Question

What has been Walmart's recent actions (within the last six months) dealing with risk and uncertainty and what is some advice to Walmart for improving risk management.

Share references please.

Answer 1

Walmart’s chief executive expects that sometimes the company fails. Walmart transformed its shopping habits and this leads them to become a dominant force in America. They took risk to reimaging their retails. Walmart was one of the largest retail chains in 2015. In 2019 the acquisition of India’s Flipkart increases their earnings.
Challenges faced by Walmart in last year:
Market risk: Market risks affect differently for different company. Most important thing was the manipulation of interest rates by Federal Reserves. The food chain like Chipotle, regulate the federal food. Other risk faced is exchange rate risk, intense competition from Target ad Amazon, business cycle risk etc.
Salary Pressure: There was a huge pressure on the raising of wage rates. This pressure came from local states and cities were relatively high living cost. This leads the distribution of more products at low cost.
Bottom line: Walmart has a conservative investment. There is a stable level of revenue. Walmart face huge risks comparing other companies.
In recent period the corona virus affects this type of companies very badly. Several workers in Walmart tested positive for virus. Amazon officially surpasses Walmart as the leading retailer. The most recent initiative which Walmart took was increasing its business and online platforms. They tried to attain high level growth than Amazon.