Mba 595.n.1 corporate communication and reputation audit l gerdeman


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Mba 595.n.1 corporate communication and reputation audit l gerdeman

  1. 1. Lisa M. GerdemanEffective Professional Communication MBA 595.N1 March 6, 2013 Dr. Kershaw 1
  2. 2. Table of Contents Mission & Values 3 Brand 4 Identity 6 Reputation 8 Image 12 Corporate Social Responsibility 14 2
  3. 3. Mission & Values Walmart’s mission is “helping people around the world save money and live better -- anytime and anywhere -- in retail stores, online and through their mobile devices”. Walmart believes this mission, along with innovative thinking and leadership through service, has made them successful. 3
  4. 4. Brand “Save money. Live better.” Walmart’s brand strategy is built around these words. Their strategy of charging low prices every day is aimed at helping people save money, stretch their paychecks, and provide a better life for their families. 4
  5. 5. Brand Millward Brown BrandZ™ Top 100 is BrandZ Rank 2012 76 based on 150,000 annual interviews on key brand metrics including: 17 18  brand consideration Walmart Target Amazon Costco  image  usage & strength  brand personality or character  trust & recommendation  price & desire  corporate reputation Walmart ranks #17 on the top 100 list Amazon ranks closely behind at #18 Target ranks #76 Costco did not make the top 100 Source: 5
  6. 6. IdentityWalmart wants the public to see that they are committed to not only providinglow costs, but also to financial success, to their communities, and to corporatesocial responsibility. 6 Source:
  7. 7. IdentityThree key stories are currently highlighted on Affordable, healthier foods  The First Lady Michelle Obama visited several Walmart stores to celebrate Walmart’s progress on making food healthier and more affordable for families nationwide.2. Q4 2012 earnings  Walmart announces Q4 earnings per share of $1.67, full year earnings per share of $5.02, full year dividends of $1.88 (up 18%). Walmart U.S. gains market share and adds $4.7 billion in comp sales for the year.3. Sustainability  Walmart works with suppliers and buyers to make their products more sustainable and supply chain more ethical. 7
  8. 8. ReputationPositive Media Coverage Low prices Price matching Reduced lay-away fees Seasonal hires -during the Christmas season 8
  9. 9. Reputation RankingsThese low price strategies have been successful for Walmart in terms of profits. In 2011, Walmart ranked 2nd on the Fortune 100: Ranking 2007 Walmart Trend: Ranking 2008 2009 2010 2011 Fortune Top 500 list –dropping from 56 1 1 1 38 the #1 spot in 2009 & 2010. 24 2 2 2 Both revenues and profits Walmart Target Amazon Costco continuously increased during the period 2007 through 2010 at Fortune 100: Revenues Walmart Trend: $446,950 ($ in millions) Revenues Walmart. ($ in millions) $421,849 $446,950 $378,799 $405,607 $408,214  In 2011 profits declined $69,865 $88,915 $48,077 Walmart’s revenues and profit are Walmart Target Amazon Costco 2007 2008 2009 2010 2011 much higher than their competitors.  With that, they rank well above each Fortune 100: Profits Walmart Trend: Profits ($ in millions) on the Fortune 500 list. $15,699 ($ in millions) $16,389 $15,699 $12,731 $13,400 $14,335 $2,929 $1,462 $631 Walmart Target Amazon Costco 2007 2008 2009 2010 2011 9 Source:
  10. 10. ReputationNegative Media Coverage Labor disputes  Disputing: low wages, poor treatment, & unpleasant working conditions Black Friday complaints  Opening on Thanksgiving day Alleged bribery scam at Walmart de Mexico Protests against Walmart entering the New York City market 10
  11. 11. Reputation Rankings ® Harris Reputation Quotient Walmart ranks #40 on the Harris 40 Poll Reputation Quotient® 22 10 Walmart’s score is rated “Fair”. 1 Walmart Target Costco Amazon Competitors rank better  Amazon is rated “Excellent” ® Harris Reputation Quotient Score  Target is rate “Very Good” 82.62 77.95 Walmart  Costco is rated “Very Good” 74.82 Target 66.03 Costco Walmart’s score dropped from 69 2011 2012 2013 Amazon in 2012 to 66 in 2013.Source: 11
  12. 12. Image Top 100 Best Companies to Work For  Most Admired Companies 2/3rd of score  Survey of business people asked to  The survey asks questions related to their vote for the companies, from any attitudes about managements credibility, job satisfaction, and industry, that they admired most. camaraderie.  Walmart ranks #23 1/3rd of score  This ranking is down from previous  The Culture Audit asks detailed questions years about pay, benefits programs, hiring practices, internal  Competitors Costco & Amazon are communication, training, recognition up programs, and diversity efforts. Walmart was not ranked in the top 100 on this years’ survey. Top 100 Best Companies to Work Top Most Admired Companies For 2009 2010 2011 2012 0 10 Wal-Mart 8 10 9 6 11 11 Target 4 Amazon 2 20 0 23 Costco Wal-Mart Target Amazon Costco 30 12 Source:
  13. 13. Walmart’s Response toNegative Media Coverage Planning and preparation are important in crisis communication and crisis management.  Walmart issued statements responding to each of these crises. Labor disputes and Black Friday  Walmart believe that the protests do not reflect the attitudes of all employees, but merely a small sampling.  Walmart believes the disputes are unwarranted. I believe they need to communicate the reasons why and promote Walmart’s labor policies in a positive light & that they offer fair opportunities for all.  In my opinion, Walmart did not take ownership or sympathetically show that they hear the voices of the employees and that they would address their concerns.  If they haven’t already, Walmart needs to develop an effective employee communication strategy specifically for these labor disputes. Bribery scam  Walmart denied the allegations  Walmart did not communicate much beyond their initial statement regarding the issue NYC protests  Walmart’s response was good.  Walmart clearly identified the reasons it wants to enter the market and list their supporters –which included the mayor. 13
  14. 14. Corporate Social Responsibility Hunger relief & healthy eating  Walmart is fighting hunger by making food healthier, making healthier food more affordable, and by strengthening the global food supply chain. Sustainability  Walmart is believes in sustainability because its the right thing for the environment. Walmart encourages their employees to make positive contributions to the environment and, in turn, believes they will encourage customers to do the same. Women’s economic empowerment  Walmart is working towards initiatives that will change the lives of countless women around the world. Career opportunity  Walmart provides career training and job opportunities to our nation’s veterans and military families. Diversity is also core to Walmart’s culture. 14
  15. 15. Corporate Social Responsibility Although Walmart focuses a lot of corporate communication on CSR, they did not rank within the top 50 companies on the Corporate Social Responsibility Index (CSRI). Amazon ranked #5 Target ranked #29 Costco ranked #43 Most Socially Responsible Companies 43 29 5 Wal-Mart Target Amazon Costco Source: 15
  16. 16. Corporate Social Responsibility Social responsibility is vital to a company’s profits.  75% of Americans take into consideration corporate social responsibility before making an investment decision. There is also a strong correlation of good corporate citizenship and a strong public image.  Walmart is not perceived to be a highly socially responsible company (according to the CSRI) …even though they seem to be doing a lot in this realm I believe that Walmart needs to improve communications regarding their CSR efforts which, in turn, should help to improve their image and reputation.  This is particularly important now that their reputation rank seems to be declining. 16