Case Study - Walmart

Case Study - WalMart

Problem /Issue Identification

Wal-mart , indeed the most powerful company not only on the local but also in the international market . With the large market share that it has and the influence that it can impose on the market , Wal-mart is currently making its way to its peak of growth . Compared to other retail companies in the market , competition is not the one that brings problems to Wal-mart . There are a lot of different kinds of problems that contributes to the headache ' of Wal-mart 's top management

One of

the problems that the company faces is its suppliers . Wal-mart 's suppliers are complaining the demands of the company , demands that bring growth to the company . It is said that Wal-mart tries to demand more but pay less . Well , my view point regarding to this claim is that , in the first place , the company should not sign the contract with Wal-mart if at the middle of the performance of the contract they know that they will be the one who gain less . Setting aside my opinion , the bargaining of suppliers to Wal-mart made the company to find solution that would somehow compromise the demand of their suppliers . The question now is- HOW ? This question is the one that bothers the management of Wal-mart

Another problem that is being faced by the company is the complaints of the workers regarding their unpaid overtimes . It was reported that many employees of Wal-mar was forced to work overtime and worse than that the unfortunate workers was not able to receive the payment for their overtimes . This made a big controversy to the general public and Wal-mart is afraid of the possibility that consumers would sympathize with their workers . There is a great possibility that due to the said controversy , sales and revenue of the company would negatively be affected . In addition to this , there is a threat for the government to impose them sanctions that would affect their financial stability . This are the reason how workers become one of the major problems of Wal-mart

Economically speaking , most of the economists were claiming that there would come a time wherein Wal-mart could no longer sustain the pace of their growth for the past years . These make a big uncertainty for future investors of the company . They would become threaten by those statements and thus , would negatively affect the demand of the investors to the company 's stocks . In effect , prices of company 's stocks would decrease giving Wal-mart with less capital to fund its operation . Having a big capital in the company would mean a lot to them especially they are operating internationally . They need to have more stockholders in for them to finance the day-to-day operations of the organization as well as to fund their plans for expansion . Reputation and stability of the company is the one that determine the demand of the stockholders From their point of view , it would be risky if they invest on a company that is...