Csr of Walmart
Introduction: -
Sam Walton founded Wal-Mart in the year 1962. He started as a small store, which served cheap products to the local people. (Hamilton, 1976) Gradually Wal-Mart became big in America and soon due to globalization the Wal-Mart expanded to many countries now. They give importance to the price strategies. They follow the concept called “Everyday Low Pricing”. (Richards & Hamilton, 2006) This is the reason for their success as world’s number one retailer. It employees around 2.2 million people around the globe and it’s the highest private employer in the world. (Ungar 2012) And its revenue for the year 2012 was US$ 447 billion. This shows the power and dominance of Wal-Mart.
Major two strategic factors focused by Wal-Mart: - 1. Social factors 2. Environmental factors
Social factors: -
Wal-Mart though being the global giant in retailing business it faces so many social issues through out, such as poor wages to its employees, from a report its proved that it gives 20% less wages to employees when compared to its competitors. Employees are made to work overtime without extra wages. (Micklethwait, 2004) Practices of gender discrimination like women were paid less when compared to male employees. The women get promoted after the average period of 4.38 years where as the male get promoted after 2.86 years. (Lorenzsonn, 2012) Wal-Mart didn’t allow employees to form a union this also caused so many issues. As they provide products as the cheaper rates the small mom and popshops are being affected in the particular area. Many merchants close down their shops, as they cannot run their business. (Barrison, 2011) This is the reason why merchants in India tried very hard to avoid its entry into India. But as they have huge power they had collaborated with Bharti Airtel and opened stores in India.
Environmental factors: -
Wal-Mart has more than 6000 stores spread across the globe. So all the agricultural land are being affected by changing
Sam Walton founded Wal-Mart in the year 1962. He started as a small store, which served cheap products to the local people. (Hamilton, 1976) Gradually Wal-Mart became big in America and soon due to globalization the Wal-Mart expanded to many countries now. They give importance to the price strategies. They follow the concept called “Everyday Low Pricing”. (Richards & Hamilton, 2006) This is the reason for their success as world’s number one retailer. It employees around 2.2 million people around the globe and it’s the highest private employer in the world. (Ungar 2012) And its revenue for the year 2012 was US$ 447 billion. This shows the power and dominance of Wal-Mart.
Major two strategic factors focused by Wal-Mart: - 1. Social factors 2. Environmental factors
Social factors: -
Wal-Mart though being the global giant in retailing business it faces so many social issues through out, such as poor wages to its employees, from a report its proved that it gives 20% less wages to employees when compared to its competitors. Employees are made to work overtime without extra wages. (Micklethwait, 2004) Practices of gender discrimination like women were paid less when compared to male employees. The women get promoted after the average period of 4.38 years where as the male get promoted after 2.86 years. (Lorenzsonn, 2012) Wal-Mart didn’t allow employees to form a union this also caused so many issues. As they provide products as the cheaper rates the small mom and popshops are being affected in the particular area. Many merchants close down their shops, as they cannot run their business. (Barrison, 2011) This is the reason why merchants in India tried very hard to avoid its entry into India. But as they have huge power they had collaborated with Bharti Airtel and opened stores in India.
Environmental factors: -
Wal-Mart has more than 6000 stores spread across the globe. So all the agricultural land are being affected by changing
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