Group Sets New Anti Wal Mart Campaign
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A union-backed group called WakeUpWalMart.com launched a new advertising campaign against Wal-Mart, adding four new staff members who have worked on Democratic campaigns. The campaign highlights issues like taxpayers paying for Wal-Mart employees' healthcare and asks shoppers to pledge not to buy school supplies from Wal-Mart. Meanwhile, Wal-Mart reported lower-than-expected profits and cut its earnings forecast as consumers have less money to spend due to high fuel prices.
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2. External Strategic Analysis 4
2.1 PEST Analysis 4
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Walmart has become the world’s largest company by revenue for a few reasons. First, it used cost leadership strategy and executed it brilliantly. Second, it operated in the world’s richest economy, which enabled Walmart to grow fast and successfully.
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3. When small businesses close, the local community suffers losses in retail jobs, money leaving the community, and declines in civic participation and neighborhood well-being.
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2. External Strategic Analysis 4
2.1 PEST Analysis 4
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2.2.1 Porter's Five Forces Model Conclusion 5
2.3 Opportunities and Threats Analysis 6
2.3.1 Opportunities and Threats Analysis Conclusion 6
3. Internal Strategic Analysis 7
3.1 Strength and Weakness Analysis 7
3.1.1 Strengths and Weakness Conclusion 7
4. Strategy Formulation 8
5. Recommendations and Conclusions 9
References 10
Appendices 12
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Decency Means More than “Always Low Prices”:
A Comparison of Costco to Wal-Mart’s Sam’s Club
Wayne F. Cascio*
Executive Overview
Wal-Mart’s emphasis on “Always low prices. Always” has made it the largest retail operation in history.
However, this unrelenting mission has also created a way of doing business that draws substantial criticism
regarding the company’s employment practices, relationships with suppliers, and the company’s impact on
local economies. This paper focuses on a company that delivers low prices to consumers, but in a
fundamentally different way than its competitor, Wal-Mart. That company is warehouse-retailer Costco. In
the following sections we will begin by providing some background on the company, including its history,
its business model, its ethical principles, core beliefs, and values. Then we will consider some typical Wall
Street analysts’ assessments of this approach, followed by a systematic comparison of the financial
performance of Costco with that of Sam’s Club, a warehouse retailer that is part of Wal-Mart.
T
o be sure, Wal-Mart wields its awesome power
for just one purpose: to bring the lowest possi-
ble prices to its customers. Sam Walton, affec-
tionately known as “Mr. Sam” by Wal-Mart asso-
ciates, embodied a number of admirable values
that he instilled in the company he founded: hard
work, discipline, modesty, unpretentiousness, and
frugality. By all accounts he also wanted his em-
ployees to be motivated, inspired, and happy to
work for Wal-Mart. At the same time, however,
he was driven, tireless, and determined to drive a
hard bargain (Walton, 1992). His brilliance lay in
his ability to execute a singularly powerful idea:
Sell stuff that people need every day, just a little
cheaper than everyone else, sell it at that low
price all the time, and customers will flock to you.
Wal-Mart’s mission is found as a slogan printed on
every Wal-Mart bag: “Always low prices. Always.”
Wal-Mart’s obsessive focus on that single core
value created what has become the largest and
most powerful company in history.
The company espouses those same core values
today, but ironically, their application is quite
different from that in the 1960s, the 1970s, even
the 1980s. Today, the very characteristics that
allowed Wal-Mart to prosper and grow are the
source of unrelenting criticism. As Fishman
(2006) notes, the company’s core values seem to
have become inverted, for they now sometimes
drive behavior that is not only exploitive, but in
some cases, illegal as well. Consider the pressure
on store managers to control labor costs. As noted
in its 2005 annual report (pp. 45, 46), Wal-Mart is
a defendant in numerous class-action lawsuits in-
volving employment-related issues as varied as
failure to pay required overtime to hourly employ-
ees, challenges to exempt (from overtime) status
by assistant store managers, and allegations of
gender-based discrimination in pay, promotions,
job transfers, training, job assignments, and
he.
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CASE 3
Walmart Manages Ethics and Compliance Challenges*
Walmart Stores, Inc., is an icon of American business. From small-town business to multinational corporation, from a hugely controversial company to a leader in renewable energy, Walmart has long been a lightning rod for news and criticism. With 2012 net sales of more than $ 443 billion and more than 2 million employees, the world’s second largest public corporation must carefully manage many stakeholder relationships. It is a challenge that has sparked significant debate.
