Wal-Mart Chain Stores

Wal-Mart is an international company located in the United States that operates more than 11, 000 stores all around the world with a customer base in every city they have their businesses. The company was founded by Walton who managed the stores since 1962 and later incorporated in the year 1969. Over the years, the company has grown in terms of customer base and its functions expanded to different parts of the world for continuity of business. The company is regarded and recognized as the first in revenue, largest private type of limited company and which has employed more than 2 million people all around the world. As the company grows and diversifies from location to location, there are a number of challenges that have been affecting the company and which bring the revenue and customer loyalty down to its knees (Pope and Pope, 2015, pg8).

Under the new management, the company has undergone a number of activities including the management taking its duty in maintaining and creating possible ways of running the business. The management has discovered a number of challenges that have been affecting the company growth and diversification. One of the issues affecting the company is the issue of sustainable global supply chains. This is one of the business issues that are affecting the business and the organization in general. Another challenge is the store layout and the design and the third is the issue of prices related to competition. This is an issue that affects many stores which is an issue brought about by the store size which brings about competition.

1. Supply chain global sustainability

Many businesses are affected by the issue of supply chain sustainability which is an issue to do with the process and the technologies in terms of the environment, legal, economic, and social issue. The supply chain sustainability is basically based on the issue of making sure that the environment is at its best for the survivability of people which is also good for the building of strong brand image to the customers (Waller et al., 2015, pg306). In the case that the principle is not observed with the keenness it deserves, there could be a problem with the management and the continuity of the business. The new management has taken up its duty in the company and looked into this issue with the aim of reestablishing the brand name with the customer. The issue came up when the company discovered that the rate of customer buying from the stores had decreased over the years and something had to be done to prevent further damage to the company (Pope and Pope, 2015, pg4). A number of customers had initially complained about the issue of untidiness and lack of quality products or being sold products which had already reached their expiry dates.

In the stores and warehouses, the company discovered that the rate off restocking was at its poorest level in many stores and once the products are almost going bad, the staff stocks them for customers to buy. This is not ethical and this could even cause a lot of harm not only to the business but also the customers who consume products which have already gone bad. Products or stock which has not been sold and yet has gone bad is always returned to the main warehouse in the city where it is disposed. The kind of environment where the expired products are dumped has become hazardous to the people living in that area and also the environment due to pollution (Majumdar, 2015, pg321). Most of the products which have expired pose a challenge to the environment due to the chemicals and the packaging which is pollution to the environment. Waste products when kept in one place rot and sometimes produce a smell that is very harmful to any living organism. The products at some of the stores have overstayed their expiry dates and this is an issue that the company has vowed to address in making sure that ethical business standards are observed. In many stores, the management has reported finding an environment that is not good for business and which affects the business since customers love a place where they can be comfortable associating with.

Wal-Mart management has had a number of ways which are meant at dealing with this issue once and make it ethical and less expensive for the company. Such ways include having the involved parties do a thorough cleaning of the stock or get them dismissed from their jobs. There is no need of making an order for products and yet the current stock is still far from being exhausted at the stores (Pope and Pope, 2015, pg6). The ordering of new stock will cause losses and overstock of new and current stock and since not many people would prefer using the old while there is new, the customers will be attracted to buy the new stock. Also, the store needs to be rearranged so that the previous and incomplete current stock is given priority to reducing wastage and products going bad. This will eventually lead to low stock being expired and finally lack of dumping and therefore saving the environment from being polluted.

Such a move by the company has been welcomed by the stakeholders and the media has commended the step. According to many stakeholders, less wastage increases the selling capacity which ensures that the company gains from the current stock. There is no business which can continue its operations when there are challenges such as wastage since it will bring down the business and cause a shutdown of its door leaving an open forum for the competitors to take over the market (Achua and Lussier, 2015, pg80). The media has also commended the move terming it as a good way to reduce environmental pollution which is very unwelcoming for the guests in the areas and more-so people living in that location. Thus there will be an increase in customers and confidence will be restored to the Wal-Mart stores which will increase customer loyalty and this will have a positive impact on the business through an increase in revenue and customer satisfaction as the main objective.

