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The famous author, namely Michael E. Porter (1980), in his well-known book, mentioned that for a corporation, three core competitive strategies had been observed, such as cost leadership, differentiation and the focus strategy. In order to achieve the competitive benefit, corporations always use a competitive strategy. Like some other companies, Walmart adopts a cost leadership strategy to become the cheapest retail company leader. The satellite-based distribution system of Walmart retains its competitive benefit by minimising the cost of storage by locating stores on low-country grounds outside small to medium-sized towns, whether in the United States or outside its affiliations. Walmart Inc. (previously known as Wal-Mart Stores, Inc.) is an instance of efficient, large-scale management of human resources, taking into account that the company has millions of workers around the globe. In terms of size of the organisation, business value, and economic performance, the corporation is one of the largest in the world. The organisation guarantees that its personnel are supported to meet business expectations and requirements. Walmart examines how its actions, for instance, internal organisational procedures, support its human resources. Human resource managers are also looking at the contribution of Walmart to its company's production and productivity by its corporate culture and organisational structure, the hiring and selection, retention and skills development, performance management, remuneration and career development. The corporation's performance and development possibility is impacted by the efficacy of addressing human resource requirements. The strategies of Walmart should support the continued advancement of its staff and management-related practices. Our expert essay writers are always ready to serve you with A class Walmart HR Functions Case Study Help and assignment help solution at an affordable price.
The SWOT analysis of Walmart shows how the most significant business globally is dominating and growing efficiently in the retail industry with its competitive advantages. It recognises all the major strengths, weaknesses, opportunities and threats that primarily affect the corporation. SWOT Analysis is an established management tool that assists Walmart in evaluating its success against competing companies and its market. Walmart is one of the world's largest shops. In the SWOT analysis, the internal factors are known as strengths and weaknesses, and the external factors are known as opportunities and threats. The SWOT Analysis of Walmart is discussed below:
· Brand recognition: It is the most well-known retail brand globally, with millions of consumers visiting Walmart daily. The online shop of Walmart has more than 60 million products.
· Global presence: In 2017, Walmart opened forty-seven new businesses, fifteen in Chile, eleven in the United Kingdom and four in China. Its international activities have expanded its global reach and sales.
· Global expansion: ASDA, the UK retailer and the Indian e-commerce giant Flipkart, has been recently acquired by Walmart. In addition, a joint venture with the largest retail store in India, namely Bharti, has been set up. These worldwide developments proved the corporation's huge success.
· Human resource management: Workers are regarded as Walmart's valuable elements. It invests its money and time enormously in the development and administration of its workers. As per numerous researchers, Walmart employs 1 per cent of the working population in the United States.
· Thin profit margins: Walmart concentrates on a strategy of cost leadership. It leads to the outcome for the corporation is a small profit margin.
· A large span of control: Walmart may become weak in specific fields due to its highly extended size and extensive regulation.
· Employee treatment and working conditions: Much of Walmart's working population has been criticised and prosecuted. Nearly all the issues that have been publicly criticised include poor wages, health problems and bad working conditions.
· Gender discrimination: In 2007, Walmart had sued, alleging that sex discrimination had occurred in Walmart's employment opportunities. For female staff, promotions and the scale of pay as defined in this lawsuit are discriminatory.
· Strategic alliances: Walmart can form strategic partnerships with significant companies or amalgamate with other international retailers. Walmart may also benefit from the acquisition of small firms.
· Improving quality standards: Low-cost commodities occasionally make low quality. In order to resolve customers' health concerns, Walmart has a chance to improve the quality levels of its goods.
· Expansion to other markets: By extending its business to the marketplaces that have not yet risen, Walmart can take the opportunity. These could include China, nations of the Middle East and Latin America.
· Enhancing human resource practices: Advanced human resource improvement can provide Walmart with a good opportunity. It depends mainly on its workers. Thus, it is a crucial opportunity to bring innovative ideas to its management of human resources.
· Fake craft beer controversy: For the sale of counterfeit craft beer in 2017, Walmart was prosecuted. While produced by WX Brands, the beer had been labelled and marketed as "Trouble Brewery," a production company that does not exist.
