MGMT1101 - In-Depth Research and Analysis Report on Walmart Inc

This report provides a comprehensive analysis of Walmart Inc., examining its organizational environment, SWOT analysis, environmental constraints through PESTLE analysis, and stakeholder relationships. It highlights Walmart's strengths, weaknesses, opportunities, and threats, alongside political, economic, social, technological, legal, and environmental factors impacting the company. The report also discusses Walmart's organizational structure, employee motivation strategies, and provides recommendations for improvement. The analysis emphasizes the importance of stakeholder management and adapting to competitive pressures from retailers like Amazon and Costco. This document is available on Desklib, a platform offering a wide range of study tools and resources for students.

Running head: Report on Research and analysis paper -Walmart Incorporation
Report on Research and analysis paper -Walmart Incorporation
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Report on Research and analysis paper -Walmart Incorporation
Executive Summary
The company is WALMART whose research and analysis is required to be done to
understand the organizational environment, SWOT and analysis, Environmental constraints
and stakeholder. The report is made to understand how Walmart deals with all the
stakeholder and what effect does it has on the customers. The consumer is the main asset of
the company how does every action effects the company is the matter of fact. The pestle
analysis is a method to understand how the company is dealing in the internal and external
environment.

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Report on Research and analysis paper -Walmart Incorporation
Table of Contents
Introduction................................................................................................................................3
SWOT Analysis:- Formulating Strategies.................................................................................3
PESTLE Analysis: Environmental Constraints:-.......................................................................4
The stakeholder:-........................................................................................................................6
Organizational Design:-.............................................................................................................6
Motivation to the Employees:....................................................................................................7
Recommendation:......................................................................................................................7
Reference:..................................................................................................................................8

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Report on Research and analysis paper -Walmart Incorporation
Introduction
Walmart Inc. is a huge multinational retail corporation based in America. It is an
international store that offer everything from food to cloth. The rates are very competitive
which makes them the number one player in the retail market category. They have a chain of
hypermarket, discount store and grocery shop. It has the head quarter in Bentonville,
Arkansas. In present date Walmart has 11,348 stores and clubs in 27 countries. The company
operates by the name Walmart in the United States and Canada, by the name Centroamérica
in Mexico and Central America, Seiyu Group in Japan. For the fiscal year ended January 31,
2019, Walmart's total revenue was $514.4 billion which makes it the largest retail chain
globally. It is also the largest employer in the world. Walmart has a human resource of 2.2
million associates around the world. They are also very active in providing proper training to
the employees so that the customer service is never hampered. The management of the
company is rigorously working hard to meet the demand of the customer. They are investing
in strategic supply chain management. A team of experts work to understand the lag in work.
Walmart’s operations management covers a list of approaches that manages the supply chain
and inventory. The company covers every point of decision management area coined on
operational framework.
SWOT Analysis:- Formulating Strategies.
Strength: Being one of the biggest wholesaler across the globe it has the advantage over
customer reach. The store provide products at the competitive pricing that attracts customers
heavenly to the store. The wholesaler can give competitive rate due to the huge purchase of
the goods at once. It is ranked number one in 2011 and was labeled as the Americas largest
company. The advantage of catering to the need from low to high income group of

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Report on Research and analysis paper -Walmart Incorporation
consumers. The reputation that Walmart has made is unshakable and this give a base for huge
expansion in near future. The advantage that can be garner here is from the brand name and
attracting the loyalty of the customers. This will definitely boost the sale.
Weakness:- The organization is expanding with force but the proper space requirement is not
met properly. The competitors are very strong at some areas for retail market. The company
needs strong back up and organized team across other countries. Walmart Inc. has faced
criticism regarding the strategies of dominance in countries and also for the public relation.
The threat is very nominal but if not taken care now can become a reason for the company to
lose customer loyalty.
Opportunities:- The company is expanding in western countries the variety of goods that it
is offering is vast the consumer with more disposable income prefer to consumer goods that
provide high bargaining power. The organization is not only providing service for grocery
and stable also it deals in variety god that gives the consumer a haven for one stop shop
option. Being one of the biggest buyer the suppliers are always interested to give it major
discounts and payment options this is an opportunity to claim higher market share.
Threats:- The most noticeable threat is the competition form the new large retailers like
Amazon, Costco, Tesco. The retail competition is giving a competition in the market by
emphasing on the price and quality of the product. The risk that they are facing because of the
large retailer are opposed by the local market small retailer owners. The increasing price and
inflation is also impacting the profit making of the company. The company needs to expand
in online area as that is also a huge game changer if the competitors takes the online market
WALMART may face difficulty for sustaining the competition.

