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Walmart Part 1: Planning: pp 60 61: QUESTION Q1 MEMBER NAME Epul NOTE Must Completed b4 20 mei Must Completed b4 20 mei Must Completed b4 20 mei





Walmart Part 3: Planning: pp 268 269 QUESTION Q1 MEMBER NAME Diya NOTE Must Completed b4 20 mei Must Completed b4 20 mei Must Completed b4 20 mei







Walmart Part 5: Leading: pp 556 557 QUESTION S Q1 MEMBER NAME SHARIL NOTE Must Completed b4 20 mei Must Completed b4 20 mei Must Completed b4 20 mei





Walmart Part 6: Controlling: pp 586 587 QUESTION S MEMBER NAME NOTE



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Worlds Top Employer Rank s High on Diversity and Employee Satisfaction But Not Everyone Hearts Wal-Mart. For the past decade, Wal-Mart has ranked high on Fortune Magazines list of most admired companies and with good reasons: No one creates more jobs for the economy or career opportunities for workers than Wal-Mart. With more than 2.1 million associates internationally, Wal-Mart is the worlds largest employer. Job candidates famously brave long lines and travel long distances for an opportunity to work to works at the companys new stores. The retailers 1.4 millions U.S hourly associates earn USD 11.75 per hour on average, and more than 80 percent of employees including part-time workers are eligible for health benefits. In addition, associates at Wal-Mart receive approximately USD 2 billion each year in the form of bonuses, profit sharing, and 401 (k) contributions. The greatest reason workers like WalMart? The company recruits from within a full 75 percent of store managers joined the company as hourly associates before advancing to salaried management positions. As is true of most multinational corporations, Wal-Mart is highly diverse. The company employs more than 41,000 Asian associates, 171,000 Hispanic as associates, 257,000 African-American Associates, and 869,000 women associates. Managements commitment to diversity is widely recognized among professional organizations on gender diversity alone Wal-Mart has received coveted kudos including Top Companies for Female Executives (National Association of Female Executives), Best Companies for Multicultural Women (Working Mother Magazines), and 40 Great Organizations for Women Of Colour (Women of Colour Magazines). Despite these high accolades, not everyone is enamoured of Wal-Mart. The worlds top employer is also the worlds top target for special interest groups. Each year, well-funded political organizations including ACCORN,, UFCW and SEIU run negative publicity campaigns in an attempt to pressure Wal-Mart to unionize. The rough and tumble politicking finds its most visible expression in Wake Up Wal-Mart and Wal-Mart Watch, two Washington-styled anti Wal-Mart organizations led by campaign directors for former presidential candidates Howard Dean and John Kerry.

Dukes V. Wal-Mart While opposition group present low-grade image challenges for WalMart, the retailer is facing the mother of all human resource related threats in the form of Dukes V. WalMart, a USD 500 billion dollar discrimination lawsuit billed as the largest class action civil rights lawsuit in history. The Dukes case began back in 2000 when California Wal-Mart associates Betty Dukes complained that she was unfairly reprimanded and denied opportunities to advance in the company. Although Wal-Mart report that Ms. Dukes clashed with her female supervisor and was appropriately disciplined for violating lunch break policies, five women joined the Dukes lawsuit in 2001 alleging a pattern of gender discrimination by the company. The local incident, which initially posed a potential risk of millions of dollars in compensatory damages, morphed into a multibillion dollar lawsuit overnight when a district judge gave the Dukes case class action status a certification upheld by the Ninth Circuit Court of Appeals in 2010. As a result of the class action designation, Dukes V. Wal-Mart is now a national lawsuit representing over 1.6 millions female workers going to 1998, none of whom have individual discrimination complaints against the company. Wal-Mart denies violating the civil rights of the six female employees, but the individual cases are not on trial in a class action suit. The trial now shifts to a broad examination of large companywide patterns of employment data, and plaintiffs attorneys are claiming that women, as a class, do not receive pay and promotions equal to men at WalMart. The legal framework is enigmatic, for it forces Wal-Mart to defend statistical discrepancies regarding gender that exist nearly everywhere in the world of business. According to nationwide studies, women are not raising in middle and upper level management positions at the same percentages as man. To better understand the causes of workplace inequities, researchers study a range of issues, from voluntary extended leaves to the prohibitive relocation requirements of high paying jobs. One Cornell researcher even found that full time working spouses hamper womens careers, mostly due to delicate work/life negotiations at home. These and other issues make climbing ladders more difficult. In Walmarts immediate context, disparities in pay or promotion may also be attributable to retail related trends. For example, more men than women tend to apply for higher paying dock jobs a trend that skews numbers toward higher average pay for men.

