Wal Mart Political Risks

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Risks associated with the initiative and financial effects they may have.

As mentioned above there are many initiative risks Wal-Mart may have when dealing with financial decisions that they make. Opening new Wal-Mart supercenter can have some risky effects because they decide to this in certain areas or cities. Not doing there proper homework may be devastating to the welfare of the store. They could not make a profit if there are setting the store up in a part that is feeling effects from the downfall of the economy.

Another initiative risk could be when they created over 1500 jobs in there stores. If the economy takes a dip like it did years ago then those jobs would be eliminated and it would look bad that they spent money on the training, and that would all be lost. This could have a financial burden on the company.

Expanding in Brazil has its own risks in itself. Finding people to hire in this area could be hard. They would have to invest money in recruiting people to hire, sending people there to train the new hires, and the building cost overseas. All of this takes time and money. Although Brazil it a wealthy country it could have its downfall at any moment just like the U.S. did. If they did have an economic downfall then financially the company would lose people, stores, and money. This would be very detrimental to the company financially if this were to happen.

Although we take Wal-Mart as a solid company that has expanded throughout the world over the years, we are sure that they have a solid team that looks at the financial risks that can take place before they make a decision like these. It takes a lot of time and thinking to make such huge investments and how this would help the company financially over a long period of time.
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