Category: Walmart

The following is a paper on a practical proposal addressing a local problem. This paper is a summary of my research on the employees rights violation at the giant Wal-Mart retail stores.

The paper has information on how the rights of the employees have been violated (low salary, poor working conditions, employee discrimination and inadequate health care).

Due to the employees violation at Wal-Mart, the information in the paper provides guidance on how workers can go about resolving their issue (by forming or joining trade unions). It goes in depth to explain how these unions work and finally gives a justification on the whole issue.

Wal-Mart is the largest retail store in America and the world. The retail store is still spreading its dominance worldwide, starting in Asia where it has its stores in over ten countries, Europe and South America. The giant retail store is still planning to expand its business dealings on an even wider scope in the near future.

The giant store possesses incentives that are geared towards profit making, due to the recent recession though, the incentives tend to hurt its workers. With Wal-Marts effort to make a way into hypermarket cultures all over the world, lots of severe setbacks have come into play.

What is more, low-wages, low benefits, employment discrimination, poor healthcare, anti-union policies, and bad working conditions have made Wal-Mart an evil business in the eyes of their employees. This paper will therefore concentrate on Wal-Marts employee violations, propose a solution to this and finally find a justification on the whole issue.

With about two million employees worldwide, Wal-Mart has faced a torrent of lawsuits and issues with regards to its workforce. These issues involve low wages, poor working conditions, inadequate health care, employee discrimination, as well as issues involving the companys strong anti-union-policies (Keil & Lee 336).

Criticism has pointed out to Wal-Marts soaring turnover rates as proof to a discontented labor force, even if other aspects may possibly be involved. A study has shown that, roughly seventy five percent of its workers leave inside one year with the firm.

Wal-Marts full-time hourly associates receive, a standard, 10.11 dollars every hour; with 34 hours in a week, a worker gets 17,874 dollars in a year which is 20% lesser than an average retail employee. The firm is also accused of poor employee working conditions.

This is evidenced by lawsuits against the firm asserting that workers are sometimes forced to work off the clock (where overtime pay is refuted), are denied lunch breaks or even stopped from taking rests.

The best solution on the problems affecting Wal-Mart employees lies in the forming and joining of labor unions that will advocate for the workers rights. Labor unions and particularly in the United States are lawfully distinguished as representatives of employees and workers in various industries.

Activities by labor unions in the United States today centers on collective bargaining over wages, benefits, and working conditions for their membership, and on representing their members if by any chance the management attempts to violate contract provisions (Zieger & Gall 548).

In this case therefore, forming and joining labor unions is the way forward as they will advocate policy implementation and legislations on behalf of the employees, despite the fact that wall mart has strong anti-union policies.

With the union again, the workers will notably gain some equity and bargaining power, this comes about when violations against the workers have been experienced (Zieger & Gall 548).

The union makes sure that the law is followed and that a contract term drafted by a single party, is intrinsically biased (the union makes sure the employees and the management are the stakeholders in contract drafting), as a result the union brings the management and the workers as close as to equal as possible providing a legal counter weight to the management (Zieger & Gall 548).

The employees are also responsible in electing their own representatives in the union who will air their grievances to the union in cases of employee violations, in order for the union to take corrective measures.

As a justification for what the workers need to do, there is a tight regulation in the labor union on private-sector union membership by the NLRA (National Labor Relations Act).

This law is run by the National Labor Relations Board, a self-governing national organization, this union and others are controlled partially by federal government and partially by government laws.

General they have displayed vigorous growth for pay, and workers conditions are put through negotiations with selected local and government officers.

When joining a labor union, employees must either be granted voluntary acknowledgment from the employer or acquire majority employees in the bargaining-unit vote to be represented in a union; in both cases, the federal government is to endorse the union (Zieger & Gall 548).

Once the union has won the support of a majority in the bargaining unit and is certified in a workplace, it has the sole authority to negotiate the conditions of employment; (Zieger & Gall 548) as shown by Zeiger & gall (548) again, the management and the union together draft the stipulations and conditions of service in lawfully binding contracts.

When violations do occur in the workplace, majority contracts bring in other parties to take care of their differences, via a complaint procedure to see if the problem can be jointly resolved. If the union and the employer still cannot settle the matter, either party can choose to send the dispute to arbitration, where the case is argued before a neutral third party (Zieger & Gall 548)

A number of U.S. economists are trying to analyze whether Wal-Mart has a positive or negative impact particularly on the American economy. The major irony behind this is that the analysis is sponsored by Wal-Mart itself.

In attempting to mend its reputation and reach out to critics Wal-Mart conducts gatherings and conferences in Washington D.C., despite this, Wal-Mart is evidently dragging down American living standards when they violate their employees rights.

They do this when they pay poverty level wages and other benefits. Conversely, they argue that they have the lowest pricing which is beneficial to consumers, particularly the poor while keeping the overall inflation checked.

To alleviate this it is necessary that its workers form or join labor unions. There many advantages in these unions, some of these are better wages and benefits for its members, improved work conditions together with social networks providing financial, emotional and legislative hold up.

The actual gain from a union though is the provision of another stronger voice in bargaining during contract formation.

Works Cited

Keil, Stanley. & Spector, Lee. The Impact of Wal-Mart on Income and Unemployment Differentials in Alabama. Review of Regional Studies; Winter, 35 (3), 336-355. 2005. Print.

Zieger, Robert, & Gilbert, Gall. American Workers, American Unions: The Twentieth Century. Maryland. John Hopkins University Press. 2002. Print.

The antitrust laws were created to enhance competition in the market. The law provides equal opportunities to all firms in the market, and regulates firms which develop strategies to hinder other firms from competing with them. The government aims at creating competition in the market so that firms can provide good quality products.

At the same time, these products should be given reasonable prices. This law protects firms and consumers too. Companies that do not comply with the provisions of these laws risk being sued and fined (Hylton, 2003).

Wal-Mart is an example of a company that has been reported to contravene the provisions of the antitrust laws. In many occasions, the company has experienced lawsuits in protest to a contravention with antitrust laws.

Wal-Mart has established retail stores and has dominated the US market. The firm has the characteristics of a monopsonist. A monopsonist refers to a situation where a single firm dictates the supply of products in the market. In such a situation, only one buyer seeks the products of several suppliers.

This gives the monopsonist the opportunity to dictate the market by offering low prices to suppliers (Besanko, 2011). A monopsonist operates at a point where marginal cost (MC) is equal to marginal revenue (MRp).

Therefore, the firm gets extraordinary profits because the demand is equivalent to the aggregate demand of supply. From the diagram below, it is evident that monopsonist gets abnormal profits because the labor demand is higher while the wage price is low.