2. Design and store layout

The design and the layout of the store are not in line with the best standards to allow for customer convenience while shopping for goods at the stores. How a store is designed has a lot of influence when it comes to customer specifications. Customers tend to be attracted to the stores where there is a large enough space for them to feel free and have a wider view of a variety of items they can select for their personal use. At Wal-Mart stores, the design and the layout structure is very poor and this reduces the chances of a customer shopping at the store twice. This is one of the ways that the store has been losing its customers to the competitors in the line of supplying quality goods and services. It is a factor that affects businesses which posses the idea of not wasting any space or using similar colors in its design. Such decisions affect the customers since many are attracted to how good a store looks and not the kind of services offered inside (Majumdar, 2015, pg310). In many cases, consumers look for a store where they can connect with and which has made a mixture of colors to bring out the beautiful sceneries or beautiful surroundings. This should be the aim of every business structure which has the objective of being the best at what it gives to the customers.

Wal-Mart has made a serious change to the stores which are viewed to be performing very poorly due to the stores being in a bad shape and an unattractive design. The brand image of the company has been upheld through changing some store designs to reflect either the environment or the specific items being retailed. For example, one of the stores in Spearfish has been changed from the norm to reflect the environment the store is located. Having the store match the location scenery is a bold move that the company has taken to ensure that the brand name and image remains strong and dedicated to offering quality services for the customers (Ghazzawi et al., 2014, pg9). Normally, Wal-Mart stores are known for its blue color as its tradition but the current store has been furnished to resemble the green scenery of the surrounding. The change in color helps in building a very strong brand image and customer loyalty through the provision of utilitarian advantages. The store now uses an attractive grid layout which has parallel aisles and products on each side of the aisle. Notifications and signs are displayed above the aisles at the grocery section to ensure that the customer is not confused on what products are located in one place and where to find the customer requirements. On the same store, since it is located in the center it has comprised of other services such as the optical center, bank, salon, lube department, and a pharmacy. Such layout indicates the possibility of accomplishing more than a single need under the same location therefore very convenient for the customers. 

Stakeholders and the media, in general, are happy with the move by the management. More stakeholders are viewing this as a good way of inviting customers to the stores and almost every store will now benefit from this program. There are numerous advantages with regards to having a good design and layout since now there are fewer staffs that will be required to make the transaction and direction for the customers thereby lowering the cost of operations (Achua and Lussier, 2015, p87). Also, more staff increases the probability of being very idle at the work and more congestion in the same area. The job which more than two staffs were performing can now be performed by one or even by a single paper.  The layouts have also been designed in such a way that those who live with disabilities are not left out. At every point of entrance, the company has designed a way where the disabled can park while doing shopping at the stores. Inside the stores, the disabled persons are provided with the motorized machines to help them move around the store while looking for what they can buy. This is the same case with every aisle which has been made big enough to allow a motorized machine pass through without any difficulties (Ghazzawi et al., 2014, pg9). Media and the stakeholders have commended the move since it shows the commitment to make everyone comfortable at the store. Such a bold move does not only increase the sales volume for the company but also increase the probability of customers flooding the store and this creates a good brand name.

3. Prices compared to competitors

Prices of products are very important to consider especially when the business is highly competitive. The key idea to success in any type of business is to lower the prices to a competitive level. Wal-Mart has been facing a number of challenges considering the fact that the prices are higher than those of the competitors for similar products (Majumdar, 2015, pg300). The retail type of business is very competitive on the part of Wal-Mart stores. Every type of business is competing for the same customers, store locations, employees and services and products stocked both in the United States and within the global standards. Wal-Mart competes with the retailers who are offering their products at a discounted price, drug stores, supermarkets, departments and other major players in the retail business. This creates some level of competition that in many cases could see the business being shut down. Currently, many customers have been complaining about the prices being extra exaggerated than other stores which offer similar products. Customer complaints are very discouraging for a business especially if the business is new in the industry since this could mean the end of operations for that business. However, Wal-Mart has the advantage of being recognized as a chain store that has been in operations for many decades and therefore some level of customer loyalty is earned (Majumdar, 2015, pg297). This advantage might soon come to an end if the major competitors decide to close in right into the territory of Wal-Mart stores.

Management has decided to take action and lower the prices of commodities considering the location of the store to ensure that there is a competitive advantage on the part of Wal-Mart. The company has the ability to offer quality services and value for money spent at the store by the customers. These abilities include the having rollbacks, everyday low prices, and stores within stores and the store for the community. Such strategies are very effective especially due to the large size of the stores. The company has the capability of having their prices half or quarter what the competitors have and this gives the company the control of the market for effective competition. However, customers tend to not be attracted by low prices and rather want to have the best customer service from any store. Therefore, training of the employees and increasing their wages has been its strategy to take over a large market. Employee training is a strategy that is aimed at increasing customer experience for the benefit of creating loyalty with the customers (Achua and Lussier, 2015, pg85). Investing in employees will invite the customers to the stores since they will be attracted to how good they are treated and the relationship with the store will ultimately win the day.

