Wal-Mart Retail Company
Introduction
The article ‘Forbes 400 Complete’ discusses Wal-Mart as an international private owned company which comprises of retail shops and warehouses. The company is controlled by the Walton family and is the biggest retail shop globally. The Walton family owns over 50% of the most precious company in the world. The founder of the company is one of the family members of the well known Walton family named Sam Walton in October 31, 1969 and made its headquarters at Bentonville (Li, 2010 p.234). It is the largest grocery retail shop in United States. It is the owner of Sam’s club located in North America which is one of the biggest grocery retails. From the report it is said that Wal-Mart rose from being a regional to an international retail company later to an international one thus making it among the most successful and profitable company globally (Li, 2010 p.234). It is seen to dominate the retail business in United States where it has the most income and profits and also generates revenue in large amounts. Wal-Mart is seen to face criticism from a large number of people including its customers, religious leaders, environmental associations and several people who criticize it on a base that it practices racial discrimination and segregation in its policies and management. It is also seen to practice gender inequalities which contribute to its discrimination by many people (Li, 2010 p.234). The working conditions for employees is not the best and even the suppliers complain since the family owned business is governed by poor policies from the family members who are in the list of directors of the company. Wal-Mart defends itself suggesting that it does everything right which is false from the results carried out.
Tata group
Tata group is an international company with its headquarters at Mumbai located in India. The article describes Tata as a company with seven other small companies which are managed by the family. It is still a family owned business with most of its small companies remaining independent. The company though based in India receives most of its income and revenue from outside the country since it is a well known global company (Witzel, 2010 p.54). The members of Tata family are the key shareholders with exception from its chairperson by the name Cyrus Mystry who is the second person outside the Tata family. The company is well established in India with its brand being well valued and loved by the customers and thus generating huge incomes for the economy of India and the Tata family at large. Some of its projects are opposed by the environmental groups since they are not environmental friendly in nature (Ndia Metals Report' 2014 p.4). The company portrays an example of how families can put their company’s management under people outside their families which is different in the Wal-Mart Company (Witzel, 2010 p.54). The former chairperson for the company who is Mr. Ratan Tata did not chose his children to be his successors though he is a bachelor which should encourage other companies to trust other people for their wealth and skills.
Analysis and critique
Wal-Mart Retail Company
The company experienced trouble based on succession position which is portrayed in other private owned companies like Tata group where succession becomes a main issue as family members differ on who to take control of their businesses (LI, 2010 p.234). This is a research well done and analyzed under the Boston consulting group analysis. Wal-Mart is seen to outdo public businesses as a result of the long term running of the businesses. Wal-Mart is said to interfere with other peoples business for example in the sale of solar rings which were the idea of solar sun Rings Company. Wal-Mart declined to discuss anything with that company until it reached the courts where it was accused of interfering with other people’s ideas. It is seen to copy the idea of solar pad from the other company as a research has shown but the family owned business declined this as a factor to damage their well built image (LI, 2010 p.234). Wal-Mart believes in respecting other peoples businesses where it came out clearly to show the differences between its products and those of the Solar Rings Company. Wal-Mart is seen to be criticized by many organizations and groups which term it as a successful company as a result of its low prices. It is loved by shoppers who want to spend less money on the products they require. It is criticized since reports show that it relies so much on Chinese products thereby damaging the economy of the United States. It is seen as the biggest important of electronics in the united states mainly from china and sells its products at very low prices making it preferred by many people at the expense of the local companies who deal in manufacturing of products such as electronics (The Forbes 400 Complete List' 2013 p.12). It has always been sued by its competitors because of its unacceptable low prices paralyzing other local businesses. It also faces criticism of handling its staffs unfairly by exposing them to poor working conditions and low salaries which it should avoid incase it want s to remain successful.
