In fact, during the 1980’s, he started a “Buy American” campaign to help keep American companies from going out of business. It didn’t seem to work out in the end. More than 80 percent of Wal-Mart’s products come from overseas (Ferrell, 2011). One of the more public ethical dilemmas that Wal-Mart faced was the ones involving employees. Discrimination issues involving pay differences and leadership positions between men and women.
Wal-Mart argued it had a strict anti-discriminatory policy and that Wal-Mart Corporation as a whole should not be held accountable for a few bad choices made by a few managers in a few stores. Sex Discrimination at Wal-Mart Betty Dukes was an employee at a Wal-Mart store in Pittsburg, California. She came to Wal-Mart with several years of retail experience and know-how. In May 1994, she started as a part-time cashier. After nearly a year, she was promoted to full time and received a pay increase.
The purpose of keeping inventory low is to reduce overhead costs related to inventory management as well as reduce the risk of inventory obsolescence (leading to markdowns). Freeing Up Cash For Investments : Wal-Mart currently maintains accounts payable of close to $30 billion, while its accounts receivables are close close to $4 billion. Accounts payable is the amount that Wal-Mart is yet to pay to its suppliers for the inventory it has purchased, while accounts receivable is the sales revenue that Wal-Mart is yet to collect from its customers. Wal-Mart has been able to maintain the wide difference between payable s and receivables because of its influence over the suppliers and the brand image that it has built over the years . Higher payable balance allow Wal-Mart to hold significant cash that it can invest in its own business or that can earn interest.
Some of the economists feel that Walmart has done more harm than good to the Americans. Some other economists argue that Walmart’s strategy of keeping prices rock bottom helped middle-class Americans to improve their life standards by saving money on most consumer goods. They also argue that, money saved would be used to buy some other luxury items, there by increasing jobs in some other sector. However are the arguments of economists, there is still a mystery about the question – Is Walmart good for America? This issue started from the day US and China have signed a free trade agreement in the year 2000.
Jonathan Thomas Drumming ACG 5715 2 November 2014 Wal-Mart Case Study Part A a) ROA is determined by the change in net income and total assets. If profit margin and asset turnover are looked at with one another then additional information can be determined regarding ROA. For starters, there has been a general decline in profit margin from 2006 to 2008. Based on the strategy of the company, low profit margins are not alarming. Judging the economic conditions of the time, I would suspect that the company lowered its prices in order to maintain customers since consumer spending was in a down slope.
David B. Yoffie, Wal-Mart, 2005 (Harvard Business School, rev: April 14, 2005): Wal-Mart Priorities: Problem Areas: Wal-Mart management will have to address issues of store format, human capital and technology deployment. Store Format: Wal-Mart will continue to introduce supercenters in order to meet the growing demand for one-stop, family shopping (1). Human Capital: Wal-Mart will sustain their reputation for low pay and heavy reliance on part-time and temporary help in order to cut expenses on benefits packages (2). Technology Deployment: By implementing RFID chips, Wal-Mart will eventually reduce shrinkage and other forms of loss by up to 6%. This process would be very costly and time-consuming (2).
Outsourcing and It’s Advantages In 2004 the democratic presidential candidate race was zeroed down to which candidate proves his protectionism in eyes of average Americans, who are worried about the increasing number of job losses due to outsourcing and off-shoring. To sum up the sentiments management thinker Tom Peters puts it in one of his presentation (Tom Peters 2004) –“when I was young my mom used to tell me finish your food, people in India and China are dying of hunger. Today I tell my daughter finish your homework, people in India and China are looking for your job”. Outsourcing and off shoring has become the latest rage in corporate America. Companies are resorting to outsourcing to cut costs and be competitive in the market.
Analysis In the book Nickel and Dimed On (not) Getting By In America Barbara Ehrenreich writes of her experiences as she makes an attempt to be a part of the “working poor” in America. Her goal was to see if living comfortably was possible on a very low income, as a single woman with no children. “In 1998 – the year I started this project – it took, on average nationwide, an hourly wage of $8.89 to afford a one-bedroom apartment, and the Preamble Center for Public Policy was estimating that the odds against a typical welfare recipient’s landing a job at such a “living wage” were about 97 to 1” (3). Going into the project she knew there was a good chance that it would be difficult but was optimistic she could do it. She came up with a bare bones resume and got started.
Wal-Mart recruitment uses both of them depending on the situation. When using external recruitment Applicants can apply in any local or foreign offices and stores by simply sending their resume via mail or email and they will call their applicants for an initial interview or examination depending on the position they apply for. Every applicant for a job at Wal-Mart regardless of religion, race, gender or age is provided an equal employment opportunity. Visit the Wal-Mart employee benefits website and determine how the benefits may contribute to the success of Wal-Mart’s Employees Practices. Wal-Mart have been heavily criticized for unfair employee treatments which include “cap wages in certain positions, allow the hiring of more part-time workers in lieu of full-time workers, and revise scheduling
The article, “Is Business Ethics Getting Better? A Historical Perspective” discusses business ethics throughout history comparing whether or not business ethics have improved or become worse. Business ethics are congruent with business cycles. Ian Maitland argues that business ethics are better during recessions, but worse during growing economies (Cuilla, 2011). This argument is true because when things are going well, people do not have questions.