Detecting Unethical Practices at Supplier Factories

  • 4,188 views
Uploaded on

Detecting Unethical Practices at Supplier Factories: The Monitoring and Compliance Challenges, walmart ,nike

Detecting Unethical Practices at Supplier Factories: The Monitoring and Compliance Challenges, walmart ,nike

More in: Business
  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Be the first to comment
No Downloads

Views

Total Views
4,188
On Slideshare
0
From Embeds
0
Number of Embeds
1

Actions

Shares
Downloads
62
Comments
0
Likes
1

Embeds 0

No embeds

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
    No notes for slide

Transcript

  • 1. CASE STUDY Detecting Unethical Practices at Supplier Factories: The Monitoring and Compliance Challenges Prepared By: Irene Yap Lee Kuen Alireza Khosroyar Tan Lee Yin
  • 2. PRESENTATION OUTLINE
  • 3. STRATEGIC PROFILE Critical facts :
  • 4. Background of Company • • • • • • The nation's number-one retailer. Walmart Supercentre - redefined convenience and one-stop shopping, Every Day Low Prices went international In 1992, Walmart employed 371,000 associates in 1,928 stores and clubs. In 2000, Walmart.com was founded, allowing U.S. customers to shop online. In 2012, Walmart celebrated 50 years of helping people save money so they can live better. The company employs 2.2 million associates worldwide and serves 200 million customers each week at more than 10,000 stores in 27 countries.
  • 5. The Wal-Mart Business Strategy
  • 6. Background of Company : Nike • Nike is the world’s leading designer, distributor and marketer of athletic footwear, sport apparel, sports equipment and accessories • Their products were sourced from contract manufacturers • In 2007, Nike had almost 700 factories in 52 countries – Americas, Europe, Middle East, Africa region and Asia • Nike’s Code of Conduct: 1991 2002 2007
  • 7. SITUATIONAL ANALYSIS General environmental analysis
  • 8. SITUATIONAL ANALYSIS General environmental analysis
  • 9. SITUATIONAL ANALYSIS Industry analysis , Ethical view Manufacturers’ strategies to deceive inspectors
  • 10. SITUATIONAL ANALYSIS Industry analysis, Walmart, 5 forces Model
  • 11. SITUATIONAL ANALYSIS Industry analysis, Walmart , Economical view
  • 12. SITUATIONAL ANALYSIS Industry analysis, Walmart, Economical view
  • 13. SITUATIONAL ANALYSIS Competitors analysis, Walmart http://www.davidbajek.com/2011/10/04/department-stores-market-share/
  • 14. Competitors analysis Chain stores ranking, based on sweatshop suppliers http://www.greenamerica.org/programs/sweatshops/scorecard.cfm - 19 May 2004
  • 15. SITUATIONAL ANALYSIS Industry analysis, Nike, 5 forces Model
  • 16. SITUATIONAL ANALYSIS Nike Competitors analysis http://savingourstyle.com/2012/07/07/june-2012-footwear-sales-3/ • • adidas AG is a German multinational corporation that designs and manufactures sports clothing and accessories Has a set of rules that supplier factories have to follow, to make sure that workers have a fair, safe and healthy workplace – ‘Workplace Standards’.
  • 17. SITUATIONAL ANALYSIS Internal Analysis • 2003 – 2006: Nike used 4 • 1) • 1) 2) 3) 4) 5) 6) • • 2) 3) 4) • approached to plant monitoring: Basic monitoring / SHAPE inspections In-depth M-Audits to focus on factories with highest risk of noncompliance MAV Audits focused on finding the root causes of noncompliance issues Independent external monitoring where Nike is a member of Fair Labor Association Corrective Actions to deal with noncomplying suppliers Created Global Procurement Services Group (GPSG) Supplier Auditing Program Opening Meeting Factory Tour Worker Interviews Factory Documentation Review Closing Meeting Factory Ratings Use of Outside Auditors Collaborate with International Council of Toy Industries (ICTI) CARE Process and the Global Social Compliance Program (GSCP)
  • 18. SWOT Strength
  • 19. SWOT Weaknesses
  • 20. SWOT Opportunities
  • 21. SWOT Threats
  • 22. Strategy Recommendation
  • 23. Strategy Recommendation
  • 24. References • • • • • • • • • • http://www.searsholdings.com/about/kmart/ http:// www.searsholdings.com/govern/docs/Global_Compliance_Requirements_Poster.pdf http://www.searsholdings.com/govern/compliance.htm http:// www.motherjones.com/mojo/2012/07/walmart-heirs-waltons-wealth-income-inequality http://www.greenamerica.org/programs/sweatshops/scorecard.cfm http://www.davidbajek.com/2011/10/04/department-stores-market-share http://www.slideshare.net/emmabbbb/nike-competitive-analysis http://www.eiu.com/index.asp? layout=ib3Article&article_id=278216812&pubtypeid=1122462497&country_id=136000 0136&page_title= http://writeacademic.com/company-analysis/porters-five-forces-analysis-of-wal-mart/ http://www.123helpme.com/nike-five-forces-view.asp?id=166611