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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 wellWal-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 8-39% 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 bulkand 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 country4.) 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.