Source: Haworth (n.d.).

Wal-Mart has been accused of applying the strategies of a monopsonist despite the fact that many similar firms exist in the market. For example, Coca-Cola Company has been forced by Wal-Mart to sell its products at very low prices.

Since Wal-Mart has the capacity to buy many products from Coca-Cola, the company has developed the strategy to offer low prices. Wal-Mart has also been accused of offering low wages to the workers. The company has employed many people and has taken advantage of being a top employer by offering very low wages.

This has made the employees of the company strike. Labor unions have complained about the low wages offered to workers by the firm (Lynn, 2006).

In 2005, Wal-Mart and Netflix colluded to create a monopoly in the DVD market. The two companies had developed a strategy to divide the market for DVDs. This was done to reduce competition in the market. The agreement was that Wal-Mart would not rent DVDs through the online channels.

This would offer Netflix the opportunity to sell DVDs in the market. This strategy was adopted when Blockbuster Company started to sell DVDs through online systems. The strategy developed by Wal-Mart and Netflix would make Netflix the sole marketer of DVDs.

This would discourage any other company in the industry. As such, suppliers of DVDs would be influenced to offer their products at low prices. Netflix started to offer competitive prices to its subscribers.

This aimed at driving competitors out of the market. The two companies were sued and found guilty of contravening the antitrust laws. The two companies were fined $40 million (Bloomberg News, 2010).

In conclusion, it is worth mentioning that antitrust laws were developed to protect companies from unfair business conduct. The laws give opportunities to firms to exploit the market with no restrictions from any single company.

A free market environment has been encouraged to create competition. Wal-Mart continues to practice unfair business, and this has made the company be fined for failing to adhere to the antitrust laws.

Reference List

Besanko, D. (2011). Microeconomics. Hoboken, N.J: Wiley.

Bloomberg News (2010). Antitrust suit against Netflix and Wal-Mart is given class-action status. Web.

Haworth, B. (n.d.). Monopsony. Web.

Hylton, K. N. (2003). Antitrust law: Economic theory and common law. New York: Cambridge University Press.

Lynn, B. C. (2006). The Case for Breaking up Wal-Mart. Web.

It is important to note that Walmart Corporation is among the largest and most efficient retailers in the market, which primarily focuses on price leadership to achieve its superior competitive advantage over its competitors. The companys in-depth analysis can be highly beneficial in identifying the core strengths of Walmarts effectiveness as an enterprise. When it comes to its customer perspective, healthcare organizations can learn about the relevance of focusing on and prioritizing patient satisfaction above all else.

One should be aware that the Walmart Corporations customer perspective emphasizes the critical element of price leadership and convenience. The corporation states that making life easier for busy families includes our commitment to price leadership, which has been and will remain a cornerstone of our business & increasing convenience to save our customers time (Walmart Inc., 2022, p. 6). Therefore, customer satisfaction is of paramount importance for Walmart, and it is highly aware of what its customers want from it. Healthcare can learn a great deal from the attributes Walmart has since patients come to healthcare organizations to receive high-quality service and care to improve their health and treat their ailments. Thus, healthcare organizations entire strategy and patient perspective should be to serve the patient as best they can and build commitment with care quality leadership.

In conclusion, Walmart Corporations customer perspective is about customer satisfaction and prioritization on the commitment to core priorities to achieve it. Since the company is aware of and focuses heavily on what makes it appealing to its customers, healthcare organizations should do the same. They should focus on healthcare service quality and patient satisfaction as the main priorities rather than engaging in activities that pursue other seemingly critical objectives.

Reference

Walmart Inc. (2022). Form 10-K [PDF document]. Web.

Introduce the Section

This section includes a discussion of the liquidity position of Wal Mart Incorporation and its comparison with competitors, i.e. Target Corporation and industry averages. Liquidity ratios are determined to evaluate the liquidity position of a business, which in turn allows the determination of a businesss strength with respect to the payment of its current liabilities(Gibson, 2012).

Discuss results of ratios and trends

The days sales in receivables for Wal Mart have shown consistent but small increments in the past three years. However, the value for the ratio is still indicative of a favorable position for the company and shows that Wal Marts cash flows are managed in an efficient manner as the company can collect amounts receivable more swiftly than its competitor. It is because of this efficiency that the accounts receivable turnover and accounts receivable turnover in days of Wal Mart is higher.

On the other hand, although days sale in inventory for Wal Mart is on a rising trend, the lower values for ratio imply that the company can convert its inventory into sales more swiftly and it is due to this reason that the inventory turnover and inventory turnover in days are also presenting a favorable position for the company.

In addition, the operating cycle for Wal Mart has also been determined, which indicates the number of days it takes for the inventory to be sold and cash received from debtors. The operating cycle of the company has increased since there have been unfavorable changes in the inventory and accounts receivable turnover during the past three years. Apart from this, the current ratio, cash ratio, and acid ratio show that the liquidity position of the company has remained more or less on the same pattern in the past three years.

Comparison with a competitor

While comparing the liquidity position of Wal Mart with Target Corporation, it can be observed that Wal Mart is in a much better position. The overall comparison of the two companies reveals that Target Corporation is preferring risk aversion.

Comparison with Industry Average

The comparison of Wal Marts liquidity position with that of industry averages indicates that the company is slightly behind the industry averages for the current ratio and acid ratio(Bloomberg Businessweek, 2013).

Summarize the Section

There are no significant changes noted in the liquidity position of Wal Mart during the past three years. However, the liquidity position of Target Corporation has been better as compared to Wal Mart during the past three years. Apart from this, Wal Mart has been more efficient than its competitor and it is therefore that the company has been able to maintain ample cash resources for dealing with its day to day needs.

Exhibit

Long-Term Debt Paying Ability

Introduction the Section

This section includes an analysis of the leverage position of the company in comparison with its competitor and industry averages. The long term debt paying ability helps in evaluating the extent to which a company relies on debt and equity financing to fulfill its working capital and long term financing needs. Moreover, these ratios are also helpful in evaluating the solvency position of the company(Gibson, 2012).

Discuss results of ratios and trends

The times interest earned ratio and fixed charge coverage for Wal Mart fell in 2012 as compared to 2011 but has increased in 2013. The primary reason behind the decrease in 2012 was an increase in financing expenses, which have declined in 2013 to enable the company to report a higher ability to pay off its financial expenses through its profits. Apart from this, the debt ratio for the company increased in 2012 from 2011 and then slightly declined in 2013.

