Wal-Mart Case Study 2012

 

*.* ong-+er! S%eci(c Prole!sor t"is case study, t"e long ter! %role!s t"at can e attac"ed $it" Wal-Mart are in ter!s of t"e criticis!s of t"e %eo%le internal and external to t"e co!%any. ecause of t"e strategy of Wal-Mart !any usiness are a/ected !ost es%ecially t"e s!all usiness since Wal-Mart are enoying "ig" co!%etiti#e entrants. +"e co!%anys %rice ad#antage extends to groceries, %articularly in t"e large foot%rint for!at. 2un)ley, 'elling, and Sa$ic)i 3*0045 su!!ari6ed t"e e#idence on scale econo!ies in grocery sales, arguing t"at larger stores enoy cost econo!ies, "a#e !ore roo! for "ig"-!argin ite!s, and !ay e !ore attracti#e to so!e consu!ers.Anot"er long-ter! %role! t"at can e attriuted to Wal-Mart, is in line $it" t"eir !anage!ent a%%roac". It is s"o$n t"at Wal-Mart7s !anagers are do!inated y !en8 t"is situation on t"e ot"er "and, leads to %role!s li)e iased %ro!otion decisions 3+"o!%son, Stric)land 9 a!le, *00;5. +"is issue clearly s%ea)s of unust e!%loyee treat!ent and $or) discri!ination, %articularly a!ong t"e !e!ers of t"e !anage!ent. W"ile t"e co!%any "as e!%loyed useful %ro!otional%olicies for t"e ene(t of t"e e!%loyees, t"e lac) of fair i!%le!entation !a)es t"ese %olicies ine/ecti#e8 !oreo#er, t"e lac) of a%%ro%riate !anagerial a%%roac" ont"e oser#ance of t"ese %olicies $idens t"e ga% et$een t"e !anage!ent and t"e lo$er le#el e!%loyees of t"e co!%any. Indeed, certain actions s"ould "a#e een done to a#oid t"is !atter fro! "a%%ening.<.0 Analysisased on t"e gi#en case, in s%ite of t"e a$areness of Wal-Mart in t"e conse&uences of t"eir usiness strategy, t"ey are still continuously using t"is a%%roac" to sustain t"eir co!%etiti#e ad#antage. =ne %role! $"ic" is considered is t"at of Wal-Mart7s eing re%licale in t"e sense t"at co!%etitors or ne$ %layers (nd it easy to i!itate Wal-Mart7s aility to attract su%%liers y o/ering "ig"er cost and #alue for t"eir %roducts. +"is eco!es an unintended %role! for Wal-Mart ecause it co!%ro!ises t"e re%utation of t"e co!%any of o/ering &uality %roducts ecause consu!ers al$ays attac"ed t"e co!%any in o/ering lo$er %rices. eing so, Wal-Mart7s s%ecialty of o/ering its custo!ers t"e lo$est %rice in t"e !ar)et still re!ainsa %role! t"at s"ould e gi#en attention.

Unformatted text preview: Wal-Mart: Staying on Top of the Fortune 500 A Case Study on Wal-Mart Stores Inc. This case study was produced for the Corporate Strategy and Public Affairs Lecture, The Graduate School of Political Management, George Washington University. April 2002, Washington DC Contributors to this Report: Patrick Hayden, Seung Lee, Kate McMahon, Mike Pereira The case study is an examination of how Wal-Marts Corporate Strategy affects its Public Affairs and Government Relations Strategy http://mike-pereira.com Executive Summary Wal-Mart Stores Inc. is the largest retail company in the United States and has been ranked number one on the Fortune 500 Index by Fortune Magazine. Wal-Mart has four parts to their corporate strategy. 1. Dominance in the Retail Market 2. Expansion in the U.S. and International Markets 3. Creation of Positive Brand and Company Recognition 4. Branch Out into New Sectors of Retail Wal-Mart s public affairs strategy must work to make implementation of these policy goals happen. Its public affairs strategy enables the company to move into other sectors of the marketplace and expand into foreign countries. The public affairs strategy also involves gaining access to politicians who can help Wal-Mart achieve its goals. Wal- Mart has a very active Political Action Committee that gives almost a quarter million dollars annually. While Wal-Mart s public affairs strategy works well with its corporate strategy. W e feel that there are a few recommendations which could make the company work better. Recently, Wal-Mart has been criticized for their opposition to allowing their employees to be unionized. Wal-Mart needs to clarify their reasons for their opposition to unionization. The public affairs strategy must also address the negative feelings harbored by some groups who feel that Wal-Mart is encroaching into far too many other sectors retail than it should. These concerns must be addressed if Wal-Mart is to enjoy continued success in creating positive name recognition. Wal-Mart will need to implement these recommendations if they are going to remain at the top of the Fortune 500, while simultaneously keeping a good reputation and making their name synonymous with cheap prices and good quality merchandise. Table of Contents Executive Summary ......................................................................................2 Table of Contents..........................................................................................3 I. Background..........................................................................................4 Timeline.........................................................................................................8 II. Wal-Mart Company Strategy.............................................................11 III. Wal-Mart Policy Issues......................................................................19 IV. Stakeholder Analysis ........................................................................23 Stakeholder Analysis ....
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