Wal-Mart Environmental Management Capabilities - Dissertation Example

Multinational retailers like Wal-Mart must transport very large volumes of manufactured items and finished goods to numerous stores and the energy consumption involved in operating stores is substantial. Thus, it is important that Wal-Mart and other large organizations with a very substantial logistic requirement act try to reduce fossil fuel and energy consumption to reduce the carbon footprint. Thankfully, Wal-Mart has taken its responsibilities seriously and made substantial efforts to try to operate a sustainable business that is supportive of the environment.

This dissertation presents an examination of the efforts that Wal-Mart has made to try to decarbonize its logistics and operations. A literature review together with semi-structured interviews with Wal-Mart executives helps to decide about how Wal-Mart confronts the challenge of decarbonizing its logistics and operations.Sam Walton established Wal-Mart in Arkansas in 1962 and over the last four decades, Wal-Mart has grown rapidly to become the largest retailer in the world with sales in excess of $330 billion, 1.

8 million employees and more than 7,000 stores (Greenwald, 2005, Chapter 5). Until 1991, Wal-Mart only had operations in the United States of America. Wal-Mart had established a competitive advantage based on a combination of efficient merchandising, buying power, and human relations policies. This retail group had demonstrated leadership in the implementation of information systems to track product sales and inventory, developed one of the most efficient distribution systems in the world, and was one of the first companies to promote widespread stock ownership among employees.

Wal-Mart’s leadership practices led to high productivity that enabled this company to drive down its operating costs, which it passed on to consumers in the form of every day low prices.