Stakeholders of Walmart
Stakeholders are an essential part of any business involving interested parties. In the case of Walmart, as in the case of any other organization, there are internal and external stakeholders. As the name implies, internal stakeholders are the members who deal with the organization directly. For instance, among internal stakeholders, Walmart employees rank top and constitute the largest group (Shackelford et al., 2021). Such people not only work for the company but also contribute to its operations’ success and effectiveness and involve store managers, associates, and other members. This group is probably the most interested in Walmart’s performance since it impacts them immediately.
Individuals who own shares in the corporation, or the stockholders, constitute another category of internal stakeholders (Shackelford et al., 2021). These participants, who include private and institutional investors and the family’s successors, have a financial stake in the company (Shackelford et al., 2021). Lastly, managers and executives represent another stakeholder level (Shackelford et al., 2021). Individuals holding executive and managerial positions are immensely responsible for making strategic decisions and driving the company’s growth and success.
However, aside from internal stakeholders, there are additional external ones. The largest and most evident group is customers, who use Walmart’s services or goods (Shackelford et al., 2021). At the same time, suppliers are not less important to the organization. Manufacturers, wholesalers, and businesses providing services are examples of suppliers in this context; they give Walmart the products that are sold to customers (Shackelford et al., 2021).
Additionally, the company describes a different category of external stakeholders, the community, which includes both locals and businesses (Shackelford et al., 2021). Lastly, Walmart’s external stakeholders include members of the public (Shackelford et al., 2021). This group includes non-governmental organizations (NGOs), advisory councils, and grantees invested in Walmart’s practices.
Factors of Organization’s Competitive Success
When reviewing the case of Walmart, one can see the corporation’s success. The main pillars of such success and recognition are cost leadership, effective supply chain management, reputation, and brand. Starting with cost leadership, Laskin (2021) emphasizes that “Walmart is known for its unique ability to have the lowest possible price on many categories of products” (p.87). Indeed, the business bargains reasonable pricing with suppliers and passes savings through to clients by utilizing its size, purchasing power, and effective supply chain.
Speaking of the supply chain, Walmart has exceptional supply chain management and distribution systems. Such systems decrease storage costs by delivering goods when a retailer anticipates demand, reducing the time things are left on the shelf (Laskin, 2021). Meanwhile, Walmart benefits from its established connections and large sales volume to negotiate the most favorable price from its suppliers (Laskin, 2021). Walmart’s competitors cannot simply recreate this intangible edge, but it is a significant factor in its success.
The final factor that must be considered when discussing the success of Walmart is the company’s reputation and brand. From humble beginnings as a modest grocery shop, Walmart has become one of the largest shopping centers globally (Pandey et al., 2021). Walmart is one of the most substantial retailers in the world, with locations across 27 nations, including Canada, Chile, Japan, India, and China (Pandey et al., 2021). The presence of a corporation in different regions of the world shows demand for its services and products and its ability to cater to the needs of its stakeholders, making it successful.
References
Laskin, A. V. (2021). Investor relations and financial communication: Creating value through trust and understanding. Wiley.
Pandey, R., Dillip, D., Jayant, J., Vashishth, K., Nikhil, N., Qi, T. J.,… & Qhi, L. Y. (2021). Factors influencing organization success: A case study of Walmart. International Journal of Tourism and Hospitality in Asia Pasific, 4(2), 112-123. Web.
Shackelford, S. J., Raymond, A. H., & Richards, E. L. (2021). Legal and ethical aspects of international business (2nded.). Wolters Kluwer.
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