SOCIAL & GEOGRAPHICAL FACTORS IMPACTING WALMART
Abstract
Founding a company and maintaining is a huge task that a businessperson may experience in life. Several factors must be considered in order to make sure that the company runs as desired. Among the factors that affect the sustainability of a company include Social and geographical factors. Geographical factors look into the place where the business is located and how the consumers respond to its availability. This means that there should be human resources, and other fixed resources like land to make the business successful. On the other hand, social factors affecting a business may look into issues like culture, tastes and preferences of a commodity among other things. In this case, the social and geographical factors related to Wal-Mart Company determine the company’s sustainability. This paper will discuss how the social and geographical factors affect Wal-Mart positively and negatively. In addition, the paper will analyze what can be done to maintain the company’s upward trend in stores that are poorly managed.
Introduction
Wal-Mart founded in 1962 by Sam Wal-Mart, is one of the biggest retail companies in the world that is valued by many people. Ever since it was founded, it has been controlled by the Wal-Mart family, who own 48% of the company’s stake. Wal-Mart can be described as the biggest private retail company that accommodates over two million employees in the world. These employees are located in 8,500 stores that are found in 15 countries. In addition, the 8500 stores use different names throughout the world. Among the countries that appreciate the existence of Wal-Mart include America where the company’s headquarter is located, Argentina, Canada, Brazil United Kingdom, Japan and Mexico. The success of Wal-Mart Company depends on several social and geographical factors as discussed throughout the paper.
The Wal-Mart stores located within different areas in the world deal in different commodities. This depends on consumer preference and demand of the product. The Wal-Mart store in USA deals in grocery. For example in 2009, the company managed to obtain 51 percent of its US$258 billion from the sales of groceries in the USA. This shows that the country appreciates the consumption of groceries and the same time the geographical nature of the country enable it to invest more in groceries.
Common themes of Wal-Mart stores worldwide
As earlier said Wal-Mart is one of the renowned retail companies in the world with different stores in different locations. Even though the company’s store names within USA are Wal-Mart, other stores in other countries may not necessarily use the name Wal-Mart. However, they are all controlled by the family name Wal-Mart. For example in Japan, Mexico and United Kingdom, the Wal-Mart stores are known as Seiyu, Walmex and Asda respectively. Therefore, they share a common controller (Wal-Mart), even though they are located in different areas.
In order to meet organizations demand and give the consumers what they want, Wal-Mart has encouraged the use of online shopping. A consumer can easily access products of Wal-Mart anywhere in the world as long as he is in a country that has a Wal-Mart store. All the Wal-Mart stores online services have the company’s headquarter is located in USA, San Francisco Peninsula (Walmart.com’s history and mission, n.d. para. 3). This helps in controlling the site from one end with the help of experts and all costs and expenses can be compiled from one server. This makes work easier for the company to know how the sales are in place.
The main theme of Wal-Mart store is the provision of low price initiative on the sale of the goods and services. This factor attracts customers from different parts of the world to shop at Wal-Mart. For example, it is estimated that Wal-Mart stores in USA receives approximately 140 million American shoppers in their stores who do actual buying Mathews, 2012, para. 2). Therefore, it is notable that when a company gives the consumers what they need and at the price, they can afford, it boosts the company’s reputation and gives the company an upward trend in profit attainment.
Apart from dealing with grocery, Wal-Mart stores are known for their retail in birthday, party and gift related themes. Such commodities are used widely in the world as people have birthday’s everyday and gifts are sent to people on a daily basis. Provision of such items that are highly appreciated by the people and at a cheaper price makes the company to sustain itself.
Social and Geographical factors Impacting Wal-Mart In Mexico
Throughout the introduction of Wal-Mart, the company has always been listed as one of the best private retail companies in the world. Every year it is always in the fortunes magazine shining with tremendous praises. However, it is so ironical that the company faces many criticisms that are related to poor employment practices that affect the community where the store is located. Many scholars and business analyst have raised several questions to determine if Wal-Mart is the best place to shop in and they have tried to analyze the social factors that have helped to keep Wal-Mart at its highest peak. Currently Wal-Mart based in Mexico is considered the booming base among all stores in the world. However, several questions are left unanswered
According to many business analysts, there is evidence that Wal-Mart practices gender discrimination in several Wal-Mart stores. For example, three women in Tennessee filed a case against Wal-Mart (Cavaliere, 2012, para.1). They declared that they were paid less than their male colleagues were, yet they did the same amount of work. In addition, they told the court that they were told that they could not manage positions like that of the manager, as it was a male’s job. Such issues have also been experienced in Mexico. It is quite ironical for a huge company like Wal-Mart to discriminate women in the 21st century declaring that they are not fit for certain jobs like management positions. Statistically, women play a huge role in the development of the economy and if they are looked down upon, the society will be losing something valuable. However, Wal-Mart de Mexico is highly improving and is being graded among the best retail stores. In addition as it does not discriminate among women as the American stores do. According to statistics carried out by Corporate Women Directors International, show that, Wal-Mart in Mexico has the highest number of women representatives in the Board members category. Five out of eleven members of the board are women who represent 45.5% of the meetings held (Wal-Mart de méxico y centroamérica, the company in latin america with the highest number of women serving on its board of directors: Ngo from washington, d.c, n.d., para. 1). This impact has been appreciated by many people within the society and value the idea of appreciating the women. In the end, the women work hard to make sure that the company grows are required.
