WAL-MART`s ENVIRONMENTAL STRATEGY CASE WRITE UP

KEY PERSONALITIES: Leslie Dach, VP- Corporate Affairs and Government Relations, WMT Leo Scott, Former President and CEO, Wal-Mart Stores, Inc Hank Mullany, Head-Eastern Division Rev Jim Ball, Executive Director, Evangelical Environment Network Pam Mortensen, Chief Buyer-Jewelery, WMT Michael T Duke, Vice Chairman, International Division, WMT Darrell Meyers, WMT Associate Andy Ruben, VP Corporate Strategy and Sustainability, WMT Americus Reed, Professor Marketing, Wharton School of Business Matt Kistler, Sr VP Sustainability, WMT Frank Dixon, Former MD of Research for Innovest Strategic Value Advisors Eric Orts, Director, Professor Legal Studies at Wharton School of Business CASE FACTS: Sam Walton started WMT in 1962 First store in Rogers, Arkansas, USA The company went public in 1972 Growth to operate 276 stores by 1970 Sales revenue $1billion during 1980 Offers the lowest possible prices for customers Previous Tagline Always low prices

 In September 2007, New Tagline Save Money, Live Better 21st Century Leadership Three goals for WMT 1) Respect for individual 2) Service to our customers 3)Striving for excellence Deals and low pricing strategy implemented. Environmental initiatives where taken Largest solar panel purchased to save energy High efficiency stores (HE2) which consumed 25% less power than existing stores. Go green products where made main stream. Suppliers where asked to follow environmental standards. Reduction in solid waste 25% Reduce plastic shopping bag usage 33% by 2013 Trying to improve SCM by spending $500Mn to increase fuel efficiency by 25% WMT Supply Chain Management (2004) $18Billion works from 5000 Chinese suppliers Greening Supply Chain Management and reduces global waste Packings to be made go green and made to reduce package items. Cutting down illegal woods are eradicated. Reduced plastic bags to save environment for future. Discount on energy saving products. Cutting greenhouse emissions by 20% SWOT ANALYSIS STRENGTH Name and fame of the company Large Scale economy Pricing advantage over competitors

 Supply Management at its best Spread over various parts of the world. WEAKNESS: Unfair work treatment. Gender based paying-women paid low. Heavy norms for suppliers. OPPORTUNITIES: Consumers positive attitude towards walmart Expansion into new countries Expansion into various segments Go green importance is known.

THREATS: Similar Rivals Profit Loss due to competitors Government Norms Opposition from political parties and local people Oppositions from middle mans

LEADING QUESTIONS: How did walmart sustain over rivals?

 Why Walmart adopted go green concept? How does the three environmental goals serve the networks of WMT ? MAJOR ISSUES AND ANALYSIS: Low pricing strategy helps the WMT sustain in the market The way WMT does is entirely different and it shows that WMT is open to new and radical innovations Going green strategy is a tactical strategy adopted by WMT in order to successfully exist in the market. The biggest factor which contributed to the success of green strategy was the core business strategy i.e Always low prices where they clearly stated to the customers that they dont charge extra cost for any green initiatives and also to the suppliers.

REFERENCES: http://www.slideshare.net/lekshmik/walmart-innovations-case-study on march 2011 www.netmba.com/marketing/pricing/ http://www.investopedia.com/terms/s/scm.asp#ixzz2GwuVZoqx

CASE TRIANGLE OF WAL-MART`s ENVIRONMENTAL STRATEGY

Maintain ecological balance Effective use of price Movement of goods & services Context

Concept Sustainability Pricing Strategy Supply Chain Management

Connectivity Various social initiatives Always Low Prices Goods from over 5000 suppliers

CASE NOTES OF WAL-MART`s ENVIRONMENTAL STRATEGY

ENVIRONMENTAL SUSTAINABILITY: Environmental sustainability is about making responsible decisions that will reduce your business' negative impact on the environment. It is not simply about reducing the amount of waste you produce or using less energy, but is concerned with developing processes that will lead to businesses becoming completely sustainable in the future. PRICING STRATEGY: Pricing is one of the most important decisions a marketer must make regarding a product since price plays a crucial role in competitiveness and consumer demand. Marketers must determine price at the initial stage of a product's life and re-evaluate pricing to manage the delicate balance between production and profits. SUPPLY CHAIN MANAGEMENT: Supply chain management is the streamlining of a business' supply-side activities to maximize customer value and to gain a competitive advantage in the marketplace. Supply chain management (SCM) represents an effort by suppliers to develop and implement supply chains that are as efficient and economical as possible. Supply chains cover everything from production, to product development, to the information systems needed to direct these undertakings