.1) External Environment Affecting the MCS at Wal-Mart External environmental changes greatly determine the nature of business today. In response, the MCS design in an organisation is expected to consider various external factors, or business risks of an external nature, in order to be more adaptive to the current business environment. These external factors may lead to consequences on the company’s capability to achieve its targets (Bosa Italinana S.p.A. 2003). For this point, the MCS practices within Wal-Mart are intimately aligned with its external environment, in terms of political, economic, socio-cultural and technological contexts. 2.1.1) Rise in legal issues In the legal world, the 21st century is regarded as the era of litigation over the super retailer Wal-Mart (Brunn 2007). In the America public record, searching for Wal-Mart as a party in a lawsuit produced 3,034 reported cases, and a great amount of these lawsuits are related to its relationship with employees. The range of employment-based cases includes race and gender discrimination, unjust termination, compensation and minimum wages. Although as the largest corporate retailer in America, Wal-Mart’s size, strength and long-term interest provide it more opportunities to influence the legal system and nudge the law in a direction favourable to it (Brunn 2007), these legal issues put Wal-Mart in a trouble situation and stimulate it to change its MCS from a paternalistic attitude and company culture approach
This article is written using an enlightened self-interest approach. The author describes Wal-Mart behaving in a way that increases its own benefits, with the outcome of their actions being the most important consideration. An example of this is the author’s notion that Wal-Mart’s low prices are due to “the exploitation of its workers” (McLachlan, 2009, pg. 289), “systematic use of ‘maquiladoras’ in conditions of extreme exploitation” (McLachlan, 2009, pg. 289), and Wal-Mart’s threat to move production to China to obtain lower prices. In this article, the author implies that Wal-Mart’s actions demonstrate that they are not concerned with finding the most ethical behaviour; they are merely interested in the action(s) that most closely achieve their goal to remain the “biggest chain of direct sales to the consumer in North America”. (McLachlan, 2009, pg. 289)
“Companies like Wal-Mart are not run by saints” Mallaby asserts, putting forward one graceful negative before another, “They can treat workers and competitors roughly. They may even be poor stewards of the environment.” However, he continues, the company is large, global and it is only expected for critics to emerge to question its
Walmart employees, customers, and suppliers have seen their fair share of Walmart’s bad side. While Walmart’s founder, Sam Walton, claims to make their employees feel like they “are working for them” and that they care Walmart has done such a horrific job with the way they treat their employees that one day, the workers decided to walk out and go on strike. They walked out on the grounds that they “were emblazoned with the workers’ grievances: poverty wages, miserly benefits, dignity denied” (Eidelson 1). They felt like they weren’t only taking a stand against Walmart, but also taking a stand for the younger generations to come. Walmart’s employees are getting treated unfairly and are underpaid. The CEO’s, Michael Duke, annual salary gives him more money in an hour than an employee who works full-time would make in an entire year. In Bangladesh, over 100 workers “died in a factory without outdoor fire escapes, NGOs blame Walmart for pushing deadly shortcuts” (Eidelson 1). Not only are the employees being poorly paid by Walmart, but they are paying their life to Walmart just to make enough money to barely get by. Walmart even made a pregnant employee work around chemicals that eventually made her ill. After a trip to the doctor, Walmart allowed her to be put on a lighter duty, so they made her a door greeter; however, they
The largest corporation in America with $378,799 million in revenues and employing 2,055,000 employees, Wal-Mart has become one of the greatest success stories in American history, but also one of the most controversial stories since Standard Oil (Fortune). But with all big business comes critics. Today’s critics suggest Wal-Mart unfairly uses it power of size, which is goliath, to exploit employees and impoverish nations, ruin competition, and place undue pressure on the government. However, one item most critics fail to mention is that Wal-Mart creates consumer welfare. Throughout this paper, I will analyze each criticism of Wal-Mart and sufficiently cite evidence proving the greater good that is realized with
Wal-Mart Stores, Inc. Walmart is the biggest importer of foreign products in the United States. For this, Walmart created a code of conduct for its foreign suppliers as “Standards for Suppliers”. To meet this code of conduct foreign supplier need to follow all the local law, rules and regulations of country and the working condition of industry like pay, hiring forced labor, child labor and discrimination. This code of conduct states Walmart may make on-site inspection to the foreign products that is going to be imported in Walmart USA by which it can cancel or reject the low standard product while site inspection. These are included in Walmart’s supply contract with its suppliers in foreign countries. The foreign workers who are importing goods to Walmart from China, Bangladesh, Indonesia, Swaziland and Nicaragua sued Walmart to the US district court alleging that they were third party beneficiaries to the Walmart’s contract to its foreign suppliers that due to the Walmart’s breach of standard they were due damages from Walmart. Their employees violated the standards because of Walmart failed to investigate on working condition of foreign suppliers. Even knowing the standards were being violated Walmart failed to implement the standards mentioned there in contract. The U.S. court held that the litigants were not intended third party beneficiaries to Walmart’s contract to its foreign suppliers and terminated the
Robert Greenwald uses a strong appeal to ethos, a slippery road argument, and a text track to bring attention to his audience about Wal-Mart. He establishes his argument by first presenting a claim made by Wal-Mart CEO Lee Scott and then showing the flip side to that claim with many examples from testimony’s from actual Wal-Mart employee’s. Through these arguments the audience can determine that Wal-Mart is simply a bad company and that consumers should stop spending their money in a company that does not care for human rights and mistreats their employee’s.
