In United States of America (USA), Wal-Mart is leading and well-known retail giant which has grown to become Multinational Corporation. Wal-Mart initiated its operations in 1962 and it is a corporation that runs large chain of discount departmental stores along with warehouses in various countries (Walmart Stores, 2012). The store incorporated its operations officially in 1969 and start trading stock as the public holding company in 1970. Currently, Wal-Mart has about 4,573 stores worldwide along with 730,000 associates that are evident in the form of their presence in fourteen countries (Vatalyst, 2012). In Canada, Brazil, Argentina and United Kingdom, Wal-Mart has wholly owned operations while it has several joint ventures in China along with some majority owned subsidiaries.
In many international stores, Wal-Mart operates under various banners with one aim that is to provide best quality products at low prices so that customers can save money and live a better life as well. The primary idea behind the establishment of Wal-Mart was to provide high quality branded products at low prices. In order to have low prices, the company ensures that the cost is kept to a minimum level with the help of excellence in warehousing as it has developed cordial relations with its suppliers and advancements in information technology have helped the store to ensure that inventory level is properly maintained (Piercy, Cravens & Lane, 2010).
Economic trends influencing business
Wal-Mart has been severely impacted by economic recession and increase in costs of transportation and utilities. The second quarter forecast of corporation reported that the share prices are lower and profits also reduced considerably as compared to first quarter profits (Cheng, 2012). Lately, shares of Wal-Mart went down to $56.74 which meant it reduced by 2.2%. Other costs that have impacted Wal-Mart's sales are increase in commodities and fuel cost; as a result product placement and transportation became one of the major areas of concern for the store. The number of economic worries for consumers has increased significantly i.e. from gasoline prices that have reached highest prices to housing and credit markets that have declined radically. Such economic downturns have affected the spending power of budget conscious consumers who prefer to shop from Wal-Mart rather than do bargaining for their shopping.
Since economic recession has impacted lives of USA consumers', they are now shifting to Wal-Mart for shopping at low prices (Cheng, 2009). In order to cut down its cost, Wal-Mart has controlled its promotional activities as it needs to maintain certain profit level so that it can survive in such financial distress situation. Wal-Mart still uses its tagline "Save Money. Live Better" and in order to reinforce this image it has expanded into generic drug prescription program. Currently, store is offering 90 days supplies of about 350 medications for $10 and also $4 over-the-counter drugs so it can expand its sales of pharmaceutical products and even bolster its store traffic.
Strategies and Tactics used by Wal-Mart for addressing the changes
Since Wal-Mart wants to reach more customers and observing that industries are getting global, Wal-Mart launched its website in 2010. It consolidated all its E-commerce activities worldwide into one Global E-commerce Division (Parker, 2012). The primary objectives of this Division comprise of developing and executing a global strategy for E-commerce; provide acceleration for global growth of online channel and creation of technological platforms and applications for every market of Wal-Mart.
In order to address the global changes that are taking place, Wal-Mart has revised its business strategies to incorporate these alterations in the market and ensure that they are aligned with organization's main goal of providing superior quality products at low prices. Likewise, attainment of E-commerce goals is difficult as people have various options online but the team of store is striving hard against intense competition that is coming from its competitors such as Tesco, Target Corporation, Costco and many others. The store has developed strong foundation for its online store and is making faster progress this year (Williamson & Zheng, 2009).
Since incorporating challenges happening globally need to be tackled, it has made some changes in strategy implementation plan as well. For instance, it has developed teams that are focusing on separate and dedicated resources allocation in mature and emerging markets. The structure of store is well-integrated into its operating systems globally and each country so that customers' shopping needs can be addressed and customers' demands for multi-channel shopping is being satisfied to a greater extent by Wal-Mart.
Sales of Wal-Mart has increased drastically from its online platforms in various countries and the main reason being that people are looking for convenient accessibility to every day requirements such as groceries, electrical appliances, fabrics, jewellery, shoes, crafts, health and beauty products and lawn and garden accessories along with pharmacy store, Photo processing centre and Tire and Lube Express things. Since the store offers branded range of items, consumers prefer to do shopping from this store and it has always fulfilled its promise of providing quality products and services to its consumers at affordable prices. It has developed its strategies and tactics on five factors that are the main drivers of shoppers' behaviors i.e. assortment, customer experience, price, trust and diverse range of products.
Role of Human Resource Management in achieving organizational goals
It is important for every organization to have a well-motivated and developed workforce that is willing to make productive contribution in its growth. Likewise, Wal-Mart is focusing on change management and knowledge management as strategies for its growth and these strategies have helped it to earn financial gains on its annual production. The stores of Wal-Mart are suitable for organizations, businesses and units in this modern global age in which employees' skills enhancement is the major aim of the managing team. With the help of knowledge management, employees are able to contribute more effectively to stores' improved performance and enhance its efficiently so that it can provide best customers service and counter competition from its competitors.
Conclusion
After analyzing the company from every aspect and information provided by Cheng (2012), investing in the stock of the retail giant will be a smart choice as it has a good return that is evident from its PE ratio that is about 12; PE ratio is the price at which a share is sold divided by the money amount it is earning every year. Along with good PE ratio, it offers growing dividend to its investors on an ongoing basis; the dividend yield of the company is increasing at an accelerating rate. The competitive edge that the retail giant has is its excellent management team who knows the direction in which it should be going and Wal-Mart has successfully positioned itself to be the most efficient and successful company worldwide.
Considering the strengths and opportunities of the retail store, it can be said that Wal-Mart will prosper further in future and it will avail numerous business opportunities and the investors will be able to earn good amount of dividends on their investment. Hence, as a fund manager, it is advised that the stocks of Wal-Mart are best for the company and it should invest in the retail giant stocks.