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Report on Research and analysis paper -Walmart Incorporation
PESTLE Analysis: Environmental Constraints:-
A company is known to not only depend on customer but other factors like political,
economic and other factors related to operation of the company. Walmart is expanding and so
is the competition rising leading for it to properly analysis its business style depending
market.
Political:- The most important force of any economy is the political force specially when the
origination is trying to operate in an international sphere. The international business is
characterized by many political structure and governance bonds. The company tried to
expand it wings in Asian countries but due to the political constraints the company only able
to open twenty stores in India and less than 500 stores in China. The number is very less if
compared to US data. The complex regulatory for foreign investment and foreign business
has led to these factors.
Economic – These factors are direct impact provider on the economy performance which is a
direct reaction of the company policies. The rise in inflation, recession, labor job
requirement, job opportunities are some of the important economic factor. A rise in the
inflation rate in any economy will affect the buying capacity of the individuals. It has been
noticed that the company is increasing the job opportunities sin many countries as the recruit
is on every levee and not just labor force requirement. There is an allegation that the
company is cutting opportunities of other small retailers and this factor has made a strong
economy regulations that are creating barrier for the company to do free trade.
Social: The factor scrutinizing the social factors of the market. The cultural trends,
demographics, population. These effects the buying trends in countries that have huge
demand in specific seasons.

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Report on Research and analysis paper -Walmart Incorporation
Technology:- The factors are related to technology innovation present in the market. These
factors either affects the operation of the market favorable or may not be favorable. This is
about research and development.
Legal:- The factors pertaining to external and internal laws factors that may affect the
business environment. The consumer laws, safety gender bias case. The company has been in
some of these cases and has cleared with changes in their management strategies.
Environmental:- These factors involve surrounding environment which is a crucial for the
company. These aspects very important for company’s like Walmart. The climate, weather,
location and other environmental factors affects the operation of the company.
The case of political and legal can be deemed to the major factors to be considered as
these factors not only hamper the business but also affects the brand name. The legal conduct
are the most impacting factors in recent years Walmart has faced many legal law suits based
on different issues. There should be a team that looks after the issues pertaining to the legal
and political factors.
The stakeholder:-
Stakeholders are group of individuals who has some kind of interest in the company
and can be affected by any change in the management.
The employees:- The major stake is of the employees . They not have stake but also form the
body of the company. The financial compensation provided by the organization keep them
sustain. Walmart is very effective in addressing the interest of its employees.
Suppliers:- They are very much interested in getting a profitable deal from the company.
Even a minimum change in the change in the operation. They are the least prioritized
stakeholders as the list of service provider in this business is many.

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Report on Research and analysis paper -Walmart Incorporation
Investor- They are very much interested in profit of the company. As they are interested in
the amount of interest they shall be getting after the loan amount they give.
Organizational Design:-
The business structure of a company is about the formalization of the patterns of
interaction which connects the tasks, technologies and people. Walmart follows the divisional
structure for the organizational structure. Each store is assigned to the manager for each
functions. There are twelve work areas for the company. It consists of Communication,
interior design, customer relation, finance and business, human resources, information
technology, logistics, marketing, sales, restaurants, product development. Walmart operates
on a line of business which helps them to move to top and stay at retail division. As Walmart
is very big it operates in many parts of the geography. The command of action lie with the
CEO next level is for the top executive and then come the line of manager who has assistant
manager under them. The line after this is divided across the stores. Everything is handled by
the HR department and the accounting department handles all the finance of the organization.
Motivation to the Employees:
Motivation is a kind of force that directs the people to achieve the goal and work
happily for the organization. Walmart is very prompt at keeping its employee happy and
satisfied because every credit of success is directly linked to the employee. They provide
incentives, wage appraisal, monthly discount coupon and other incentive linked with daily
work.
Recommendation:
The company is facing completion and that is the major reason for 8 quarter revenue
profit meeting. Other factors that the company has worked on and is improving is the

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Report on Research and analysis paper -Walmart Incorporation
working environment for all gender. The space area issue for stocks and the taxes issues that
can arise due to new financial strategies the company has earlier also highlighted. Thus it
very important for the Walmart to maintain a high transparency for the stakeholders.
Reference:
Ahmadi, M., Dileepan, P., & Wheatley, K. K. (2016). A SWOT analysis of big data. Journal
of Education for Business, 91(5), 289-294.
Banerjee, D. (2015). Walmart Stores Inc.-A Strategic Analysis. International Journal in
Management & Social Science, 3(12), 202-225.
BARBERÁ MARCILLA, L. A. U. R. A. (2014). Business analysis for Wal-Mart, a grocery
retail chain, and improvement proposals (Doctoral dissertation).
Barney, J. B. (1995). Looking inside for competitive advantage. Academy of Management
Perspectives, 9(4), 49-61.
Lobel, O. (2006). Big-box benefits: The targeting of giants in a national campaign to raise
work conditions. Conn. L. Rev., 39, 1685.
Piven, F. F. (2013). On the organizational question. The Sociological Quarterly, 54(2), 191-
193.

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Report on Research and analysis paper -Walmart Incorporation