Type: Economics
Pages: 3 | Words: 619
Reading Time: 3 Minutes

Wal-Mart like other companies wants to gain a competitive advantage by increasing its customer base and market share. For Walmart Company it focuses on employees, management, customers, and the organizational culture because it will help the organization achieve its set goals and objectives (Birchard & Marquard, 2007, p. 122). The manager’s philosophy and management style will impact on the employees. Managers at Wal-mat are giving the employees explicit and clear instructions to make them feel part of the organization. In addition, it is important because managers at Wal-Mart are progressively empowering and motivating employees to make decisions and feel part of the organization.

One of the important benefits or package is the introduction of limited-risk initiative. It has realign requirement eligibility by decreasing cross-subsidization of spouse, health insurance, developing high-performance provider networks, capturing savings from the initiatives to improve labor productivity, and increasing salaries for employees to motivate them (Brunn, 2006, p. 156). In addition, such initiatives will reduce costs; motivate employees, and improve associate satisfaction. There are five bold steps that will link public reputation, associate satisfaction, and costs. These include producing and distributing high-quality products in the target markets. The retirement program is a benefit because it has been restructured. This will help the associates and employees save for their retirement.

Secondly, there are redesign benefits and other related aspects of associated experience such as a more productive workforce, job design, and attracting a healthier workforce. Furthermore, Walmart has some selected investment strategies that will help increase sales, expand the market, gain a competitive advantage, and improve the reputation and image of the company. The customers and other stakeholders are catered for by meeting their needs and expectations (Brunn, 2006, p. 158).

Communication and coordination has been improved in the organization that will benefit all the stakeholders such as the customers, employees, authorities, and top management. Proper communication and coordination will shape the national and state outcome so that it can compete favorably in the market with other firms by improving healthcare services. In addition, it offers more attractive benefit packages for health associates so that it can satisfy all the stakeholders. This has help to fight the critics of the company who have been unhappy the improved performance of the company (Birchard & Marquard, 2007, p. 128).

Challenges facing Wal-Mart

It is interesting to find out that Wal-Mart the world largest, most successful and reputable organization is facing some challenges, which if not address can wreck the company’s performance. The company is not immune from facing challenges because of the changing business environment. There is stiff competition from Carrefour and Tesco from European. In addition, Wal-Mart Company has recently pulled out or withdrawn from South Korea and the German market. In China, the company is behind the market because of stiff competition; hence, poor performance and low profitability.

The company is not growing as expected in overseas countries as it is in the United States. There is no more space for growth and expansion in US; therefore, it should strategize on how to expand to other nations. The growth rate of the company has decreased from 5% to between 1 and 3% for the last four years; hence, competitors are taking advantage of this situation to outperform it in the market.

There are non-tariff barriers facing the organization. This is propelled by the safety, quality standards, and geographical limitations. The local China’s market has not developed and the government favors locally products than the imported. The custom duties are raised and subjected to vague labeling and testing laws that are unfair to them. Customers in US have no trust in imported food products; hence, a big challenge to the company’s products. These challenges are cause by the poor strategies within the organization.

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