Pitfalls & Opportunities - Wal-Mart?
Answers:
The major issue is if national minimum wage gets passed, thankfully it was vetoed once.
Other than that all of their major challenges lie in being able to expand globally. However, this expansion is also their opportunity if they can handle it right.
Opportunity: It's a job.
Pitfall: You can't live on the wages.
They will probably face charges of unfair treatment of seniors, fraudulent use of employees, and monopoly.
Decreased sales due to increased gas prices, increased operating expences for the same reason, as always they will pass on these crunches to the employees first which will cause an increase in union activity (remember union busting already cost wal-mart hundreds of thousands), continued forgien sales slumps, sales slumps will continue in softlines because they can't compete with quality and brand recognition with target, old navy, and others. But over all they will be okay largely due to grocery sales domestically where they are simply not outdone by any regonal retailer.
Pitfall: Theft. Wal Mart is known to be very strict on shoplifters, it doesn't seem to deter theives. Millions of dollars are stolen in goods every year from Wal Mart. Perhaps that could help fund the increase in wages, which is way over due.
Opportunities: Growth. Although it seems there is a Wal Mart for every 50 square miles in the South and Mid West, there are plenty of market still untapped. Globally, it will continue to prosper, but foriegn countries shop differently than Americans. Where one American family may make one to three trips to the grocery store a month, foriegn Wal Marts are visited more frequently, and spend less.
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