Walmart internal essay
Wal-Mart is an American firm which has long maintained a distinct competitive advantage by operating, producing and distributing at a minimum of cost, passing on bargain standards to the consumer. Increasingly, we will discuss here, technological changes and changes in global trade legislation have enabled Wal-Mart to rely increasingly on these price differentials in order to achieve its competitive advantage.
As the largest corporation in the world, its most powerful retailer and the single largest employer in the world, Wal-Mart would enjoy the resource capacity to seize cost-potential advantages as they have emerged, enabling to stay at the forefront of the global retail market. At once a model for retail operations conducive to enormous sales profits and inexorable geographical expansion, and simultaneously an exemplar of the civil misappropriations inherent to unchecked capitalism, Wal-Mart’s approach to the opportunities of globalization reveals it to be guilty of extensive human rights violations.
This points to its primary organizational behavior issue, which concerns Under the thumb of its impetus for low-pricing, Wal-Mart is notorious for squeezing retail items out of its producers at absolute bargain-basement prices. The consequence of this is quite often felt by the production laborers themselves, who are severely affected in terms of equitable living wages. Here, we are introduced the notion of globalization.
Since the end the of the Cold War and the opening of global channels for trade, the world community has engaged a process of trade deregulation, removing legal obstacles to the activities of private corporations in nations throughout the world. At its core, the principle of globalization would be intended to help advance the social and political structures of those nations in the developing world by bringing them the economic advantages argued to associate with capitalism.
This would be the impetus for the extension of Wal-Mart into the global community, where its activities are more prominent as a producer than as a retailer. Operating in such contexts as Mexico and, increasingly, Southeast and Central Asia, Wal-Mart would pursue more aggressively its capacity to pass savings along to the consumer by searching for the lowest prospective wage contexts. Today, Wal-Mart as a matter of policy will seek to operate its production divisions in geographical contexts where lax labor and environmental laws retain a distinctively low cost.
This approach is complimented by the more positive gains mains as result of technological changes. By and large, the retail industry has changed significantly over the past two decades, spurred by two important catalytic patterns that have today defined the pace, cost and availability of desired consumer items. Specifically, the adaptation of new computer technology applications and the shifting our manufacturing attention to developing markets have both significantly altered the principles and practicalities of supply chain management.
Allowing corporations to shift from an approach of warehousing, retailing and marketing, where the supply chain functioned according to the physical limitations and parameters of the organization in question, to one centered on database warehousing and the speed on online communication, the graduation of our retail industries onto the internet has considerably altered the supply chain process. Such is demonstrable through an examination of Wal-Mart’s innovative use of automated stock/purchase inventory and an increasing promotion of its web presence for marketing of its products.
For a global company such as Wal-Mart, its opportunities in the current contexts of globalization and technological transition show it to be uniquely advantaged and demonstrative of innovation. Simultaneously, though, we can also see that Wal-Mart is a corporation in need of greater ethical center, or at least greater regulatory oversight from alliances designed to broker the conditions of globalization.
Collins, J. Carlton. (2007). Supply Chain. Accounting Software Research. Ret. 2/28/08 http://www. asaresearch. com/ecommerce/supplychain. htm.