Why do you think that wal-mart had so many events

Assignment Help Operation Management
Reference no: EM1381392

1. Why do you think that Wal-Mart had so many events that caused its image to be tarnished?
2. If Wal-Mart saves families thousands of dollars a year, why should it be responsible to other stakeholders?
3. Assess Wal-Marts attempt to restore its public image.

Wal-Mart's Public Image Campaign Wal-Mart Stores, Inc. the world's largest corporation is possibly the most controversial business in America. With sales over $300,000 billion in 2006 and approximately 1.7 million employee's worldwide managing stakeholder relationships is a major challenge. The Wal-Mart that saves the average family an estimated $2,329 per year has its critics. There are concerns about Wal-Marts treatment of employees, suppliers, the environment and the overall economic impact on communities. Feminists, human rights activists, antisprawl activists and labor unions believe that Wal-Mart has engaged in misconduct to provide low prices to consumers. The company that banishes magazines with racy covers and CD's with edgy lyrics is seen as attempting to dictate its vision of American culture.
Wal-Mart, while one of the most amazing success stories in the history of American Business, has also shaped debate over the relationships between corporations and their stakeholders. Wal-Mart has excelled at market orientation, which is a focus on consumers, defeating competitors and increasing shareholder value. Only recently has shareholder value lagged behind the major stock market index performance. Other stakeholders such as employees, suppliers and communities have been viewed as secondary to low prices for consumers.
The story of Wal-Mart and its low prices shows both good and bad outcomes for society. The company has grown from a small chain to over 5,000 stores in 10 countries making its early investors and some employees financially successful. It has been estimated that Wal-Mart saves consumers 100,000 billion dollars a year. Wal-Marts entrance into some markets lowers food prices 25 percent including savings from competitors' price cuts. As competing supermarkets close, their union employees sometimes lose their jobs. One study found that total payroll wages per person declined by almost 5 percent where Wal-Mart stores are located due to Wal-Mart driving down wages. In 2005 an internal document made public by Wal-Mart Watch showed that 46 percent of Wal-Mart employee's children were on Medicaid or uninsured. Michael Hicks, an economist at the Air Force Institute of Technology found that Wal-Mart increased Medicaid costs an average of $1,898 per worker.

Over 138 million people visit Wal-Mart every week and 84 percent of Americans have shopped at Wal-Mart in the past year. People living in households with incomes of less than $30,000 a year give Wal-Mart its highest marks, proving that those who value Wal-Mart most need Wal-Marts low prices the most. Wal-Mart has faced tough criticism both abroad and at home, in numerous discrimination cases (including the largest class action lawsuit that may include up to 1.6 million current and former Wal-Mart employees) unpaid overtime lawsuits, concerns over the benefits it provides (or does not provide) to its employees, sweatshop allegations, legal proceedings with the Environmental Protection Agency, and even its own suppliers say the giant forces them to cut costs and move factories overseas. Over the past five years the Wal-Mart stock dropped 30 percent after soaring 700 percent in the previous five. Groups such as Wake-Up Wal-Mart have attempted to make people aware of the concerns and to force the retail giant to take action. Wal-Mart is trying to change its image. In January 2005 Wal-Mart introduced a website to counter claims made by its critics www.walmartfacts.com. Wal-Mart also launched a full-page ad in more than 100 newspapers across the country. The ad was a direct letter from Wal-Mart CEO H. Lee Scott, which said it was time for the public to hear the "unfiltered truth" about Wal-Mart, and time for the company to stand up on behalf of a workforce that includes 1.2 million Americans. The CEO of Wal-Mart Lee Scott called for congress to increase minimum wage. Wal-Mart also engaged a public relations firm Hill and Knowlton as well as dozens of communications specialists to help it improve its overall image. This was combined with an aggressive advertising campaign publicizing the millions of dollars Wal-Mart contributes to local community organizations, as well as focusing on other key concerns such as how Wal-Mart treats its employees and the diversity it has among employees.

