The Primary Issues of Wal-Mart - Assignment Example

Wall-Mart Case Question The primary issues of Wal-Mart includes inadequate health care benefits, low wages, damaging the cultural background of small town, diving small merchants, violation of rights of workers and destroying the environment. This rapid upsurge of negative news leads to the filling of numerous numbers of lawsuits against the Wal-Mart company. The series of lawsuits are based in violation of discrimination, labor laws, poor working conditions and desecration of environmental laws in overseas factories. According to the CEO Scott, over the period of time the prime purpose of the company is to take care of associates and customers. Nevertheless, this led to deterioration of reputation of the company. Furthermore, it is concluded by Wal-Mart that the sole focus on associates and customers is no longer viewed to be as viable option. The implementation of non-market strategy is observed as the viable choice to change the reputation of the company and address the critics. Question 2 There are several interests which are opposed to Wal-Mart such as campaigning which is furthermore backed by unions. The organizing for nonmarket actions has been heavily influenced by campaigning carried by the organization on internet. Furthermore, this is supported by more than 160,000 people. The key interests that are aligned to Wal-Mart Company are the joining of activist group ACORN and other communities such as SEIU and UFCW. The primary focus of the group of communities is to form workers Association for better condition for employees working in Wal-Mart. Some of the nonmarket actions taken by activists are by reducing the number of hours of working. Question 3 There can be drastic alteration on nonmarket environment after the resolution of current issues. The own actions of firm and external forces are viewed to be as primary sources for commencement of nonmarket issues. The Wal-Mart association named ACORN is viewed to be as pivotal institutional arenas which can help to lessen the issues. The role of government institutions is regarded as vital and sense of hope for other critics and unions of Wal-Mart. The government is pivotal for controlling of opportunities and non-market strategies. Question 4 There are four condition that are regarded are vital for successful nonmarket strategy. The participation of field units, support of top management, effective decision-making process and determination are some primary conditions. The strategy implemented by Wal-Mart is only based on growth and low prices. There are other vital elements that are required to be focused to maintain sustainability in future. The environment, employee wages, health care benefits are some of the series of events that Wal-Mart needs to address rather than concentrating on growth and low prices. The resolution of the issues faced from unions will not make greater impact on overall market strategy of the Wal-Mart. The company needs to focus effectively on nonmarket strategy rather than only focusing on profits. The efforts are required to be made to lessen attacks made by activist organization for an attempt to attack on reputation of the company. Question 5 There has been repeated number of attempts by Unions to unify workers working at Wal-Mart stores. Nevertheless, the members of union failed to exchange any deal or contract with Wal-Mart. It is believed that company like Wal-Mart has to negotiate deal with the union rather than opposing the unionization. This will benefit Wal-Mart to do right things such as maintaining the average acceptable salary for workers. Question 6 Some of the critics revealed that it is beneficial for Wal-Mart to agree independent inspection. However, Wal-Mart used to opt for own inspection rather than free inspection. The lawsuit has been filed by the International Labor Rights on conditions of overseas factories of suppliers in five countries. It is vital for Wal-Mart to accept independent inspection as it would help to nullify problems and working conditions. In the year 2004, it is being revealed more than 1,200 factories are suspended by International Labor Rights for violating of polices. Out of the 1,200 factories, 109 were forever barred. It is crucial for application of nonmarket strategy function by involving and supporting top management and including relevant staff sections and field components. Question 7 The expected health care costs provide vivid explanation about type of employees required to fill the void of responsibility. Health care benefits are viewed to be as beneficial for most of the employees working in the organization. In the year 2005, the benefits costs of Wal-Mart have been increased to 4.2 billion dollars. It is also supposed that the associates working in the company are aging is much higher rate than that of population. The vice president for benefits named Susan Chambers stated that it is vital for the company to hire healthier employees. Moreover, this step can help to reduce costs. The health care costs reveal that it is critical to include some physical activity in all of the jobs of the company. This can help to reduce unhealthy and discouraged job applicants and associates. Question 8 The critics claimed that Wal-Mart is criticized for its parking lots and stores which heavily contributed towards the urban extension and lessen the green spaces. Furthermore, the Wal-Mart is also critiqued for problem of solid waste disposal and packaging disposal issue. It is also believed that substantial amount of greenhouse gases is being generated by the company which is predominantly created from the enormous truck fleet. It is vital for the company to carry out environmental initiatives which is critical for sustainability. The great essential ingredient for successful and responsible business is by environmental sustainability. Wal-Mart is regarded as one of the largest retailer of the world. As being market leader, it is pivotal for the company to safeguard healthier world for generations and save customers money. The environmental pressures can be nullified by understanding the types of corporate social responsibility. Question 9 The Wal-Mart bill was passed by the Maryland general Assembly. The bill was passed to force Wal-Mart Companyto increase their spending on health care insurance for employees. According to law, the health care is defined as expenditures for employee health care which includes payments for vision care, prescription drugs, medical care and federal tax return of corporations. Wal-Mart should increase their treatment on public health insurance. The health crisis of the country is on rise. There this is the bill passed by the government to nullify the issue. The distribution center of Wal-Mart can be shifted to another state. But this is not the best possible way to nullify the dills. Wal-Mart should implemented new efforts and crisis management program. Avoidance, preparedness, root cause analysis, response and resolution are constituents of crisis management program. It is also revealed that distribution center is going to Maryland Eastern shore. In case of similar bill, strategy should be developed for any future crisis. Question 10 Wal-Mart should not progress their chance for agreement of bank application. This is primarily due to the fact that it should violate the long-standing policy which is to keep commercial and banking benefits discrete. This crucial tradition has been pivotal for maintaining diversified and positive financial and economic system. Furthermore, the separation of interests can prevent unjustifiable concentration and attention of capitals. Additionally, this should ensure neutral distribution of credit which is beneficial for creating sound financial system and economically stable development. It should not pledge for accepting their industrial bank application. Question 11 Wal-Mart is a major private segment for employer in US. The company should work on major constituents includes customers and associates rather than being a model. It is critical for Wal-Mart to apply root cause analysis to predict and identify the root cause for crisis. This can benefit to avoid any future crises. The company is perfect, but now it should focus customers and associates to avoid them turning in to Unions. it is suggested that working on major constituents help to change inconsistent policies, heavy-handed management, favoritism, neglect of safety, late evaluations, wage programs and health care benefits. Reference Read More