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Walmart Project Presentation


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

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

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