In what was seen by many as a turning point for Wal-Mart, its response to hurricane Katrina was fast efficient and significant. Wal-Mart contributed $17 million in cash to the hurricane relief effort, and more than $3 million in merchandise. $15 million was donated to the Bush-Clinton Katrina Fund, $1 million to the Salvation Army and $1 million to the American Red Cross. Wal-Mart also provided more than $8.5 million in cash assistance to impacted associates through Wal-Mart's Associate Disaster Relief Fund. They gave $20,000 in cash donations to assist various animal shelters and organizations taking in lost animals in hurricane impacted areas. In addition they also dispatched 2,450 Wal-Mart truck loads, donated 70 pallets of clothes to help evacuees, set up donation centers in various shelters to help arriving evacuees needing personal health and beauty products, clothing, as well as food and water all donated by Wal-Mart. For example at the Houston Astrodome Wal-Mart provided 5 trucks of relief supplies, 45 associate volunteers, donated a computer, fax machine, TV, VCR and children's movies.Wal-Mart opened two environmentally friendly stores; one in McKinney Texas and the other in Aurora, Colorado. The two locations were chosen as they have different weather and climate considerations. The stores should provide examples of the way building owners, scientists, engineers, architects, contractors, and landscape designers can work together to create stores that save energy, conserve natural resources, and reduce pollution. The stores are living laboratories, testing experimental technologies and products. Wal-Mart hopes to take what is learnt at these two stores and use that at the new stores it opens. The new stores include pervious pavement, experimental urban forest, water conservation, wildflower meadows, wind turbines, solar energy, recycling efforts, climate control, a xeriscape, bioswale, internal lighting and internal building experiments. Wal-Mart is also expanding its environmental programs which now include energy conservation measures, a kids recycling challenge, an effort to recycle plastic bags and in 2005 it won the Waste News Environmental Award. These measures have attempted to stem the tide of negative publicity the company has been the focus of. Although it has tried to address all the major concerns of its various stakeholders only time will tell whether these measures prove effective and if Wal-Mart can overcome the negative publicity. Groups such as Wake-Up Wal-Mart will continue their campaigns to ensure that Wal-Mart continues to change for good, even if it has begun to change already.

Reference no: EM1381392

Questions Cloud

Dna complementary sequences and size : DNA is isolated from two different species. Both DNA samples are found to be exactly the same size. One of the DNA samples has a G+C/A+T ratio of 4.8 and the other 3.2.
Recombination frequency between genes : About how long is a DN A double helix that is made up of 900 base pairs? Suppose that genes A, B, C, and D are located on the same chromosome.
What is your understanding of global competency : What is your understanding of global competency? How does global competency affect international human resource management?
Many profit-making firms have a strategy map that is tied : Many profit-making firms have a strategy map that is tied to four elements: financial results, customers, human resources, and sustainability. If you developed a scorecard that included these areas
Why do you think that wal-mart had so many events : Why do you think that Wal-Mart had so many events that caused its image to be tarnished? If Wal-Mart saves families thousands of dollars a year, why should it be responsible to other stakeholders?
Calculate the internal rate of return : Calculate the Internal Rate of return for both projects and again recommend which of the two projects, if any, should be selected based on this information.
Fossil with .9983 in africa : Fossil with .9983 (Ur:Pb) in Africa
Determine possible dna sequences : Determine the possible DNA sequences that produced the four amino acids in the molecules
Describe the steps you would take to assemble a project team : Groups mature over time, increasing their effectiveness and productivity. How would you describe the stages of group development, and what do you feel is the responsibility of a project team leader in fostering group development

Reviews

Write a Review

 

Operation Management Questions & Answers

  What is the best decision based on an expected monetary

What is the best decision based on an expected monetary value criterion, Page Engineering designs and constructs air conditioning and heating systems for hospitals and clinics. Currently, the company's staff is overloaded with design work

  Explain is forecast performing as well as it may

A CPA firm has been using subsequent equation to predict annual demand for tax audits. Demand for past few years is shown below. Is forecast performing as well as it may, Explain.

  Illustrate what normal probability distribution recommend

Illustrate what normal probability distribution with recommended order quantity. Fitness Shop is considering ordering a special model exercise machine.

  Describe information systems architecture in terms of data

Describe application architecture also process design. Include a high-level description of security controls which you recommend for design of this HR system. Apply tools of systems analysis to describe information systems architecture in terms of..

  Illustrate what really matter in term of behaviour is

Experience differentiation is an extension of product differentiation, accomplished by utilizing people's five senses to create an experience rather than simply providing a service.

  Describes an investment problem

According to Table, which describes an investment problem, suppose that Ivana has decided that the amount invested in stocks cannot exceed one-fourth of the total amount invested. Which is the best way to write this constraint?

  Explain how many hours do you expect the assembly

Explain how many hours do you expect the assembly of the 100th unit to take. Is the contract‘s assumption about the average labour hours per unit valid or should the price be revised.

  How much time on social media is reasonable at work

How much time on social media is reasonable at work before it becomes time wasting or a theft of the employer's time

  Describe approach you would take also to develop the plan

Suppose your boss asked you to develop a scheduling plan for a project. Describe what approach you would take also the steps you would follow to develop the plan.

  Explain how much will the layout improvement be worth

She estimates that the new layout will cut the amount of walking for the average employee by 100 miles per year. Explain how much will the layout improvement be worth.

  Identify a product offered within an industry

Identify a product offered within an industry. Using Macro-trend analysis from readings identifies, discuss also analyze macro-trends that may impact industry over next five years.

  Calculate avon operations in global markets

Calculate Avon's operations in global markets regarding the use of international cadre development also building organization associates also independent representatives.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd