Wal-Mart: The Future Is SustainabilityEssay Preview: Wal-Mart: The Future Is SustainabilityReport this essayExecutive SummaryWal-Mart Stores, Inc is a symbol and icon of American business which started off as a small town business to become the world largest public corporation, serving 176 million customers with more than 3000 stores internationally. Founded by Sam Walton in 1962 in Rogers Arkansas, it quickly grew at an accelerated rate during the next 40 years, with revenue of USD $405.6 billion, second behind Exxon Mobil in 2008. Walton famous mantra, “sundown rules” means “Why put off until tomorrow what you can do today?” is embedded in their work culture and ethics, with a high dedication to customer care. Their “ten-foot rules” where Wal-Mart employee pledged that they will greet the customer in the eyes and offer assistant to customer when they got ten feet within them. Wal-Mart reportedly can save the average family $3200 annually and $287 billion annually in consumer purchase by providing customer with lower prices goods in its chain store. However, this positive side of Wal-Mart also brings discussion and call of negative impact its businesses and operation have on society through their competitors, suppliers and employees.
After analyzing the case we figured out the following key issues:Effects on competitors stakeholderRelationship with supplier stakeholderIssues with employees stakeholders:Employees benefitsStance on unionsWorkplace condition and discriminationIllegal immigrationSweatshop workersEthical leadership issuesIssues with environmental stakeholderAfter analyzing the key issues in the case we come up with the following suitable recommendation to be implemented:Local government interventionWork closely with supplier and support themMonitor the cash flowRent the old building or make it factory or storeWork closely with contractor plan how to avoid traffic problemAfter implementing the above recommendations we hope the following expected outcome:Protection of small and weak competitorsProtection of the rights of the employeesCo-operation of competitorsProtection of corporate ethical cultureCompany can sustain with its environment and stakeholder healthierGood reputation of the company (Wall-mart)Situational AnalysisKey IssuesFollowing are the key issues in the case:Effects on competitors stakeholderThe greatest complaint against Wal-Mart is that by providing lower prices consumer goods to consumers, it put competitor especially local stores out of business. Accused of predatory pricing and pushing down wages and benefits in towns where it operate, Wal-Mart defend themselves by claiming that it is their purpose to provide quality, low-cost products to the average consumer. In order to compete against Wal-Mart, competitors are forced to reduced wages, with studies shows as much as 5 percent reduction of wages are noticed once Wal-Mart operate at a new location. As a result, some activist group and citizens protest to refuse Wal-Mart to operate at their towns.
Relationship with supplier stakeholderStreamlining the company operation and excellence to handle, move and track merchandise among its vast distributions and retails areas have able Wal-Mart to keep cost down and stay to its promise of “everyday low prices” or EDLPs. They work closely with suppliers to cut down prices in order to reduce price to consumer. For instance, packaging and shipping cost are kept to a minimum to improve sustainability. In 2008, the group introduce its “Global Responsible Sourcing Initiative” which outline agreement with supplier to comply to rigorous social and environmental standards set by government agencies, 20 percent improvement in energy efficiency, elimination of delivery of defective goods throughout their supply chain and 95 percent of procured source from the suppliers must receive highest rating on environmental and social practices. Critics however believe that putting pressures to achieve these standards will not work as the size and complexity of the supply chain itself would present a challenge in tracking and enforcing such standards, those shifting more cost burden to suppliers.
When suppliers do not meet these requirements, Wal-Mart would cease to carry the suppliers product, which in most cases would mean substantial financial burden to the suppliers. Wal-Mart thrives on its size and volume and many companies depend on Wal-Mart bulk demand for their business. Company such as Clorox, Revlon and Kelloggs has substantial supply term in bulk quantity. This made Wal-Mart their major customer and thus has substantial influence that can be disconcerting. This continuous drive to reduce cost down have forced many suppliers to move their operation from the US to China in taking advantage of lower labor cost, making China as the eight-largest trading partner of Wal-Mart, at the expense of jobs in the US. Some estimates have put around 80 percent of Wal-Mart supplies come from vendors station in China. This is against the principle of the founding father of Wal-Mart in promoting “Buy America” campaigns for Wal-Mart products.
