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BEG Assignment 2 1 1
Table of Contents
Summary of Case 2
Question 1 3
Question 2 3
Question 3 5
Question 4 6
Question 5 7
Question 6 8
References 10

Summary of Case

This is a case study on Wal-Mart in which it emphasizes on the ethical question being practiced by Wal-Mart. It will cover ranging from the affected stakeholders such as customers, employees, community, and suppliers to the stockholders perspectives. The employee experiences the ethical problems of Wal-Mart as they are forced to work off the clock without pay. This has also affected the tax-paying community as well as the government in term of poverty. The suppliers also had to put up with Wal-Mart, as it is a strong market leader and influencer in the world. As a result, they have the utmost power in choosing the right supplier, which can offer them the cheapest products compared to others as Wal-Mart focuses on its cost-cutting policy.

Question 1

According to Sethi (2013), Wal-Mart is the largest retail enterprise in the world with the total profits of 421.8 billion and a net income of $16.4 billion in 2011. In relation, it is also the world’s largest employer, hiring around 2.1 million employees worldwide in 2010.

The managerial philosophy of Wal-Mart can be described as low prices and they have been using this strategy until today as reflected in their marketing campaign of “Everyday low prices”. The main goal of Wal-Mart is to obtain low retail prices by leveraging its buying power as the world greatest, retailer and by controlling labour costs.

Walmart stated several values that the company follows and portrays itself as a business that was built upon a foundation of honesty, respect, fairness and integrity. In addition, the principles that are followed by Walmart, are: respect for individuals, service to customer, and striving for excellence. These are also known as the basic beliefs recognized by the founder, Sam Walton.

Principles Involved lea
Honesty
Respect
Fairness


References: Greenhouse, S. and Abelson, R. (2011). Wal-Mart Cuts Some Health Care Benefits. New York Times, 20. Moldoff, R. (2002). SAVE OUR LAND, SAVE OUR TOWNS/STORE WARS: WHEN WAL-MART COMES TO TOWN. American Planning Association. Journal of the American Planning Association, 68(3). Mufson, S. (2010). In China, Wal-Mart presses suppliers on labor, environmental standards. Washing Post. [online] Available at: http://www.washingtonpost.com/wp- dyn/content/article/2010/02/26/AR2010022606757.html. [Accessed 16 Jul. 2014]. Neumark, D., Zhang, J. and Ciccarella, S. (2007). The Effects of Wal-Mart on Local Labor Markets. [online] Papers.ssrn.com. Available at: http://papers.ssrn.com/sol3/papers.cfm?abstract_id=958704. [Accessed 15 Jul. 2014]. Norman, A. (2014). New York study says retailer will kill 14,000 jobs. [online] Available at: http://walmartwatch.org/blog/archives/new- york-study-says-retailer-will-kill-14000-jobs/. [Accessed 15 Jul. 2014]. Peteraf, M. (1993). The cornerstones of competitive advantage: A resource-based view. Strategic management journal, 14(3), pp.179--191. Pubadvocate.nyc.gov, (2014). News & Press | Public Advocate. [online] Available at: http://pubadvocate.nyc.gov/news/2011-01- 11/new-study-wal-mart-means-fewer-jobs-less-small-businesses-more- burden-taxpayers. [Accessed 15 Jul. 2014]. Ramcigar.com, (2005). University of Rhode Island (The Good 5 Cent Cigar) News and Classifieds. [online] Available at: http://ramcigar.com [Accessed 17 Jul. 2014]. seattlepi.com, (2014). Wal-Mart 's women -- employees and customers -- in unhealthy relationship. [online] Available at: http://www.seattlepi.com/opinion/205768_focus02.html. [Accessed 15 Jul. 2014]. Sethi, S. (2013). The World of Wal-Mart. [online] Carnegiecouncil.org. Available at: http://www.carnegiecouncil.org/publications/ethics_online/0081 [Accessed 15 Jul. 2014]. Sichel, W. and Eckstein, P. (1974). Basic economic concepts. 1st ed. Chicago: Rand McNally College Pub. Co. Wakeupwalmart.com, (2007). Making Change at Walmart. [online] Available at: http://wakeupwalmart.com [Accessed 17 Jul. 2014]. Walmartstores.com, (2014) Watch, Wal-Mart, (2007). Issues and Suppliers Relationships. [online] Available at: http://walmartwatch.com/issues/supplier_relationships/. [Accessed 15 Jul. 2014].
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