Customer center

We are a boutique essay service, not a mass production custom writing factory. Let us create a perfect paper for you today!

Example research essay topic: Selling Luxury Items Third World Countries - 2,501 words

NOTE: Free essay sample provided on this page should be used for references or sample purposes only. The sample essay is available to anyone, so any direct quoting without mentioning the source will be considered plagiarism by schools, colleges and universities that use plagiarism detection software. To get a completely brand-new, plagiarism-free essay, please use our essay writing service.
One click instant price quote

Wall-Mart Wal-Mart is the largest American retailing company. There are close to 3. 000 Wal-Mart discount stores in USA alone. Companys headquarters are located in Bentonville, Arkansas. The most of its stores Wal-Mart has in Arkansas, Oklahoma, Mississippi and Missouri. 87 % of Companys annual profit is based on domestic sales.

Companys management is based on well-structured hierarchical principle. Many economists suggest that Wal-Marts continuous expansion will inevitably slow down soon and even turn into contraction. This is because company has grown too big already and it practices inflexible business strategy, when everything that matters is expansion at any cost. Still, it needs to be recognized that companys old-fashioned business approach proved to be quite efficient, up to this date. The reason for this is that Wal-Mart was not just growing bigger but it was also pushing smaller retailers out of competition. In this case, growth and acquisition came hand in hand.

Companys aggressive expansion strategy was being widely criticized over last few years. Critics point out to the fact that acquisition of smaller retailers is not always being done legally. But even if this is was done according to the law, there is still a moral issue remaining. It appears that Wal-Mart strives for nothing less then becoming retailing monopolist in USA. This, of course, cannot be beneficial for society as whole. Unique problems / opportunities The Wal-Marts unique problem is its dependency on Chinese cheap labor and its unwillingness to adopt a progressive marketing strategy, like Costco. 95 % of all the goods sold by Wal-Mart are made in China.

There is a cost of buying cheep products the low quality. We can talk of psychological manipulation practices, being deployed by Wal-Mart. It exploits peoples desire to save, without guaranteeing quality. Although Companys staff turnover has shrunk from 60 % in 2004 to 44 % in 2006, it is still too high. Wal-Mart is being continually sued by its former employees over the violations of Fair Labor Standards Act. There are also numerous reports of this Company employing illegal aliens.

So far, Wal-Mart was able to avoid any investigations, as result of these allegations. However, the probability that this will happen in the future is very high, as Companys officials seem to be very reluctant making any changes in Wal-Mart business strategy. Companys opportunities derive from the fact of its sheer size. Being large retail operator allows it to buy goods directly from manufacturers, without having to use distributors services. That is why it is hard for any competitors to beat Wal-Mart prices. It is the Companys most important competitive advantage.

Wal-Mart business opportunities directly depend on its ability to remain one step ahead of its competitors, in regards of its prices. Company Profile Product Lines Wal-Marts production lines consist of three thousand retailing super centres. 65 % of all the sales are done in USA, but Company also tries to expand on international market, it now has outlets in Mexico, Britain, Japan, Canada, Germany and China. So far, Companys international expansion proved to be not as effective as it was originally expected. It appears now that Wal-Mart will not enjoy much success on international market, because of numerous psychological differences between American management style and European mentality. Industry Position Companys industry position is best described as superior. Sams Club alone has three times as many outlets as Costco does.

Wal-Marts revenue increases every year. In year 2005 it was increased by 14 % from $ 191 billion in 2004 to $ 218 billion. Although, there is also a stagnation tendency can be seen. Companys earnings do not increase as rapidly as they used to at expansion initial stages.

One of the reasons for this is the fact that Wal-Marts managerial efficiency is negatively affected by its growth. Financial Position The financial position of Wal-Mart is very stable. Companys continuous expansion attracts new investments. In year 2005 Wal-Mart made $ 256 billion in sales, which makes it one of the biggest U. S. commercial operators.

Company invests in long-term projects; which is a very good indication of its financial stability. This indication is a crucial, when it comes to attracting potential investors. It is likely that Companys financial stability is going to remain one of the most important factors that underline its marketing strategy. Wal-Marts total assets were increased from $ 78. 130 billion in 2004 to $ 83. 451 billion in 2005.

This shows that Companys managers will not have to worry about its financial stability in near future. Wal-Marts growth contributes to its financial stability like no other factor. Operational Condition Wal-Mart uses the latest technology to make operating of its stores as effective as possible. Every retailing outlet is fully computerized. The emphasis is being put on increasing efficiency of Companys employees by giving them an appropriate training. Wal-Mart has close to 3000 fully operational warehouses in U.

S. Also, there are 24 new ones are in the process of building. Companys officials stress out that its expansion will gain even more momentum, once it manages to win competition with Costco. So far, Costco is way ahead of Sams Club (Wal-Marts wholesale division). Innovative business methods and flexible marketing strategy are behind Costco's success.

