Stakeholders of Walmart (Stakeholder analysis of Walmart)
This is an in-depth examination of the stakeholders of Walmart (Stakeholder analysis of Walmart). Walmart Inc. is an American multinational retail corporation. It is headquartered at Bentonville in Arkansas. Its operations and strategies are influenced by both of its internal and external stakeholders.
Internal stakeholders of Walmart
Walmart’s internal stakeholders play an important role in the development and implementation of its strategies. Members of the leadership team, employees, and shareholders are the key groups here. Walmart’s leadership team is divided into two subgroups i.e. Executive Management, and Board of Directors. Top two titles in the Executive Management team are the President and CEO, and the Executive Vice President. The company has several Executive Vice Presidents of different functions (Walmart, 2021). These are very important people who chart the direction of the company.
Institutional shareholders of Walmart hold a good number of its stock, and therefore, can have a big influence on its strategic directions. Similarly, the general public also have invested in it. Though they may not be able to call the shots, they have some degree of influence on the company.
Walmart employs over 2.3 million people (associates) worldwide (Walmart, 2021). It offers them different benefits such as competitive salary, maternity and paternity leave, paid time off, health care, and others. However, Sainato (2020) reports Walmart is cutting some workers’ hours and pay while increasing their workloads. This may result in workers finding it very difficult to pay their bills causing dissatisfaction with the company.
External stakeholders of Walmart
Suppliers, customers, competitors, governments, and local community are the main external stakeholders of Walmart. There are thousands of suppliers working for the company globally. Without them, trading will be almost impossible. Therefore, regular communications and support for them is vital for Walmart.
Walmart serves around 220 million customers and members via its thousands of stores in many countries and eCommerce websites. However, it consistently receives low grades in customer satisfaction surveys. This is a problem that needs addressing effectively. Otherwise, many customers may lose interest in the company.
Competitors can impact on Walmart massively. Particularly, its nearest competitors are very interested to know about its moves, new products, strategies etc so that they can come up with counter strategies and techniques. Its top competitors in the USA are Amazon, Costco, Walgreens. Kroger, Home Depot, Target, Lowe’s, and Best Buy. Walmart should therefore monitor their moves regularly.
Local communities have huge interests in Walmart. They are interested to know how they may benefit from or affected by the operations of the company in their area. Therefore, Walmart needs to inform these people adequately, and engage with them to ensure that no major issues are arising.
How does Walmart communicate with its stakeholders?
Walmart has an Annual Shareholders’ Meeting where all the shareholders (not all stakeholders!) are invited to join. It conducts market research through surveys and in-person discussions to understand the needs and expectations of the customers. Likewise, Facebook, Twitter, LinkedIn, and Instagram pages are also used to engage with them.
Walmart uses one-on-one sessions, team meetings, company Intranet, social media, and some other means to communicate with its associates. It has different summits and forums to engage with its suppliers. Likewise, it also has a Public Affairs team to solicit feedback from the local communities (Walmart, 2021).
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Last update: 10 November 2021
Sainato, M. (2020) Walmart cuts workers’ hours but increases workload as sales…, available at: https://www.theguardian.com/business/2020/sep/24/walmart-workers-hours-pay-great-workplace (accessed 09 November 2021)
Walmart (2021) About us, available at: https://corporate.walmart.com/our-story (accessed 09 November 2021)
Author: M Rahman
M Rahman writes extensively online with an emphasis on business management, marketing, and tourism. He is a lecturer in Management and Marketing. He holds an MSc in Tourism & Hospitality from the University of Sunderland. Also, graduated from Leeds Metropolitan University with a BA in Business & Management Studies and completed a DTLLS (Diploma in Teaching in the Life-Long Learning Sector) from London South Bank University.