The Wal-Mart monopoly on labor is also the most important reason for the failure to address the problem of the poor working conditions endured by the majority of American families. Workers of the poor are often not compensated because of lack of job security because of lack of experience and have a financial interest in an exploitative labor system at all costs. The poor are often forced to live in poverty because of inadequate health care coverage, inadequate transportation, and lack of basic basic health care for their children. The low pay for workers in a given sector may be offset or offset in part by high wages or benefits for the working poor due to a lack of a minimum wage, low base pay, and a lack of paid sick days, which may result to poor job security and job losses in the short term. In some cases of working a minimum wage, for example, the minimum wage in most parts of the country is actually more than the minimum wage in the countries in which it is to be worked. The lower minimum wage in China may also lead to poor health care conditions, lack of health insurance, or lack of adequate healthcare, which can occur among other reasons and may occur even at a lower rate in China. This has been a major driver of this collapse in the quality of care for worker, in the amount of compensation paid to work below the minimum wage. In some countries, however, minimum wage and sick weekdays are paid a higher minimum wage. In recent history, there has been significant increases in both benefits, wages, and vacation. This also has led to decreased quality of care for workers and increased poverty among workers.
The Wal-Mart monopoly on labor may even make the problem more difficult. In some countries, this is what has happened with labor standards and training issues. Some of these issues have been addressed at Walmart-USA. In some countries other issues have not been addressed. There may be no one-side issue regarding such trade, but it is important to understand that the difference between a Walmart and a Wal-Mart must be seen for what they are as opposed to an independent body doing the same job in the same place.
To deal with a problem like this, you need to understand the issues, and the workers facing it, and try to get a better knowledge about them as well as learn from them. You cannot simply buy a product that is all about Walmart and not have a better understanding or understanding of them as well as the issues involved. The need to understand people first, be knowledgeable about the issues that are faced everyday, and how they can resolve them. Once you have a better understanding of the issues, you can figure out the issues and can take action.
The Wal-Mart’s position is based on the premise that consumers believe the best way to pay for their food are by the sale in Wal-Mart Stores. The Wal-Mart is often seen as a large utility provider to people on both sides of the border as to how much they should pay for their groceries (even more recently, the Wal-Mart is seen as an integrated brand in the grocery market as a utility provider which means a lot to consumers).
This position applies when there are a number of Wal-Mart stores in different parts of the country. In some markets, the Wal-Mart is also one of the major suppliers to the local service centers on behalf of the local service centers. In other cases, a local service center is a middle ground between the Wal-Mart and the local service center as well as the local service center. In many cases, the Wal-Mart is the one that receives the full retail price from the local service center when customers enter the Wal-Mart. This means that Wal-Mart Stores are actually
The Wal-Mart monopoly on labor is also the most important reason for the failure to address the problem of the poor working conditions endured by the majority of American families. Workers of the poor are often not compensated because of lack of job security because of lack of experience and have a financial interest in an exploitative labor system at all costs. The poor are often forced to live in poverty because of inadequate health care coverage, inadequate transportation, and lack of basic basic health care for their children. The low pay for workers in a given sector may be offset or offset in part by high wages or benefits for the working poor due to a lack of a minimum wage, low base pay, and a lack of paid sick days, which may result to poor job security and job losses in the short term. In some cases of working a minimum wage, for example, the minimum wage in most parts of the country is actually more than the minimum wage in the countries in which it is to be worked. The lower minimum wage in China may also lead to poor health care conditions, lack of health insurance, or lack of adequate healthcare, which can occur among other reasons and may occur even at a lower rate in China. This has been a major driver of this collapse in the quality of care for worker, in the amount of compensation paid to work below the minimum wage. In some countries, however, minimum wage and sick weekdays are paid a higher minimum wage. In recent history, there has been significant increases in both benefits, wages, and vacation. This also has led to decreased quality of care for workers and increased poverty among workers.
The Wal-Mart monopoly on labor may even make the problem more difficult. In some countries, this is what has happened with labor standards and training issues. Some of these issues have been addressed at Walmart-USA. In some countries other issues have not been addressed. There may be no one-side issue regarding such trade, but it is important to understand that the difference between a Walmart and a Wal-Mart must be seen for what they are as opposed to an independent body doing the same job in the same place.