While Walmart’s mission is to help people save money and live better, the company has received plenty of criticism regarding its treatment of employees, suppliers, and economic impacts on communities. Walmart has the potential to save families hundreds of dollars a year, according to some studies. At the same time, however, research shows that communities can be negatively affected by Walmart’s arrival in their areas. Moreover, feminists, activists, and labor union leaders have all voiced their belief that Walmart has engaged in misconduct. Walmart has attempted to turn over a new leaf with emphases on diversity, charitable giving, support for nutrition, and sustainability, all of which have contributed to a revitalized image for Walmart. In fiscal year 2012, the company, along with its Walmart Foundation, donated more than $ 1 billion in cash and in-kind contributions. However, more recent scandals such as bribery accusations in Mexico have created significant ethics and compliance challenges that Walmart must address in its quest to become a socially responsible retailer.
This analysis begins by briefly examining the growth of Walmart; next, it discusses the company’s various relationships with stakeholders, including competitors, suppliers, and employees. The ethical issues concerning these stakeholders include accusations of discrimination, leadership misconduct, bribery, and safety. We discuss how Walmart deals with these concerns, as well as recent endeavors in sustainability and social responsibility. The analysis concludes by examining what Walmart is currently doing to increase its competitive advantage and repair its reputation.
HISTORY: THE GROWTH OF WALMART
The story of Walmart begins in 1962, when founder Sam Walton opened the first Walmart Discount Store in Rogers, Arkansas. Although it got off to a slow start, over the next 40 years the company grew from a small chain to more than 8,000 facilities in 27 countries. The company now serves more than 200 million customers weekly. Much of the success Walmart experienced can be attributed to its founder. A shrewd businessman, Walton believed in customer satisfaction and hard work. He convinced many of his associates to abide by the “10-foot rule,” whereby employees pledged that whenever they got within 10 feet of a customer, they would look the customer in the eye, greet him or her, and ask if he or she needed help with anything. Walton’s famous mantra, known ...
Business Questionaire
The document contains questions about factors that contribute to rapid business change, the role of entrepreneurship and non-profits in the economy, when American businesses began focusing on customer needs, the factors of production and how economies can grow with weak factors, and the 5 dimensions of the business environment. It also includes case studies on Walmart's response to criticism about low prices and treatment of employees, its response to Hurricane Katrina, and disadvantages of job evaluations. Finally, it discusses Walmart's business model, marketing strategy, and the impact of its business practices on its organization, employees, and consumers.
Globalization at the corporate level dox
The main purpose of the research is to draw out clearly the connection between Wal-Mart global operation and its political involvement as the main agenda. This evaluation of Wal-Mart stores as the transactional corporation chosen for the research, this shall emphasize further on the strategic formulation that Wal-Mart encompasses in it operations and other factors like outsourcing, supplier’s network, and vertical integration and globalization expansion roles by this corporation.
ORGANIZATIONAL LEVEL OF ANALYSIS-WAL-MART .docx
ORGANIZATIONAL LEVEL OF ANALYSIS-WAL-MART
1
ORGANIZATIONAL LEVEL OF ANALYSIS-WAL-MART 13
Organizational Level of Analysis- Wal-Mart
BMGT 464
Organizational Level of Analysis- Wal-Mart
Introduction
Wal-Mart is profoundly known to be one of the biggest American Multinational Retail Corporation known for the warehouse stores and large discount department. The company stands out as the world’s third best largest public corporation as recorded in the global 500 list. The company remains to be family owned essentially controlled by the Walton’s family that possesses approximately 48 percent of the stake in the entire organization. Sam Walton established the company in the year 1962. In the year 1972, the company was trading in the New York stock exchange and it centered its headquarters in Bentonville, Arkansas. Wal-Mart is currently in possession of almost 8500 stores in the 15 countries, which are identified under 55 distinct names. However, the company operates under the name Wal-Mart in the United States. However, the current deteriorating performance has compelled this paper to address significant issues that may be affecting its performance. The paper will therefore focus on the organizational behavior in explaining the strategies, the strength, weaknesses, opportunities as well as the threats the organization is facing and the most desirable recommendations that the company can take to bring it back on the track. It is worth noting that organizational can be understood as the systematic study as well as application of knowledge on how individuals, groups of people and other relate parties work within a given organization.
