Wal-Mart Organization

Wal-Mart 1
Wal-Mart Organization
Name
Institution Affiliation
Date

Wal-Mart 2
Wal-Mart Organization
Retail shops have been in existence for a long time. They bring to the market what the
consumers require and sell the products in smaller quantities as compared to selling in bulk. Wal-
Mart is one of the biggest retail shops which sell its products both in-store and online. It operates
a chain of big discount stores and makes a good return on capital due to its sales. Wal-Mart
stores deal with a wide range of products trying to attend to most of the consumer's demands.
Electronics, furniture, food staff, beddings, clothes, groceries and kitchen equipment are among
the products sold by Wal-Mart stores.
Wal-Mart operates under a slogan of “Save Money. Live Better.” This is displayed in
their shopping bags and store receipts. As history shows, it has been enjoying continuous growth
and success worldwide as they continue to attract a considerable number of new customers all
over. This success can be attributed to the good organizational structure adopted by Wal-Mart
(Brea, Casadesus, and Grifell, 2015, p.22-31). The organizational structure interrelates with the
organization beliefs to uphold the essential competitive benefit of this retail store.
Wal-Mart incorporates the interests of the external stakeholders and understands that they
play a vital role in the growth of the organization (Brem and Viardot, 2015, p.17-27). The
external stakeholders include the customers, suppliers and the lenders. Wal-Mart strategy of
keeping their prices low, offering quality and affordable products are the major reasons why they
have many customers. As it’s obviously known, consumers tend to incline towards retailers who
offer low prices. Wal-Mart stores ensure that its key stakeholders (the customers) Customers are
contented with the services they offer, and this brings a win-win situation for both Wal-Mart and
the customers.

Wal-Mart 3
Suppliers are the least prioritized stakeholder. They have to ensure that they
supply quality products to Wal-Mart. By doing this, they create an opportunity to do business
with Wal-Mart and continue to enjoy their profits. The supplier tends to benefit from the slightest
increase in the prices of the product. Similarly, as the demand increases, they have a chance to
supply a larger quantity. They always hope the business continues so that they can enjoy the
benefits. Lenders are also considered as external stakeholder since the business owes them and
have a duty to repay. Lenders help the organizations to continue with its operations by offering
financial support when the organization is facing operational constraints.
The level of competitiveness in an organization is seen where Wal-Mart is able to carry
its business more effectively and efficiently as compared to its competitors. Porter’s theory of
five forces assists to know the intensity of the competition and desire of the market. It helps to
spot the strongholds of the business as well as the weak areas. There is the supplier power which
depends on the number of people who can supply the same product, whether the product stands
out, the required quantity, the power of the supplier and the expense involved in changing from
one supplier to another. This helps to determine how the suppliers can influence the fluctuating
nature of the products’ prices.
The buyers’ power is determined by the demand for the product in the market. Where a
business has a small number of influential buyers, they can command their terms. On the
contrary, where there are a lot of competitors offering homogeneous products and services, the
market becomes flooded and less appealing. This creates a competitive rivalry in the industry.
The next force in Porter’s theory is the threat of substitute goods (Banker, Mashruwala and
Tripathy, 2014, p.672-696). This gives the consumer an option of using the other product in case