Likewise, more women than men tend to apply for lower paying cashier positions a trend that inadvertently skews averages down for women. Such imbalances are consistent throughout the retail industry and occur apart from any discrimination on Wal-Marts part. Even so, the Dukes case, with its astronomical USD 500 billion penalty, is a potential company killer. Wal-Mart has appealed the class action designation to the U.S Supreme Court in hopes of dealing with individual cases, not amorphous data trends of entire classes of people. Whatever the outcome may be, the Dukes trial is scheduled to resume in 2011 or 2012. In the end, high powered law firms, not Betty Dukes, have the most to gain from the lawsuit. While suing alone, Ms. Dukes might have won a multi million award. But as one of 1.6 million female plaintiffs in a class, the Wal-Mart associate is in line to receive just a few thousand dollars from a court victory. Wal-Mart, on the other hand, stands to lose its business. Meanwhile, back in Bentonville, Arkansas, spokes person David Tovar reaffirms Wal-Marts award winning record on human resource management: We are proud of our work to promote diversity at Wal-Mart and are continually recognized for our efforts. QUESTIONS 1. Why does Walmart prefer to recruit new store managers from its large pool of

hourly associates? Because they have been with the company and might have been trained for awhile. It seems to be fair. They may know more than someone who has never worked there before most likely. The reason behind this decision could be because they want those who have the clear idea of how they operate. This can also be due to the fact that they do not want new people who will require more salary than what they are currently paying. While we can call on Walmart to create hourly careers, we understand that the company isnt likely to transform its job standards on its own. We call on Walmart associates to seize the moment in this retail revolution and take control of their jobs without Walmart management involvement. Whether by forming unions or engaging in other collective activities, associates can push for more career opportunities and better job standards. They will also need the backing of elected officials. Congress must pass the Employee Free Choice Act to strengthen protections for workers seeking to form unions without fear of reprisal.

Federal and state governments must step up enforcement of wage and hour laws at Walmart and in the retail sector as a whole. And as with the janitors who raised their job standards, it will take community leaders and consumers to support Walmart associates and demand change. Forming unions and speaking out isnt about declaring war on Walmart, its about demonstrating that you are committed to staying with the company and making it a better place to shop and a better place to work. According to the authors, Wal-Mart has the adequate financial strength to take risks on the international markers arena. Additionally, although the company is very well known with its acquisitions strategy, joint ventures and strategic partnerships are also recommended as alternative strategies for the firm by the authors. Finally, despite some unethical issues and concerns about social responsibility, Wal-Mart still seems to be a good buy for the investors who are interested in the companys stocks. Thanks to an onslaught of class-action gender and wages discrimination lawsuits, negative press and criticism from unions, Wal-Mart in 2004 embarked on a major workforce management reorganization. Wal-Mart believes that promoting from recruit new store managers from its large pool of hourly associates more effective because internal candidates have higher success rates in their new positions due to familiarity with the corporate culture. Because of this, Wal-Mart has taken up a promote from within philosophy, citing seventy-six percent of Wal-Mart store management team started at Wal-Mart in hourly positions. This strategy is working very well for them, and they should continue to pursue it. As the leader of the retail sector, Walmart must drive the transformation of job standards by creating career opportunities for all of its associates and implement a wage ladder that rewards the time associates invest in the company and the skills and experiences they bring to their jobs, create more hourly positions that involve higher level responsibilities, higher pay, and provide training to associates interested in such positions, give workers more predictability in their scheduled hours, and more flexibility to meet their care-giving responsibilities at home, offer health care plans with affordable premiums and deductibles, abide by federal and state wage and hour laws, and pay for every hour worked, Respect federal labour law and allow workers to freely form unions and collectively bargain without interference by management and ensure women and people of colour have equal

opportunities for pay and promotions. For example the Lotus Engineering in UK, setting up to hire the best people, recruit a pre-qualified candidate pool of potential employees before they need to fill a job. Or, as Harvey Mackay, well-known, irreverent, author and speaker, says about networking: Dig Your Well, Before Youre Thirsty. 2. Explain how Walmarts employee diversity benefits the organization. What are

