Wal-Mart Stores Inc: Dominating Global Retailing
Comprehensive Case Analysis
Table of Contents
1. Wal-Mart Short Case Analysis
I. Wal-Mart Mission Statement
II. Strategic Issue
III. Subordinates Issues
IV. Recommendation Strategy
2. SWOT Analysis
3. External Environmental Analysis
I. General Environmental Analysis
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Gender discrimination lawsuit in history, forced workers to work in an unsafe environment,
3. Boycott from local community to keep out market monopoly by Wal-Mart.
4. Dissatisfied suppliers due to unreasonable cutting cost, on-time delivery, higher requirement of efficiency, Scan n Pay method implemented by Wal-Mart puts suppliers as risk-bearer, and monopoly industry.
5. Wal-Mart easily plays with market price, resulting in dissatisfaction of other distributors and lower profit margin.
6. Complex strategy within supply chain management as a result of philosophy â€œdifferent stores for different folksâ€.
7. Wal-Mart seems not ready to employ 1.3 million individuals as its pays its employees roughly $13,861 annually, which is below the federal poverty line of $14,630. This is the major cause of lawsuit problem that Wal-Mart will be facing in the future.
8. Poor work environment for employees in China and Sri Langka. (Video)
9. Questionable security at parking lot for Wal-Mart customers and employees. (Video)
10. Lack of communication between employees and upper level managers. E.g Managers do not listen to what employees have to say. (Video)
11. Only people at management level are given little empowerment to make decision.
12. Wal-Mart indirectly encourages rivalry over suppliers to be the best.
1. At the very least, Wal-Mart should be able to follow labor regulation in each country regarding employment as such compensation for overtime work, bonuses, promotion, welfare and benefits, standard wages and salary.
2. Make work place as fun place for employees, convenient work environment to full time employees.
3. Equal opportunity of being promoted for their effort regardless gender and color discrimination.
4. Employee empowerment.
5. Managers should embrace openness to employeeâ€™s ideas.
6. Promote flow of information with suppliers and customers.
7. Develop collaborative relationships with suppliers.
8. Build inventory buffers by maintaining stockpile of inexpensive but key components. (In-house production)
9. Monitor economies all over the world to spot new supply bases and market.
10. Evaluate needs of ultimate customers, not just immediate customers.
11. Lay down roles, tasks, and responsibilities clearly for suppliers and customers.
12. Equitable share risks, costs, and gains for improvement initiatives.
13. Understand how suppliers work by learn about suppliers business, respect suppliers capabilities.
14. Turns suppliers rivalry into opportunity
15. Conduct joint improvement activities, exchange best practices with suppliers, set up suppliers study group.
16. Provide benefits for employeeâ€™s family member such as discount card for whole family in shopping at Wal-Mart, health care benefit, field trip to amusement park, sports day activities, etc.
17. Give out sponsorship to local community for educational purposes.