Wal-Mart is an international chain of retail stores that is operating very effectively and it came into existence in 1962 in Arkansas. It was started off by Sam Walton and his brother Bud. Wal-Mart came up with a brand new slogan which boasted the idea that to live better it’s necessary to save money. And this is what Wal-Mart is all about. Also now the company has renamed its logo and now the new logo is “Walmart” in just one word.
Market segment is the division of the total market into different segments according to the needs and the distinctiveness of the target market. All the customers who have the same requirements form a segment and as Wal-Mart is an international retail chain store, its target market is divided into a number of different segments and these segments are continuing to be a growing piece of the business, therefore Wal-Mart has to meet up the growing challenges that will have to encounter in the future. Competition
Wal-Mart remains at the top of market after many years of continuous success but the completion is getting stronger thus narrowing down the gap between the market leader and themselves. But still there are core competencies of Wal-Mart which has yet remained unbeaten by its competitors. These include excelling in their operations, focusing on the needs of the customers with a narrow focus and to allocate resources for research and development purposes. However, Wal-Mart has a growing list of competitors too.
The major competitors of Wal-Mart in the US are Kmart, ShopKo, Meijer and Target. Therefore, Wal-Mart has to ensure to improve their core competencies further to stay above these major competitors and keep their own share of market. Operational excellence Wal-Mart’s excellence cannot be denied. Rather it is more pronounced as one reads the figures, number of retail outlets and employees it hires. It has opened its retail chains in 14 countries having a total of 7390 stores. (WalMart, n. d. ).
As if this wasn’t enough the figures it earns from foreign market are even more astounding. It has been seen that almost 20. 1% of its sales were done in international departments in 2006 and this figure keeps on arising that shows the level of excellence in its operations and the company’s determination to remain at the top of its business. However, as the business is expanding, it will have to face more challenges in order to purse with the operational activities and for this they will need an excellent set of employees. Investment in Research and development
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Due to the growing trends and needs of the society, it is thus essential for Wal-Mart to have an effective research and development department. As continuous development as well as innovation is going on in the current scenario, Wal-Mart has to keep pulling new customers in order to boost up the sales of the business. Therefore, they must invest heavily on research and development department to prove that it wants to provide the best to their customers and should keep bringing up new innovations in its styles of its product to attract the customers.
Distribution network As Wal-Mart has a lot of chains of stores globally, it is therefore their basic requirement to have an adequate distribution network. Computer Technology There has been an increasing trend of computer technology these days. More and more people are getting aware of this and all the customers wish to acquire the best with the least cost applicable to a commodity. Besides this, the growing trend of online retailing is another challenge for Wal-Mart.
As all the other competitors of Wal-Mart are offering online services, it is thus a must for Wal-Mart to provide online retailing services as well to cope up with the competition. Moreover, as mentioned above Wal-Mart is an international chain of stores due to which it has to transcend the international boundaries and so it can overcome this challenge by coping up with the problem of diversification that occurs while recruiting individuals in different countries and the needs and the expectations of the employees in different countries have to be taken care of.
Wal-Mart’s recruitment challenges The strategy that Wal-Mart has adopted is to hire the right person for the right position after which the management makes sure that they encourage their employees in order to help them accomplish their tasks in their own way. Furthermore, the staff is just an average set of people but encouragement is what makes them perform in an above average manner. Moreover, Wal-Mart never calls his employees as employees; however they call them associates that mean that they are the partners in the business.
Lots of employees in different countries work for Wal-Mart and this creates a challenge of cultural diversity for the management and the culture followed by an organization highlights its personality. Culture basically comprises of the assumptions, the values and norms of an organization, the financial position of the organization and about its members and their behaviors. (McNamara, 2000). No individual has cent percent same characteristics and although they might be same in some forms of interests but they mostly differ from each other.
Their working styles, their priorities, their opinions and thus everything is more or less different. Wal-Mart aims to hire suitable candidates but this is not an easy task. Competition is tough due to the arising new competitors and the employees might want to switch over to some other organization in case they are not satisfied working for Wal-Mart as Wal-Mart is operating in different countries, they have to make different strategies for different store locations. The customer wants to be fully satisfied and for this Wal-Mart requires a good workforce.
It is said that a happy workforce always reaps higher profits. The task of the management does not just end once they hire an employee but they have to ensure that he is performing according to the expectations of the business and for this, training and development facility is essential for the employees, moreover they also have to be rewarded accordingly. Diversity can be one of the major recruitment challenge for an organization like Wal-Mart. (WalMart, n. d. ). Many people feel uncomfortable working with people of different age, sex, or culture.
Despite the fact that employing people from different groups is good but it can lead to a clot of conflicts. The management has to manage a diversified workforce effectively or it can effect employee satisfaction and productivity negatively and the employees who recognize themselves as valued members of their organization are more diligent, concerned, and innovative and this tends them to work harder. Other than that, people from diversified groups would be having different definition of ambition.
The outcome of ambition is mostly unpredictable, some ambitions begun in selflessness that can at times be uncontrollable as well and some people may not be able handle ambition serving it as a grief to others and it further leads to jealousy. (Perlmutter, Bailey & Netting, 2000). Due to jealousy, people might opt any way to achieve their goals and these might be unlawful as well. Most of the organizations today offer equal opportunity for both the genders and even Wal-Mart should adopt this strategy in order to avoid any kind of bias.
McNamara,C. (2000). Organizational Culture. Authenticity Consulting, LLC. October 4, 2008. Retrieved from:http://www. managementhelp. org/org_thry/culture/culture. htm Perlmutter,F. D. & Bailey,D & Netting,E. (2000). Managing Human Resources in the Human Services: Supervisory Challenges. 1st Edn. Oxford University Press, USA, Paperback. WalMart. (n. d. ). About Us. October 4, 2008. Retrieved from: http://walmartstores. com/AboutUs/ WalMart. (n. d. ). Diversity. October 4, 2008. Retrieved from: http://walmartstores. com/Diversity/