This variation has been noted due to an increase in the long-term debt of the company and then a considerable decline in 2013. Due to the same reason, the debt to equity ratio and debt to the tangible net worth of Wal Mart has also shown similar trends in the past three years. Lastly, the cash flow to debt ratio declined in 2012 but increased in 2013. A declining trend has been noted in 2012 because debt increased and cash flows decreased, which resulted in a low cash flow to debt ratio.

Comparison with a competitor

The comparison of Wal Marts long term debt paying ability with Target Corporation shows that the company has performed considerably better in comparison with its competitor, and also Wal Mart has maintained a lower debt and debt to equity ratio than Target. Moreover, as far as a cash flow to debt ratio is concerned, Wal Mart is in a better position than its competitor, as it can cover more proportion of its debt by cash flows than Target.

Comparison with Industry Average

Wal Marts long term liabilities ratios are highest as compared to the industry average(Bloomberg Businessweek, 2013). For instance, the total debt to total equity and total liabilities to total assets comparison of industry and Wal Mart shows that Wal Mart is ahead of the industry in relation to both these ratios(Bloomberg Businessweek, 2013).

Summarize the Section

In this section, it has been found that Wal Mart is placed in a much better position as compared to its competitor in terms of long term debt paying ability.

Exhibit

Profitability

Introduction the Section

This section entails the profitability analysis of Wal Mart by considering the financial information of the company pertaining to the past three financial years. Profitability ratios are used to evaluate the returns earned by a company in relation to its total assets, investments, equity, operating assets, fixed assets, etc. (Gibson, 2012).

Discuss results of ratios and trends

Wal Marts revenues have not shown significant increments over the past three years and as a result of this and the operating income for the company has grown at a constant rate of 6 percent during 2011, 2012, and 2013. It is due to this reason that the profitability ratios have also shown steady increases year on year. However, it has to be noted that there has been a decline noted in different profitability ratios from 2011 to 2012; as for instance net profit margin, total asset turnover, return on assets, operating income margin, return on operating assets, and return on investment have all declined in 2012 owing to lower profits earned by the company in 2012.

One main reason behind the decrease in profitability ratios is that the company has focused on leading the market through low prices. However, apart from low growth in profits earned by the company and the fact that there has been increasing in assets, investments, and equity, there has been a slight improvement in most of the ratios, which is commendable.

Comparison with a competitor

The comparison of Wal Marts profitability ratios with Target Corporation shows that the company has underperformed in comparison with its competitor in terms of net profit margin, operating income margin, and gross profit margin, whereas in relation to other ratios, Wal Mart has a significant lead over its competitor. As mentioned earlier, Wal Marts management has been striving to become a market leader in low-priced goods, which has ultimately affected the revenues and in turn profitability of the company.

Apart from this, a comparison of net income and total assets, investments, and equity of the two companies show that there is a considerable difference between the two. However, it is still relevant to state here that Target has been more efficient and profitable about some ratios than Wal Mart.

Comparison with Industry Average

Reviewing the profitability at the industry level and comparing the same with Wal Marts ratios, it has been noted that Wal Mart is ahead of its industry averages. This implies that Wal Mart is leading the industry in terms of profit ratios, particularly, return on assets, return on equity, return on capital(Bloomberg Businessweek, 2013).

Summarize the Section

The profitability ratios for Wal Mart are presenting a better picture in comparison with Target Corporation and industry averages.

Exhibit

Investor Analysis

Introduction the Section

Investor ratios help assist investors to evaluate their respective investments in line with the trends and patterns shown by the financial performance indicators of the company in which they have invested. This section includes the calculation of investment ratios for Wal Mart and their comparison with competitor and industry averages.

Discuss results of ratios and trends

The degree of financial leverage for Wal Mart has been more or less on a similar track in the past three financial years. On the other hand, the earnings per share of the company have increased steadily over the past three years due to an increase in its net income earned progressively during the period under consideration. Moreover, due to a consistent increase in operating cash flows, the operating cash flow per share has increased. Besides, due to an increase in cash dividends, the operating cash flow per cash dividend has been on a declining trend.

Comparison with a competitor

The comparison of Wal Marts investment ratios with that of Target Corporations ratios shows that there is no significant difference between the two companies in this regard. For instance, there is only a marginal difference between the degree of financial leverage, earnings per share, price/earnings ratio, percentage of earnings retained, dividend payout, dividend yield, and book value per share. However, there are some areas where the difference between the two companies is considerable; for instance, there is a significantly higher materiality of options for Target as compared to Wal Mart. Besides, operating cash flow per share, operating cash flow per cash dividend and year end market prices also show a significant difference between the two companies.

Comparison with Industry Average

The comparison of investment ratios with industry averages reveals that Wal Marts earnings per share growth are better than the industry average (Bloomberg Businessweek, 2013). This shows that the company has a better earning potential on its stocks than industry averages.

Summarize the Section

This section has revealed that Wal Marts investment ratios are more or less posing similar situation as Target Corporation. Also, the company has earned a better place about earnings per share growth in comparison with industry averages.

Exhibit

Conclusion

The financial analysis of Wal Mart and its comparison with competitor and industry averages has been presented in this report. The conclusion reached in this analysis is that Wal Mart has a satisfactory liquidity position and profitability trends, as has been noted in the past three years. In addition to this, the long term debt paying ability and investors ratios of the company is also projecting a satisfactory scenario for investors and investment in the company.

Reference List

Akwetey, L. M. (2011). Business Administration for Students & Managers. trafford Publishing.

Barrow, C. (2011). Practical Financial Management. London: Kogan Page Ltd.

Bloomberg Businessweek. (2013). WAL-MART STORES INC (WMT: New York Consolidated): Financial Ratios. Web.

Daily Finance. (2013). Wal-Mart Stores. Web.

Drury, C. (2008). Management & Cost accounting. Derby: Pat Bond.

Gibson, C. H. (2012). Financial Reporting and Analysis. Mason: South-Western Cengage Learning.

Investing Money. (2013). Wal-Mart Stores (NYSE: WMT). Web.

Morning Star. (2013). Wal-Mart Stores Inc WMT. Web.

Reuters. (2013). Wal-Mart Stores Inc (WMT.N). Web.

Target Corporation. (2011). ANNUAL REPORT 2011. Minneapolis: Target Corporation.

Target Corporation. (2012). ANNUAL REPORT 2012. Minneapolis: Target Corporation.

Target Corporation. (2013). ANNUAL REPORT 2013. Minneapolis: Target Corporation.

Tennet, J. (2008). Guide to Financial Management. London: Profile Books Ltd.