Methodology
Outstanding issues faced by the organization were significantly realized from the two techniques that were applied in the process. An interview that was able to cut across various stakeholders in the entire organizational served a better source of information. On the other hand, the literature review of various cases covering the operations and the performance of the Wal-Mart played a significant role in identifying outstanding issues and problems that the organization has progressively been facing. The two cases under the methodological structure are as covered in the section below.
Interview
Deployment of the technique covered several members of the organization including the ones involved in the management of the entire company as well as the reachable stakeholders such as the employees who were amicably requested to share the most confidential information concerning the Wal-Mart company. The managerial staff members were further requested to table their opinions as well as views on the performance and activities that were carried out in the organization. This methodology was largely simplified by utilization of the randomized control trial technique (RCT) that made use of isolating the population sample into two gro.
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Group Sets New Anti Wal Mart Campaign
- 1. Page 1 of 2 Close This Window Print this article Group sets new anti-Wal-Mart campaign Thu Aug 16, 2007 6:00 PM BST By Jessica Wohl CHICAGO (Reuters) - A union-backed group ramped up its efforts against Wal-Mart Stores Inc. <WMT.N> on Thursday with a new commercial and a letter from the president of the American Federation of Teachers asking the retailer's chief executive to change some labor practices. WakeUpWalMart.com, which calls itself quot;America's Campaign to Change Wal-Mart,quot; also added four staffers a few weeks after two left to join U.S. Democratic presidential candidate John Edwards' campaign staff. The new workers all worked on Democratic campaigns in the past. Groups such as WakeUpWalMart.com have begun various grass-roots campaigns to draw attention to what they say are poverty-level wages, inadequate health care benefits and other issues with the world's largest retailer. The advertising campaign, called quot;Send Wal-Mart Back to School,quot; highlights issues such as taxpayers dealing with the burden of Wal-Mart employees' health care costs. A television commercial is set to air on Thursday in 26 U.S. markets including Boston and Las Vegas, the group said. WakeUpWalMart.com will also ask shoppers to sign a pledge promising not to buy school supplies at Wal-Mart this year unless the company agrees to pay a living wage, end discrimination against women, not stand for any illegal child labor and provide employees with more affordable health care. That move comes after Wal-Mart in late July slashed prices on back-to-school merchandise such as pencils, pens and notebooks by 10 to 50 percent to try to reignite sales. quot;We know it's tough right now and Americans are looking to us to provide the best value on back-to-school shopping lists,quot; a Wal-Mart spokesman said. Wal-Mart reported a lower-than-expected quarterly profit on Tuesday and cut its earnings forecast as economic pressures such as higher fuel prices leave shoppers with less to spend. The letter from American Federation of Teachers President Edward McElroy asks CEO Lee Scott to address evidence of quot;illegal child labor, violating wage and hour laws, paying poverty-level wages, discriminating against women, and shifting the burden of employee health care to taxpayers.quot; A Wal-Mart spokesman said the company creates thousands of jobs each year, many in areas in need of opportunity. quot;Our associates choose to work at Wal-Mart because they know we offer real career opportunities and provide competitive pay and affordable health care,quot; the spokesman said. The new WakeUpWalMart.com staffers named on Thursday are Deputy Campaign Director Meghan Scott and Senior Advisers Nick Baldick, Richie Ross and Jeremy Van Ess. http://investing.reuters.co.uk/misc/PrinterFriendlyPopup.aspx?type=tnBusinessNews&story... 9/3/2007
- 2. Page 2 of 2 The announcement comes a day after Wal-Mart issued a report outlining its impact on factory working conditions and the lives of factory workers. Wal-Mart said it audited 8,873 factories in 2006, 15 percent more than it looked at in 2005. (See http://blogs.reuters.com/category/themes/shop-talk/ for quot;Shop Talkquot; -- Reuters' retail and consumer blog) © Reuters 2007. All rights reserved. Republication or redistribution of Reuters content, including by caching, framing or similar means, is expressly prohibited without the prior written consent of Reuters. Reuters and the Reuters sphere logo are registered trademarks and trademarks of the Reuters group of companies around the world. Close This Window http://investing.reuters.co.uk/misc/PrinterFriendlyPopup.aspx?type=tnBusinessNews&story... 9/3/2007