Wal-Mart Case Review Essay

2102 Words Dec 16th, 2011 9 Pages
BUSI 514
Operation Management
Professor Kipley
Alfie(ZHEN) Zhang

Wal-Mart Case study

Background
Sustainability standards for supplier
Wal-Mart disclosed its sustainability standard to all Wal-Mart suppliers in the world in 2008. It requires Wal-Mart Supplier take more environmental and social responsibilities. To do so, in order to maintain its competitive quality image of Wal-Mart products. With growth slows down in U.S, Wal-Mart focus on expansion in the world, especially in China.
Executive Summery
Wal-Mart Company Strategy
“Save people money so they live better”
In 2008, Wal-Mart has new senior management team change. The new team is facing the challenge of expansion in China in a sustainable way. This case study
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Less regulation of government, Wal-Mart’s competitors are not doing the same thing. They provides low quality product that most of them are not sustainable and harm to the environment, especially plastic bags. In China, plastic bag usage covers all aspects of Chinese consumers’ life. It only costs 1000 bags for 3 Chinese Yuan which equals to one sustainable bag that Wal-Mart uses. From this plastic bags competition, Wal-Mart increases its cost dramatically. Also, consumer may forget to bring sustainable bags to Wal-Mart or even they have to buy more than three bags for large amount of groceries. Sustainable bags make consumer life un-convenient and reduce the consumer preference to Wal-Mart.
When Chinese local market competitors don’t concern about the sustainability, it is hard for Wal-Mart to make the decision of sustainability and survival in China. The challenge of Chinese market is that it is not mutual and needs to be developed.

Difficulty with local suppliers
Compared to U.S daily grocery suppliers, most of Chinese local grocery suppliers for fresh food are small business or individuals. It leads to the problem of higher supplier cost and difficulty of quality control. Individuals have to deliver to Wal-Mart every day, .. Because of business size, it is difficult for them to meet the Wal-Mart needs in one or several suppliers and Wal-Mart has to order from lots of different suppliers

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