Managerial Philosophy of Wal-Mart
Contents
Introduction
The managerial philosophy of Wal-Mart
Evaluate of the Wal-Mart management philosophy
Should business management always seek the lowest prices for its customers and the highest rate of return on investment?
Economists define costs in terms of opportunities forgone
Wal-Marts wages are above the legally required minimum wage, and health benefits are not legally mandated
Wal-Mart responsibilities to suppliers other than those specified in their contracts.
Recommendation
Conclusion
References
Introduction
Wal-Mart is the world’s largest retail store with 4000 stores just across the United States and with 1.4 million employees hired. Wal-Mart was founded by Sam Walton in 1962 that had a simple strategy to provide a wide variety of goods at the cheapest possible price. Wal-Mart’s current president and C.E.O is Bill Simon, the company posted revenues last year of 476.3 Billion dollars and has been one of the most profitable companies in the world not just the largest supermarket. (Friedman, 2012)
Wal-Mart has over one million employees; however ethical concerns have been raised with employees being paid poorly despite posting record profits and revenues comparable to some of the world’s top 30 economies like Saudi Arabia. The report also analyzes the impact on the various stakeholders that are concerned with Wal-Mart and the impacts of the actions it undertakes.
The fact that it is the largest store means it has a wide no of suppliers, that depend on it for a large percentage of their sales if they are lucky to supply to them, critics have argued that Wal-Mart “squeezes its suppliers’ on prices, and kicks many out of business. Critics and small businesses have also raised concern because Wal-Mart presence causes losses or closure of small businesses that find it hard to compete.
The managerial philosophy of Wal-Mart. Principles are involved and the overriding aims, values, and goals of Wal-Mart?
Wal-Mart was founded on the basic philosophy of “always keep prices low” which has evolved to “We save people money so they can live better”. This is a cost leadership strategy reflects the strategy and how they make their decisions that is designed to attract customers by cost savings. The managerial philosophy is sound as it seems to benefit everyone not only customer