This case analyzes Walmart and the conflicting views about its social responsibility. Some see Walmart as a socially responsible corporation providing low prices, while others see it as homogenizing local communities and hurting small businesses. The key stakeholders - consumers, shareholders, local communities, government, and employees - all have varying and sometimes opposing interests. The document recommends applying a model that shows how societal expectations of businesses are increasing faster than businesses' actual social performance. It suggests Walmart should minimize damage to local businesses, better promote its positive initiatives, and be more proactive to preserve its success and reputation built by Sam Walton.

1. Case Analysis Sample (BA 385) – ONE PAGE LIMIT
(Text guidelines are on page 632)
Brenda Eichelberger – 3/21/06 (name, date)
Case 1 - “The Main Street Merchant of Doom” (case, title)
Problem/Issue Analysis: (one point)
This case details the history and social responsibility issues of Wal-Mart. It
discusses Sam Walton and his responses to criticisms as well as his determination to
be a successful. The central issue is this case is why is there such conflicting data?
Some people see Wal-Mart as an example of “social responsibility” and one of the
most admired corporations in America, while others see it as an unattractive
homogenizing factor and a “Merchant of Doom” that should not be allowed to set up
shop in small towns.
Analysis/Evaluation: (two points)
The “stakeholders” in this case are: Consumers – everyone that shop at
Wal-Mart and enjoys their “low prices”. Specifically in this case it is the consumers
that have selected Wal-Mart over the local businesses they have shopped at for
years and the 100 million consumers that shop at Wal-Mart each week. Owners-
Everyone that owns shares of Wal-Mart and have a vested interest in profits. Sam
Walton as founder was discussed in this case in addition to employee shareholders.
Community – the areas surrounding Wal-Mart stores and the local environment.
This case lists several; Iowa City, Pawhuska, Kinder and Boulder Colorado. Some
were very unhappy to have a Wal-Mart coming to town. Wal-Mart instituted a
program in “Environmental Awareness” and offered to “build green”. Government
– International, US, and local municipalities all interact with Wal-Mart. With over
$191 Billion in sales, and being the “world’s largest retailer”, Wal-Mart can and does
impact governmental planning. This case discusses Wal-Mart’s “buy America” plan
and international expansion. Employees – Everyone that works for Wal-Mart. Wal-
Mart employees over 1 million “associates” worldwide. They teach employees the
“Wal-Mart” way, offer them participation in stock programs, and encourage customer
service.
Recommendations (applying a model or concept presented in this week’s
assigned reading): (two points)
Society’s Expectations Versus Business’s Actual Social Performance
(Figure 1-4 pg. 14, concept on pg. 13,14 and 15) is a helpful diagram and
concept to consider the conflicting perceptions of Wal-Mart. Stakeholders (society’s
expectations) have varying needs and increasing expectations of what a company
should provide (business actual social performance). Over time (per this diagram)
business has been increasingly responsive to the demands of society, but the
expectations of society (due to increasing affluence, education, entitlement
mentality, rights, and media: discussed in the text) have been increasing at an even
greater rate.
In my opinion, I think Wal-Mart is doing great things, but they should be
doing more. They should seek to minimize the damage they do to the local business
areas and be better promoters (use the media) to let others know the good things
they are doing (Buy America, Environmental Awareness) as well as showcasing the
positive employee opportunities. By neglecting to be more proactive in these areas
Wal-Mart is jeopardizing the success they have built over Sam Walton’s lifetime.