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Wal-Mart - Case Study Example

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Wal-Mart Stores Inc. is an American multinational that runs a chain of discount department stores and warehouse stores. It is a powerful retail brand which is operating in 15 countries worldwide and is catering to millions of customers who shop in their stores around the world (Walmart Corporate, 2011). …
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Download file to see previous pages Wal-Mart is envisioned to help people save their money so that they can live a better life. It has a reputation for convenience and wide range of products all in one store (, 2011). It is however, facing some threats and challenges like any other organization. Since it is number one, it means that it is the target of both local and global competition. Also being a global retailer, it is exposed to political problems in the countries it operates in. Intense price competition is also one of the major threats it is facing which has resulted in price deflation in some ranges (, 2011). Wal-Mart is world’s largest retailer and despite of its edge in IT, control of its empire could leave it weak in some areas due to its huge stretch of control. Since it has a large product diversity ranging from food to clothing to stationary, it may not have the flexibility of some of its more focused challengers. Although the company is global, it still has its presence in relatively few countries across the world (, 2011). 2. What priorities did Wal-Mart CEO Lee Scott set in his Wal-Mart: Twenty-First Century Leadership address (24 Oct 2005)? ...
Lee Scott set this commitment as one of his priorities and promised to abide by it. He also addressed his opportunities one by one, starting with the environment. He highlighted that by being one of the largest companies in the world, environment is their responsibility and environmental problems are their own problems. They can supply natural products such as fish, food and water only if the environment is safe and protected. This can be possible only if there is zero wastage and they are supplied by 100% renewable energy (Lee Scott, 2005). Another goal is the reduction of waste and this is one of their most visible opportunities. This can be achieved if the materials in the packaging are made up of recyclable materials. This can save them a lot of money and in turn help the environment (Lee Scott, 2005). Lee Scott’s another goal is built around the products Wal-Mart sells wherein customers should not make compromises when they buy products at Wal-Mart stores. Similarly, healthcare and wages structure, community involvement or diversity are other areas which were emphasized by Lee Scott in his Twenty-First Century Leadership address (Lee Scott, 2005). 3. Wal-Mart’s Board discussed proposals to meet (some of) these challenges at a board retreat in 2005. To counter the challenges, the team proposed Wal-Mart to implement the nine limited-risk initiatives and five bold steps. The first initiative is to change the eligibility criteria for health insurance so that Wal-Mart becomes more competitive in the part-time labor market. The second initiative is to decrease cross-subsidization of spouses which would allow more dollars to be put towards Associates and their children. The third initiative is to provide information related to healthcare and health ...Download file to see next pagesRead More
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