So far, Wal-Mart was unable to come up with its own unique strategic approach to win more customers. Basically, it was just copying Costco methods. However, copying can never be quite as effective as designing its own original strategy. Personnel Currently Wal-Mart has 1. 3 million people employed, which makes it the largest private employer in U.

S. Companys approach towards increasing the efficiency of its personnel can be defined as inadequate. The entry position salary is $ 8 an hour, which is the lowest of all retailing operators. Because of this, Companys annual employees turnover was 65 % in 2003. Recently, Wal-Mart officials had realized that this percentage needed to be reduced otherwise it would threaten Companys normal functioning. Few years ago, a so-called People Asset Review program was launched.

It was meant to increase workers efficiency through applying selective principles for employees promotion. According to this program, Companys top managers have to track down promotable individuals, in order to give them career- making opportunities. Also, Wal-Mart deploys various diversity programs, which are meant to appease watchdogs of political correctness. Just like in McDonalds, workers discontent over being underpaid is dealt with by applying team spirit at workplace. This, of course, cannot be effective in the long run. As practice shows, economic ways of encouragement cannot be replaced with psychological ones, without reducing companys effectiveness.

What is really important, in the respect of making team of employees feel as one, is the corporate encouragement practice. In Japan, many corporations require an oath of allegiance, on the part of their employees, guaranteeing them job for lifetime in return. In European countries, companies also began practicing policy of corporate encouragement. When every member of a team is happy with the fact that he has a stable job, with good prospective and good pay, the issue of diversity ceases to have any importance whatsoever. Once employees feel that their salaries and career prospects directly depend on their working performance; it will automatically increase the effectiveness on their work. Economic incentives, is the most effective method of boosting employees performance.

At present time Wal-Mart faces 40 lawsuits over its discriminatory practices towards women and ethnic minorities. Companys workers are not unionized, which allows managers to force them to work overtime, without pay. It appears that Wal-Mart top management simply lacks an understanding of a simple fact that only through giving workers more rights and increasing their salaries, Companys efficiency can be substantially increased. Production capacity Wal-Mart retailing capacity is not being fully exploited, as Company plans to open 140 new outlets abroad. It is likely that it will remain at the same level, for as long as Company can guarantee low prices for the products it sells. A lot depends on global economic trends.

So far, Company was able to fully exploit them to its own advantage. The globalization processes in worlds economy allow large companies to benefit from the fact that there are less international trade regulations. Wal-Mart fits exactly into definition of transnational corporation. Its production capacity is least affected by competition with other retailers on American market, although it also plays role.

The most important factor here is an abundance of cheep labor in Third World countries. Only this enables Wal-Mart to continuously increase its sales, while offering prices that cannot be beat by most of competitors Managerial Capabilities/Weaknesses Companys managers are not encouraged to come up with executive decisions, which make every store heavily dependable on Wal-Marts main office. This reduces Companys commercial flexibility, even though that such flexibility is a crucial factor on todays dynamic retailing market. Company clearly prefers authoritarian management style, when instructions are just being passed down for implementation of decisions that are made in main office. Also, it appears that Wal-Mart does not delegate its managers with powers to make administrative decisions. That is why there is an internal discontent with such policy among many members of staff.

Of course, new managers can be hired, yet this management style is never going to be very productive, because it undermines Companys marketing flexibility. Wal-Mart simply needs to allow its managers to be more independent. As company becomes more structural ized, it is important to have managers only working in their particular field, without having to deal with issues that are out of the filed of their competence. Yet, they should enjoy independence, within their departments. The dynamics of todays retailing market shows us that every company needs to be able to adapt to rapidly changing demand circumstances. This can only be accomplished if managers do not fully rely on higher authority, every time they have to make a decision.

For example, Costco retailing network generates 30 % more income then its closest rival Sams Club, even though that Club has three times as many warehouses throughout USA. The main reason for this is that Costco's managing style is democratic and flexible, while Sams Clubs authoritarian. Conclusion/SWOT Wal-Marts main goal is to increase its profits, just as it is a goal of every commercial enterprise. The strategy it employs to reach this goal is continuous expansion at the expense of pushing smaller retailers out of business. What enables Company to offer very low prices on the line of its products, is its dependency on cheap Chinese labor. In my opinion, this strategy is appropriate at present time.

The Wal-Marts rapid growth is the best proof of this. The demographic dynamics in USA shows that more and more people are becoming price sensitive. This is because majority of new immigrants to U. S. come from Third World countries and they are generally poor. Their concept of quality is much different from generally accepted American standards.

At the same time, there are clear indications that companys growth might become stagnant in near future. That is why Wal-Mart might need to consider selling off some of its assets throughout the world, in order to make retail operations more manageable. The main threat to Wal-Mart does not seem to originate from competing with other retailers. But since it has failed to embrace a truly progressive management strategy, Companys margins are likely to be getting continuously reduced in the future. This will inevitably lead to situation when Companys officials will not be able to disregard this threatening tendency any longer. Wal-Mart weaknesses originate from the fact that this company has grown too large, which makes its marketing strategy inflexible.

