Wal-Mart: What the Template Business for Global Capitalism Might Reveal About the Post-Post-Fordist Future

Wal-Mart:What the Template Business of Global Capitalism Might Reveal About the POST-Post-Fordist Future

Walmart: A brief historyFounded 1962 in Bentonville, Arkansas by Sam WaltonIncorporated 1969, and went public in the New York Stock Exchange (as WMX) in 1972.

First store in Bentonville, AKChanges in Walmart Logo 1962-present

Walmart Today, A Snapshot:Worlds LARGEST:Public corporation, EVERPrivate employer 15% market share of ALL general merchandise and food sold.In the US:Over 11% share of total GDP

Criticisms of Walmart Extensive foreign product sourcing (70%!) Low rates of employee health insurance enrollment(dependence upon government healthcare programs)

Negative Environmental Impact

Resistance to union representation

Sexism

Pressures on employees to vote for specific parties during national elections.

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Criticism with Humor

Overview of AnalysisWalmart has grown beyond the scale and influence of any business the world has ever seenWalmart as trendsetter and market-MAKERNow functions more as global commodity chain and logistics operation Can influence market faster and more directly

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IfThenSOIn examining Walmarts business practices, recent initiatives, and forthcoming plans, we can gain insight into the future direction of the global economy.Allen Scotts notion of Flexible Production RegimeHarveys notion of Creative Destruction

Always Low Prices:Making Penny Pinching the World Business StandardWalmart requires all suppliers to submit to strict efficiency standards to cut costs in:Production processes Product design Materials/Packaging Labor Transportation

Plus One PrincipleRequires that every year suppliers must cut costs or improve qualityRetail LinkCollects POS data from around the world and made available to suppliers

Enhances sensitivity to consumer trends- micro-marketing

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Logistics Revolution and Lean RetailingCharacteristics of Lean Retailing:UPC tags and scanning devicesComputerized Inventory ManagementAutomated Distribution CentersAdoption of communication standards throughout supply chain

Logistics Revolution: 70s+

Led Voluntary Interindustry Commerce Standards Initiative

Left: Workers posing at a Walmart distribution center

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~SeEinG tHe FuTuRe ~(maybe) Walmart and the Sustainability IndexAs a market-MAKER, Walmarts actions set the standards in the global supply chain. What could Walmarts plans for creating a Sustainability Index and product Life Cycle Database suggest about the future of the global economy?

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Sustainability Index Specifics

Walmart will provide each of its 100,000 global suppliers with a survey of 15 questions to evaluate their sustainability. Will develop a rating system that will be visible to consumers on all products. The questions and rating system are divided into four areas: Energy and Climate, Natural Resources, Material Efficiency and People and Community -Walmart Corporate Sustainability Index Fact Sheet

Natural Capitalism& Implications for the Future

Walmart being Walmart, if it implements this index, the rest of the retail industry will followWill change consumer spending habits and consequently reshape supply chain

------------------------Sustainability efforts are in line with characteristics of Natural Capitalism

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After Higher StandardsWill Walmarts requirement of higher environmental standards for their suppliers have a positive spillover effect for other problematic parts of the supply chain?

Lets hope so.