Walmart: An Admirable or Deplorable Business 1
Walmart: An Admirable or Deplorable, Business Model
James Bonney
Walmart: An Admirable or Deplorable Business 2
Abstract
Wal-Mart is the imposing retailer that is hard to miss if you are an American shopper, but in the
last two decades has become a global force of the retail world. Walmart has a checkered past
filled with those who applaud the giant’s rise to a powerhouse retailer, those who believe
Walmart to be a hard-nosed bully that leaves small businesses in its wake of destruction, and a
company that does the bare minimum for their employees. This research paper focuses on several
topics of Walmart’s business to provide a better understanding of the company as a whole. An
overview that discusses Walmart’s beginnings in the small community of Rogers, Arkansas in
1962 to the super retailer it is today. The macro-environment section covers Walmart’s customers
and how the company relates to that customer base, its social practices in a growing eco-
conscience world, and the highly criticized and debated treatment of its employees. Also
analyzed is the political clout that Walmart utilizes to help their bottom-line, the legal issues that
the company is engaged in such as the ongoing battle to alienate unions from their stores, and
Walmart’s promotion of its expansion plans before the community and municipal leaders. And
lastly the economic forces that positively and negatively affect the company such as economic
decline.
Keywords: Walmart, macro-environment, global force, retail stores, and corporate
responsibility.
Walmart is one of the largest retail stores in the country. The company is a model
business in a very competitive marketplace. Walmart has fast become a company that any
Walmart: An Admirable or Deplorable Business 3
business should envy with their phenomenal growth from a small chain in the U.S. to a global
retailer with a dominant share in the global marketplace. Walmart in this time has also become a
model of a human resources’ nightmare, leaving many of its employees feeling disconnected and
looking for a more secure and better paying job. Walmart maintains a competitive edge and a low
cost strategy that helps it maintain and enjoy its success. Walmart’s success can be attributed not
only to the low prices it offers but also management strategies that the company practices.
Walmart uses the “Lowest Price Strategy” to maximize their profits. Walmart produces their
merchandise in China where there is cheap labor; because of this many Americans lose their jobs
due to the high expenses to produce merchandise within the United States. Aside from their
success, Walmart faces many challenges beginning with the need to improve its marketing
strategies such as how they stock their shelves and promote their brand worldwide. Another
pressing issue is the need to resolve Human Resource compliance violations especially within
the U.S. and address the growing employee interest to become unionized.
Company Overview
The first Walmart opened in 1962 by founder Sam Walton in Rogers Arkansas on
the business model of offering the lowest prices possible while maintaining excellent customer
service. According to Walmart, “Sam’s competitors thought his idea that a successful business
could be built around offering lower prices and great service would never work”. As we all know
Walmart’s success exceeded its meager beginnings and went public in 1970 which resulted in a
nationwide expansion, then a global expansion that continues today. Walmart currently operates
10,900 stores worldwide in 27 countries, boasts a fiscal year 2013, sales of approximately $466
billion, and employs 2.2 million worldwide. Walmart is the third largest private corporation in
Walmart: An Admirable or Deplorable Business 4
the world and at 2.2 million employees makes it the largest private employer in the world it is
also the #1 retailer in Canada and Mexico and has operations in Asia, Africa, Europe, and Latin
America. According to Walmart’s website (2013), “Walmart associates are the heart of our
business. As Sam Walton said, “Our people make the difference… Whether it’s a part-time job or
the career of a lifetime, working at Walmart means opportunity.” With the success of the
Walmart brand it is no wonder that one can hardly avoid the giant retailer in their everyday
consumer activities. This relationship has led to a love hate relationship with the retailer, some
love the low prices and how convenient it is to find most everything you may need in one place,
