Principles of Management (Wal-Mart)

The strengths of Wal-Mart are many. head start, it is its sales volume. two hundred million people shout out 10,800 stores weekly worldwide. Its business baffle of increasing sales by displace prices works very well for them. Wal-Mart deals directly with producers from local farmers to major intersection manufactures. This strategy allows them to secure the lowest prices possible for their customers. Wal-Marts supply twine is second to none. They are changelessly exploring more efficient ways to dishonour products to customers in order to lower prices.Wal-Mart defiantly has one of the worlds most go global supply networks. Variety is key to Wal-Mart. If there is profit in selling a product, Wal-Mart does it. With four hundred and sixty six jillion in sales for 2012, Wal-Mart is the worlds leading retailer and generates a huge cash flow. This allows them to expand internationally as well as geographically. The grocery section has grown to account for 51% of sales. Wal-Mart is now the biggest grocer in the country. The pharmacy has grown as well. With four dollar prescription(prenominal)s, they nurture changed the prescription drug industry.Wal-Mart is the largest private employer in the world with 2. 2 million associates worldwide. Wal-Mart tends to invoke from within. Not only does this strategy help retain existledgeable associates and managers who know Wal-Mart from top to bottom. Even with such strong growth, Wal-Mart still delivers to stock h disuseders. First quarter dividends for 2013 were one dollar and nine cents per share, returning more than 200 million dollars to shareholders. Wal-Mart is a key component in most mutual funds. Wal-Marts size allows it to buy in volumes that no one else can.In general, the high the volume the lower the price per Unit. By sticking to Sam Waltons original business model of lower prices to create higher sales volume, Wal-Mart is a world leader in sustainability and the biggest retailer in the world. W W eaknesses The weaknesses of Wal-Mart include negative press coverage, which is always a weakness in retail. With a company the size of Wal-Mart, small miscues are big news. Wal-Mart postulate their customers to have a positive opinion of them so they will keep open coming back. With overhead the size of Wal-Mart, customers must visit regularly.Wal-Mart operates on a low profit margin. When economic conditions are poor, sales go elaborate and affect Wal-Mart quickly. Wal-Mart buys 40% of the products it sells from foreign sources. Government instability can disrupt, or still dissolve supply to stores. Wal-Mart cannot control how well governments maintain roadway and ports. Poor infrastructure maintenance slows delivery and can result in lower sales. Instability can also have negative make on currency exchange rates. These weaknesses may not have slowed Wal-Marts growth to date, but they will not be going away. O Opportunities Wal-Mart has many opportunities in the current econ omy and is in a swell position within its industry being very committed to purpose opportunities to market new products and finding new ways to market old products in new ways. Wal-Mart online is constantly updated to take advantage of the growing net income market. Wal-Mart has recognized the global growth opportunity and is aggressively expanding globally in twenty eight different countries. Wal-Mart sees opportunity in its employees. Wal-Mart is a leader in internal promotion.This ensures that Wal-Mart managers are stable and knowledgeable of Wal-Mart as a whole. It is not effective in poor economies. The weather is also a constant threat. Inclement weather can close manufacturing plants, roads and stores. great(p) snows in one part of the country can close tape drive routes. Destructive storms such as a hurricane can close and even destroy plants and stores. Weather related expenses and sale loss are unforeseeable and always a threat. Wal-Mart is the biggest retailer in th e world, making it chief posterior for all competition.Large, existing companies need to cut into Wal-Marts customer infrastructure in order to grow. Wal-Marts customers are also being courted by new companies, especially in the internet market place. Social tweet and negative comments is also emerging as an internet threat, and Wal-Mart will have to combat it. With volume the key to success, Wal-Mart must keep a constant visual on the threats to its customer base. Conclusion The outlook for Wal-Mart, based on an analysis of strengths, weaknesses, opportunities and threats is great. With 466 billion dollars in sales for 2012, Wal-Marts business model must work for them.