some challenges of diversity? The challenges of diversity in the workplace are tied directly to the culture and politics of the workplace. Walmarts has to nurture an environment conducive to drawing out the talents diversity offers. Without the support of management, diversity is only a concept and a word. To make diversity work, identifying obstacles and solving these issues must be a priority. Again, management has to encourage an atmosphere where employees feel comfortable in sharing ideas. Management controls the culture and politics of the workplace and can positively or negatively impact open dialogue within a company. There are many factors that keep diversity from functioning to the benefit of a company. Culture and politics have already been mentioned, but company size, years in business, and industry can all be contributors to the equation. The reason these factor in is because a bigger company that has been around for many years might be steeped in processes and systems which make change hard and drawing upon diversity harder. Many times a company will not change because this could cost time and money which seems unnecessary when the machine appears to be working fine. However, this business model has been the demise of many companies. Walmarts need to create a positive culture, and minimize the ill effects of office politics, management should keep abreast of current business trends and models that can enhance their position in the market and empower the employees for a more efficient, effective, and productive workplace. This usually translates in to a happier and healthier work environment and can build a positive momentum within the company or specific departments. This type of environment will usually evolve and find diversity to be beneficial in solving many workplace issues and possibly foster innovations.

When a company has created a positive culture, they usually encourage education, training, and mentoring. These will add value to both management and the workforce while developing healthier relationships internally. Externally, the positive changes should translate into a company customer want to do business with. However, to get to this point, power struggles and barriers created by company cultures and politics must be identified and then become a priority for management to change. Therefore, diversity can work to the benefit of a company if management creates the right environment and empowers their employees with the tools to succeed. 3. What federal laws govern the main legal issue raised in Dukes v. Walmart? In 2000, the U.S. Supreme Court rejected the Ninth Circuits certification of a class in a class action lawsuit brought by current and former employees of Walmart against the corporation. (See Wal-Mart Stores, Inc. v. Dukes, 131 S. Ct. 2541 (2011); Dukes v. Wal-Mart Stores, Inc., The lawsuit attracted extensive media attention; with over a million employees, Wal-Mart is the largest private employer in the United States. A lot of money was at stake. In short, the women bringing the suit alleged that they were victimized by Walmarts practice of letting local managers make subjective decisions about pay and promotions. More than 100 employees filed sworn declarations stating that they were paid less and given fewer opportunities for promotion than male colleagues. While the Dukes decision wont eliminate all class action lawsuits, it will severely curtail similar employment discrimination cases, and will most certainly impact the presentation and success rates of class actions for securities cases and mass torts. By handing defendants the ammunition they need to effectively slay megaclasses, the Court has seriously undermined the class action lawsuit today and in the future. Or at least until plaintiffs lawyers can come up with a new strategy to play. These cases have been really hard to bring for quite some time, and I think the Supreme Court has only made it harder, Malveaux says. They have raised the standard to show commonality, among many other things, and I think its going to be hard for employment discrimination cases of this magnitude to survive after Walmart. With the unpredictable nature of the court system, and the very human judges who guide it, looking into the future and divining the nutsandbolts effect of the Dukes case may be as effective as guessing winning Powerball numbers. One thing is certain, however:

predictions made today about the reach of the Courts decisions are highly likely to be incorrect, said Pincus of Mayer Brown in his testimony to the Senate Judiciary Committee. We dont really know what these decisions are going to mean until we see how the lower courts are going to interpret them. What is clear, however, is that corporate America has won the result it desired, and that the plaintiff bar is scrambling for novel avenues to proceed. The effect of this ruling may not be a long line of failed class action lawsuits where plaintiffs have sued corporate behemoths and had their hopes dashed in courts. More likely, the end result of Dukes may be its chilling effect on plaintiffs even attempting to sue corporations the size of Walmart. Before the first attorney has been contacted or the first lawsuit filed, the mantra may switch from too big to sue to too fearful to file.

