ANALYSIS OF CASE STUDY

Wal-Mart Stores, Inc., branded asWalmart is an Americanmultinational

retail corporation that runs chains of large discount department stores and
warehouse stores. The company is theworlds second largest public corporation,
according to the Fortune Global 500list in 2013, thebiggest private employerin
the world with over two million employees, and is thelargest retailer in the
world. Walmart remains a family owned business, as the company is controlled
by the Walton family, who own a 48 percent stake in Walmart. It is also one of
the worlds most valuable companies

According to our analysis the main issue discussed in this case study
are : Wal-Mart is one of the largest employers in the world-. It employs more
than 1.5 million people worldwide. Its annual revenue is more than $ 40
billion
Wal-Mart will promote small local manufactures who can manufacture
goods at a low cost

 Wal-Mart forces its competitors to lower their

price as well
Wal-Mart imports about 20% of its goods from low cost
china. Its imports are so huge that if Wal-Mart were a country
it would be the 8th largest importer from china. Studies have
shown that the prices of goods in Wal-Mart can be as low 839% than what their pear. Studies have found that overall cost
is pushed down by about 3-8%.
Therefore consumers are saving a lot of money
which they may spend in other spears of life which may
include education, healthcare and other social service scheme

The low income group, single moms are the one

to have benefited the most by Wal-Mart in USA

 How the goods are provided cheap?

Wal-Mart uses its technology pioneer and its huge size as a weapon
to pull down the operation costs . Wall-mart has always been a step
ahead from his competitors. Its sheer size and volume allows it to
order in bulk
and bargain for a very low cost. Above all Wal-Marts operation cost
and labour productivity are known to be one of the lowest.

Will Wall-Mart will reduce or increase the number of

jobs.
A Wal-Mart store on an average employs 500 employees, but that
does not necessarily mean creation of 500 more jobs. But it thus it
absorbs these work force that Wal-Mart forces other retailer to close
if there is a net increase in employment due to Wal-Mart at a micro
level. However at a macro level there will be huge amount of
unemployment due to closure of independent stores but a huge
amount of employment opportunity will also be created by Wal-Mart
indirectly, an estimated 1.5 million jobs will be created in India due
to logistics alone.

SUMMARISED RESULTS:1.)With the size of the Indian population and the demand in the
retail sector, Wal-Mart will produce about 8 million job opportunity
in retail and logistics combined. On the down side India will see
many jobs cut which may be as large as 4 million.
2.)There will be a change in the economic environment of the
country, it will have to adapt to a more global condition and change
and change quick.
3.)With 51% opening in multi-brand retail, 49% of the profits
generated will still remain in the country
4.) Many question the poor working condition of Wal-Mart, hello
India, the workers in individual retail are made to toil hours for an
exchange of nothing, there have been a lot cases of violence and
child labour. Wal-Mart guarantees a lot superior conditions to work
in.
5.) A tiny little thing to worry about is the inadequate infrastructure,
think of a Wal-Mart store even at the outskirts the city the volume
of traffic it will be bring in, will cause a lot of traffic jams in already
very congested Indian streets

6.) There is an obvious fear that farmers and the suppliers are
not going to benefit from Wal-Mart in the long term. Wal-Mart
all together will bring in foreign investment and strengthen
Indias economic position globally and also help get good
grades from the rating agencies. But it will definitely be a
tricky task for Wal-Mart to explore the already price obsessed
nation

Wal-Mart has always generated a mixed

feelings, some sectors just love it, while
some not that much. But if a Wal-Mart is
opening in your city, we say you have a
reason to smile.