Wal-Mart Stores Inc. in 2008: Management's Initiatives to Transform the Company and Curtail Wal-Mart Bashing - Case Study Example

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This essay analyzes Wal-Mart. The paper comprises and thus will discuss challenges the company has faced and strategic actions were taken. This paper also dwells upon the success story of Wal-Mart, which has been traced to its strategy of providing every day low prices to its customers. …
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Wal-Mart Stores Inc. in 2008: Managements Initiatives to Transform the Company and Curtail Wal-Mart Bashing
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Download file to see previous pages The company is presently listed on the bourses of the New York Stock Exchange where its stocks are actively traded. The success story of Wal-Mart has been traced to its strategy of providing everyday low prices to its customers. The company has been able to sustain this strategy on the virtue of its efficient supply chain management that has been powered by an effective use of ERP. The company has also expanded international over the years and has operations spread out of numerous diverse regions of the world and has successfully replicated its strategy of everyday low prices in every location across the globe. The company has been constantly rated as one of the most formidable brands of the world with the organization regularly featuring in the list of the top global brands in the Fortune’s list of most formidable brands (Wal-Mart, n.d.).
The success story of the organization has also been associated with numerous challenges. These challenges have emerged as some of the biggest threats to the organization over the years. The company’s challenges included facing lawsuits and other media bashing over issues of gender bias at the workplace apart from other labour management issues such as non payment of wages to the workers etc. In addition to this the company also faced issues with regards to other aspects that included its controversial sales of guns that emerged when the company violated the ten day waiting norm for sale of guns. In addition to this the company also faced criticisms and lawsuits with regards to the sale of toy gun bullets. In this case the company violated the federal norms by selling toy gun bullets that essentially resembled real bullets that was largely forbidden by the laws in New York. The company faced lawsuits in this regard and faced penalties amounting to 1000 US dollars for each gun sold that numbered almost 42000 in 1997. Wal-Mart also faced legal proceedings and media criticisms following the employment of illegal immigrants as cleaners in its stores. The company was accused of employing illegal immigrants as cleaning staff even when the top managers of the stores were fully aware of the fact that illegal immigrants were being employed by the organization. The company faced extensive criticisms from every quarter of the society. The company was also put under the scanner by the federal authorities for not complying with the rules of employment and violations of norms of employment of labour. The company amidst all these controversies and criticisms found itself again in the midst of a severe crisis situation when it was alleged that Wal-Mart did not pay adequate wages to its workers and that its compensation policy for the workers was not in tune with the offerings of similar super market chains in the nation. The United Food and Commercial Workers started exerting pressures on the organization to force it to adopt a compensation policy that would seek to match the compensation offering of other competitors of the category. This led to strikes at some of its stores hat hampered operations and led to losses for the organization (Thompson, Strickland, Gamble & Jain, 2006, p.67). The company faced considerable criticisms in the media following these incidents. These incidents also dented the image and positioning of the organization among the members of ...Download file to see next pagesRead More
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