· Political and legal issues: A primary target of competition can permanently affect the company's operation in certain nations, both politically and legally.
· Impeach controversy: Walmart was presently announced for the argument of "Impeach 45." It sold printed t-shirts with the phrases 'Rope. Tree. Journalist. Some Assembly Required. These t-shirts claimed to promote violence. Nevertheless, Walmart overcame the scandal by stating that the t-shirts were sold on the Walmart Marketplace by third-party sellers rather than Walmart.
· A primary target of competition: Walmart is the world's largest food product retailer and is always a key competitor's target. Its immediate competitor target provides identical but higher quality goods. Costco also provides consumers with bulk goods. Moreover, they have a reasonably good reputation for treating their workers well in comparison to Walmart. In these regions, too, both corporations are strongly backed.
However, Walmart can improve its weaknesses and consolidate its upcoming market position by enhancing its standards related to HR management and fixing workers' problems. Walmart will avoid possible criticism of its working population through an efficient HR system.
Factors determining the success of Walmart's external environment or macro-environment are involved in various aspects. The PESTLE analysis model best represents these factors. Leading the retail industry, Walmart continues its work in the political, economic, social, technological, environmental and legal (PESTLE) fields of trade, potentially impacting threats. Nevertheless, this achievement requires continuous assessment of the retail industry environment. These PESTLE aspects also evolve and shift over time, posing difficulties for Walmart. These shifts could present opportunities or threats. Walmart must take advantage of the opportunities and safeguard itself against threats. The leaders and managers of Walmart can identify the priority elements for developing strategies by using the PESTLE analysis. The external variables in a macro or remote environment of Walmart, premised on the PESTLE analysis, demonstrate how strategic attention is needed on economic, social and environmental issues:
Walmart takes into account political factors in the retail market, generally about government policies. Politically active stakeholder groups are also crucial in the analysis of the PESTLE model. In the remote or macro-environment of Walmart, the external political factors include:
· High political stability (opportunity);
· Political influence for globalisation (opportunity); and
· Political pressure for a higher salary (threat).
Walmart is under considerable pressure from financial alterations. This alteration leads directly to alterations in the profits of the company. Premised on the PESTLE analysis model, in the remote or macro-environment of Walmart, the external economic factors include:
· Consistency of significant economies (opportunity);
· Developing nations' enduring development (chance); and
· Reducing joblessness of the US (chance).
Walmart's social factors have a significant impact on customer preferences and perceptions. Premised on the PESTLE analysis model, in the remote or macro-environment of Walmart, the external social factors include:
· The trend in healthy living (opportunity);
· A trend towards multiculturalism (opportunity); and
· Urban movement (chance).
Walmart must tackle trends in technology. Technologies impact the competitive environment of the retail industry in the context of the PESTLE analysis model. In the remote or macro-environment of Walmart, the external technological factors include:
Increasing automation of business (opportunity);
Corporate or Big Data analysis (opportunity); and
Increasing consumer use of mobile devices (chance).
Walmart is subject to legal and regulatory requirements. These external factors generally put restrictions on retail companies premised on the PESTLE analysis model. In the remote or macro-environment of Walmart, the external legal factors include:
· Regulations on food safety (opportunity);
· Restrictions on employment (opportunity); and
· Reform of tax legislation (threat).
Walmart's business has important environmental or ecological factors that relate to environmental issues. Conservation of the environment has now become a popular concept. Premised on the PESTLE analysis model, in the remote or macro-environment of Walmart, the external environment factors include:
· The trend of business sustainability (opportunity); and
· The movement of environment-friendly goods (chance).
The analysis of the PESTLE model of Walmart demonstrates that in the remote or macro-environment, the organisation has more possibilities than risks. There are significant opportunities for external factors. The company must proactively tackle threats. Nonetheless, most of the hard work of Walmart needs to concentrate on taking advantage of recognised opportunities in the retail business environment. Walmart can enhance the practices related to HR management, increase technology investment, develop quality standards, and expand its business operations around the globe, premised on the PESTLE model analysis. Our essay writing services do not mean that we compromise with the quality of the paper help.
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