Tata group
Tata group is mainly dominated by the Tata family which takes control of everything in the company. The management of Tata is mainly comprised of Indians who are key controllers and who only believe in Tata’s products. It faces competition from a number of companies especially the motor vehicle industry. It is governed by nepotism but has dealt with the problem by choosing a successor of Ratan Tata who is not actually from the family (Witzel, 2010 p.54). Tata unlike the Wal-Mart company treats its employees with dignity and good salaries such that they are proud of the company. Its main exports are Britain and are also part of the New York stork exchange thus making it successful. Tata was managed under the best leadership under Ratan Tata who introduced a lot of changes in the company and contributed to its success. It is well known to engage in family conflicts and politics which sometimes contribute to the damage of its image and reputation. Tata group helps its employees and caters for the needs of the employees thus contributing positively to the growth of the company and of the economy. It faces various criticisms suggesting that it has grabbed a 3000 acre farm which is a case at the court mainly touching the Tata tea farms located at Munnar (Damodaran, 2011 p.122). Some villagers complained of a steel wall which was being constructed by Tata which caused death to many people where the company suggested that it would still construct the wall even against peoples wish. Tata motors face criticism since they are reported to transport various military weapons which are criticized by human rights and country activists in India. Tata Nano plant is researched to have caused displacements to people who are highly criticized by political leaders and other local leaders (Damodaran, 2011 p.122).
Recommendations
From the above discussion it is clear to site both Tata group and Wal-Mart as successful companies which are a great influence in the economy (The Forbes 400 Complete List' 2013 p.12). The families should not hinder them from success as portrayed by the Tata group who has a chairperson who is not a family member. The companies should employ staff and management who are qualified according to the education and skills they show but not according to the race or family name. It is clearly learnt from the Tata group that good management is the key to success and thus should be maintained always for the family owned businesses to prosper. The families should not conflict on whom to manage the wealth and they should instead focus on the success of their businesses (The Forbes 400 Complete List' 2013 p.12). By avoiding conflicts, the business can also protect their company image, strengthen the power of family-ownership and remain successful the business and the economy at large. The Wal-Mart company should not let family conflict interfere with its management since conflicts and disagreements results to failure and breakdown of such huge companies. Family members in both Tata and Wal-Mart companies should be educated on management skills of the business, ways of promoting and protecting the businesses and always methods of attracting more customers and maintaining the good image of the companies which will result to huge profits and success of the businesses (The Forbes 400 Complete List' 2013 p.12). Wal-Mart should treat its employees with dignity; pay them deserving and good wages which will motivate them more. They should respect the employees by giving them good and proper working environments regardless of their families and race thus promoting success since employees will be comfortable to work under good conditions. Tata Company treats its employees with dignity and good salaries such that they are proud of the company and this encourages them to be more diligent and work hard for the success of the company (The Forbes 400 Complete List' 2013 p.12). Wal-Mart should do this in order to motivate its staffs and gain more profits.
Lessons learnt from Tata group and Wal-Mart companies
It is true to conclude that for a company to remain successful it should have good management skills, qualified staffs and good relationship between the owners who in this case are family members. The company should also respect environmental laws and follow them since the environment is very important to everybody (The Forbes 400 Complete List' 2013 p.12). The companies should also follow government policies and respect them since they are supposed to be followed by all people. The companies should respect given contracts and agreements for the businesses to run smooth and should also train family members on ways of protecting the businesses. Private companies are seen to be successful if the management involved is the best and follow all the rules of business. Family members should avoid conflict like in the case of Tata where a family member was not appointed as the chairperson. The families should not conflict on whom to manage the wealth and they should instead focus on the success of their businesses (The Forbes 400 Complete List' 2013 p.12). The family companies should respect the employees by giving them good and proper working environments regardless of their families and race thus promoting success since employees will be comfortable to work under good conditions. This will bring success not only to the businesses but also to the country and the world at large.
References
Damodaran, A. (2011). Applied corporate finance. Hoboken, NJ, John Wiley & Sons.
LI, C. (2010). Open Leadership How Social Technology Can Transform the Way You Lead.Hoboken,JohnWiley&Sons.
NDIA METALS REPORT' 2014, India Metals Report, 6, 1, pp. 1-71, Business Source Complete, EBSCOhost, viewed 18 March 2014.
The Forbes 400 Complete List' 2013, Forbes, 192, 5, p. 138, Business Source Complete, EBSCOhost, viewed 18 March 2014.
WITZEL, M. (2010). Tata: the evolution of a corporate brand. New Delhi, Penguin Portfolio.
