This paper examines Walmart as a potential employer from a career management perspective. It begins by surveying Walmart's enormous scope as the world's largest retailer, covering its product range, supplier relationships, and market influence. The paper then analyzes Walmart's key success factors — including its mission-driven management, niche marketing, employee motivation, and technology use — alongside its notable weaknesses, such as low employee wages, overseas outsourcing pressures, and the displacement of smaller local retailers. The paper concludes with a personal evaluation of whether Walmart is a desirable employer, weighing career development benefits against concerns about compensation, employee benefits, and corporate reputation.
Walmart falls into the realm of mega-retailers. There is virtually no product or service that Walmart has not considered at one point or another. Besides selling traditional retail products — including housewares, groceries, clothing, and furniture — the retailer has branched out and now provides eyewear, photographic services, and pharmacy services. In addition, the company has been expanding into the financial services industry. Walmart is, in fact, the world's largest company by revenue, exceeding companies like General Motors and ExxonMobil in size and scope.
Walmart is known in the retail world for selling products at a fraction of the cost of other retailers. Prices are low, but the company insists that product quality remains high. Walmart prides itself on its reputation for selling top-quality products at the lowest possible price. A consumer can buy the nation's leading brand-name products for considerably less than they would pay at traditional retailers.
Walmart provides a service to its customers, though some believe this comes "at the expense of business and corporate manufacturers" (Fishman, 2003). This perception is due in part to the aggressive price-slashing that occurs at Walmart. Many customers, however, argue that the cost of doing business with Walmart is worth it. Walmart commits itself to its customers rather than its suppliers, with the goal of providing customers as much as possible for as little as possible.
The company sold more than $244.5 billion in merchandise in 2002 alone (Fishman, 2003). Walmart establishes a policy for suppliers that requires prices to drop every year. There are more than 21,000 suppliers and vendors that work with Walmart.
The general consensus in the business world is that Walmart forces companies to work efficiently and in a focused manner. "Leaner, faster, better" is a motto that might be associated with the Walmart process. Other common terms associated with Walmart include continuous improvement and rapid movement of merchandise. Walmart expects that its suppliers have the ability to operate at peak efficiency at all times.
Generally, suppliers wanting to work with Walmart must acquiesce to specific changes in their operations, from "packaging to computer systems" (Fishman, 2003). Though some complain of the pressure and stringent requirements Walmart applies, most companies working with the retail giant agree that they receive a large percentage of their business from the company.
Ballard and Langrehr (1993) suggest that Walmart's success can only be described as universal because it is so far-reaching. This overall business success is based on several critical success factors. Walmart sets an example by establishing a competitive environment that focuses on close contact with both customers and employees, works to define its mission clearly, and utilizes technology to explore new opportunities and avenues for growth.
The six success strategies Walmart has developed, according to Langrehr and Ballard, include: (1) a well-defined mission statement, (2) a clearly defined customer base and close contact with customers, (3) niche marketing techniques, (4) employee motivation, (5) the use of technology to facilitate opportunity, and (6) an "opportunity-oriented" management team (Langrehr & Ballard, 1993, p. 101).
One strength that Walmart prides itself on is its ability to provide customers with the best quality at the lowest price. According to an HR representative currently working for Walmart, the company succeeds because it works hard to define its customer base and then focuses consistently on providing value to that targeted customer. Its success is not based on a purely price-oriented philosophy, as many would assume, but rather stems from the belief that value retailing and quality product offerings are key components of excellent customer service.
Another key aspect of Walmart's success is a management style that focuses on innovation and opportunities for improving both personal and organizational potential. The company is constantly changing — never static. To this end, the firm works diligently to train employees, standardize practices, and provide a clear and consistent vision to employees and customers alike.
Not all of the enterprises that Walmart has pursued have been received with open arms. Historically, Walmart has been interested in financial services, but the company is sometimes given the label "merchant of death" because of the manner in which it has impacted Main Street businesses (Cocheo, 2003). Despite this, Walmart has continued to pursue financial services. Some see Walmart's expansion "into the financial services industry as the equivalent of the 19th-century manifest destiny doctrine" (Cocheo, 2003, p. 101), but Walmart does not appear deterred by this characterization.
Reports suggest that for Walmart to maintain its pricing model, U.S. companies are often forced to create more overseas outsourcing positions so as not to eliminate all of their profits while doing business with Walmart (Fishman, 2003). Many consider this a significant weakness. Others point to the low wages offered to average workers as another inherent drawback.
One additional weakness is the loss of the personal touch often associated with smaller retailers or independent shops. Walmart truly is a mega-chain, and shoppers generally sense that the moment they walk through the door. On the other hand, Walmart has been credited with helping keep the U.S. inflation rate low. A McKinsey & Co. study found that "12 percent of the economy's productivity gains in the second half of the 1990s could be traced to Walmart alone" (Fishman, 2003), which represents a considerable organizational strength.
"HR director roles, pay ranges, and benefits"
"Career benefits weighed against wage and ethics concerns"
The situation is tricky, and at best controversial. From an educational perspective, I might enjoy working with Walmart for a brief period of time to gain insight into the world of mega-retailing. However, from a personal and practical perspective, I might prefer to work with a company that had less of a reputation for dominance and was considered more balanced in its treatment of employees and communities. It might be better to start at a smaller, more focused organization, apply the skills learned at the micro level, and then bring that experience to a company like Walmart at a later juncture in my career.
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