Transcript Wal-Mart
Wal-Mart Case 6-9 Stephen MacNeil Jim Zolty Eyosias Solomon Cody Chaplain Melissa Jenkins Brandon Withers Outline • Key Problems • Company’s Situation • Recommendations Key Problems • • • • Selective Cultural Gatekeeping Employment Issues Government Issues Supply Chain Tyranny Selective Cultural Gatekeeping • Censored CD’s • Censored/Removed Magazines – “fine line between pornographic and provocative” • Preven Pill – “moral dilemma” Employment Issues • Underpaid Employees – 2003 average associate made $13,861 a year, almost $800 below the federal poverty line for a family of three. • Lawsuits & Sexual Discrimination – Largest civil rights class action ever • Turnover rate Government Issues • • • • U.S. Economy’s dependence on Wal-Mart Lobbyists in Washington Overturning local ordinances by petition Government can not control Wal-Mart Supply Chain Tyranny • Wal-Mart dictates: – – – – – Delivery schedules Inventory levels Specifications of products Product selection Merchant selection • Bought 10% of all US imports from China in 2003 Company’s Situation • World’s largest retailer – $245 billion in sales in 2002 – Partly responsible for low inflation rate in recent years • Saved customers $20 billion in 2002, by offering lowest prices • Low price, family-oriented, patriotic culture • Sends conflicting messages Company Situation • Low Prices – 14% lower average grocery prices – 82% of all American households made at least one WalMart Purchase in 2002 • Everything under one roof; “SuperCenter” • Hollywood’s biggest outlet of CDs and DVDs • Controls large share of business done by most every major US consumer products company Recommendations for Cultural Gatekeeping • Use marketing research to understand what customers truly want – More emphasis on focus groups – Survey customers in and out of store – Check sales receipts to compare what customers are buying More Recommendations • Pay more competitive wages and provide incentives to workers • Reduce cost by reducing store hours • Settle lawsuits quietly • Improve public relations • Do not open stores in small towns Provide more leniency to suppliers The Mixed Image • Wal-Mart is the best and worst thing that has happened to the United States • Best thing because: • Low prices have reduced the inflation rate • Worst thing because: • If Wal-Mart collapsed, there could be a national security issue • So many people are against Wal-Mart, but they can not live without it. Fix the Mixed Image!