WALMART PART 6: CONTROLLING: PP 586 587 Saving the World through Supply Chain Management

Walmarts supply chain management is revolutionizing the world of business. The companys obsessions with selling more merchandise more efficiently and at lower cost than anyone is a powerful competitive advantage. In 2010, that advantage made the U.S retailer the most successful business in the world. In a sense, supply chain management is Walmarts business. As one Walmart executive explains, The misconception is that were in the retail business. Were in the distribution business its Walmarts job to bring product from the dock to the costumers trunks in as little as 72 hours. Founder Sam Walton agreed: The efficiencies and economies of scale we realize from our distribution system give us one of our greatest competitive advantages. To achieve its superior efficiency, Walmart employs tactics ranging from buying in bulk to optimizing the number of stores served by a single distribution center. The path to perfect logistics requires more than teams of savvy efficiency experts, however: it requires automation. Like many retailers, Walmart introduced computers in the 1970s. But in the 1980s, Sam Walton made an unprecedented move: he purchased a satellite communications system and established electronics linkages with suppliers using Retail Link, the companys sales and inventory database. Paper-based purchase orders and invoices were soon replaced by electronic data interchange (EDI), and radio-frequency identification (RFID) tags began tracking inventory shipments from manufacturers warehouse to Walmarts stores. This automated end-to-end system kept products flowing to Walmarts shelves at the right time and in quantities suited to customer demand. But in recent years, Walmart has begun using its value chain for unusual and innovative tasks. In 2005, Hurricane Katrina ravaged the Gulf coast, leaving 1,800 people dead and thousands more homeless. While the storm caught many relief agencies off guard, Walmart was standout hero. As the category 5 storm approached Louisiana, Walmarts Emergency Operation Center ordered that area stores be stocked with water, food, generators and other supplies. Day later, as news agencies began reporting that levee waters had deluged New Orleans and surrounding regions, Walmart sprang into action; managers quickly coordinated an emergency response effort that delivered USD 17 Million of resources and shelters for displaced citizens. Displayed employees were relocated to other stores, and flood

damaged facilities were recovered and made into makeshift food banks for stranded citizens. The response was so effective that many evacuees concluded they were better off dealing with Walmart than with ham handed government agencies. Harry Lee, the sheriff of Jefferson Parish, remarked, If the federal government would responded as quickly as Walmart, we could have saved more lives. The post-disaster headline in Fortune magazine said it all: The Only Lifeline Was the Walmart. Today Walmart is at it again; only this time management wants to use operations to solve world hunger. In partnership with the nations top food banks, Walmart is using its advanced transport methods to deliver 1.1 billion pound of non-saleable food including fresh produce, meat and dairy to hungry U.S citizens. The USD 2 billion charity initiative, dubbed Fighting Hunger Together, is made possible because of Walmarts freeze distribution method special refrigeration trucks. Weve learned how to fast freeze things like meat and dairy, said Margaret McKenna, president of the Walmart Foundation. You cant put 100 pound of bananas on a truck that isnt refrigerated and expect them to be edible for long. McKenna adds, As the largest grocer in the country, we need to be a leader in the solution to this problem. When it comes to tackling the problem of hunger, size matters: Increasingly, we see opportunities to use our scale and reach to solve challenges in our communities, said Vice Chairman Eduardo Castro-Wright. If Walmart can use its supply chain management to rescue flood victims and tackle hunger, why not save the planet? Managers are working on it. In the next decade, Walmart will transition to 100 percent renewable energy, eliminate all waste to landfills, and sell products that offer measurable benefits to the natural environment. The retailers sustainability targets are impressive: double truck fleet fuel efficiency in ten years, slash greenhouse gas emissions by 20 percent in seven years, and eliminate 20 metric tons of CO2 emissions from Walmarts suplly chain in five years. To meet these targets Walmart is purchasing wind and solar energy systems, designing sustainable buildings, mapping ultra efficient driving routes and recycling all plastic waste through a Super Sandwich bailing process. Moreover, to help costumers go green, Walmart R&D teams are pioneering a Sustainability Index to measure the greenness of every item sold in stores. In partnership with a university backed Sustainability Consortium, researchers are studying how individual products affect the environment. Once objective environmental standards are set, Walmart