There are some allegations showing that Wal-Mart Inc. incorporates bribery to maintain its position as the best retailer company in the world. This has been evidenced in Wal-Mart de Mexico used bribes to grow inside Mexico. For example, it was discovered that the company used one of the top Governors within Mexico to push the opening of stores within Mexico cities. This fact was released by the company’s former lawyer. Attorney Sergio Cicero Zapata, also stated that the Graco Ramirez Garrido Abreu was the main contact and price negotiator that helped the stores to be opened within mexico (Feele, 2013, para. 5). In addition, Wal-Mart paid local officials in Mexico bribes that amount to at least $273,000 in order to speed up the construction of the stores (Feele, 2013, para. 9). Apart from using money to bribe the officials in order to speed up constructions, it is evidenced that Wal-Mart signs post within Mexico are green. Normally green signs are left for street signs (Barstow, 2012, par. 5). However, the company managed to hook up the green posts making it easier to differentiate it from other retail shops. In the end, it shows that the company does not abide by the advertising policies of that state. The ability to open up stores in Mexico has increased more profit earnings for the company. this means that, if Wal-Mart Inc. did not succeed in bribing the officials within Mexico, they would not have succeeded in maintaining their position as it is currently. They need to expand the company has led to illegal practices that are not good for a company’s reputation. However, the good thing about the company is that they stick to their vision and mission of providing affordable goods of high quality to the people.
Geographical factors affecting Wal-Mart Inc.
The location of a business will determine the success of a business. This means that all businesses should determine the best spot of holding the project. In the case of Wal-Mart Inc., the managers of the company opted to expand their business in Mexico due to the lack of best suppliers within the country. Mexico had for a long time lacked convenient suppliers to help retail business. In addition, the country also had sufficient raw materials for production purposes. This made the Mexico the best alternative to start a business. Issue of land was not a problem for Wal-Mart in Mexico however, it had to strategize the best place to input their headquarters. Initially there was another business lady who had requested a strategic position to ensure that her business would attract customers. However, it was too late as Wal-Mart bribed the Mexican government and media to gazette that it owned the place and it would build a huge retail store for the people. This fact made it easier for Wal-Mart to achieve its goal. In addition, Wal-Mart used its position to force the small distributors to accept small prices so that the people may appreciate the quality of goods produced by the company. Considering this review, it is clear that Wal-Mart does all it can to make sure it achieves its goals. It pays the employees little salary, arguing that it vowed to provide cheap products for the community. In the end, the consumers are the once who gain. In addition, among the millions of employees within the stores appreciate the existence of the company in various locations as it helps them to earn a living.
In America, there are situations one can state that Wal-Mart is in trouble with the US government. It is unethical for any business to be in progress by the use of illegal means like bribes. Issues of bribes were unleashed when the company could not manage to get direct entry to Mexico and yet it was one of the best alternatives that Wal-Mart could adapt to increase its sales. However, ever since the issue of bribes came to existence, the company’s position is questionable and the US government has desired to look into the company’s reputation within American Stores. In addition, most cases have also been brought to court suing the company for poor pay, allowing illegal immigrants to work in the stores and gender discrimination especially among the women.
In conclusion, the social and geographical factors that influence Wal-Mart have negatively affected its reputation. However, it has helped the company to be top as the best retailer company. However, it is vital to note that, most business professionals should not under look some aspects of professionalism with the aim of becoming outstanding. If the bribing issues related to Wal-Mart are not solved immediately, they may affect the company’s future reputation and may pull the company down.
Reference List
Barstow, D. (2012). Vast mexico bribery case hushed up by wal-mart after top-level
struggle. Retrieved April 16, 2013, from
Cavaliere, V. (2012). Tennessee women file sex discrimination lawsuit against Wal-Mart.
Retrieved April 16, 2013, from
http://www.nydailynews.com/news/national/walmart-hit-new-discrimination-lawsuit-article-1.1173047
Feele, J. (2013). Wal-mart accused of using mexican governor to push bribes. Retrieved April
16, 2013,from
http://www.bloomberg.com/news/2013-01-29/wal-mart-accused-of-using-mexican-governor-to-push-bribes.html
Mathews C. (2012). 50 Years of Wal-Mart. Retrieved April 16, 2013, form
Walmart.com’s history and mission. (n.d.). Retrieved April 16, 2013, from
http://help.walmart.com/app/answers/detail/a_id/6
Wal-Mart de méxico y centroamérica, the company in latin america with the highest number of
women serving on its board of directors: Ngo from washington, d.c. Retrieved April 16, 2013, form
http://news.walmart.com/news-archive/2013/01/09/walmart-de-mexico-y-centroamerica-the-company-in-latin-america-with-the-highest-number-of-women-serving-on-its-board-of-directors-ngo-from-washington-dc
