Today, Wal-Mart holds one of the leading positions in the US market and expands its market internationally. The company grows is, to a significant extent, determined by its internal strengths, which allow the company to maintain its competitive position. At the same time, the company should keep developing its strengths and focus on the elimination of its weaknesses, which also persist, in spite of the efforts of Wal-Mart.
One of the major strengths of Wal-Mart is the leading position of the company in the market. As the matter of fact, the company holds the leading position that allows Wal-Mart to raise entering barriers and to compete successfully with its major rivals. At the same time, the leading position stimulates the company to improve its performance to stay in the lead. In this regard, employees feel being motivated as they are conscious of the fact that they are working in the company holding the leading position in the industry that naturally stimulates the development of leadership skills and qualities in employees.
Furthermore, another strength of Wal-Mart is the large volume of products and high sale rates, which allow the company to outpace its rivals and conduct flexible pricing policies offering its customers the lowest price in the market (Schein, 1999). The large volume of products and high sale rates comprise an important part of the current success of the company in the market because the company outpaces its rivals and attracts customers due to low prices. As a result, the low prices attract more customers and the company carries on its business development successfully. However, the company should pay attention to its pricing policies because they may lead to substantial losses if discounts become too high, especially in the time of economic recession.
Also, it is worth mentioning internal business processes as one more strength of the company. Wal-Mart maintains its internal business processes effectively that allows the company to optimize its performance and to reach positive outcomes in its business development (Peters, 2007). The effective organization of business processes contributes to the improvement of the organizational performance of the company.
However, Wal-Mart still has some weaknesses, among which it is possible to single out the personnel discrimination. The personnel discrimination undermines the internal relationships within the organization because employees are in an unequal position. Employees susceptible to discrimination feel being inferior to other employees and naturally they attempt to change their position that results in lawsuits against the company.
In addition, many employees suffer from the job dissatisfaction because they feel being unimportant for the large company, where they perform routine functions and where their contribution to the overall organizational performance is almost unnoticeable (Hart, 2004). The job dissatisfaction increases the risk of conflicts within the organization and, therefore, undermines the steady business development of Wal-Mart. Hence, the company should focus on the development of positive interpersonal relations within the organization to improve the attitude of employees to their job.
Finally, the prevalence of part-time jobs decreases the effectiveness of the employees’ performance because they do not spend enough time in their workplace and they do not count on substantial benefits from the part-time jobs. In this regard, the company should extend the share of full time jobs.
Thus, Wal-Mart can develop successfully its business as long as it manages to use its strength and minimizes negative effects of its weaknesses.
Hart, J.L. (2004). “Organizational Communication in an Age of Globalization: Issues, Reflections. Practices”. Business Communication Quarterly, Vol. 67.
Heilbroner, R. L. and W. Milberg. (2000). The Making of Economic Society. New York: New Press.
Peters, T. J. (2007). In search of excellence: Lessons from America’s best-run companies. New York: Harper & Row.
Schein, E. H. (1999). Organizational culture and leadership. San Francisco: Jossey-Bass.