Walmart Project Presentation


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Accompanying presentation to "Walmart: Satan to Savior? How a "Green" Walmart Could Change the Way the World Does Business

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Walmart Project Presentation

  1. 1. Wal-Mart:What the Template Business of Global Capitalism Might Reveal About the POST-Post-Fordist Future<br />
  2. 2. Walmart: A brief history<br />Founded 1962 in Bentonville, Arkansas by Sam Walton<br />Incorporated 1969, and went public in the New York Stock Exchange (as WMX) in 1972. <br />First store in Bentonville, AK<br />Changes in Walmart Logo 1962-present<br />
  3. 3. Walmart Today, A Snapshot:<br />Worlds LARGEST:<br />Public corporation, EVER<br />Private employer <br />15% market share of ALL general merchandise and food sold.<br />In the US:<br />Over 11% share of total GDP<br />
  4. 4. Criticisms of Walmart<br />Negative Environmental Impact<br />Resistance to union representation<br />Sexism<br />Pressures on employees to vote for specific parties during national elections.<br /> Extensive foreign product sourcing (70%!)<br /> Low rates of employee health insurance enrollment(dependence upon government healthcare programs)<br />
  5. 5. Criticism with Humor<br />
  6. 6. Overview of Analysis<br />Walmart has grown beyond the scale and influence of any business the world has ever seen<br />Walmart as trendsetter and market-MAKER<br />Now functions more as global commodity chain and logistics operation <br />Can influence market faster and more directly<br />
  7. 7. If…Then…SO…<br />In examining Walmart’s business practices, recent initiatives, and forthcoming plans, we can gain insight into the future direction of the global economy.<br />Allen Scott’s notion of “Flexible Production Regime<br />Harvey’s notion of “Creative Destruction”<br />
  8. 8. “Always Low Prices”:Making Penny Pinching the World Business Standard<br />Walmart requires all suppliers to submit to strict efficiency standards to cut costs in:<br />Production processes <br />Product design<br /> Materials/Packaging <br />Labor <br />Transportation <br />“Plus One” Principle<br />Requires that every year suppliers must cut costs or improve quality<br />“Retail Link”<br />Collects POS data from around the world and made available to suppliers<br />Enhances sensitivity to consumer trends- <br />“micro-marketing”<br />
  9. 9. Logistics Revolution and “Lean Retailing”<br />Characteristics of Lean Retailing:<br />UPC tags and scanning devices<br />Computerized Inventory Management<br />Automated Distribution Centers<br />Adoption of communication standards throughout supply chain<br />Logistics Revolution: 70’s+<br /><ul><li>Led Voluntary Interindustry Commerce Standards Initiative</li></ul>Left: Workers posing at a Walmart distribution center<br />
  10. 10. ~SeEinGtHeFuTuRe ~(maybe) Walmart and the Sustainability Index<br />As a market-MAKER, Walmart’s actions set the standards in the global supply chain. <br />What could Walmart’s plans for creating a “Sustainability Index” and product “Life Cycle Database” suggest about the future of the global economy? <br />
  11. 11. Sustainability Index Specifics<br />Walmart will provide each of its 100,000 global suppliers with a survey of 15 questions to evaluate their sustainability.<br />Will develop a rating system that will be visible to consumers on all products.<br /> The questions and rating system are divided into four areas: <br />Energy and Climate, Natural Resources, Material Efficiency and “People and Community “<br />-Walmart Corporate Sustainability Index Fact Sheet<br />
  12. 12. Natural Capitalism& Implications for the Future <br />Walmart being Walmart, if it implements this index, the rest of the retail industry will follow<br />Will change consumer spending habits and consequently reshape supply chain<br />Sustainability efforts are in line with characteristics of Natural Capitalism<br />------------------------<br />
  13. 13. After Higher Standards<br />Will Walmart’s requirement of higher environmental standards for their suppliers have a positive spillover effect for other problematic parts of the supply chain? <br />Let’s hope so.<br />