Character

Building

Group Discussion

Overview

Wallmart is a successful company which exist in our community. It is estimated that 200 million people shop at Walmart each week. Worldwide, Walmart employs 2 million people, that makes Walmart has a big number of employment for managing their company. However, the issue is Walmart offering low price for items but they has a bad quality employee management.

Question 1

How would you describe the managerial philosophy of Walmart? What principles are involved? What are the overriding aims, values, and goals of Walmart?

Question 2

Evaluate the management philosophy of Walmart from the point of view of stockholders, employees, customers, the local community, and suppliers.

Question 3

Should business management always seek the lowest prices for its customers and the highest rate of return on investment? What reasons might there be for seeking something less for customers and stockholders?

Question 4

Economists define costs in terms of opportunities forgone. What opportunities are forgone by Walmart’s “everyday low price” marketing strategy? Who pays the costs of Walmart’s low prices?

Question 5

Walmart’s wages are above the legally required minimum wage, and health benefits are not legally mandated. Are there reasons for a business to take actions not required by law that might reduce profits?

Question 6

Does Walmart have any responsibilities to its suppliers other than those specified in their contracts?

Answer Q1

philosophy of Walmart was to emphasize on low prices
The Principle that involve are Honesty, Respect, Fairness, and integrity
Walton’s original marketing strategy was to empha size low prices, and this strategy continues today as reflected in its marketing campaign of “everyday low prices.”

Answer q2

Walmart’s management philosophy was based on its slogan of honesty, respect, fairness, and integrity. It is a culture that the founder has put it as a foundation for every aspect of the growth of Walmart. From the point of View of employees, customers and other stakeholders that are not directly involved to Walmart, it is that the Walmart itself has offended their own foundation by being manipulative through its pricing and marketing strategies by putting low price to achieve higher price purchase from the customers. Viewing from the eyes of the employees as the labor that operate Walmart’s activities, Walmart is seen as a company that is very low on upkeep in term of giving compensation, bonuses, salaries, etc; because by doing so Walmart will be able to keep the price as

low as possible, the company was succeeded in getting rid of the Union and extra labor costs to keep the expenditure low. It was an issue as well when Walmart is not willing to pay the extra cost to the labor when the labors are working overtime. From the point of view of the stockholders, those ways of marketing activities and financial budgeting plans it work the way they wanted to be, to keep the expenditure as low as possible to gain the higher profit by making the customers to purchase higher priced products. This strategy will give the stockholders a boost of profits. The local community have the same perception of walmart as they are who directly involved in Walmart’s activities. