Note: Sample below may appear distorted but all corresponding word document files contain proper formattingExcerpt from essay:
Wal-Mart may find that it is not able to "rollback prices" to compete with discount underwriters. One key opportunity for Wal-Mart is to focus on social welfare to improve their stature within the various communities Wal-Mart is located.
As was stated at the outset Wal-Mart is one of the most reviled corporations within the United States. For the various reasons previously stated, Wal-Mart has attained a vastly negative reputation within certain areas of the United States. This section will identify the problem as developed through the analysis, explain what is the intended accomplishment for proposing various solutions and examination of the root causes. It is important to determine the cause of the problem before alternative solutions can be addressed.
The root cause of Wal-Mart's negative persona is found in its dominance in smaller retail markets. Wal-Mart does not garner any fans when it arrives in a previously undisturbed rural or suburban setting, muscle into the competitions market space and proceed to undercut other businesses to the point where the competition can simply not compete on a business level with Wal-Mart. As a result, Wal-Mart has put numerous smaller retail stores and countless "Mom and Pop" stores out of business, costing communities jobs. Wal-Mart counters their stores provide hundreds of jobs for communities. This is refuted by pointing out that a 2005 memo circulated around the upper levels of management at Wal-Mart hypothesized various ways the company could save money and the number one model was to cut the wages and benefits of the employees. Information like this combined with the perspective of Wal-Mart being nothing more than a "corporate bully" lend themselves to the negative impression Wal-Mart is currently attached to.
There are solutions that Wal-Mart can implement in order to reverse this negative association and damage to its business reputation. By focusing on social welfare, Wal-Mart will be able to improve its standing and approval ratings within certain aspects of the community. By highlighting the positive influences through marketing campaigns, public awareness programs and media projects, Wal-Mart will place itself within a position to dramaticaly increase its stature.
Currently, Wal-Mart is on pace to have another record year in terms of earnings, despite the lagging economic conditions stemming from the near economic implosion of 2008. Therefore, it is imperative to address various alternative solutions to the company's likewise lagging approval ratings among certain interest groups. First and foremost could be a reevaluation of Wal-Mart's ultra-competitive and hyper-aggressive business model and corporate culture (McGahn, 2004).
The first rule of business is to be competitive, however, when competition comes at the expense of local communities and stores that have been part of a communities very fabric for generations, Wal-Mart's ubercompetitive nature should be reexamined. The current culture of Wal-Mart creates the image of a bully and a tyrant along with a company that tramples on the rights of its workers for the sake of the bottom-line. Wal-Mart must project an image of understanding to the needs of the customer, the community and to the employee.
Wal-Mart must also re-examine the nature of its charitable contributions. Wal-Mart claims in its corporate filings to donate over $100 million to charities such as the United Way, however this figure is the result of individual employee contributions, not direct contributions from the direct funds of Wal-Mart. Wal-Mart must improve its philanthropic operations to foster the image of an organization that can balance the intense competition of the retail space but also provide much needed charitable work to improve its standing within the community (Van, 2008). With their current charitable giving, it appears that Wal-Mart is not only uncaring but also "cheap" in that it relies on employee contributions when the company is making millions. The final solution for Wal-Mart could be a modification of the company's policy toward unions.
Currently Wal-Mart will not allow employees to discuss the prospect of unionization. Therefore, this gives the impression, Wal-Mart does not care about the rights of its workers. If Wal-Mart made strides in modifying this attitude it would make significant changes in the attitudes many individuals and groups have regarding the retailer (McGahn, 2008).
Wal-Mart is an inherently complex, fascinating case study in Capitalism vs. social perception. From a clearly text-book economic standpoint, Wal-Mart is a classic case of a business providing goods and services at lower prices than their competition and satisfying various needs for the consumer. However, the question remains: to what degree does Wal-Mart's policies, cultures and behaviors factor into and directly cause such a harsh negative attitude toward the company?
The answer can be readily seen in the analysis provided herein. Wal-Mart has an extremely aggressive corporate culture aimed specifically at extending Wal-Mart's brand recognition and dominance within the markets it integrates itself into. However, this competitive model and culture has lead to significant negative impressions of the company as corporate bully and tyrant. Wal-Mart's claims about putting people to work is a misnomer when considering the fact that Wal-Mart puts the smaller more local retailers out of business in a community in order ensure Wal-Mart is the dominate retailer in the area. As described in this analysis, this attitude is not only limited to the United States, Wal-Mart has taken this aggressive attitude to Europe as well.
Wal-Mart does have many strengths as well as weaknesses. However, if Wal-Mart is to rectify its negative impression among individuals and groups it must radically alter this perception of an over-eager, corporate raider. Wal-Mart must examine its corporate culture and determine if it wants to improve its public persona or continue on the path that has lead to this negative relationship in the first place. Furthermore, Wal-Mart must improve its philanthropic activities. No longer must the company equate employee contributions as charitable donations incurred by the company, this makes Wal-Mart look cheap and uncaring.
Lastly, Wal-Mart must improve its attitude toward collective bargaining and employee unionization. Current attitudes toward unionization give Wal-Mart the stigma of not caring about its employees. This perception makes it difficult to improve Wal-Mart's persona. Change corporate attitudes toward unionization will greatly improve Wal-Mart's perception in the community.
Camerius, J., & Hunger, J.D. (2009). Wal-Mart Stores, Inc. Under Attack. Strategic Management and Business Policy Achieving Sustainability (pp. 2-28). New…[continue]
"Wal Mart Inc Under Attack" (2010, November 14) Retrieved December 6, 2016, from http://www.paperdue.com/essay/wal-mart-inc-under-attack-6795
"Wal Mart Inc Under Attack" 14 November 2010. Web.6 December. 2016. <http://www.paperdue.com/essay/wal-mart-inc-under-attack-6795>
"Wal Mart Inc Under Attack", 14 November 2010, Accessed.6 December. 2016, http://www.paperdue.com/essay/wal-mart-inc-under-attack-6795
Wal-Mart and Employee Rights Labor cost is always considered as the main issue, mostly in case of employees' unionization at Wal-Mart. This was noticed when Wal-Mart showed a remarkable earning at the rate of 44% per annum for its labor working on hourly basis. Another point which brought this issue ahead was when the sales clerk of Wal-Mart in 2001 earned wages below Federal Poverty Scale. According to an issue of
Bargaining power of customers: Our main question here is whether Wal-Mart customers can walk away from buying a product at Wal-Mart and find it cheaper elsewhere. For the most part, the answer is no. Wal-Mart has built its reputation by providing products at a considerably lower price than its competitors (Is Wal-Mart good, 2005). Certainly, customers can try to find lower prices at other retailers; and the proliferation of the
But when it just recently occurred in 2004 at a store in Jonquiere, British Columbia, the reader must appreciate that a real battle had been won. The original efforts of that particular store for example had the local labor Commission reject certification by a margin of 74 to 65. When the union announced that it won the coveted certification at Quebec, it was quite a blow to the retailer.
To expand market share, Staples began opening smaller stores in 2003 that are designed to facilitate entry into smaller markets (2004 Annual Report). In 2005, Staples has plans to add ten stores in smaller markets, expanding its total count of small stores to seventeen. This adds risk and uncertainty to operations. Staples will soon attack the Chicago market in 2005, where competitors OfficeMax and Office Depot are already well
Censorship in Music Censorship Under the Guise of Protecting the Children Rock and Roll Culture Hip Hop Culture Is Censorship in Music Viable and Does it Make a Difference? There have been many attempts by society control music. Governmental statutes, agency regulations, business controls and parents have all tried to censor the music. Sometimes they have succeeded and sometimes they have not. The examination of various aspects of rock and rap music censorship involves general
Economics Growth The retailer sector was lately affected by the back-to-school shopping season, which did not start so well, as midprice department stores, discounters and specialty-apparel retailers announced disappointing sales results during August, which reinforced the already much debated concerns that consumers are not comfortable with the current state of the economy and are reluctant to consume, considering the shaky and uneven economic recovery. However, luxury department-store chains managed to post significant
John Mackey said, "Under an alias to avoid having his comments associated with the Company and to avoid others placing too much emphasis on his remarks." He used the pseudonym Rahodeb after his wife Deborah. (Wikipedia). RAHODEB John Mackey posted various comments on Yahoo Finance stock forums until last August with the username Rahodeb, after his wife Deborah. He wrote positive things about Whole Foods financial results and his gains on