Wal Mart Case Study "The Challenge of Managing Relationships with Stakeholders"

The values and attitudes in Walmart’s business situation deals with a lot of the overall ethics. This paper will discuss some situations that comes in walmart .ethics. This paper will include clear definitions of organizational values and a description of the organizational values of Wal-Mart. This research is conducted to understand the success of Walmart’s employment rate. The values and attitudes will be related to some examples of other companies and how Walmart was successful. Some arguments that will be addressed in this research paper is basic and common.

Wal-Mart is the largest retailer in the world; however they are not exempt to acting ethically. In December 2008, Wal-Mart settled 63 laws suits that spans over several years across 42 states accuses Wal-Mart of cheating workers on pay. The settlement cost Wal-Mart $352 million. Based on comments

by Neal Peirce The Wal-Mart Watch campaign, a labor-environmental group highly critical of America's mega-mega retailer, recently launched more than 1,000 events nationwide for its "Higher Expectations Week." "Wal-Mart: The High Cost of Low Price," a scathing documentary by independent filmmaker Robert Greenwald with a focus on Wal-Mart's business tactics and treatment of workers, began to play to audiences across the country. Wal-Mart is fighting its critics with waves of television ads celebrating happy workers and the company's gifts to local charities. But the action goes much further. Across state capitals, legislators are into spirited debates over whether Wal-Mart should be forced to pay adequate health benefits

People know and choose Wal-Mart because of its daily low prices. Wal-Mart sells its bargains every opportunity it gets, and convinces customers forgetting about everything except the low prices. Undoubtedly, Wal-Mart is one of the most successful corporations of all time. However, the tremendous success of Wal-Mart certainly comes with a correspondingly massive amount of responsibility. The strategy of low prices usually comes at a deadly unethical cost. Although some of its business practices such as “Low prices, always”, and helping in saving money are ethical, most of its business practices are unethical.

WalMart is known not the biggest retailer on the planet additionally known for low advantages and wages. This is a moral issue that was tended to. It was said that WalMart needed to procure healthier and low maintenance specialists. This was terrible press for WalMart and they needed to do something to enhance their association with worker stakeholder 's.

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

They also decreased the prices of healthy foods to encourage customer to purchase them. Wal-Mart also developed a seal to place on healthier foods with nutrition information rating the levels of sodium, fat, and sugar content (“Paymar Communications”, 2010). The leading factor in Wal-Mart taking this initiative was to reach customers with an interest in a healthy lifestyle. With obesity on the rise across the nation people are becoming more conscious about what they eat and offering healthier foods, organic products, and enhanced labels on the foods will give the customer more options to choose from within the store. By reducing the prices of these healthy products Wal-Mart can increase their customer base, specifically those with an interest in a pursuing a healthy life style. Additionally this will ensure Wal-Mart is leading their competition and could be the benchmark for such companies as Target, K-Mart, Sears, and Costco. The factors influencing the organizations strategies are contingent on the need, not only of the customers, but also Wal-Mart’s increase in sales and profitability. Wal-Mart wants to ensure they not only have healthy customers but also that the organization will garner major gains in sales from these changes. The “Paymar Communications” (2010) website also states that through forging these initiatives, Wal-Mart has figured out a formula to be a good corporate citizen, give consumers superior bargains and still make tons of money; $14.3 billion in

In business, three major strategies comprising of cost leadership, differentiation, and focus strategies exist. The focus strategy emphasizes on providing services and products to a specified buyer group or market segment within a given geographic market. The differentiation approach is often defined as provision of services or products that are perceived to be unique in the market place. Wal-Mart emphasizes on the long-term strategy of cost leadership. Through this strategy, the company ensures that it offers customers with quality products at relatively lower prices than other providers in the industry. Through overall cost leadership strategy, Wal-Mart has been offering better quality products at a lower price than any competitor can offer. For the organization to achieve this goal, it has developed long-term supply chain management, which ensures that products are made available to the market at the required time (Enz, 2010).

Through continual research and readings Team Wal-Mart has gained a better understanding and perspective of America’s fascination with Wal-Mart. Despite the constant barrage of negative press relating to its handling of labor issues, employee benefits, vendor practices and customer service, the retailer is able to thrive. Wal-Martfacts.com brings an enlightening perspective on Wal-Mart views and how they and the public perceive its pitfalls. First, we are going to examine the history of the company. Where did Sam Walton get the idea to come up with a retail store like Wal-Mart? Did he actually expect to be as large of the retailer as it is now? Our team wanted to better understand where Wal-Mart is with its corporate level strategy, business level strategy, strategic formulation and it own views on its implementation. W We will further explore some alternative solutions and make recommendations as to where the public views the company in regards to the topics of discussion, and where our team’s views, and its perceptions of where they are today in how well it is

“If we work together, we’ll lower the cost of living for everyone… we’ll give the world an opportunity to see what it’s like to save and have a better life.” Those were the words spoken by Wal-Mart’s late founder Sam Walton. He believed that he could build a great business by offering low prices and great service. His goal was to target was the small rural areas in America and offer great deals on products, but is competitors thought his ideas would never work. They were wrong Wal-Mart stores grew rapidly all across the country. Mr. Walton credited a lot of Wal-Mart’s success to the associates because they provided customers with a great shopping experience that kept them coming back. Since Wal-Mart became so successful Sam Walton created other stores

4. Relations with Suppliers- Wal-Mart has in place a system that helps to achieve their goal of lower prices. This Information Technology system includes computers, networking, and internet that cuts inventories and waste and helps with speedy delivery. This system also helps Wal-Mart to keep in constant contact with suppliers by transferring the data that suppliers need so they know what Wal-Mart needs. Wal-Mart also works with suppliers to improve their production and squeezes the best prices out of its supplier. The video referred to Wal-Mart as the customer’s agent. All of this focus Wal-Mart puts on suppliers reduces costs and lowers prices. Wal-Mart’s technological/logistical leadership remains unmatched by competitors (Web, 2005).

When it comes to the success of business, the way a company treats its customers is vital to its success. For the people who believe shopping at Wal-Mart is ethically sound they feel the retailer takes care of their customers better than anyone and always has their best interest in mind. In today’s busy world, people value their time and money more than anything else, Wal-Mart understands this and provides a place that allows customers to do one-stop shopping at the lowest prices, because of this, shoppers find shopping at the store to be ethically sound. However, this is not always the case. In the video, a former Store Manager talks about the unethical tactics that the store uses to take advantage of uninformed buyers through Opening Point

Group Discussion: “are there any ethical issues that arise from Wal-Mart promoting “always low prices”, and creating the perception in consumers’ minds that their prices are actually lowest, given their ‘opening price point’ strategy?

Wal-Mart now has to rebuild their images, procedures on how they conduct business nationwide and how the use ethical business practices. The New York time article reported, “Wal-Mart announces new ethical and environmental principles complete by 2012”. (Robinson, 2008)

1. What is the ethical dilemma facing Wal-Mart in this case ? Do Wal-Mart’s associates also face an ethical dilemma? If so, what is it ?