BUS 520 Week 3 Assignment
1
Organization Efficiency
Sherry Hughes
Professor’s Wanda Tillman
BUS 520 Week 3 Assignment
January 22, 20222
Issues that Hinder Organization Efficiency
Introduction
Walmart is one of the largest world retail corporations that trade on various household
products across the globe ranging from groceries, clothing, and musical instruments. The
organization serves millions of people worldwide through online shopping platforms using
different websites, surpassing other organizations in sales and profits. Due to its business model,
the organization has grown over the years, making it the most common business venture attracting
its customers from across the globe (Backer, 1). Based on their low prices, diversity in culture and
global sourcing, location strategies, and incorporation of modern technology and innovation in
serving its customers, the business venture has continued to be the leading retail corporation
leading in supply chain management.
For this assignment, I will be focusing on challenges with efficiency due to competition
through e-commerce. Walmart stores have continued to suffer significant setbacks hindering the
efficiency of its operations. Various challenges such as competition from other online competitors
such as Amazon, the inability to offer products at a lower price, and changes in shopping habits,
tastes, and preferences amongst its customers have continued to slow down their operations.3
Due to increased numbers of competitors in the retail market and mushrooming of online
retail stores, consumers have turned their attention to online shopping and hom delivery of
products, making it hard for Walmart to cope with the changes in shopping trends (Myer et al., 2).
Additionally, its customers have turned to buy goods from other small retail shops due to an
increase in complaints from its workers due to low wages paid to them, affecting the reputation of
the organizations. Another challenge facing these organizations is efficiency changes in tastes and
preferences amongst their customers. For example, switching of choice of chicken over beef and
changes in detergent preferences due to a wide range of products in the market hinders the
operations of Walmart stores (Neebe, 3). Lastly, the inability to continue cutting down prices due
to Covid19 effects and the existence of other retail stores selling goods at lower prices.
In conclusion, Walmart being a leading retail store across the globe, continues to suffer
significant drawbacks making them inefficient due to mushrooming of new retail stores.
Sources
1. Backer, L. C. (2006). Economic globalization and the rise of efficient systems of global
private lawmaking: Wal-Mart as an international legislator. Conn. L. Rev., 39, 1739.
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