems. This is the main problem faced by the firm in china, people are more interested by the origins of their foods, something that the company didn’t handle very well. In India peoples get used to went in their small traditional stores. And these traditional store will still contrôle 85% of the indian market.

Social relations play a vital role in economic transactions.

There are several areas of concern for Wal-Mart. These can be divided up into categories: Extensive labor relations problems, Community Relations Problems, and Miscellaneous PR Problems.

The most big faillure of the firm is the labor issues of their workers. GlobeScan examined the public’s perceptions of Walmart and found that it was cited as socially irresponsible by many more than described it as responsible. This affect significantly the publicity of the company, many lawsuits for employees issues. And as long as perceptions continue to be shaped by employee treatment, the company risks erosion of its market share. Indeed, 38 percent of Americans say they have punished socially irresponsible companies in the last year, either by shopping elsewhere or criticizing them in conversation with friends and family.

Extensive labor relation's problems are common at Wal-Mart. Generally, the company is opposed to Unionized labor Wage issues, shift scheduling, and workplace rights abuses are cited by labor groups. This seems to go against its founding principles of respect for employees. The company is also in frequent legal trouble with regulators and union groups in the courts.

Community relations' problems are bound to exist with a corporation the size of Wal-Mart. Likewise, when a corporation is as successful, many a nay-sayer will challenge and scrutinize the company. Complaints mainly arise from community groups accusing Wal-Mart of destroying the local retail environment in the downtowns of small towns. Those put out of business by the giant retailer are among its most ferocious critics. The

company is accused of monopolistic behavior. It wages aggressive price wars, and uses its power to bully its suppliers.

Other public relations problems vary from zoning violation complaints, to itemized complaints from competitors of Wal-Mart using its power unfairly. Censorship, for example, came up as an issue. Wal-Mart publicly believes in "Family Friendly" products, therefore if a movie or CD contains "mature content" the company will not carry the product for sale. This has caused much criticism from various groups.

TECHNOLOGICAL

Nowadays, technology has a grater impact on any business. This factors includes ecological and environment aspects. Walmart spent a lot in research and development, the company try ro reduce the impact of store’s energy consumption. They plan to use film solar less impactfull on the environment than panels solar. Walmart will use this systhem to 30 sites, california, arizona, hawai… But also wind energy in texas.

MEXICO :

In Mexico, Walmart is buying energy from a local wind farm for 348 facilities and has installed solar panels on two facilities.

CANADA :

In Canada, Walmart is testing geothermal, fuel cells, solar and wind, and is the largest corporate purchaser of low-emission power through a local provider of clean, renewable energy.

This will allow them to reduce their expenses and help the development of the market. Avoiding them to produce more than 11,650 metric tons of carbon dioxide, equal to taking off the road more than 3000 vehicles. Nowadays people are more sensitive about the respect of the environment, and no firm know that better than Walmart.

This Project allow them to create 500 green job, something that may have an impact on consumer’s percepttion.

ENVIRONMENTAL

Between 2005 and 2012, Walmart and the Walton family gave more than half of their total Congressional campaign donations to members of Congress with lifetime scores of 30 or less on the League of Conservation Voters scorecard (meaning they voted against the environment at least 70 percent of the time).

Indeed, despite their green power projects, announced by the media, in 2013 walmart remains the biggest polluters, compared to its competitors, Kohl’s and Staples, who switched to 100% renewable energy consumption. Walmart’s use of coal-fired electricity in the US accounts for 37% of its total reported global greenhouse gas emissions and 74% of its US emissions from electricity.

CHINA :

In China, in 2009 the firm has given to more than 20.000 of their suppliers, five years to comply with their environmental rules. The new requirements announced will force workshops that produce a lot of toys,