Pestel Analysis Walmart

:Wal-Marts response to the hurricane was lauded even by its critics: it donated more than $20million worth of merchandise, including food for 100,000 meals, and it promised jobs for all of its displaced workers. The first supply truck to arrive at the Superdome after the hurricane camefrom Walmart, not from FEMA.

The administrative particulars of Wal-Marts response to thehurricane, detailed in a study by Steven Horwitz, are both fascinating and inspiring. Wal-Martsexisting distribution chain was ± and is ± able to deliver needed goods faster and more efficientlythan a government agency, which (besides being inept) had no existing infrastructure to respondto the disaster.

Regardless of its reputation or its value to society, Walmart is here to stay.Consumption drives our daily lives and accounts for some 70% of Americas GDP. As long asWalmart continues to increase the accessibility and quality of consumption, it will remainAmericas top retailer and continue to grow. Whether or not you choose to shop at Walmart,everyone should appreciate it.

Wal-Mart is the leader in retailing industry with fiscal revenue of $244.52 billion in 2003 making it the world’s largest corporation. Mike reports that Wal-Mart asof 2002 had 1,283,000 employees growing at 11.2%. The above data explains that strategy of Wal-Mart is extraordinary which manages and operates over 4150 retail facilities globally. Thekey components of Wal-Mart (The Value Chain), which offers cheap prices than its competitorsincludes firm infrastructure like frugal culture, no regional offices and pleasant environment

ECONOMIC:An opportunity available to the industry is the free trade zone. When the government enters intonew trade agreements with foreign countries, businesses in the United States have the ability tooffer products from these countries in their stores.

This simply increases the markets available toretailers. In 2009, Walmart awarded approximately $2 billion to U.S. hourly associates throughfinancial incentives, including bonuses, profit sharing and 401(k) contributions, and hundreds of millions of dollars in merchandise discounts and contributions to the associate stock purchaseplan. Walmart is the worlds largest retailer with $405 billion in sales for the fiscal year ending an. 31, 2010. In the U.S., Wal-Mart Stores, Inc. operates more than 4,300 facilities includingWalmart supercenters, discount stores, Neighborhood Markets and Sams Club warehouses. Despite the general weakness in the world economy and the uncertain environment thatprevailed, Walmart had reported sales growth of 11%, amounting to $6.4 billion.