Combating Critics and

Sustaining Growth
Carpio, Patricia D,
Reyes, Bernadette R.
Saquido, Michelle
Semana, Lhouella M.

COMPANY BACKGROUND
1962

Sam Walton founded Wal-Mart

Discount City in Rogers, Arkansas
1969
Sam Walton decided to incorporate
the business
1970
went public
1979
had 276 stores in 11 states and first
company
to
reach
$1
billion
1988-2000
David D. Glass took over
2000
Lee Scott was appointed to be the
next president and CEO
2005
opportunities to go international

Strategy and Strategy Execution

Multiple Store Formats
Everyday Low Prices
Wide Selection and a Big Percentage of
Name-Brand Merchandise
Customer Friendly Store Environment
Low Operating Costs
Innovative Merchandising
Emphasis on Customer Satisfaction
Disciplined Geographic Expansion
Use of Acquisitions to Enter Foreign Country

Competitors

Kmart
Target
Costco
Carrefour
Best Buy
Circuit City
Toys R Us
Goodys
Bed Bath and Beyond
Kroger
Albertsons
Safeway

Challenges
violation on proper waste disposal
selling of goods prohibited by law,
employment of illegal crews,
prohibiting associates to join unions,
poor healthcare and benefits
package
discrimination cases
unfavourable labor practices and
limited concern for the environment

Scope and Limitation

This analysis presents the company's history

from the time it started until 2006.
This study presents only the facts included in
given case
This study discusses and analyzes Wal-Mart's
status, strategies, and challenges based only
on what was mentioned in the case.

Point of View
Mr. Harold Lee Scott, Jr., the President
and CEO of Wal-Mart Stores, Inc.

Statement of the Problem

What strategy can Wal-Mart do to
combat criticisms and negative
publicities while maintaining focus
on
improving
its
business
operations and sustaining growth?

Objectives
To briefly present the company, its business
operations and its economic and market
situation.
To evaluate existing strategies and practices
of the company and assess corresponding
impacts on various stakeholders.
To look for ways on how to deal with its
detractors who create negative images for
the company.
To determine improvements needed to
address objectives 2 and 3.

4 Ps of Marketing
Product
employ friendly and helpful people
Price
offer shoppers the lowest prices
Place
dominated the US markets also Mexico, Brazil,
Canada, Argentina, China, South Korea, U.K.,
Japan, Germany, India, and Southern African
countries.
Promotion
tag lines include everyday low prices or

Public Relations Metric

Framework

Corporate Responsibility
Framework

0
Alternative Courses
of Action

ACA 1: Launch CSR Activities

PROS

CONS

This can improve Wal-Marts

costly

public image

Some Personnel or

winning new business, increase

associates may not be open

customer retention and attract

to the idea

and maintain a happy

workforce

provide the company with

differentiation from
competitors who dont practice

Alternative Courses of Action

ACA 2: Expansion

PROS

CONS

Increase market share

No problems or issues with

the local neighbours

costly and time consuming

May result to opportunities
passing by the company

Alternative Courses of Action

ACA 3: Training for all members of
the organization

PROS

CONS

better grasp on the current

Can be quite costly and time

happenings

consuming

people more equipped

May reduce productivity and

sales for a short period of time

Financial Summary
300
250
200
Billion Dollars

150

Net Sales
Net Income

100
50
0

Year

Recommendation
Ranking the groups priorities, the group
recommends pursuing ACA 1 first before
moving on to ACA 2. By addressing ACA1,
strategies to be implemented will be aligned
with the core values of Wal-Mart thereby
improving its image to the public and
preventing further criticisms.

Implementation
By choosing ACA 1, the major objective for the
company is to be able to launch CSR activities
whereby some of its top officers and associates
become visible to personally help and assist.
Incorporate CSR strategies into Corporate
Strategies by implementing the following
strategies:
Legal Compliance
Stakeholder Management
Brand Reputation Management and

Conclusion
Expanding successfully as what Wal-Mart did shows how good
they are in the industry. They have good strategy and
implementation, good management, good positioning in the
market, good information system and good associates; almost
complete to be able to have a flourishing business amidst
problems in the market or in the economy. However, no
company is ever perfect. A company should not only focus
on rendering good service to customers and gaining
extra-ordinary amount of profits, a company should also
realize its role to its stakeholders and not live only by
itself. It has to review and consider its impacts to those
surrounding its business. With these advances, public perception
about the company will be improved, ultimately increasing
consumer favor, leading to sales growth.

Wal-Mart is already a multi-billion functioning business with

Thank you!