will provide a label for every product, allowing customers to evaluate green benefits in the same way they evaluate nutrition benefits through food labelling. As with Walmarts hunger initiative, size makes the task possible. The environment advantages come straight from our size, Chairman Lee Scott explained to Greenpeace newsletter readers. As the worlds largest retailer, were in thousands of communities around the USA and other countries. We buy product from more than 60,000 suppliers in 70 countries. We sell anywhere from 35,000 to 100,000 product lines in each of our 6,000 plus stores and clubs... Our size and scale mean that even one small pro-environment change in our policies or our customers habits has exponential impacts all over the world. To illustrate, Scott tells how managers reduced the packaging size of one line of toys and in doing so saved more than 5,000 trees and 1,300 barrels of oil. He adds that improving fuel efficiency by just one mile per gallon enables Walmarts trucking fleet to save USD 50 Million of fuel annually. What about profits? Has Walmart become a charity organization? Not at all, says Lee Scott. The popular chairman insists that Walmart approaches sustainability entirely from the the standpoint of business, not altruism. According to Scott and other executives, sustainability produces massive cost reductions, making Walmart more competitive. Because energy is Walmarts No. 2 operating expense, big cuts in energy usage mean big savings for Walmart, and lower prices for consumers. Matt Kistler, Walmarts senior vice president of sustainability, sees a natural synergy between profits, people and the planet: Sustainability continues to make us a better company by reducing waste, lowering costs, driving innovation and helping us fulfil our mission to save people money so they can live better.



Why do Walmart managers set goal such as double fleet fuel efficiency in the

ten years and cut greenhouse gas emissions by 20 percent in seven years? Explain how managers would use the feedback control model to reach those goals. Walmart is the largest corporation in the world in terms of revenues, and is widely recognized as a leader in supply chain management. In the last several years it has embraced its responsibility to protect the environment and has sought to reduce emissions in ways that improve its bottom line. Walmart managers set goal such as double fleet fuel efficiency in the ten years and cut greenhouse gas emissions by 20 percent in seven years to provide profitably reduce greenhouse gas emissions under their direct and indirect control. The managers in operations and supply chain management literature that provides insights on additional means for companies to reduce greenhouse gas emissions and to establish new supply chains for renewable energy and other zero emission products, and potential impacts of climate change on supply chains. I found that Walmart is profiting from its actions to reduce greenhouse gas emissions in its own operations and its supply chain. Emission reduction is associated with cost reduction, new sources of revenue, improved employee motivation, enhanced public relations, and increased voice with policy makers. The summary below of how Walmarts manager uses the feedback control model to reach those goals by: Reducing costs Cost reduction through energy efficiency is the most obvious source of business value associated with emissions reduction. Walmart, though famous for the efficiency of its operations, found quick wins in profitable energy efficiency as soon as it looked. In just the first year of its sustainability program, for example, Walmart improved the average fuel efficiency in its logistics network by 25%, which translates into annual savings of $75 million and 400,000 tons of CO2 , with relatively little investment.

Increasing revenues

Walmarts efforts to reduce emissions have opened up many sources of new revenue. Walmart can earn higher revenue by selling products that are more energyefficient, even without charging a higher price for energy-efficient products. Many of its customers have little disposable income and shop almost exclusively at Walmart. When they save money on their electricity bills, they spend that money at Walmart. The potential for emissions reduction with energy-efficient products is huge. That a phenomenon is presumably difficult to measure and verify, and would tend to increase emissions and the profitability of the project for Walmart. Enhancing Public Relations Before adopting its sustainability strategy, Walmart was entangled in controversy over employee wages, health care benefits, diversity, and working conditions in suppliers factories. According to a study conducted by McKenna and leaked to the public by the watchdog organization Walmart Watch, between 2 and 8 percent of consumers said they had stopped shopping at Walmart because of the company's practices. Moreover, the company was having difficulty gaining permission to open new stores in the U.S. According to Covalence, an organization that measures the ethical reputation of companies by quantifying their positive and negative news coverage, Walmarts reputation was negative and steadily declining. After that Walmarts reputation was ranked third among 35 multinational retailers. The company is now the subject of more positive than negative coverage, thanks in large part to coverage about its activities to reduce greenhouse gas emissions. The positive public image may help the company to grow by weakening the resistance to its opening of new stores, and may help the company to attract more customers or at least to avoid continuing to lose customers at existing stores. By acting immediately to reduce greenhouse gas emissions, companies can lessen the impacts of climate change. However, the magnitude of profitable emissions reduction seems likely to be insufficient. I conclude that effective climate policy is needed to spur transformative supply chain coordination and innovation.