Walmart's HR practices are closely aligned with its cost leadership strategy, as evidenced by several key policies. The company minimizes recruitment costs by employing high numbers of workers while also reducing training expenses by focusing only on essential skills that directly support cost-cutting goals. Walmart has been noted for aggressive labor management practices, such as enforcing minimal break times and lowering wages, contributing to lower operational costs. The recruitment process also reflects this strategy, as Walmart often favors hiring employees with no significant requirements for benefits, thus reducing associated costs. Overall, these HR practices are designed to reduce expenses and align with Walmart's overarching strategy of being a price leader .

Walmart organizes its management strategy into three interlinked levels: corporate, business, and functional. On the corporate level, Walmart emphasizes low-cost leadership, ensuring that all business operations align with this overarching goal. At the business level, Walmart focuses on cost leadership within each market segment it operates. Functional-level strategies, including HR and operations, are then tailored to support these higher-level strategies. For instance, HR strategies at Walmart involve minimizing recruitment costs and employing aggressive performance management practices, such as stringent performance appraisals and minimizing break times, to align with the cost-reduction focus. This strategic layering ensures all organizational efforts are directed towards sustaining Walmart's competitive advantage as a low-cost leader .

Walmart's aggressive cost-cutting HR practices raise several ethical concerns, including labor rights violations and workplace discrimination. Instances of child labor, inadequate compensation, and unfavorable working conditions, such as minimized breaks and low wages, highlight potential exploitation under the guise of cost reduction. Furthermore, accusations of gender discrimination, such as unequal pay and promotion opportunities for women, reveal systemic biases in Walmart's workforce management. These practices may undermine employee morale and reduce loyalty, conflicting with ethical business operations. Consequently, such practices prompt discussions about the ethical responsibility to balance cost efficiency with fair treatment and labor rights .

Walmart has faced criticism in the U.S. for its labor practices, including low employee wages, inadequate healthcare benefits, and anti-union policies. America's large-firm employees typically pay a fraction of health insurance compared to Walmart employees, highlighting disparities. Moreover, allegations of gender discrimination and unfair employment practices have further tarnished Walmart's public image, potentially impacting customer perception and brand loyalty. These controversies suggest a misalignment between Walmart's operational policies and the expectations of ethical labor standards, possibly diminishing its reputation as a reputable employer despite its competitive pricing allure .

Walmart's global expansion strategy aligns with its cost leadership objective by leveraging global supply chains and establishing a significant presence in key international markets. Acquiring a majority stake in the Indian e-commerce company Flipkart is a strategic move that expands Walmart's reach into a fast-growing retail market, positioning it to offer competitive pricing through economies of scale. By utilizing global supply networks, particularly importing from low-cost regions like China, Walmart secures cheaper products, enabling lower pricing strategies. This international approach not only helps Walmart to spread operational costs over a wider base but also to optimize sourcing, logistics, and market entry strategies to reinforce its low-cost market positioning worldwide .

Walmart ensures that its HR policies support its corporate cost-cutting strategy through a combination of systemic practices and strategic alignments. The company minimizes recruitment and training costs by hiring less experienced employees who require fewer upfront resources. Walmart enforces rigorous performance management systems to ensure high employee productivity, aligning worker incentives with cost-reduction goals. Administrative policies are designed to maximize labor efficiency, such as minimizing paid breaks and maintaining a lean wage structure. Collectively, these HR strategies align with Walmart’s overarching goal of maintaining low operational costs and remain responsive to the broader corporate emphasis on cost leadership .

Walmart's procurement strategy is central to its competitive advantage, focusing on bulk purchasing to achieve economies of scale, thereby obtaining significant discounts from suppliers. By leveraging its massive purchasing power, Walmart ensures lower product costs, which allows it to maintain low retail prices while preserving profit margins. This strategy is further supported by global sourcing, particularly from China, where production costs are low. Such procurement strategies enable Walmart to offer a wide range of products at competitive prices, reinforcing its market position as a cost leader and appealing to price-sensitive consumers .

Walmart's acquisition of a 77% stake in Flipkart plays a strategic role in its corporate plan by providing a gateway into the burgeoning Indian market. This move enhances Walmart's e-commerce capabilities and positions the company competitively against other major players like Amazon. The acquisition supports Walmart's goal of expanding its global market footprint, facilitating entry into a market projected for high retail growth. It also aligns with Walmart's cost leadership strategy, as leveraging Flipkart's established supply chain and customer base can drive low-cost operations and widen product assortments offered at competitive prices .

Walmart adjusts its HR policies in different countries primarily to comply with local labor laws and cultural expectations while maintaining core strategic objectives. For instance, in China, Walmart allowed unionization within its stores, as union presence is a legal requirement, a significant adaptation from its traditional anti-union stance. However, Walmart aligns these adaptations with its strategy by ensuring that they do not drastically increase operating costs. By doing so, Walmart manages to adhere to local legal mandates without compromising its overarching low-cost leadership strategy. This balance between compliance and strategic consistency underscores Walmart's adaptability across diverse regulatory environments .

Walmart employs multiple strategies to maintain its status as a low-cost leader, notably through economies of scale which enable them to purchase goods in massive quantities from suppliers. This approach allows Walmart to reduce production and distribution costs significantly. They also utilize a satellite-based distribution system and strategically choose store locations on low-cost lands outside medium and small towns to minimize expenses further. Moreover, by importing goods from China, where production is cheaper, Walmart ensures lower operating costs. This extends to maintaining a highly efficient stock control system and offering goods at lower prices to capture market share. These strategies collectively aim to achieve the lowest possible production and distribution costs, allowing Walmart to charge industry-average prices while maximizing profits .