The History of Walmart

free essayThe process of starting a business can be very challenging. Anyone who has an interest in business must consider a number of factors, which influence the growth and expansion of business. Walmart is an international retail organization that is based in America. It was founded in 1962 by Sam Walton as a family business. It began in the Northwestern Arkansas. It is headquartered in Bentonville, Arkansas. The company has grown and expanded in various parts of the universe. The business has been rated as the world largest public corporation and has employed over two million workers worldwide. Transnational businesses need much effort given that cultural differences in their new countries may be a part of their problems. Walmart has overcome this issue by using its powerful management. In 1994, it made its first move by opening its branch in Mexico. In order to achieve the goal, it was forced to join a company in Mexico called Cifra. This branch was named the Sam’s Club. The store has become a supplier to many small enterprises in this region. The branch has become very popular and serves clients appropriately. The company never stopped at this point. After two years, there were about 122 stores started in Canada called the Woolco stores.

The company has grown and expanded in various parts of the universe. The business has been rated as the world largest public corporation and has employed over two million workers worldwide. The corporation employs the strategy of selling its products at low prices. In this way, the sales are increased. It has succeeded in the world of business by becoming more profitable than most of its competitors. It has most of its branches in the United States. The business operates in almost all states in the U.S. In order to meet its needs, it has also expanded in other countries, as well. There are stores in a number of countries representing Walmart. The retail shops are popular as a result of their cheap prices. The process of expansion was not a simple task; it required professional organization and management to make it successful. Although there were several problems encountered in the process, they still managed to establish in the new areas. The challenges encountered were part of their success.

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Walmart went out of the continent in 1999, and opened its branch in China. Three years down the lane, it hit the European Market. This was made possible by acquisition of ASDA. It became very successful when it acquired the number one discount chain in British Market. The expansion enabled collection of about 43% of all the internal revenue. This was about $26.8 billion of the total sales. The business is now known in about 27 countries with stores above 11,000 all over the world. It has branches in China, and recently, in 2010, ventured in South Africa. In order to manage all these stores, it means that the firm has many employees from various parts of the world. The paper also tries to elaborate on the organizational design and structure and how it has affected the growth and development up to the current status. In most cases, the growth and expansion of a company is highly influenced by the way the management is being carried out. Some greater changes that have been brought such improvement in the way the business is being done are the introduction of new technology such as use of the internet to market. The marketing process is very complicated and requires a very serious department that can handle it appropriately. In order to maintain the high quality of services to customers, Walmart has many principles and policies that are adhered to by the staffs that are running its operations. The organization is authorized to carry out its operations within the countries that the company has already established its branches. These qualities are vital in establishing good relationships amongst workers and employees. There are still risks and problems that influence the growth and expansion of the corporation. The way these problems are dealt with is very significant in changing the process of running the organization. Some risks are economical while others are competition. Therefore, it is competition that enables corporations to expand and meet the needs of their clients. For example, there are varieties of retailers that are coming up in the international market to beat Walmart. Competitors use a number of strategies to draw the attention of most customers. They reduce their prices and improve on their services to customers. Walmart has tried to keep the prices of their commodities as low as possible to retain as many customers as they can. There is also need to maintain high quality services to all customers to remain at the top in the market. The behavior of consumers is another risk to worry about. For instance, the Chinese market has been very challenging. The customers in China do not appreciate the Walmart strategy of low prices. This has forced the organization to shut down some of its stores in this country because of low sales. The customers in this region believe that low prices are associated with poor quality. The sales have been adversely affected by such behaviors. In order to avoid further losses, the business has changed focus to product differentiation. The conduct of customers has also been realized to influence the business in Brazil. The customers do not prefer buying products from big stores. They also purchase their products in small quantities. In order to become an international giant, a lot of efforts have been always put in place. Most customers have made Walmart their best choice when it comes to shopping for their households. Even people in the business still buy their products from this firm and sell it to other people. In this way, they are able to earn profit. The essay also looks at how the various divisions are playing their roles toward achieving the goals of this corporation. A good management will always think of ways and means of improving the sales and mitigating the hazards that are likely to affect the business operations.

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From this study, it can be concluded that although Walmart began as a small business, but has transformed to international levels. The efforts that have been put into this organization have changed the way it was managed. It has several branches that are situated in different countries all over the world. Wal-Mart employed the strategy of low prices to penetrate into the market and compete with their rivals in this industry. In some cases, they had to make ventures into new regions. The business moved outside the United States and went to other regions. New divisions were created to help in handling various roles to boost the operations. The divisions are headed by chief executive officers who must make sure that the objectives are achieved within the time limit. The management has tried its best to deal with the problems that arise from every corner of this business. In order to achieve some of these goals, employees had to be treated appropriately to reduce their turnover rate. The quality of their services also remains high. This conclusion comes from the fact that they are still able to retain many customers in different countries all over the world. Most customers are known to prefer quality services from their sellers. The success can also be attributed to the fact that the organizational structure is well planned. If executive management fails in its roles, it would be difficult for the whole firm to realize the benefits. During their operations, there were cultural differences that almost hindered the success of this project. It forced them to understand the cultural practices to enable them to continue. Standardization of the international culture can be very useful in expanding any form of operation. There are also other current risks that are facing the growth of this business. Some of these risks may be encountered in the future business, as well. In terms of economy, Walmart should set a department to look into things such as foreign currency and exchange rates. In cases where by inflation rates are expected to go high, the company may seek advices from the specialized branch to pull down the business before things worsen. The fluctuations in the exchange rates have affected the value of money all over the world. Laws and regulations are the major risks that are likely to affect the growth as well. The organization has tried to follow the rules and regulations of each country they venture into. In this way, they are able to get licenses for their businesses. Compliance with the regulations is the best way to carry out the operations peacefully without being charged in courts.

The consumer behavior is also worrying because from the study, most of the stores in China have been shut down because of the consumer reactions to their low prices. The Chinese market may require proper marketing strategies. These people believe that low prices of commodities are associated with poor qualities. Some of these people just require information about the products and services to buy the products. There is stiff competition among other retailers in the market that also want their products to be realized. The organization will have to consider changing the strategy to increase the numbers of customers. There is a need for more research work to be done for the management to penetrate into other regions with ease. As long as a firm has set its mission and vision in the right way, it will always work towards these strategies. The success is not only dependent on the management, but also on employees who can also give their opinions to mangers at any time. The cooperation between the subordinate staff and the management is very crucial in mitigating some problems before they affect the operations of any company. If the departments are given their roles to perform, they should take some seriousness and focus on their duties. For instance, the division that deals with online business made a very vital move by coming up with the idea of enabling customers to purchase products online. With online shops, customers from various parts of the world have opportunities to order for what they want. The customers can still communicate with customer support service for any inquiries. The role was left in the hands of the Walmart ecommerce that has made efforts in ensuring that online marketing is part of the great changes in this operation. There are possibilities of any business to change and transform into a multinational organization with proper planning and management.

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