A Trial judge originally allowed the case against Wal-Mart to proceed as a class action lawsuit so that the courts would not be flooded with these gender discrimination lawsuits against the company, and in April the U.S. Court of Appeals for the 9th Circuit affirmed that decision. The Supreme court has taken the case and will soon hear oral arguments from both parties on the merit of a class action lawsuit in this case and decide if the group can sue as one class. Wal-Mart’s attorneys contest that “There is simply no possible way that tens of thousands of managers making decisions all over the country could have affected millions of employees in the same way, and that is what would be required for a class action lawsuit.” One of the dissenting Judges of the 9th Circuit Court of Appeals said that the group should not be considered a “class” because the women “held a
In this case, Betty Dukes, a female Wal-Mart employee, with five other women, filed a class-action against the violation of civil rights by the Wal-Mart company. The claim was that the
This case known as "Wal-Mart Stores, Inc. v. Dukes et al." in which current or former employees were seeking injunctive and declaratory relief, punitive damages and backpay for alleged gender discrimination based on disproportionate favoritism toward men over pay and promotions by local managers. Court have decided that claimants were not able to prove that they were discriminated as a class and decided that Walmart had a right to argue each case in court based on claim. (WAL-MART STORES, INC. v. DUKES ET AL.,
Legal issues against Walmart have been brought up in many different states. Many states has a minimum-wage requirement that has to be followed by all the businesses in the state. One example is the case Walmart Stores vs S.C. Savaglio, where a group of Walmart employees sued Walmart because Walmart allegedly had violated California’s meal period law (Cascio, 2010). Walmart lose $172 million dollars in the general and punitive damages. Not even a year after that, Walmart loses another lawsuit in the state of Pennsylvania for forcing employees to work off the clock (Cascio, 2010).
Wal-Mart’s management behaves immorally towards its employees. They do not value their employees’ needs, rights, or the labor laws that the US put into place to protect them. Wal-Mart’s low price on everyday household products is what sets them apart from other discount retailers. Their employees help make it possible for them to dominate their competitors in the
John Dicker’s “The United States of Wal-Mart” is a nuanced, fresh work that frames the shortcoming of Wal-Mart, the big-box giant and vastest retailer not just in America, but the world. The essay’s title brings to mind a White House with a flag bearing the trademark minimalist, yellow smiley face waving on the front lawn. That being said, it draws the reader in, provoking the question of: why? In terms of the curated culture of consumerism, the excerpt places little blame on the individual for the shortcoming and more on the corporation. Dicker is decidedly anti-Walmart, but fails to introduce a clear-cut problem to be solved. Nevertheless, it characterizes the scope of a corporation which has no conscience in terms of employment practices,
District Court for the Northern District of California granted class certification, potentially making Wal-Mart liable for any acts of discrimination of 1.6 million of their current and former female employees. As this case continued to move forward, the plaintiffs alleged that these practices were consistent between every store of Wal-Mart Stores Inc. and in return, they sought “class-wide injunctive and declaratory relief, lost wages, and punitive damages.” The defendant fought this class certification, stating that each member of the class should file individual litigation. Wal-Mart Stores Inc. claimed that, “the size of the class made it impossible to manage and increased the costs
“Up Against Wal-Mart” by Karen Olsson, a senior editor at Texas Monthly and who’s article appeared in Mother Jones, introduces her article through the perspective of a Wal-Mart worker. She focuses on the negatives of Wal-Mart by telling the real life struggles of different Wal-Mart employees. “Progressive Wal-Mart. Really.” by Sebastian Mallaby, a columnist for the Washington Post, focuses his article on what Wal-Mart critics say and attempts to defend Wal-Mart by comparing Wal-Mart to other retailers. Even though Karen Olsson and Sebastian Mallaby both examine the negative effects of Wal-Mart, Olsson berates Wal-Mart’s unfair treatment towards employees and the unlivable wages that the world’s largest retailer provides while Mallaby
Abstract; this report examines the ways in which Wal-mart responds to internal and external factors such as globalization, new technology, innovation, diversity, and ethics. Wal-Mart is a successful industry giant, so it stands to reason that they are proficient at responding to internal and internal factors and thriving . In this essay we explore Wal-Mart’s programs and initiatives and access if we could use their examples to learn from and grow as managers and business owners.