Case Study Analysis: Wal-Mart and Home Depot

Wall-MartS core ales evolved and adapted over the years In order to remain competitive (Farrell, Fractured, & Farrell, 2011). Founder Sam Wallow’s Orlando violin was modified to fit ever-changing cultural norms, trends, and demands (Farrell, Fractured, & Farrell, 2011). Despite the ups and downs, overall Wall-Mart is a success story, and Sam Walton is an admired, model businessman. Analysis 1. What is the single most important ethical issue presented in the case, how has the issue affected specific stakeholders?

I believe the most important ethical issue presented in the case is the fact that the Wall-Mart’s drive for low prices causes applier stakeholders to move production overseas in order to cut costs (Farrell, Fractured, & Farrell, 2011).

It is an undeniable fact that Wall-Mart saves people money; however, just as undeniable is the fact that it has continually causes the loss of American jobs and the closure of American businesses. Despite Sam Wallow’s push of a “Buy American” campaign, some 80% of supplier’s have moved overseas (Farrell, Frederica, & Farrell, 2011). This is a problematic symptom with a huge ripple effect. . What has the company done to address their ethical issues, what could they do differently to avoid future ethical issues? Wall-Mart has faced a wide array of criticism. The company has engaged in less that ethical behavior at several junctures.

Wall-Mart dealt with the attack on the low number of its employees receiving health benefits by launching a successful solution. After revamping its benefits package, Wall-Mart now boasts a 90% health insurance rate for its employees (Farrell, Frederica, & Farrell, 2011). A huge outcry by female employees put Wall-Mart under fire for gender discrimination.

It dealt with Its unethical treatment of women by evaluating Its promotion and raise procedures. All missteps were Identified and erected. Wall-Mart went from facing a class-action cult by 1.

6 million female employees In 2004, to being recognized by the National Association for Female Executives three years In a row beginning In 2007. Largely, the company has made gallant efforts to correct Its mistakes. I believe Wall-Mart can prevent future unethical business practices by learning from their mistakes, vigilance, and readiness, always staying one step ahead of stakeholders. 3.

Based on the company’s ethics would you: Work for the company? I would work for Wall-Mart. I believe that for the most part, they sustain a motivated ark Torte employing motivate personnel Walt Innovative Ideas Ana solutions to problems.

Wall-Mart seems to use synergy, efficiency, and aggressive problem solving to resolve issues, self-improve, and increase its profit margins. Buy their products? I would buy Wall-Mart products. I do not feel as if their business practices are more unethical than their competitors. I believe that due to its massive size that Wall-Mart garners so much negative media attention. Invest in their stock? Based on the analysis, and with a small working knowledge of the stock market, I live that Wall-Mart would be a good choice to purchase stock in. The major chains like Target, Smart, and Wall-Mart are American staples that are deep-rooted in our consumer community.

Though it is inevitable that the stock will rise and fall, I think it would be safe to assume that Wall-Mart will continue to be a profitable, dominating presence. Invite them to be part of the community in which you live? This is a tough question.

A personal ambition of mine is to someday become a small business owner, and as we know, Wall-Mart has earned a reputation for devouring small business. Although I applaud Wall-Mart for all of the socially conscience decisions and actions its leadership has made, I still completely empathic with those whose companies collapsed under the heavy weight of battling such a huge conglomerate. This answer seems to conflict with my answers to the previous questions. I value Wall- Mart first, as a consumer, and second as an admirer of the smart business decisions and hard work that garnered such success.

In contrast, as a potential future entrepreneur, I am daunted at the idea of someday finding a prime piece of real estate, only to have Wall-Mart buy the lot next door. My goal for this class is to have a better understanding of business ethics and social responsibility. With that knowledge and understanding, I hope to be able to re-address this question with clarity. Updates In recent news, Wall-Mart’s shares are stagnant compared to its closest competition. Wall-Mart’s shares are only a tiny fraction of its closest competitors, Target, Smart, Cost, and Family Dollar (Bustiest 2011).

Due to another valiant, but unsuccessful attempt at trumping the competition, Wall-Mart deviated from its core customer target group of low income, blue collar workers.

Wall-Mart placed its focus on attracting middle and upper income customers. This alienated both the customers and the suppliers. In an effort to De-clutter the store, Wall-Mart cut and reduced several items (Bustiest 2011). To attract a wealthier customer, Wall-Mart replaced its traditional everyday items with high priced, trendy clothes and organic foods (Bustiest 2011). This was not received well and Wall-Mart’s shares plummeted (Bustiest 2011).

Analysts agree that it will take a huge effort for Wall-Mart to rebound. Wall-Mart is planning to return to Sam Wallow’s original vision of catering to the irking class. The downside is that the high-end shoppers that Wall-Mart had attracted may retreat once the old ways are reenacted (Bustiest 2011). Concept The biggest notion that stood out to me was that deviating from your core values does not typically end in success. You can mend the way you execute your business to stay current, but should maintain the foundational principles on which you initially stood.

Application I newer are several valuable lessons to De learned Day performing a case analyses AT Wall-Mart. Personally, I feel motivated by Sam Walton to work longer and harder to achieve my goals. Professionally, I have learned that in business, there are a massive amount of angles from which stakeholders can attack your integrity and accountability. The best thing you can do is prepare yourself to be humble, apologize, and work long hours to find solutions to make all of your stakeholders happy, regardless of their motivation.