Offering higher wages to the employees is also very important to make sure that the employees do not be rude or show lack of interest to the customers. Increasing wages and the salaries act as a goodwill to what the company aims at therefore ample support is required. Even if the competitors lower their prices in half, it will only lead to loses for the competitors since only a few will gain interest in making any serious purchase. Most people will prefer shopping from a store they have had an experience with for many years and which does not disappoint its customers. Competitor’s move of offering low priced items is not a long-lived strategy since the next time they offer such prices will be after making other progress in the business. On the part of Wal-Mart, offering quality services and lowering their products only at certain times is a good strategy for success.   

Discounting on the prices to increase the sales is a good strategy to reduce competition. Stakeholders recommend this idea since not many stores have the capacity of offering quality services and of value to the customers for many years. Having the capacity to offer the products at a differentiated price in every community is advantageous since this will help keep up with the competition. In some locations, the members of the public cannot afford to buy expensive products so hiking the prices will only lead to loss of customers in that location. Similarly, some locations hub very senior people and who do not consider cheap items as their kind of products to deal with and so stocking their class of products is a very good move by the company. Eliminating competition is very important and the best strategies should be implemented to ensure that the customers are kept in the right position with regards to the economic trends. In areas where the economy is perceived to be straggling, the purchase rate for the customers is also very low and straggling making it perfect to consider going by the trends but keeping the prices at a beneficial level for both the customers and the chain store. 

Conclusion

Wal-mart stores are identified as the company which practically deals with the development and innovation of strategies which can influence the demand and supply of products to be of its benefit. Innovation is what has kept the company moving its sales to many parts especially in the United States. Supply chain sustainability should not be an issue that is affecting such a big company. The management in the chain store should be very open on how the stock is being handled and ensure that goods and services are according to the customer specifications (Achua and Lussier, 2015, pg81). The delivery of the goods to various stores has to be increased as well as ensuring that each particular store has already completed the current stock. Wal-Mart is a big store that has the advantage of buying in bulk and this means that there are numerous benefits to the company. Such advantages should be used to provide the best services for the customers and the general public including the employees. Wastage should be reduced to zero if possible through a number of ways such as being keen on the products being stocked on the shelves.

Goods which have been in the warehouse for long periods and which are good for human use should always be stocked first to reduce on the expiration while still in the stores. The designs and the layouts of the stores should not always be about how the stores but should be about how attractive and represented they are to the target market. Customers are the most important parts of a business and everything possible should be done to retain the customer loyalty. This includes if the customers prefer having a rhyming color to the products, this is required. In many cases, retailer takes into considerations their view of how well they think they are doing but the correct answer is always provided by the general users (Achua and Lussier, 2015, pg81). Stores should arrange their products in a way that is simple and very effective for the customers to locate. Competition is also reduced when a store is kept according to the best standards. Competitive advantage at all times should be of advantage to the retailer and Wal-Mart has established that for their benefit. The customers are satisfied with the kind of management and the staff working at the various stores in the chain stores. Listening to the customers and the general public is also vital for a large store in order to get the benefits out of every comment made by the public.

References

Achua, C.F. and Lussier, R.N., 2015. Small-Town Merchants are Not Using the Recommended Strategies to Compete Against Nationial Discount Chains: A Prescriptive Vs. Descriptive Study. Journal of Small Business Strategy, 13(1), pp.80-87.

Ghazzawi, I.A., Palladini, M. and Martinelli-Lee, T., 2014. The Wal-Mart stores, Inc.: An American dream that touched the world. Journal of the International Academy for Case Studies, 20(1), p.9.

Hollensen, S., 2015. Marketing management: A relationship approach. Pearson Education.            

Kim, Y.H. and Davis, G.F., 2016. Challenges for global supply chain sustainability: Evidence from conflict minerals reports. Academy of Management Journal, 59(6), pp.1896-1916.

 Majumdar, S.K., 2015. Competitor entry impact on jobs and wages in incumbent firms: retrospective evidence from a natural experiment. Business and Politics, 17(2), pp.291-326.

Pope, D.G. and Pope, J.C., 2015. When Walmart comes to town: Always low housing prices? Always?. Journal of Urban Economics, 87, pp.1-13.

Waller, M.A., Fawcett, S.E. and Johnson, J.L., 2015. The Luxury Paradox: How Systems Thinking and Supply Chain Collaboration Can Bring Sustainability Into Mainstream Practice. Journal of Business Logistics, 36(4), pp.303-305.