Case Analysis For Wall-Mart In 2003 Essay

OLUSANYA AKOMOLEDE

WAL-MART STORES IN 2003

CASE ANALYSIS

SITUATION AUDIT AND SUMMARY
    ▪ Wal-Mart happens to be the world largest company, and with 1.4 million employees, the world’s largest private employer.

    ▪ Wal-Mart’s key objectives include respect for the individual, service to customers, and striving for excellence.

    ▪ It success had been the expansion potential ability which it applied by international operation. It has also been considering expansion into some other business area like the basic financial services for U.S. customers.

    ▪ Wal-Mart also was able to capitalize on the advantage of information technology availability, it invested massively in IT and became one of the leaders in general IT driven transformation of retailing.

    ▪ Contrary to what Wal-Mart claimed that its benefit and wages are very competitive, It had been proved that its wages in the United States were $2-$3/hour less than unionized competitors. Also its average wages for full-time associates in fiscal 2002 were less than $14,000 per year, versus a federal poverty line of $14,630 for a family of three.

    ▪ Wal-Mart was engaged in a number of lawsuits due to attitude of some store managers forcing workers to work late in the night with more hours without compensation.

    ▪ Wal-Mart has also been alleged for discrimination against a particular gender. Although more than two-third (2/3) of its hourly employees are female, they hold only one-third (1/3) of store management jobs, and less than 15% of store manager positions.

    ▪ After 10 years of operation in the international scene, the organization experience performance problem due to its integration with some European hypermarket chains then came the thought to redefine and expand it products.

PROBLEM/DECISION STATEMENT

    ▪ Being the world largest company and the largest retail store, it becomes a challenge to...