WAL MART. (2013b). 8 K REPORT. Bentonville: WAL MART.

WAL MART. (2011). ANNUAL REPORT 2011. WALMART STORES.

WAL MART. (2012). ANNUAL REPORT 2012. Bentonville: WALMART STORES.

WAL MART. (2013a). ANNUAL REPORT 2013. Bentonville: WALMART STORES.

Yahoo Finance. (2013). Wal-Mart Stores Inc. (WMT) Industry; Departmental stores. Web.

Filing of financial reports, good ethics and compliance play a very important role in facilitating the success of Walmart. Being a global business with multibillion-dollar annual revenue, Walmart realizes that applying good ethics and compliance with financial reporting is very important not only for public image of the firm, but also for its own financial success. Ethics and compliance are, therefore, taken very seriously in the firm, and compliance to tax law especially in relation to SEC requirements is also taken very seriously. The Walmarts management seems to take the issue of ethics and compliance very seriously, probably to counter the many accusations that are directed to the firm. Walmart uses Compliance as a way of avoiding law suits and poor public image. As a result, ethics and compliance are observed very closely and carefully, through the implementation of various ways of improving the firms internal and external financial reporting. As McGreggor (2011) notes, this is important for the firms future and stability (Walmart Audit Committee, 2012).

Procedures for ethics and compliance

Frequent filing

Walmart is one of the few firms in the United States that timely and frequently files their financial reports. For instance, Walmart has already filed its financial reports to SEC for the quarter of 2012, which was done on 6^th September 2012 (Walmart Audit Committee, 2012).

Use of a compliance committee

Walmart uses an independent third party to help in monitoring its internal and external financial reporting processes. This is made possible by the use of an audit committee that is made of at least three members, who are appointed by the board of the firm. The committee has the mandate of monitoring the firms financial reporting and making changes to its compliance procedures (Walmart Audit Committee, 2012).

The Audit Committee Charter has the mandate to assist the board of Walmart in monitoring the integrity of the firms financial reporting procedures, and the controls used for the implementation of ethics and compliance. Since the firm is multinational operating in countries that may have different accounting systems and requirements, the committee has the responsibility of helping the board of directors to monitor ethics and compliance in the global and local arenas. The committee is also responsible for monitoring the performance of the firms global and internal financial reporting processes, and also the firms compliance with legal and financial requirements (Walmart Audit Committee, 2012).

The Walmart Audit Committee Charter is also responsible for the appointment of the external auditor. This increases integrity and transparency since the Audit Committee Charter does not have vested interests in the operations of Walmart. If this process was to be left to the management, there would be a temptation to overlook some of the things that the firm may feel will affect their financial performance in a negative way (Walmart Audit Committee, 2012).The role of the Audit Committee Charter in avoiding this is to act as an outsider, who will not have any conflict of interest in the appointment of the external auditor. The Walmart Audit Committee Charter is also responsible for the compensation of the external auditors and overseeing their operations in Walmart. This not only frees the Walmart board and the management from the task of monitoring compliance, but also eliminates any form of conflict of interest (Walmart Audit Committee, 2012).

References

McGreggor, O. (2011). Financial Reporting: Compliance and Ethics. Journal of Financial Reporting , 5 (7), 49-53.

Walmart Audit Committee. (2012). Wal-Mart Stores, Inc. Audit Committee Charter. Web.

Facility Overview

Branded as the worlds largest corporation, Wal-Mart started up as a small retail outlet in Arkansas, USA in 1940 (Azili 6). Its founder, Sam Walton, was successful in running the store. In 1945, he managed to acquire a lease with Butler Brothers to run a shop under his franchise name, Ben Franklin.

Butler Brothers was a renowned businessman during those days. He owned a chain of retail outlets in Arkansas. Despite the success, that he experienced, Walton was unable to renew the lease agreement. Instead of winding up his business, he opened another store in a different location under the name, Ben Franklin, where he enjoyed even much more success.

By the year 2000, Wal-Mart had already been ranked as the leading public corporation in the world on the Fortune Top 500 list. In 2002, the organization reported its sales at approximately $220 million and a net profit of $6.1 billion (Chandran 2). At the same time, the organization had over 3,800 stores in the United States of America and 2,800 other stores in other nations of the world.

Currently, the corporation has outlets in North America, South America, Europe, Asia, Australia and Africa. All through this time, the company has grown from a simple business venture to a multi-national corporation. In the course of its operations, the company has gone through several challenges and obstacles. These challenges have been both external and internal in nature. As a result, it has been able to identify its strengths and improved on its weaknesses.

The retail industry is highly characterized with free entry and exit into the market. This has greatly increased the number of participants in the global retail industry. At the present moment, the industry is characterized with small and medium scale businesses that operate at the local level. However, since the 1980s, multinational corporations have commenced dominating the global retail industry. As a result, the retail industry is characterized by stiff competition at the local and international levels.

In the United States of America, Walmart is the leading retail outlet. As stated earlier, the firm had approximately 3,800 outlets within the country. To ensure that its operations are effective and efficient, Wal-Mart operates under three divisions; Wal-Mart Stores U.S, Sams Club, Wal-Mart International. To meet the specific needs of its diversified customers, the firm operates under different retail formats. These formats include:

1. Supercenters
2. Food Stores
3. General Merchandize
4. Discount Stores Apparel Stores
5. Bodegas
6. Cash and Carry Stores
7. Membership Warehouse Clubs
8. Restaurants
9. Drug Stores

With this diversification, Wal-Mart has been able to meet and keep up with the changing needs of its customers.

This report focused on the Wal-Mart store that is situated along the 777 Story Road in San Jose, California. This outlet has been operational for several years now and is one of the leading outlets in California in terms of sales and product turn over rates. Operating under the Wal-Mart Store U.S brand, the outlet comprises of a pharmacy, McDonalds, Grocery Store, Vision Center, 1-hour photo center, Garden Center and may other auxiliaries.

The store opens at 6 am and closes at 1 am everyday of the week. Given its location, the store has high turnover rates of goods and services. Therefore, it needs to be supported by an effective and efficient supply chain. Consequently, the management of the outlet is committed to service delivery since it provides training to its employees, empowers and rewards its employees. As a result, the employees of the outlet are highly skilled and motivated to meet the needs and requirements of the customers that they serve.

Wal-Mart was the best organization to focus on for several reasons. First, I have been shopping in Wal-Mart for several decades now. I have therefore experienced the advancements that the organization has come up with to enhance the shopping experience of its customers.

