One of the root causes of problems with Wal-Mart is that they try to minimize costs to raise their profits. They try to buy goods cheap from suppliers so they can sell the same product for less than the competitors. Wal-Mart puts financial strain on the suppliers to give them what they want, when they want. Wal-Mart can suffocate a business into giving them what they want at the price they want it at. The main reason Wal-Mart can do this is because they have a large number of stores in the United States as well as Mexico and Canada. Wal-Mart is the largest retail store in the United States. In 2005, Wal-Mart had a workforce of more than 1.2 million workers. Wal-Mart's total revenue in 2004 was $258.7 billion.
Management has many responsibilities. Many of those responsibilities have to do with keeping the company profitable and its costs low. Wal-Mart is the same as any other company yet they have the added pressure of making sure that they offer their customers everyday low prices. In order to maintain this promise to their customers, leadership had to find ways to offset expenses. Company management receives handbooks upon joining the company and part of the handbook guides managers in ways to pick and choose