Analysis of Walmart
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[pic 1]Student name & ID        :        Karim Diallo (10263159)Course Title                :        MBA (Finance)Lecturer Name                :        P.J PAULModule Title                :        International ManagementAssignment Title        :        ReportNo of Words                :        3700[pic 2]This study will consists on the analysis of Walmart a well known grocery retail chain. It will be necessary to study the external and internal environment in which the company operates. Furthermore, the study of strategy tied to the coporate governance of the firm, will allow us to get to know how the company is being run, and to determinate the keys strenght of the firm. INTRODUCTIONWal-Mart, was founded in 1962 by Sam Walton with his brother Bud in Rogers, Arkansas, and it developed into a multi-million dollar company. He learned the value of work by delivering newspapers and selling magazines when he was young.The new business model of Sam Walton’s was different from other traders not only in terms of discount but he also focused on opening stores in small towns, by proposing low prices. The first stores opened in Arkansas but later he expanded Wal-Mart to Oklahoma and Missouri in 1968. During 1980s, the company rises by reaching $25.8 billion sales with almost 1,525 stores and 271,000 workers at the end of the decade. On March 17, 1992, President George Bush awarded Walton the “Medal of Freedom”, He passed away, the same year. In 1990s, Wal-Mart has considered as the largest retailer of the nation and it continued the achievements by opening more stores within the country and outside the country. Now Walmart is present in many country, Mexico, Canada, with 122 Woolco stores, in Argentina, Brazil, China, India, Germany, Korea, Japan and Later on in 1998, the company entered in UK and bought the UK’ s third largest grocery chain called “ASDA”. Today it’s  $469.2 billion sales in 2013 with 2.2 million workers  worldwide and 11,000 stores under 69 banners in 27 countries (Walmart, 2013). EXTERNAL ANALYSIS : PESTELPOLITICAL / LEGAL Walmart has revolutionised retailing, became the biggest company in the world by revenues. Present in many country, Walmart coped the different political constraints may affect the business, no firm knows that better these days than Wal-Mart.USA : The firm had very quickly understood than the stakes of it’s businness were played during the electoral campaigns in USA. The company doesn’t hide it , as you can see it ont the corporate report, indeed Walmart does use corporate funds to make political contributions to candidate and ballot measure committees in various states. And what makes them today , the biggest spender by wide margin with 2.4 million in us dollars, in political donation. In the us market , their reach is pervasive, reflected  by enormous and growing expenditures to influence electoral and policy outcomes. As you can guess it , the mains impact of theses contributions is to rebuild the opinion of the candidate by heading popular and viable campaign, and also help to make in place the candidates with friendly political opinions. This seems bes mightily suspicous but it’s still remain a common strategy of big firms.

In an agressive environment, Walmart is increasingly facing lawsuit. In Major part due to the conditions of works of their employees, low pay, non-paying overtime. Indeed during this last tweeny years walmart had still contuning to reduce  prices, (their policy) at the expense of theirs suppliers and competitors, always getting less, but also increased significantly their revenues while reducing numbers of employees and their pay. Walmart use political muscle to push trade and work policies that contribuiting to run their businees and avoid lawsuits.In fact, Walmart has lobbied to make it easier to push American jobs out of the country which would allow them to establish stores in other WTO countries with little regard for local zoning law.INDIA :The partnership between walmart and bharti entreprises in India has been dissolved in 2007, due to political issues. Indeed The Indian government requires retailers to source 30 percent from small suppliers which is difficult for Walmart to comply.CHINA :13 Walmart stores were closed down and the companyhad to pay 2.7 million yuan penalties, due essentially to a non-respect of food lesgislation. For the chinese authorities, it’s was « zero tolerance » approach toward violators. Food safety is a sensitive in China, due to the many food scandals, causing childs  death..As the brand has expanded aggressively into the China market, it has engendered a new wave of Chinese shoppers and legions of workers to serve them. The rise of a Westernized consumer culture has also generated familiar tensions around labor, inequality and workplace rights.MEXICO :The company is actually faced to an investigation by the US authorities about foreign corrupt practices act.ECONOMICALSince the economic environment changed after the crisis.  Governments tend to be more attentive to the protection of their markets and their people, so more and more barriers are present, whose faces walmart and especially in emerging countries.The worlds largest retailer sees the economy as “tough” and “unpredictable” around the world, Chief Executive Officer Mike Duke said.Walmart is taking a number of steps, from closing  underperforming operations in Brazil and China to opening smaller U.S. stores, as it moves to improve results in the face of difficult conditions worldwide. Indeed for the first time, the firm plan to open smaller format stores. The company feels pretty good about it’s profit, but remain unsatisfied.MEXICO :The Mexican market is the second largest market after the US market. With a considerable slowdown in the Mexican economy. Walmart has felt the repercusions. Due to low consumer confidence, weak economic environment and natural calamities.

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