I have also worked in Wal-Mart for several months. Despite the fact that I was not involved with managerial work, I developed a clear understanding of the manner in which the firm runs and manages its operations. Therefore, these factors played a critical role in ensuring that the information that I have gathered with regards to the organization is relevant, accurate and fully researched.

Analysis of Processes

The operations of the all Wal-Mart outlets are based on the core values of its founder, Sam Walton. Respect for individuals, striving for excellence, the customer is the king and always low prices, always are some Sam Waltons philosophies that are now the main core value of the organization.

With these values, the firm has been able to develop strategies to achieve its mission and visions (Azili 4). For instance, to keep up with the increased needs of its customers, the firm has always sold its products at a cheaper price as compared to its rivals.

Consequently, the firm has embraced the concept of information technology. Since 1996, Wal-Mart customers have been able to shop online through its official website, WALMART.COM. This strategy has increased its customer base as well as repeat purchases. Through Sams Club, the firm has been able to strengthen its relationship with small businesses. These strategies have made Wal-Mart to be a leader in B2B as well as B2C markets (Azili 4).

However, much of the success that the organization is enjoying originates from its effective supply chain management. Since its incorporation, Wal-Mart has always strived to offer its products and services at a price that is lower than its rivals are. To achieve this, it has been essential for the firm to develop an effective and efficient supply chain that reduces the operating costs and ensures delivery of high quality goods to its target market.

Once of the main strategies that the organization had applied is the elimination of intermediaries in the process of procuring its goods and services (Chandran 3). Wal-Mart deals directly with the manufactures of the goods and services it needs. The firm only purchases goods from a specific manufacturer once it is assured that it cannot access similar goods at a lower price elsewhere.

Thus, the organization spends a considerable amount of time and money in meeting prospective vendors, analyzing their manufacturing costs as well as the quality of their products and ascertaining whether they meet their requirements. Once all this has been approved, there is a high possibility that Wal-Mart will develop a long-term relationship with the vendor.

To minimize on its operating costs, Wal-Mart usually prefers dealing with local and regional vendors. According to Chandran (2003), transportation costs play a significant role in increasing the final price of a given product (5). Wal-Mart is aware of this fact and thus it prefers to contract local manufacturers to further minimize operating costs.

By the close of the 20^th century, Wal-Mart had over 40 distributing centers in the United States alone. This move ensured that the organization stood at a competitive edge since it only required a maximum of 2 days to replenish its stocks in any location within the United States as compared to other firms that usually take between 5-7 days (Chandran 5).

To ensure that the warehousing process is effective and efficient, Wal-Mart uses a mixture of IT and barcode technology to ensure that the process of storing, retrieving, packaging, and maintaining inventory is effective and efficient. The incorporation of these technologies has highly reduced the operating costs as well as time hence playing a critical role in enhancing the efficiency of the corporation.

Wal-Mart also has an effective logistic system that ensures timely delivery of products to all its outlets. First, all its distributing stores are situated at strategic locations to reduce the distance covered by each truck. Consequently, each distribution store has a specific number of outlets that it serves (Chandran 6).

With the help of a coordinator, the dispatch and arrival of products from distribution centers to Wal-Mart outlets is also effective and efficient. The cross-docking technique has greatly reduced the handling and distribution of Wal-Mart products. According to this technique, goods are sorted out, packed and distributed directly to the customer from the manufacturer (Chandran 6). This technique has greatly enhanced the relationship that Wal-Mart has with its customers, especially small businesses.

With the effective inventory management systems that it has, the operation of Wal-Mart has been sustainable, effective, and efficient. For instance, the corporation has developed several strategies to sustain its store operations. For instance, the firm has always strived to achieve individual needs of every store (Chandran 7).

There are those stores that usually exhibit high turnover rates. Therefore, given the fact that most of their products are usually in demand, such stores usually have an accelerated delivery system that ensures replenishment of inventory every 24 hours irrespective of their size or geographical location.

Recommendation for Improvement

To enhance on its operations, Wal-Mart needs to have a recruitment exercise that is effective and efficient. This will ensure that qualified individuals who possess specific skills and qualifications are assigned specific roles and duties within the organization. This will ultimately increase the effectiveness and efficiency of the firms operations in the short run and in the long run.

For instance, the firm should come up with stringent measures while selecting drivers to run its fleet of over 3,500 trucks within the United States. For one to qualify as a driver for Wal-Mart in accordance to this proposal, he/she needs to have a driven over 300,000 accident free miles with minor violations.

Consequently, with the help of the Private Fleet Driver Handbook, the company will ensure that its drivers are well aware of the codes of conduct that governs the organization. This handbook will also guide the drivers in ensuring that the handover process of trailers with store personnel is effective to safeguard the safety of Wal-Mart properties. In the process therefore, goods will be transported in an effective manner from the distribution stores to the outlets.

Implementation and Managerial Implications

Other than having a strong workforce, Wal-Mart needs to increase their reliability. It has been identified that Wal-Mart is among the companies that has low wage rates in the USA (Azili 9). While corporations such as McDonalds and Starbucks pay their employees a minimum wage of $12.04 per hour, the minimum hourly rate at Wal-Mart is $11.75 (Azili 9).

Consequently, Wal-Mart employees do not have a collective labor union. Therefore, it is difficult for them to bargain for better wages and working conditions. Therefore, Wal-Mart needs to improve on these factors since it will increase the effectiveness and efficiency of its operations as well as its overall credibility as the leading retail outlet in the United States.

Surprises

While focusing on Wal-Mart, the major surprise I had is the level at which the corporation has adopted and implemented information technology in its operations. With the help of IT, the management of inventory has been enhanced by managing and monitoring sales and merchandise inventory (Chandran 6).

Due to its efficiency, Wal-Mart now allows each outlet to take and manage its inventory. To monitor the movement of products from distribution centers to respective outlets, Wal-Mart launched a satellite program in 1983. With this system, the management is capable of tracking each and every inventory that is within the system before it is sold. Wal-Marts IT system is also linked with its suppliers.

For instance, through this system, Wal-Mart is capable of tracking merchandize inventory from Procter & Gamble warehouses to its delivery centers and outlets. The system also has an automatic re-order mechanism that ensures a steady availability of products according to their demand (Chandran 6). In the process, Wal-Mart is capable of meeting the needs of its customers as well as maintaining long-term relationship with its suppliers.

Works Cited

Azili, Muhamed. The Case Study of a Company: Wal-Mart. Web.

Chandran, Mohan 2003, Walmarts Supply Chain Management Practices. Web.

