Walmart and its Urban Expansion Strategy -Work Sample APA

 

 

 

Walmart and its Urban Expansion Strategy

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Wal-Mart Stores Inc. is a retail corporation operating over eleven thousand stores in twenty-seven countries. Sam Walton founded Wal-Mart in 1962. It is among the world largest retails corporations. The company continues to grow as it implements its expansion strategies to reach its clients, in the United States and across the borders. Recently the Wal-Mart opened stores in Los Angeles and now plans to open more in Chicago. The focus is now whether the company should venture into the new target market, amid complaints from the public.

Wal-Mart should expand to Chicago in spite of the rising disputes like wage crisis and other employee benefits. Wal-Mart should first, plan on meeting with all the stakeholders, and strategize on ways of settling their grievances. Both the Wal-Mart and the community of Chicago residents will benefit from the opening of the stores. The expansion will create six hundred job opportunities leading to economic growth and development. Wal-Mart ought to agree to the demands of the Chicago Federation of Labor.

The federation represents a large population including labor coalition, civic groups, and religious groups. Disagreeing with the federation would cause further animosity between them and these groups. The firm should bend some of its policies to accommodate the demands of the federation. Additionally, agreeing with the federation will link them with the public. An economist from the University of Illinois held a rally and talked on the negative effects of establishing the stores.

He argued that Wal-Mart would only aid in costing more job opportunities than it would offer (Norman, 2010). Such cases are likely to decrease since people will listen more to the federation than to anyone else or the company itself since, the community has perceived the demands of the labor federation as beneficial to all. The federation demanded that the supermarket should not sell groceries in its stores since competition will affect local producers. It also demanded that Wal-Mart should not take part in union politics.

After cooperating with the federation and establishing a democratic ground, Wal-Mart can start a dialogue with other stakeholders, to explain the significance of setting up the stores to the community. Preferably, the firm would be more convincing by demonstrating to them using towns where the stores have been successful. Wal-Mart will also need to explain its position on some of the major issues that are causing the opposition. Their issues include the wage crisis and its opposition to unionization.

It will need to discuss on creating a fair wage system, which is not exploiting the employees. It should offer benefits to its workers in order to increase their productivity and efficiency. Most urban areas have by-laws that govern the operations in the area. Wal-Mart will have to familiarize with the by-laws for a successful expansion plans. The firm should also develop policies that will explain their reasons to expand in the urban areas. The firm should come up with public awareness strategies to change impression of the brand to the public.

The interest of the public comes first; Wal-Mart should strategize on ways of giving their employees and the public the best package to prevent conflicts that would delay their expansion plans in urban areas (Norman, 2010). Moreover, the company will need the people to own the business for it to grow in the region. Wrangles will affect the business and could prevent it from breaking-even in the region, which will be unsustainable to the investors.

 

 

References

Norman, A. (2010, March 18). New Study: Wal-Mart Brings Zero Jobs to Chicago [Blog post]. Retrieved from http://www.huffingtonpost.com/al-norman/new-study-wal-mart-brings_b_417808.html

 

 

 

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