Case Analysis Sample (BA 385) ONE PAGE LIMIT (Text guidelines are on page 632)

Brenda Eichelberger 3/21/06 (name, date) Case 1 - The Main Street Merchant of Doom (case, title) Problem/Issue Analysis: (one point) This case details the history and social responsibility issues of Wal-Mart. It discusses Sam Walton and his responses to criticisms as well as his determination to be a successful. The central issue is this case is why is there such conflicting data? Some people see Wal-Mart as an example of social responsibility and one of the most admired corporations in America, while others see it as an unattractive homogenizing factor and a Merchant of Doom that should not be allowed to set up shop in small towns. Analysis/Evaluation: (two points) The stakeholders in this case are: Consumers everyone that shop at Wal-Mart and enjoys their low prices. Specifically in this case it is the consumers that have selected Wal-Mart over the local businesses they have shopped at for years and the 100 million consumers that shop at Wal-Mart each week. OwnersEveryone that owns shares of Wal-Mart and have a vested interest in profits. Sam Walton as founder was discussed in this case in addition to employee shareholders. Community the areas surrounding Wal-Mart stores and the local environment. This case lists several; Iowa City, Pawhuska, Kinder and Boulder Colorado. Some were very unhappy to have a Wal-Mart coming to town. Wal-Mart instituted a program in Environmental Awareness and offered to build green. Government International, US, and local municipalities all interact with Wal-Mart. With over $191 Billion in sales, and being the worlds largest retailer, Wal-Mart can and does impact governmental planning. This case discusses Wal-Marts buy America plan and international expansion. Employees Everyone that works for Wal-Mart. WalMart employees over 1 million associates worldwide. They teach employees the Wal-Mart way, offer them participation in stock programs, and encourage customer service. Recommendations (applying a model or concept presented in this weeks assigned reading): (two points) Societys Expectations Versus Businesss Actual Social Performance (Figure 1-4 pg. 14, concept on pg. 13,14 and 15) is a helpful diagram and concept to consider the conflicting perceptions of Wal-Mart. Stakeholders (societys expectations) have varying needs and increasing expectations of what a company should provide (business actual social performance). Over time (per this diagram) business has been increasingly responsive to the demands of society, but the expectations of society (due to increasing affluence, education, entitlement mentality, rights, and media: discussed in the text) have been increasing at an even greater rate. In my opinion, I think Wal-Mart is doing great things, but they should be doing more. They should seek to minimize the damage they do to the local business areas and be better promoters (use the media) to let others know the good things they are doing (Buy America, Environmental Awareness) as well as showcasing the positive employee opportunities. By neglecting to be more proactive in these areas Wal-Mart is jeopardizing the success they have built over Sam Waltons lifetime.