Introduction

Walmart is an American multinational corporation that operates a number of large department stores that sell a variety of merchandise at wholesale and on retail terms in more than 15 countries. Founded in 1962, Walmart has grown steadily and is now one of the largest corporations in the world by revenue, assets, and employee numbers. Currently, the corporation operates in three business units: Wal-Mart Stores and Sams Club (both exclusive to US markets) and Wal-Mart International.

The factors that can be used to explain Walmarts success are as follows:

Opening More and More Stores

Walmart has regularly opened up stores in different areas around the world thereby moving closer to its clientele, establishing its presence and hence building its image. Today, customers easily recognize these stores through the iconic store design, displays are, and in-store entertainment initiatives.

Well-Stocked Stores

Walmart recognized that in order to maintain a high customer traffic into its stores, then it had keep its stores well-stocked with products that serve most market segments. Careful management of inventory and a full understanding of the companys distribution and logistics is an essential requirement of each store.

Focus on the Customer

In order to enhance consumer experience, Walmart divided its operations into three business units as mentioned above. In the US, Sams Club and Walmart Stores integrate closely to improve operations and serve different market segments efficiently.

Cultural Element Targeted for Change

The cultural element targeted for change is the corporations culture of non-support for its staff to join labor unions. This culture should change since labor unions enable workers to have a stronger collective bargaining whenever they are faced with particular problems (Holley et al, 228).

Walmart has traditionally opposed labor unions among its staff. The corporation has been blamed for its workers reluctance to join unions through activities such as staff surveillance and closure of stores whose staff opted to unionize. The corporation, in defense, has asserted that it is not anti-union but says that its open-door policy implies that staff do not have to approach the management through a third party, rather, they should submit their grievances directly.

Proposed Intervention

The intervention strategy will entail a redesign of Walmarts culture so that its human resource is given the freedom to join labor unions. This includes the company changing its perception regarding the importance of labor unions. This is a form of a behavior change strategy.

The theory of reasoned action can be used to implement this initiative as Walmart would have to identify the intention in culture redesign before finally implementing it. A second theory would be that of Stages of Change model, where change would occur from one stage to another until complete change is realized and staff are allowed to unionize. This can occur by informing staff of the benefits of unions, then proceeding to store managers, and gradually up to the regional vice presidents (RVP). A final theory is that of planned behavior, where staff would take control of the change process.

After a series of culture redesign initiatives, Walmart is expected to allow its staff to form of join other labor unions. A factor that can aid this initiative is that the Department of Labor has been pushing on companies to allow their staff to join these unions. A follow-up plan would involve talking to the staff and taking count of the proportion that has joined labor unions against Walmarts total employee population.

Work Cited

Holley, William H., Jennings, Kenneth M., and Wolters, Roger S.The Labor Relations Process. Mason, OH: Cengage Western, 2008.

Grand strategy is about an organization utilizing all resources at its disposal for the purpose of winning a competitive edge or maintaining a competitive edge. Therefore, an organization can continue its extraordinary growth when it identifies and aligns all its resources towards the strategic goal (Ireland et al 45). Wal-mart can only continue its extraordinary growth by capitalizing on its strengths, tapping into opportunities in the market, addressing weaknesses and eliminating or minimizing threats.

Porter frames some of the common strategies that market leaders employ to maintain market leadership. These strategies are commonly referred to as generic strategies and are diagrammatically represented as shown in table below

Wal-mart as an organization has a high market scope and a high low cost competence. Therefore, by adopting multivariate strategy i.e. combining product differentiation, cost leadership and proper market segmentation, it can maintain its extraordinary growth.

Building and sustaining a competitive advantage is largely dependent on product characteristics, value for customers money and proper positioning and targeting of products. In porters generic strategies, market segmentation looks at customer peculiarities and narrows concern to particular markets.

Product differentiation and cost leadership as strategies are more diverse and broader in their scope. As Wal-marts characteristics show clearly, a good fusion of these generic strategies should enable it to continue growing in an extraordinary way.

Wal-Mart is a strong brand developed over many years and supported by over 42 years experience as a major market player (Yoffie 1). It has a high market share and due to expanded operations benefits immensely from economies of scale. Management, by riding on its huge market share and well built brand resonance, can create more revenue streams under the same brand.

This would require, in line with product differentiation, identifying other unique merchandise that could be added to the product line without jeopardizing the brand image. The merchandise has to be unique enough as to be easily associated with Wal-Mart as a brand. The company is already doing this through creation of superstores with a variety of products on offer (Yoffie 1).

There exists opportunities in the international market. However, in as much as the low pricing strategy has driven its growth in America, the company has to devise market segmentation strategies to fruitfully enjoy opportunities abroad.

For example, instead of positioning itself only as a low priced store, it should look into positioning itself as the most fashionable store that guarantees a wholesome experience. Proper positioning coupled with its low pricing strategy should continue to drive sales; it will attract both high end and low end customers.

One weakness with Wal-Mart is its store formats (Yoffie 2). It is getting stiff competition because while it is building super stores, competition is going for specialized store formats. Product differentiation comes in handy here so that as competition from specialized stores grows, Wal-Mart retains and grows its market share.

Wal-Mart needs to appreciate the growth potential in small stores like the ones it initially had; the stores it is replacing with super stores. Although having superstores has its own advantages, a fusion of superstores and small specialized stores should guarantee continued extraordinary growth.

What would be the limits to that growth?

Porters five forces would be helpful in determining what would limit Wal-Marts growth. According to porter, an organization or products performance is dependent on five distinct forces (Mintzberg et al 100). Wal-Mart does not deal in totally differentiated products.

Therefore, the threat of new entrants and competitive rivalry is very high in the retail industry and is likely to go up. Considering supplier power in the retail industry, there are many suppliers thus minimizing supplier power. On the other hand, buyers have enormous power due to many retailers and a variety of substitutes. Therefore, the greatest limit to Wal-Marts growth is likely to result from competition activity and customer perception of the competition rivalry.

A companys growth is limited both by internal and external factors. Considering internal factors, the only limitation to Wal-Marts growth is hiccups in managing a global conglomerate of sorts. Externally, social and cultural perceptions are likely to shape and limit Wal-Marts expansion.

As the case indicates, Wal-Mart employs very many people. As it continues on the path of extraordinary growth, it means more people being employed to work in the branches and subsidiaries or joint ventures. Managing all the people and the multifaceted conglomerate will not be ease.

In actual sense, unless the organization is fragmented such that given regions or lines become close to totally independent, managing the organization becomes a nightmare. Therefore, the extraordinary growth of Wal-Mart is likely to be checked by management complexities or challenges.