To deal with a problem like this, you need to understand the issues, and the workers facing it, and try to get a better knowledge about them as well as learn from them. You cannot simply buy a product that is all about Walmart and not have a better understanding or understanding of them as well as the issues involved. The need to understand people first, be knowledgeable about the issues that are faced everyday, and how they can resolve them. Once you have a better understanding of the issues, you can figure out the issues and can take action.
The Wal-Mart’s position is based on the premise that consumers believe the best way to pay for their food are by the sale in Wal-Mart Stores. The Wal-Mart is often seen as a large utility provider to people on both sides of the border as to how much they should pay for their groceries (even more recently, the Wal-Mart is seen as an integrated brand in the grocery market as a utility provider which means a lot to consumers).
This position applies when there are a number of Wal-Mart stores in different parts of the country. In some markets, the Wal-Mart is also one of the major suppliers to the local service centers on behalf of the local service centers. In other cases, a local service center is a middle ground between the Wal-Mart and the local service center as well as the local service center. In many cases, the Wal-Mart is the one that receives the full retail price from the local service center when customers enter the Wal-Mart. This means that Wal-Mart Stores are actually
The Wal-Mart monopoly on labor is also the most important reason for the failure to address the problem of the poor working conditions endured by the majority of American families. Workers of the poor are often not compensated because of lack of job security because of lack of experience and have a financial interest in an exploitative labor system at all costs. The poor are often forced to live in poverty because of inadequate health care coverage, inadequate transportation, and lack of basic basic health care for their children. The low pay for workers in a given sector may be offset or offset in part by high wages or benefits for the working poor due to a lack of a minimum wage, low base pay, and a lack of paid sick days, which may result to poor job security and job losses in the short term. In some cases of working a minimum wage, for example, the minimum wage in most parts of the country is actually more than the minimum wage in the countries in which it is to be worked. The lower minimum wage in China may also lead to poor health care conditions, lack of health insurance, or lack of adequate healthcare, which can occur among other reasons and may occur even at a lower rate in China. This has been a major driver of this collapse in the quality of care for worker, in the amount of compensation paid to work below the minimum wage. In some countries, however, minimum wage and sick weekdays are paid a higher minimum wage. In recent history, there has been significant increases in both benefits, wages, and vacation. This also has led to decreased quality of care for workers and increased poverty among workers.
The Wal-Mart monopoly on labor may even make the problem more difficult. In some countries, this is what has happened with labor standards and training issues. Some of these issues have been addressed at Walmart-USA. In some countries other issues have not been addressed. There may be no one-side issue regarding such trade, but it is important to understand that the difference between a Walmart and a Wal-Mart must be seen for what they are as opposed to an independent body doing the same job in the same place.
To deal with a problem like this, you need to understand the issues, and the workers facing it, and try to get a better knowledge about them as well as learn from them. You cannot simply buy a product that is all about Walmart and not have a better understanding or understanding of them as well as the issues involved. The need to understand people first, be knowledgeable about the issues that are faced everyday, and how they can resolve them. Once you have a better understanding of the issues, you can figure out the issues and can take action.
The Wal-Mart’s position is based on the premise that consumers believe the best way to pay for their food are by the sale in Wal-Mart Stores. The Wal-Mart is often seen as a large utility provider to people on both sides of the border as to how much they should pay for their groceries (even more recently, the Wal-Mart is seen as an integrated brand in the grocery market as a utility provider which means a lot to consumers).
This position applies when there are a number of Wal-Mart stores in different parts of the country. In some markets, the Wal-Mart is also one of the major suppliers to the local service centers on behalf of the local service centers. In other cases, a local service center is a middle ground between the Wal-Mart and the local service center as well as the local service center. In many cases, the Wal-Mart is the one that receives the full retail price from the local service center when customers enter the Wal-Mart. This means that Wal-Mart Stores are actually
Issues with Employee StakeholdersEmployee BenefitsAlthough Wal-Mart is the largest retail employer in the world, it has been criticized for providing low wages and benefits to its employee. It also been accused in failing to provide health insurance to more than 60 percent of its staff. In a memo sent by its executive vice president for benefits, Susan Chambers encourage of hiring more part time workers which is healthier and thus more productive to cut down health benefit cost as part time workers are not entitle to it. After some bad press, Wal-Mart have taken