41251534-Wal-Mart-s-Sustainability-Strategy-Group-13.pptx

7/27/2019 41251534-Wal-Mart-s-Sustainability-Strategy-Group-13.pptx

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Wal-Marks sustainability

Strategy

Group 13

Argoud FlorianDebasish DasLefresne Antoine

Sevestre Benjamin


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-Founded in 1962 by Sam Walton in Rogers, Arkansas-Type : Discount store-Philosophy : Achieve highest level of efficiency , offer everyday low price-8500 stores in 15 countries, with 55 different names-84 % of the Americans had shopped at a Wal-Mart within the past year

-2010: it was the world's largest public corporation by revenue

The Brand:

-Very high purchasing power-Highly efficient supply chain-Very large scale of operation-Highest level of customer base-Unmatched pricing

Twentieth century problem:

-Lack of resources in near future-Environmental impact due to largescale of operation-Increasing environmental and otherpolicies

WAL-MART

NEED FOR SUSTAINABILITY OF BUSINESS


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WHY SUSTAINABILITY? RELEVANCE TO WAL-MART

Creates a competitive advantage-Decreasing customer base-Depleting resources

The biggest business opportunity of the21st century

-Increasing environmental policies- Increasing awareness among consumers

Reduce costs and generate savings-Maintaining daily low price philosophy-Increasing number of innovation

Increases the notoriety & the brand value-Increasing consciousness amongstakeholders- Large scale of operation at stake

Reduce the environmental footprint-Objection for green house gas emission-Increasing energy crisis


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Wal-Mart's Environmental Legacy and Commitment Till Date

paid $1.15 million in fines to the state of Connecticut for the improper storage of

pesticides and other toxins

Paid $765,000 fine for violating petroleum storage tank laws at its auto service

centers in Florida

U.S. Environmental Protection Agency penalized the company $3 million in 2004 for

violating the Clean Water Act in nine states

Wal-Mart Promises to Improve Health Care Coverage for Employees

The first major retailer to speak out in favor of environment in 1989

Unrivaled $20 million in cash donations, 1,500 truckloads of free merchandise, food

for 100,000 meals after hurricane


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The Major Goals Ahead :

Wal-mart

1. To be supplied 100 percent by renewable energy (Global green house gas strategy;

Alternative fuels; Global Logistics; Energy, Design, construction and maintenance)

2. To create zero waste (operational and Internal procurement; Packaging)

3. To sell products that sustain their resources and environment (Chemical intensive

products; Sea foods; Electronics; Food & Agriculture; Forest and Paper; China; Textiles )

1. Engage : Identify and work with a broader community that could provideinformation and other resources.2. Explore : Analyze the life cycle of particular products or services and investigate therelated environmental issues3. Expand : Looking in the value chain to identify which business activities are matchedto the issues

Strategy: Wal-mart


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Global

Logistics

The Issue:

-Fuel Consumption-Green house gases-Time

-Cost

Evaluation:

-Lower fuel

consumption- 75 milliion dollar annualsaving- competitive advantage

Actions Taken:

-Involving RMI

-Improvement in fleet-Efficient n/widentification by thelogistic team

Strategic Options:

-Fuel efficiency process-Efficient network-Efficient mode of

transportation


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CHINA

The Issue:

-7th largest tradingpartner-More than 50000suppliers

-Compliance toenvironmental standards

Evaluation:-Remain unaffected by

policy changes-Faced corruptionproblem- Lack of focus onenvironmental metrics

Actions Taken:-Provided valuable

knowledge & Processassistance-Worked in parallel

Strategic Options:-Working in parallel-Search for alternativesupplier-Benchmarking product

standard


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SEA FOOD: WAL-MART

ISSUESWAL-MART

THREAT ACTION TAKEN

Depleting sea fishes Continuity of supply Encouraging cluster farming

The MSC programRejection of non certifiedfish

Taking fish from certifiedsupplier

Price Incurring loss Improve public awareness

Environmental

responsibility

Tarnishing of brandimage

External collaboration

Fuel consumption &

pollutionLowering of brand image Marine reserves


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Strengths Weaknesses

- MSC certification- transparency in the seafood supplychain.

- Working alongside with NGOs-Working with better supplier- Accordance to governmental present& futures regulations.

- Hard time to getting supply : highregulationsince 1950, as many as 90% of the

oceans largest fish have disappeared-Rigorous certification process

Opportunities Threats

- short and long term reputation- better quality products offered to thecustomers.

-Price : consumers are not willing topay extra for sustainably caught fish.- Hard to get 100% wild caught fishcertified under the MSC.


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ELECTRONICS: WAL-MART

ISSUESWAL-MART

THREAT ACTION TAKEN

Hazardous substance

usageDenial of product

Buying RoHS compliantproduct

Recyclability Environmentalist Green engineering

Poor response of

consumersEnvironmentalist E-waste pogramme

Energy Consumption Green house gasses Material innovation

Product cycleObsolete of existingproducts

Working with legislation


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SWOT Electronics

Strengths Weaknesses

-Creation of environmental sub-teams to assist the buyers-Competitive advantage : be the 1st

one in the US to sell ROHScompliance PCs

-Low inventory due to obsolescence-E-waste collection & cost.

Opportunities Threats

- short and long term reputation- better quality products offered tothe customers.- Good selling of the products.- Development of ROHS standards toother products.(TV)

-Legislation : Different environmentalpolicies between States. need todo something at the national level.-E-waste : we still havent figure outhow to change peoples behavior


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Textiles: WAL-MART

ISSUESWAL-MART

THREAT ACTION TAKEN

Pollution of water & soil Environmentalist Using organic materials

The GOTSRejection of non certifiedTEXTILES

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Price Incurring loss Encouraging organic materials

Environmental

responsibility

Tarnishing of brandimage

Contracting with farmers

Buyers choice Over stockingRunning merchandisingprogram


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SWOT Textiles

Strengths weaknesses

-Reduce cost-largest purchaser of cotton : gave a 5 yearsverbal commitment.- new process, more efficient which minimizes

waste-the cost and labor requirements of certificationabsorbed by suppliers.- Long term relationship with supplier

- Cost of certification- Organic farmers cant grow cotton in the samefield for an extended period.

Opportunity Threats

-Use inputs with minimal toxicity-Reduce environmental impacts

- Sustainability metrics ant monitoring process are stillunder development.

-Redesign the buying role : can be inefficient at thebeginning.

-Need to invest in new technologies : innovation


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High Medium Low

High Electronics Textile

MediumSeafood

Low CFL Bulbs

Environmental Attractiveness

MarketAttractiveness

The matrix


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Conclusion :

Wal-Mart, the biggest retailer in the world decided anticipate the environmentalissues that all the companies will have to face in a close future.

Wal-Mart is aware that the sustainable development represents the biggestbusiness opportunity of the 21st century

Short term cost cutting VS Long term profit?

Are the customers willing to follow Wal-Mart ?

Is this new business model sustainable in the time?

What will Wal-Mart do if this model leads to loss of market share & customers?

Is a move back possible?


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THANK YOU

Documents

41251534-Wal-Mart-s-Sustainability-Strategy-Group-13.pptx