On the external front, there is likely to gradually grow a sort of disenchantment about Wal-Mart and its conglomerate size. Although Wal-Mart is growing based on honest and best business practices, as it continues to rake in billions in profits, seeds of discontent will sprout among people of different nations. Wal-Marts growth will be interpreted as the reason why small businesses can no longer develop or grow.

A percentage of the world population does not like identifying with Mega things (Dess & Taylor 27). Therefore, they will continue to seek small specialty brands rather than a mega brand that promises everything. For some people, small specialized is identical to personalized, caring and detailed thus more quality conscious.

Such like sentiments are likely to make competition to mega retailers buoyant. Other people will just desert Wal-Mart in search of difference or something new. The products may not be new but given they buy from a new brand, the shopping experience is different.

Did Asia and Europe offer Wal-Mart real opportunities for international market dominance?

A pestel analysis of the Asian and European market shows that they offered Wal-Mart perfect opportunity for international market dominance. Politico-legally and even environmentally, there is no mention, in the case study, of opposition to Wal-Marts foray into Asia or Europe. Through acquisitions, mergers and joint venture techniques, Wal-Mart was able to take people by surprise that no social resistance is reported in the case (Yoffie 4).

In those countries, Wal-Mart, economically, found liberal economies and luring economies of scale due to the block markets they offered. Technologically, Wal-Mart was better placed than all other retail stores in the new markets; having adopted IT in its logistical processes. Therefore, using its economic advantage and awesome business strategy, Wal-Mart entered the Asian and European market and by outwitting competition in those markets, it became a dominant global player.

How could the company take advantage of its global reach to propel itself through the years to come?

When analyzing competitive strength, key success factors are often analyzed to understand how businesses in an industry are fairing. In the retail industry, some of the key success factors are price, store format, range of product, store cleanliness, flexibility or readiness to change and customer care (Ireland et al 117).

Among the key success factors, there are those that are critical success factors for giant operators. The history of Wal-Mart shows that the critical success factors in the retail business are low pricing and good logistics.

Due to economies of scale enjoyed as a result of volumes moved around the world, going into the future, Wal-Mart may always offer the most competitive prices in the market. The economies of scale enjoyed due to a global reach makes Wal-Mart better positioned to offer lower prices than other retailers.

Secondly, due to a global outreach, with stores in many countries around the world, Wal-mart will continue to enjoy better logistical possibilities than other retailers. Wal-Mart currently has a logistical strategy that allows for Just in Time operations. Considering that the future of business will be more information technology driven, online stores complemented by physical stores around the world gives a global player a big competitive edge.

Information technology and improvement in transportation has made the world a small village. Much business is happening on-line and Wal-Mart is not being left behind. Through e-commerce processes, Wal-Mart can continue to access even more customers from all over the globe. With stores in every part of the world, the e-processes complement sales activities in the stores.

Works Cited

Dess, Gregory, G. & Lumpkin G. Taylor. Strategic Management: Creating Competitive Advantages, 2^nd Ed. London: Mcgraw Hill Book Co, 2004.

Ireland, R. Duane, Hoskisson E. Robert & Hitt, E. Michael. Understanding Business Strategy: Concepts and Cases, London: Cengage Learning, 2008.

Mintzberg, Henry, Ahlstrand W. Bruce & Lampel, Joseph. Strategy Safari: A Guided Tour through the Wilds of Strategic Management. New York: Free Press, 1998.

Yoffie, David B. Wal-Mart, 2005. Harvard Business School, 705.460 (April 14, 2005): 1- 9.

Introduction

Wal-Mart Stores, Inc. came began its operations in 1969 and has retail outlets in different designs around the world. The company endeavors to provide different products at the lowest price possible through its pricing tenet of everyday low prices (EDLP). Wal-Mart operates in three major sections, which include international section, United States of America section and the Sams Club section (Reuters, 2020).

Wal-Mart is one of the best performing companies in the retail industry, the biggest retailer in the industry and the greatest employer in the world. The company has various sustainability strategies in place to ensure continued dominance in retail industry around the world (Reuters, 2020). This essay seeks to answer various questions relating to Wal-Marts sustainability efforts, challenges facing Wal-Mart and solutions to such challenges.

Is Wal-Mart doing enough to Become More Sustainable?

Wal-Mart Inc. is doing enough to become more sustainable. The company has surmounted challenges related to discrimination of employees. Wal-Mart has embraced diversity concerning both employees and customers. In addition, the company received a commendation from the National Association for Female Executives for treating female staff members with distinguished dignity. This way, the company is able to retain its clients and staff members for longer periods hence enhancing sustainability.

Secondly, Wal-Mart Inc. has earned the goodwill of environmental-conscious customers by adopting green initiatives. Other than receiving such goodwill, green initiatives contributed to massive savings by the company of around 25 million US dollars since the start of the initiatives.

One such initiative involved installation of auxiliary power mechanisms on trucks to run air conditioning systems when the trucks were in stationary position. In addition, Wal-Mart saves 7 million US dollars after installing fluorescent bulbs instead of incandescent ones.

Previous Problems and Solutions

Wal-Mart inc. has faced various problems in the recent past. Such issues include lawsuits filed by employees alleging lack of meal breaks, alteration of meal cards to avoid paying overtime as well as allegations of discrimination of employees based on color and origin.

Studies showed that the company discriminated against women as evidenced by the low number of women in management level compared to male counterparts as well as lower remuneration for women in similar positions with men. In addition, women rarely received promotions, training and pay. Some managers had employed undocumented immigrants and the state sued the company for it.

In trying to solve such problems, Wal-Mart Inc. has worked to enhance its corporate reputation as well as sustainability and corporate governance through the formation of Global Ethics Office. The office offers direction on ethical decisions based on the companys code of ethics.

Concerning various lawsuits facing Wal-Mart, the company paid out various compensations to discriminated workers and the illegal immigrants. In addition, the ethical code has assisted the company to accord decent treatment to female workers to the extent of receiving recognition from the National Association for Female Executives.

Why has Wal-Mart Tended to Improve Performance While Other Retail Outlets Have Been Suffering Financially?

Wal-Marts commitment to providing lowest prices possible to customers is one of the main factors that have enabled the company stay financially afloat. The companys claim of improving living standards for customers leads to increased number of clients. The green initiatives have led to massive financial savings at Wal-Mart making Wal-Mart more sustainable by directing such saved finances to other important duties like increasing of salaries and purchasing more stock.

Reference

Reuters. (2020). Wal-Mart Stores Inc (WMT.N). Web.

