Presented By:Phillip Dyer, Courtney Gappmayer, Ryan Green, Jaimie King,

and Morreen Klement

Inside View

History

1962 – Walmart founded in Rogers, AR1969 – Incorporated as Walmart Stores, Inc.1970 – Open to the public1990 – Nation’s leading retailer1991 – Company opened internationally in

Mexico1999 – World's largest private employer2003 – World’s largest grocery chain

Present-day Walmart

• On average, Walmart serves over 176 million• 7000 facilities in 13 countries• Net sales for 2011: $419 billion

"The two most important words I ever wrote were on that very first sign, 'Satisfaction Guaranteed.' They're still up there and they have made all the difference."

-- Sam Walton, Founder of Walmart

Gender Discrimination

Issue Defined

• 2/3 of Walmart employees are women.• Only 10% are store management.• Betty Dukes took a class-action discrimination

case all the way to the supreme court.o For the lack of promotions and raises.o Case Involved 1.6 million female employees.o Case was disqualified.

Alternatives

1. Create a pay equity

2. Consider more women for promotions

Leadership and Power

Issue Defined

• Thomas Coughlino Board of Directors membero Hunting and travel buddy of founder Sam

Walton.o Forced to resigno Stole as much as $500,000.o Asked a subordinate to approve an expense

without receipts.

Alternatives

1. Create strict separation of powers

2. Run extensive background checks for

executives

Employee Treatment

Issue Defined

• Lack of meal/rest breaks• Tampering with overtime

Alternatives

1. Obey the law

2. Create a policy for overtime

3. Create a system for projected overtime

report

Urban Sprawl

Issue Defined

• Roads, parking, and traffic flow• Decrease in green– One Walmart = 25 acres

1990 vs. 2010

2004 vs. 2008

Alternatives

1. Plan a distance to limit stores in city limit

2. Pay for better road system and replacement

of green used

Suppliers

Issue Defined

• Cost burden on suppliers

– Moving companies overseas

• Suppliers rely on Walmart for large orders

– Expanding their market share

• Taking over delivery to its distribution centers

– Lower own costs, raise everyone else’s

Alternatives

1. Lessen restrictions on suppliers

2. Stop switching suppliers once chosen

Abandoned Walmarts

Issue Defined

• Unnecessary Walmarts• Special secret Walmart planning team• Stealing customers• Abandoning when objective complete• Keeping potential buyers at bay

Alternatives

1. Environment - Team seeks out buyers for the abandoned locations

– Goal of finding a buyer within 1 year of abandonment

2. Philanthropy - Walmart donates and invests necessary materials into converting abandoned sites into Tornado Shelters

Recalls

Issue Defined

• Over 240 product recalls since 1984• Walmart’s willingness to sell deficient

products• Products can injure or harm customers

Alternatives

1. Increase quality control internally

2. Increase quality assurance from suppliers

Unions

Issue Defined

• No representation for employees• Walmart controls all employment negotiations

Alternatives

1. Introduce company-wide union for all employees

2. Enforce all existing unions and enable employees to

elect their own unions

Summary

Recommendations

• Gender discrimination– Create a pay equity

• Leadership– Create strict separation of powers

• Treatment of employees–

• Urban Sprawl– Plan a distance to limit stores in city limit

Recommendations

• Suppliers– Lessen restrictions on suppliers

• Abandoned Walmarts– Team seeks out buyers for the abandoned locations

• Recalls– Increase quality control internally

• Unions– Introduce company-wide union for all employees

Hey, WalMart?

Do the Right Thing.