Wall Mart for American Retail Supermarket


Write an essay on wall mart.


Wal-Mart is an American retail supermarket that was founded in the year of 1962 by Sam Walton (Walmart, 2016). The major products of the company are grocery, electronics, home and furniture, jewelry, pet supplies, movies and music, home, and furniture. The Fortune Global 500 list indicates that Wal-Mart is the world’s largest company regarding revenue (Walmart, 2016). The company has more than 11000 stores all over the world having more than 2 million employees (Walmart, 2016). Total income of the company is US$ 480 billion (Walmart, 2016). Wal-Mart is a company owned business. Walton family runs the business as they have 50% of the company share.

The company was listed on the New York Stock Exchange in the year of 1972. During the 1990s, the company had become from a regional to a national business giant. Presently the organization has four market divisions. They are such as Wal-Mart US, Sam’s Club, Wal-Mart International and Global e-commerce (Becker, Kugeler & Rosemann, 2013). Presently the company has more than ten subsidiaries all over the world. They are such as Asda, Massmart, Wal-Mart Mexico, Lider, Vudu, Centroamerica and many others. The market slogan of the company is “Save money. Live Better.” The company is presently facing employee issues that affect the business performance of the organization. In order to solve these issues, compensation structures for the managers have been provided so that they can handle employees effectively.

Analyzing the organization from a business perspective

The vision of the company is developed in accordance with the desire of the company founder Sam Walton. The vision of the company is “To become the best retailer I n mind and hearts of the customers and employees.” The aim of the company is to achieve the top position in the retail market. From the vision statement of the company, it can be analyzed that customers and employees are the primary concern of the company (Mowday, Porter & Steers, 2013). The company has a realistic influence on the minds of customers and employees in the context of financial benefits.   Robbins et al. (2013) stated that all the strategic decisions are taken by the organization Wal-Mart straightly manifests the company mission. The mission of the company is “Saving the money of people so that they can live better.”

Analyzing the sustainable competitive advantage of the organization

The company uses cost-leadership generic strategy depending on the Porter’s model in order to gain sustainable competitive advantage in the retail market (Luciana et al., 2012). The mission and vision of the company are developed depending on the strategic choices of the organization.

Evolution of success

The company is successful to gain a sustainable competitive advantage so far, and it can achieve its mission and vision with the help of Wal-Mart’s generic strategy.  Customers are able to save their money with the help of Wal-Mart’s low selling prices (Pryke & Smyth, 2012). One of the primary objectives of the organization is to lower the price with the help of cost reduction technique. As Kogg and Mont (2012) mentioned that, effective implementation of information technology helps the organization to increase its operational efficiency. It has been found that the company has reduced employee wages for these purposes. One of the major strategic objectives of the organization is to keep the operation cost low. In order to meet this objective, the company reduces wages and investment in other sections (Muogbo, 2013). In order to minimize the price of products, the company tries to maintain high sales volume and the enormous scale of operation.

Analyzing the organization from an HR 

The owner of the business Wal-Mart provides so much value to their employees that the HR department of the company is known as People’s division (Pryke & Smyth, 2012). The HR mission of the organization is to develop an organizational bridge between employees and management team and influence them in order achieve the organizational goal (Muogbo, 2013). As a major business partner, the People’s division of the company dev elopes seven important strategies to align its business strategies with the HR practices of the enterprise.   They are such as:

Protecting price advantage of the company

Focus on people to ensure operational success

Increasing cultural commitment to ensure operational success

Developing healthy relationship with consumers

Development of talent pool to hire skilled employees

Increasing focus on employees to reduce expenses

Aligning organizational objectives with  HR functions

Two major incentives strategies that can be used to motivate managers

The management of Wal-Mart behaves strictly with their employees, which decreases the job satisfaction level of employees. As Becker Kugeler and Rosemann (2013) mentioned managers have a crucial role in an organization. They help to increase profitability for an organization.  Hence, the company Wal-Mart has thought to provide them incentives so that they handle their tasks efficiently. There are two major incentive strategies will be taken by the organization Wal-Mart. They are such as annual bonus and individual rewards.

As Muogbo (2013) stated that annual bonus is designed to provide the short-term performance to the managers. It is tied to the profitability of the company. Most of the organizations derive the eligibility of managers depending on different factors. These factors are such as job level, salary, and discretionary considerations. As Kogg and Mont (2012) mentioned that the percentage of bonus or incentives for managers can be determined by analyzing the impact of the jobs on the company profitability.

Increasing individual awards is another strategy to improve motivation level of managers within the enterprise. Depending on the individual performance of executives and their personal capability to improve organizational performance, the company must provide an individual award to the directors (Becker, Kugeler & Rosemann, 2013).

Analyzing the ways in which these strategies can help to achieve the organizational goals

There are five primary ways in which these strategies can help managers of Wal-Mart to change their approach to controlling employees (Mowday, Porter & Steers, 2013).  These factors are given below: 

Aligning the individual interest of employees with the organizational objective of Wal-Mart

Managers need to take genuine interest in the future path of career growth of employees

Developing better work-life balance to increase job satisfaction level of Wal-Mart’s employees 

Listening to all the problems of employees and try to solve those problems

Provide empowerment to the employees so that they can take important decisions in critical conditions.

Reference list

Becker, J., Kugeler, M., & Rosemann, M. (2013). Process management: a guide for the design of business processes. Springer Science & Business Media.

Kogg, B., & Mont, O. (2012). Environmental and social responsibility in supply chains: The practice of choice and inter-organisational management. Business Economics, 83, pp.154-163.

Luciana, M., Wahlstrom, D., Porter, J. N., & Collins, P. F. (2012). Dopaminergic modulation of incentive motivation in adolescence: age-related changes in signaling, individual differences, and implications for the development of self-regulation. Developmental Psychology, 48(3), pp.844-850.

Mowday, R. T., Porter, L. W., & Steers, R. M. (2013). Employee—organization linkages: The psychology of commitment, absenteeism, and turnover. Academic Press.

Muogbo, U. S. (2013). The Impact of Employee Motivation on Organisational Performance (A Study Of Some Selected Firms In Anambra State Nigeria). The International Journal of Engineering and Science, 2(7), pp.70-80.

Pryke, S., & Smyth, H. (2012). The management of complex projects: a relationship approach. John Wiley & Sons.

Robbins, S., Judge, T. A., Millett, B., & Boyle, M. (2013). Organizational behavior. Pearson Higher Education AU.

Walmart.,. (2016). Walmart. Walmart.com. Retrieved 10 June 2016, from 

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