Introduction

  • Category:
    Management
  • Document type:
    Article
  • Level:
    Undergraduate
  • Page:
    1
  • Words:
    593

Walmart and the Direction of Corporate Convergence in the World

Walmart has had a series of evolutionary goals that were set by the proprietor Sam Walton for great value and customer services. He believed in leadership through service. The belief of true leadership depending on willing service that saw to the inception of Walmart and drove the company’s ideology and decisions for the past 50 years. His principle about life made the company what it is today. The initial idea behind Walmart’s progress was because Walton by distinction noticed he could do it better through passing on the savings to the customer and earnings his revenues through volume. The cornerstone of his business would be born from the insight when Walmart launched in 1962. In his quest for low prices, he continued to cut cost making it a culture that would be embedded in his company even after his death. He maintained a sizable employee number that made sure his payroll was controlled. Competitors did not approve of the idea Sam had put across. The thought of serving people and giving lower prices to customers did not strike them as a lucrative way to do business. However, Walmart’s success exceeded the owner’s expectation and the company went public in the 70s. The proceeds from that day went to financing a steady business. He credited the growth not only to his customers but also to the associates who saw his vision was viable. As the company grew Sam’s aspirations grew. He experimented on new stall formats and even decided to take Walmart to Mexico. His vision to enable every individual gain a standard price that was cheap saw that he received a medal of freedom from President George H.W Bush in 1992. Walmart has continued from then to uphold its values and strategies to date.

Introduction

Two types of share ownership define the corporate world today. However, some scholars have argued that the convergence of the two types of share ownership will soon be evident in the business world. The corporate world today has modelled into two different archetypal corporate convergence. The UK and U.S have most of the companies aligned to the shareholder-oriented model while many European and Asian countries adopt a stakeholder-oriented model. The question on whether these two models will converge eventually has been a topic of discussion with many discourses coming up. In this paper will give a clear depiction of the direction of share ownership and whether the convergence of cooperate governance to Anglo based models (Jeffrey and Roe, 2004). The look into Walmart, a cooperate that is widely spread across the world we can determine if the path convergence has taken and the results of corporate governance reforms it upholds in the industry will assist in giving a clear depiction of corporate convergence in the world presently. The research will look into other resourceful studies carried out in the past to enable credibility of the resulting information. The existence of the two patterns of share ownership in the world is evident but whether there would be a turn of events and adoption of the share-oriented model get adopted in the rest of the cooperative world is a wide area to scrutinize due to the diverse economic, legal, cultural, and institutional differences among diverse countries. However, this discourse will expostulate the distinctive drive in the corporate communities in the world that have diverse convergence types (Jeffrey and Roe, 2004).

Work cited

Gordon, Jeffrey N, and Mark J. Roe. Convergence and Persistence in Corporate Governance. Cambridge, U.K: Cambridge University, 2004. Print.