Still, its size is also its main strength if Company finally becomes U. S. retailing monopolist, the inflexibility of its marketing strategy will cease to have any importance. I would recommend for Wal-Mart to continue with its present strategy, although it has to become much more aggressive.

But I would also suggest for Wal-Mart to reconsider its employment policy and to put emphasis on selling luxury items through its network, like Costco does. As practice shows, the principle of targeting specific customers cannot be overlooked. Wal-Mart seems to only be focused on targeting one group of customers, namely lower-middle class. Yet, Wal-Mart could be selling luxury items as well.

Apparently, even those who buy such items also want to save money by paying competitive prices. Before expanding internationally, Wal-Mart needs to fully exploit U. S. retail market opportunities. Company has to strive towards pushing its domestic competitors out of business by whatever the means it might take. International expansion can only come as next step, after Wal-Marts total dominance is accomplished in America.

Still, it appears highly unlikely that Walt-Mart is going to be able to effectively end any competition within U. S. any time soon. Therefore, the innovative methods of managing this business need to be applied. The evaluation and control are very important elements of every effective management style. This is why Wal-Mart bosses have to make sure that the analysis of Companys operational activity is being done on regular basis.

Only this will guarantee that Companys commercial efficiency will be maintained on appropriate level. Wal-Mart does not have any supporting programs implemented to enhance its market competitiveness at this time. It is quite explainable, as this company is an immediate-profit oriented. Yet, if Company survives competition in the future, its executives will have to consider expansion strategy turning into the strategy of strengthening Wal-Marts reputation. In modern Global Economy it is only the matter of time, before smaller commercial enterprises are going to be acquired by larger companies. Wal-Mart is having an immense advantage when it comes to that.

Reconsidering its marketing strategy will require a financial restructuring on the part of Company. It goes without saying that there are going to be initial losses at the beginning, if this approach is to be taken. However, the biggest loss, with the case of Wal-Mart, will be losing its reputation of reliable retailer. Retail market requires companies to make gutsy decisions every once in a while, jut like any other. Wal-Mart needs to pursue its expansion strategy but it also has to be ready to reconsider such strategy, if new circumstances arise. Bibliography: Anal, D.

Wal-Mart's November Not So Jolly. November 30, 2006. ABC News. Retrieved April 18, 2007 from web Business Portfolios. 2004. Business Tree. Retrieved April 18, 2007 from web Heller, R.

Better Business: Survival of the Fittest. 2004. Thinking Managers. Com. Retrieved April 18, 2007 from web Holland, J. Wal-Mart's 'China Price.

November 7, 2005. Alter Net. Org. Retrieved April 18, 2007 from web Good, P. Wal-Mart's Organic Offensive.

March 29, 2006. Bussiness Week Online. December Retrieved April 18, 2007 from web Mitchell, R. Strategy Formulation. 2000.

Economy and People. Retrieved April 18, 2007 from http: // 64. 233. 167. 104 /search? q = cache: ihEEDTpDAm 4 J: web Milchen, J. and Mitchell, S. Wal-Mart's Drug Deal. October 27, 2006.

Tom Paine. Com. Retrieved April 18, 2007 from web.


Free research essays on topics related to: wal mart, third world countries, companys officials, selling luxury items, companys managers

Research essay sample on Selling Luxury Items Third World Countries

Writing service prices per page

  • $18.85 - in 14 days
  • $19.95 - in 3 days
  • $23.95 - within 48 hours
  • $26.95 - within 24 hours
  • $29.95 - within 12 hours
  • $34.95 - within 6 hours
  • $39.95 - within 3 hours
  • Calculate total price

Our guarantee

  • 100% money back guarantee
  • plagiarism-free authentic works
  • completely confidential service
  • timely revisions until completely satisfied
  • 24/7 customer support
  • payments protected by PayPal

Secure payment

With EssayChief you get

  • Strict plagiarism detection regulations
  • 300+ words per page
  • Times New Roman font 12 pts, double-spaced
  • FREE abstract, outline, bibliography
  • Money back guarantee for missed deadline
  • Round-the-clock customer support
  • Complete anonymity of all our clients
  • Custom essays
  • Writing service

EssayChief can handle your

  • essays, term papers
  • book and movie reports
  • Power Point presentations
  • annotated bibliographies
  • theses, dissertations
  • exam preparations
  • editing and proofreading of your texts
  • academic ghostwriting of any kind

Free essay samples

Browse essays by topic:

Stay with EssayChief! We offer 10% discount to all our return customers. Once you place your order you will receive an email with the password. You can use this password for unlimited period and you can share it with your friends!

Academic ghostwriting

About us

© 2002-2024 EssayChief.com