Walmart Case Study

Wal-Mart is the most powerful retailer and l the well known company in the world. Wal-Mart joined to economic life in 1960 and it grows up very fast. The most important reason why Wal-Mart is grown up rapidly is that wall mart’s lower prices. The lower prices seem to be a good thing for the US however it creates really unfair conditions at some point. Today, business is in a relation with many different elements which forming the society and its success depend on the relationship between these elements and good management. In the literature 'stake holders' describe this term. The stakeholder theory is a theory of organizational management and business ethics that addresses in managing an organization. Edward freedman is the economist who gets a wide approach to stake holder’s theory.

Wal-Mart is the one of the powerful company in the US I am going to analyze Wal-Mart’s decision by using Freedman theory. Even though Wal-Mart is the world’s biggest company, it is not successful enough to benefit USA. The most important property of Wal-Mart is lower prices. Firstly, in a normal condition manufactures decide the prices and the retailers pay for it, however in Wal-Mart example everything works opposite. Wal-Mart decides the price and manufactures has to confirm this prices even though it is lower than their expectations. If they sell the goods lower than its prices they have to decrease the expenses. While the prices are getting lower the salary of the workers get decrease. As a result it creates unfair conditions for manufactures workers. Secondly, Wal-Mart used different Markets for the lower price .Wal-Mart find new countries for producing with a lower price such as China and Asia .Wal-Mart directed the manufactures which it works with to the this countries for producing with lower prices. Working in different countries had bad affects on US economic system. At first there is a lot of manufacture which worked with Wal-Mart closed and