Case Study Analysis: Wal-Mart and Home Depot
Summary Under staunch leadership, Wal-Mart rose to the top of the proverbial business food-chain after its foundation in 1962 (Ferrell, Fraedrich, & Ferrell, 2011). The company’s beginnings were humble, growing from one store to 3,000 in only 5 decades (Ferrell, Fraedrich, & Ferrell, 2011). Like most companies, Wal-Mart faced the trials and tribulations caused by evolving, adapting, and competing in a growing, changing world. Wal-Mart responded positively to the highly controversial lawsuits, media, and stigmas against it (Ferrell, Fraedrich, & Ferrell, 2011).
Wal-Mart’s core values evolved and adapted over the years in order to remain competitive (Ferrell, Fraedrich, & Ferrell, 2011). Founder Sam Walton’s original vision was modified to fit ever-changing cultural norms, trends, and demands (Ferrell, Fraedrich, & Ferrell, 2011). Despite the ups and downs, overall Wal-Mart is a success story, and Sam Walton is an admired, model businessman.
Analysis
1. What is the single most important ethical issue presented in the case, how has the issue affected specific stakeholders?
I believe the most important ethical issue presented in the case is the fact that the Wal-Mart’s drive for low prices causes supplier stakeholders to move production overseas in order to cut costs (Ferrell, Fraedrich, & Ferrell, 2011). It is an undeniable fact that Wal-Mart saves people money; however, just as undeniable is the fact that it has continually causes the loss of American jobs and the closure of American businesses. Despite Sam Walton’s push of a “Buy American” campaign, some 80% of supplier’s have moved overseas (Ferrell, Fraedrich, & Ferrell, 2011). This is a problematic symptom with a huge ripple effect.
2. What has the company done to address their ethical issues, what could they do differently to avoid future ethical issues?
Wal-Mart has faced a wide array of criticism. The company has engaged in less that ethical behavior at several junctures. Wal-Mart dealt with
Wal-Mart’s core values evolved and adapted over the years in order to remain competitive (Ferrell, Fraedrich, & Ferrell, 2011). Founder Sam Walton’s original vision was modified to fit ever-changing cultural norms, trends, and demands (Ferrell, Fraedrich, & Ferrell, 2011). Despite the ups and downs, overall Wal-Mart is a success story, and Sam Walton is an admired, model businessman.
Analysis
1. What is the single most important ethical issue presented in the case, how has the issue affected specific stakeholders?
I believe the most important ethical issue presented in the case is the fact that the Wal-Mart’s drive for low prices causes supplier stakeholders to move production overseas in order to cut costs (Ferrell, Fraedrich, & Ferrell, 2011). It is an undeniable fact that Wal-Mart saves people money; however, just as undeniable is the fact that it has continually causes the loss of American jobs and the closure of American businesses. Despite Sam Walton’s push of a “Buy American” campaign, some 80% of supplier’s have moved overseas (Ferrell, Fraedrich, & Ferrell, 2011). This is a problematic symptom with a huge ripple effect.
2. What has the company done to address their ethical issues, what could they do differently to avoid future ethical issues?
Wal-Mart has faced a wide array of criticism. The company has engaged in less that ethical behavior at several junctures. Wal-Mart dealt with