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White Paper On Wal-Mart's Business Environment
White Paper On Wal-Mart's Business Environment
On
Wal-Mart’s Business Environment
Submitted by
Group – 3
Sonam Choudhury 16020841086
Shakeel Ali 16020841133
Priyanka Kanojia 16020841209
Ishaan Davar 16020841114
Neelakshi Naik 16020841170
Ami Ruparelia 16020841096
Summary
As per the case study, in 2004, Walmart Stores proposed to build a new supercenter in
Inglewood, a low-income community near Los Angeles. The proposal was a part of
Walmart's strategy to bring its supercenter format to California. Introduced in the late
1980s, supercenters added a full line of groceries and specialty departments to Walmart's
traditional assortment of general merchandise.
Walmart's planned entry into California caused problems even before the discounter
opened a single supercenter. To compete with Walmart, supermarkets in California cut
grocery workers' health benefits and wages. The unions ordered a strike against the
supermarkets. The labor unrest lasted five months and involved 70,000 workers. In the
meantime, Inglewood's city council rejected Walmart's request to build a supercenter. The
retailer took its expansion plans directly to the voters of Inglewood. With the help of the
California initiative process, Walmart forced a public vote on the proposed 60-acre
development. Will Inglewood's voters reduce the shine of "America's most admired
company?"
•Flat structure
•Strong and unique culture-cost leadership
•Competence in information system
Strengths
•Large scales of operations
•Wide range of product and services
•International operations
•Self cannibalization
•Involvement in multiple lawsuits
Weakness •Behind rivals in online sales
•Poorly prepared investment decisions
•High employee turnover
This strategy can help them to speed the development process and can boost
employment and tax revenue as well as low price shopping.
The strategy was an opportunity allowing voters to show their support for the benefits
that Walmart would bring their community, jobs, groceries at affordable price,
increased tax revenue and infrastructure improvements.
The ballot process will shield the establishment from lawsuit under the California
Environmental Quality Act.
Moreover, there was surety of people’s support. Voters approved 99 of the 290
Southern California households could expect to save 600$ annually if they shopped at
Walmart.
Measures put before them. If more than 10% of voters signed a local initiative petition,
the city council had the option of directly adopting the proposed ordinance.
Walmart felt that the community was not against the store development. They felt it was a
special interest group trying to limit competition
This was the only option it had, as the city council was opposing its store development
Walmart felt that 200 people at city council was not reflective of the 50,000 people in
Inglewood
Walmart sponsored a study on the economic impact of its stores. The report said that the
supercentre prices were usually 20% lower than prices at unionized markets
The study also projected that southern California households could expect to save $600
annually on shopping at Walmart
Also, Inglewood resident’s median salary was lower than that of other counties like the Los
Angeles County. There was a hope that a supercentre could help them buy their grocery at
discounted prices, bringing in savings for a typical resident home.