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Walmart Case Study

Wal-Mart Stores Inc.: Combating Critics and Sustaining Growth

Problem
Wal-Mart revolutionized the idea of discount department stores. In 1962, they operated 9stores with $1.4 million in sales and $112,000 in profits. In 2005, they operate 5,289 stores and generate $285 billion in sales while earning $10.3 billion in sales. In just 43 short years, they went from a generally small chain of stores with a modest profit to a multi-national corporation with billions of dollars in revenue. In doing so, they have done many things right. However, they do face some scrutiny for some of the decisions they have made. Arthur A. Thompson summarized it best when he wrote, “The biggest complaint of critics was that Wal-Mart’s zealous pursuit of low costs had resulted in substandard wages and insufficient medical benefits for Wal-Mart’s 1.3 million U.S. employees” (Thompson, 466). Wal-Mart has a very bad image problem and must find some solutions in order to please some of their critics.

Situational Analysis
“Over the past few years, we’ve spent a lot of time listening to our associates and working closely with them to design a benefits package that better meets their needs,” said Linda Dillman who is the vice president of benefits and risk management at Wal-Mart Inc. Andthere is evidence that she wasn’t kidding. As of January 2008, 92.7% of Wal-Mart’s associates have health coverage whichis a substantial increase of 20% from a year ago. One was that Wal-Mart was able to establish this was thorough a series of personalized choices, a $4 dollar co-pay for more than 2,000 generic drugs, and lower deductibles. Not only that, but children of both full-time and part-time employees we’recovered under an employee’s health plan. Also since the beginning of the plan launched by Wal-Martthere has been a reported savings of over $1 billion since 2006. (Wal-Mart Saves Customers More Than $1 Billion)

Also, Wal-Mart has been a leader in charitable donations. Listed here are...