Strategic Communication Strategy Essay Example

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Strategic Communication Strategy3

Strategic Communication Strategy

Effects of demographic and economic shifts on Walmart Corporation

Walmart is a giant retailer that has been operating globally (Basker, 2005). Demographic and economic shifts can affect Walmart Corporation in various ways considering its operations. Some of these effects of shifts in economic and demographic can include:

1. Increased diversity in labor markets

Democratic changes can lead to increase in the diversity of the workforce in Walmart Corporation. As a result, Walmart can be forced to adopt practices that can assist in managing diversity that has been facing labor markets. The diversity in workforce changes the potential employees and changes in the needs of workers that can greatly affect service provision (Bloom, et al. 2009). The changes in the demographic profile can force Walmart to change the human resources management strategies aiming at meeting the needs of the employees that changes the demographic shifts. The demographic shifts can also affect diversity by increasing the number of women in the workforce of Walmart Corporation (Bound and Holzer, 2000). The changes can increase the number of women working in Walmart Company. Therefore, Walmart can benefit from the increased diversity that has realized business benefits through the various experiences realized from demographic changes.

2. Increased labor supply

Demographic changes can affect the supply of labor to Walmart Corporation. The population is likely to increase resulting in an increase in the supply of labor to Walmart. This is because the population that is at working age is likely to increase due to the demographic changes (Case, et al. 2003). As a result, the labor costs can decrease in Walmart due to increased supply of labor in the market. The cost of labor in the labor market is determined by the supply and demand of labor where an increase in supply than the demand is likely to lead to low labor costs (Oppenheimer, 2010). Consequently, the costs of operations of Walmart can decrease due to the decrease in labor costs making Walmart realize an increase in profits. For instance, the population globally by the year 2050 is likely to increase by more than three billion with the large population comprising of the young generation who are at working age (Clark, et al. 2004). This is likely to result in an increase in unemployment, as the labor supply will surpass the demand for labor.

3. Changes in consumer purchasing power

Economic shifts are likely to lead to the changes in the purchasing power of the consumers in the market. The changes in the purchasing power can be associated with the income of the consumers that is affected by the economic changes taking place (Deaton and Paxson, 2007). The sales of Walmart Corporation are likely to change due to economic shifts that affect the disposable income of the consumers. Besides, the consumer confidence is said to increase when the economic shifts seem optimistic (Eden and Ackermann, 2008). The willingness of the consumers is said to be high the moment the consumer confidence is high leading to increasing the purchasing power of the consumers. The times of high consumer confidence can provide opportunities for Walmart to expand its operations as the consumers have increased in disposable income. On the other hand, Walmart can be forced to cut costs of operation to survive in the market the moment the consumer confidence with the economic condition is low. This is because when the consumers have low confidence with the economic conditions results in a decrease in purchasing power leading to low sales volume (Galor and Weil, 2000). Also, changes in interest rates do affect the purchasing power of the consumers as economic conditions result in fluctuations in interest rates. For instance, when the interests rates are high the consumers spending power is reduced. On the other hand, when the interest rates are low, the purchasing power of the consumers is high as they can access loan from financial institutions.

4. Changes in production costs

Economic shifts can lead to changes in the costs of production in Walmart. For instance, an increase in inflation can result in an increase in the costs of operations in Walmart that can be associated with the increase in prices of factors of production (Higgins, 2008). Inflation leads to increase in costs of production that can force an organization to increase the prices of its products in the process of responding to the increase in costs of factors of production. This can affect the competitiveness of Walmart in the market as increasing prices can reduce the demand for its products in the market. For instance, the ability of the consumers to make purchases is affected by the prices of the products where the consumers will not have enough income to spend on the products unless their income is increased based on the increase in inflation (Pachauri and Zigova, 2010). Besides, the costs of operations can be affected by changes in the costs of capital especially the borrowed funds. For instance, an increase in interest rates can lead to increase in the costs of borrowed capital hence increasing the costs of production.

Horizon model

Student id

Horizon 1: This is the one-year horizon where the company does provide the strategic objectives of the company. This entails focusing on building competitive advantages of the company through coming up with the best strategies that can assist in achieving competitive advantages (Pandit, 2007). The principal aim of the strategies is to ensure that there is an improvement in the performance of the company through coming up with strategies that can compete better than rivals.

Horizon 2: This is the three-year horizon for the business that indicates the performance progress of the company. It involves developing the next competitive advantages that can assist the business in achieving the future objectives (Smith and Edmonston, 2007). The three-year horizon ensures that the strategies that are in place are in line with the vision and mission of the company.

Horizon 3: This is the five-year strategies for the future. It entails making choices concerning the future strategic goals (Wandel, et al. 2008). The five-year horizon involves extending the strategic horizon of the company further by exploring the possible strategic destinations of the company in the future.

Stakeholder Map

Student id 1 The major two stakeholders who are affected by the demographic and economic shifts can include the customers and investors. The investors’ returns from the invested funds are likely to be hit by the shifts while the customers are affected because of the possible changes in prices of the products.


Basker, Emek. 2005. “Job Creation or Destruction? Labor-Market Effects of Wal-Mart Expansion.” Review of Economics and Statistics, 87(1): 174–183.

Bloom, D.E., Canning, D. and Malaney, P.N., 2009. Demographic change and economic growth in Asia. CID.

Bound, J. and Holzer, H.J., 2000. Demand shifts, population adjustments, and labor market outcomes during the 1980s. Journal of labor Economics,18(1), pp.20-54.

Case, A.C., Lin, I.F. and McLanahan, S.S., 2003. Explaining trends in child support: Economic, demographic, and policy effects. Demography40(1), pp.171-189.

Clark, W.A., Deurloo, M.C. and Dieleman, F.M., 2004. Tenure changes in the context of micro-level family and macro-level economic shifts. Urban Studies31(1), pp.137-154.

Deaton, A.S. and Paxson, C.H., 2007. The effects of economic and population growth on national saving and inequality. Demography34(1), pp.97-114.

Eden, C. and Ackermann, F. 2008. Making Strategy: The Journey of Strategic Management, London: Sage Publications

Galor, O. and Weil, D.N., 2000. Population, technology, and growth: From Malthusian stagnation to the demographic transition and beyond. American economic review, pp.806-828.

Higgins, M., 2008. Demography, national savings, and international capital flows. International Economic Review, pp.343-369.

Oppenheimer, V.K., 2010. The female labor force in the United States: Demographic

Pachauri, S. and Zigova, K., 2010. Global demographic trends and future carbon emissions. Proceedings of the National Academy of Sciences107(41), pp.17521-17526.

Pandit, K., 2007. Cohort and period effects in US migration: How demographic and economic cycles influence the migration schedule. Annals of the Association of American Geographers87(3), pp.439-450.

Smith, J.P. and Edmonston, B. eds., 2007. The new Americans: Economic, demographic, and fiscal effects of immigration. National Academies Press.

Wandel, M., Råberg, M., Kumar, B. and Holmboe-Ottesen, G., 2008. Changes in food habits after migration among South Asians settled in Oslo: the effect of demographic, socio-economic and integration factors. Appetite,50 (2), pp.376-385.