Introduction

In recent years, Wal Mart has come under intense criticisms. Its major critics have been Christian groups and labor organizations in relation to the companys practices. In the long run, the company has ended having bad public relations. This is a matter of concern to the management. As a matter of fact, there are various issues that need to be looked at for sustainability.

Bad public relations affect the companys performance in various ways. Although there might be some misconceptions in relation to the companys policies, there is need to ensure that such issues are clearly addressed. This will make it easy for various stakeholders to understand the companys position in a better way.

Criticisms

In recent years, several labor unions have argued that the company does not allow its workers/employees to become their members (Frank 5). They have further implied that Wal Mart has a very strict anti-union stance. This means that workers cannot join trade unions without any victimization. For instance, in 2005, the company was negatively portrayed by labor unions through media campaigns (Kabel 7). An example of such negative media campaigns is the Wal-Mart Watch advert.

This advert was sponsored by the service employees union (Kabel 12). In addition, there was the wake up Wal- Mart advert by the food and commercial union. Wal-Mart has also been criticized for locking night shift workers in the shopping malls. This case was compounded by an employee who waited for hours before he could get any help after crushing an ankle (Frank 15). The worker could not get any medical attention because all the exits were locked.

Various organizations have argued that this is the cheapest practice that the company has ever engaged in as far as risk management is concerned (Stilgoe 32). Furthermore, this is a very draconian working environment. Wal- Mart is being accused of paying its employees low and unacceptable wages. Most people believe that the company is getting away with such a practice and this is unacceptable.

Although these payments are above the poverty levels, the company is being pressurized to at least increase its wages. Because of this, the companys competitors and other organizations are saying that there is an impact to workers wages when it enters a given market. In this case, the company can displace other high wage retail jobs.

This therefore becomes an economic loss to most workers. In addition, disposable income is greatly affected and this reduces their purchasing power. On the other hand, the company reduces a countrys employment by 2.7% (Meekel 16). This is in relation to its store openings as far as retail employment is concerned.

These critics have further implied that Wal- Marts entry to a given market makes other retailers to change their wage policies and practices. In this case, it depresses wages and salaries. In addition, the company is believed to displace good and better paying jobs. Jobs that have been eliminated pay 18% more than what the company offers in a metropolitan area. Generally, merchandising workers wages are reduced by more than 0.8 % (Meekel 24).

Wal- Mart is also being accused of exposing employees to dangerous health hazards. This means that employees are subjected to poor working conditions. According to them (critics), the company is big enough to ensure that health standards and practices are adhered to (Barbaro 19). To push their case forward, they have made reference to the companys reports that attest to the fact that it has extensive health problems in its directly sourced factories.

Apart from these arguments and accusations; there is a feeling that Wal- Marts entry in a given market hurts small businesses. This is because; there is a reduction in net employment more so by small retailers. As a matter of fact, this increases the chances of job destruction in case there is an exit from the market.

From the Wake- up Wal- Mart media campaign, the company has been accused of making taxpayers to suffer because of its poor pay and low wages (Barbaro 34). This means that public assistance as a result of the companys policies makes different states to lose a lot of money.

Various communities feel that the company does not consult them in their expansion programs. In this case, they argue that Wal- Mart builds various stores in different towns without involving to residents (Barbaro 41). The company is also facing various gender and sexual orientation law suits. It is alleged that female employees are discriminated against as far as promotions and pay are concerned. This is a very big law suit considering that the company employs more than 1.5 million women (Stilgoe 23).

The company has received various grievances in relation to employee-employer relationships. There is an unfavorable relationship that makes it hard for employees to carry out their duties more effectively. This affects their productivity and ability to become more creative and innovative (Barbaro 19).

Recommendations

All these arguments and accusations have in one way or the other affected the companys public relations. As a matter of fact, the company needs to rectify the bad public relations it has received. In addition, they can still turn this public relations mess into a more positive public image. As much as the company has launched an effective media campaign, working families for Wal- Mart, it needs to intensify such campaigns to correct its image. This will give it an opportunity to tell its own side of the story (Sellers 21).

In this case, people will be able to understand what is going on in the company instead of reading stories from the media. There should be more intensive counter criticisms through effective public relations. As a matter of fact, the company has a PR website, walmartfacts.com, which needs to be made more effective. Through this website, the company can be able to engage various stakeholders and come up with the best way forward.

Wal- Mart needs to engage the services of a competent PR firm that will interact with stakeholders on a personal level. This will give them a chance to express themselves in relation to the companys policies. In addition, the company will be able to explain these concerns before they are taken advantage of by its critics.

As far as the companys health standards and working conditions are concerned, they can invite people to visit its headquarters and stores. This will enable the company to interact well with various parties and come up with a solution to such a problem.

The company needs to come up with good health coverage plans that will cover more employees (Basker 9). These plans should be well marketed and publicized to attract more employees and ensure that they are taken care of. This will correct the bad public relations that it has received in relation to health standards. Online interaction should also be enhanced to improve its relations with shoppers and customers. This will enable the company to get rid of any misconceptions in advance.

Because it has been hurt by bad public relations, the company should increase its public relations and media team. This will ensure that any concerns and bad public relations are attended to without straining its existing team. In the long run, it will attract the best talent in public relations and improve its image (Basker 27). Through these recommendations, the company will be in a better position to improve its bad public relations for sustainability. This is because bad public relations can affect its business and market position.

Conclusion

Bad public relations affect the companys performance in various ways. Although there might be some misconceptions in relation to the companies policies, there is need to ensure that such issues are clearly addressed. This will make it easy for various stakeholders to understand the companys position in a better way. All these arguments and accusations have in one way or the other affected its public relations.

As a matter of fact, the company needs to rectify the bad public relations it has received. In addition, they can still turn this public relations mess into a more positive public image. As much as the company has launched an effective media campaign, working families for Wal- Mart, it needs to intensify such campaigns to correct its image. This will give it an opportunity to tell its own side of the story.

Works Cited

Barbaro, M. Its not Only about Price at Wal-Mart. New York: The New York Times, 2007.

Basker, E. Job Creation or Destruction? Labor-Market Effects of Wal-Mart Expansion. Missouri: University of Missouri, 2002. Print.

Frank, T. A. A Brief History of Wal-Mart.The Washington Monthly, 2006.

Kabel, M. Wal-Mart, Critics Slam Each Other on Web. Washington: The Washington Post, 2006.

Meekel, D. Wal-Mart Flacks Detail Plan  Again, Lebanon Daily News, 2005. Print.

Sellers, J. Deliver Us from Wal-Mart?Christianity Today, 2007.

Stilgoe, J. Wal-Mart Giant Can Be Tamed. The Boston Globe, 2006.