Fiscal Policy

Fiscal Policy & Wal-Mart

Overview of the Company

Wal-Mart is an American Multi-national retailer that which involve in chains of discount and warehouse stores. It is the largest corporations in the world in term of world as well as in terms of employers. Wal-Mart is engaged in grocery and general merchandising retailing. Wal-Mart has been in the right direction in order to accomplish the highest sales in terms of volume and in terms of currency through the effective business strategy.

Wal-Mart has three main business strategies are Focus strategy, Differentiation strategy and cost leadership strategy. Core competences of Wal-Mart comprises of Information Technology in order to support international logistic systems. This has advantage in terms of performance of the product world-wide, tore wise. Deflation in Price major problem for Wal-Mart as it deals with the discount stores. Despite being a company that barely meets with difficulties and their strengths are more than double its weaknesses, such as Wal-Mart all have things to improve. As Wal-Mart is the largest retailer in the US, it has the ability to become the largest retailer across the world as well- huge opportunity (SWOT Analysis Walmart, 2005).

Moreover, they deal in sort of similar products, hence, they has the ability to expand their merchandise and stores in order to attract more costumers. They can add more products to their stores such as musical products which Wal-Mart has not made various musical instruments as their products part up till now. These products are in demand can increase their profitability and margin. Low prices of Wal-Mart has force them to cut cost in some other areas. This comprises of supplier offering price which is squeezed in lowering prices. This kind of problems can harm the company by creating demands that can be avoided and thus continue to gain the trust of people who care about the environment, as this can cause an abandonment of his party. The company basically places its price very low, in some cases way below their cost of acquiring the product. This enables the company to establish itself as the “low-price leader” in the local market thereby attracting more customers to the store (SWOT Analysis Walmart, 2005).

Fiscal policy - Wal-Mart

Fiscal policy is measure through which government adjust its spending level consecutively to monitor and manipulate the economy of the country. The decision of fiscal policy by the government has an extensive impact on the individual household and businesses behavior and daily decisions. Fiscal policy generally engrosses Transformation of spending policies and taxation. If the taxation is low, this states that more disposable income available for the people and cash available for the business for investment. There is a direct impact of change in taxation schedule in the production cost and corporation's end product and lastly the individual net income.

Hence, as Wal-Mart is one of the largest retailers, any change in taxation or government spending will impact on the company profitability.

Gross Domestic Product

The Gross domestic product - GDP refers to the final value ...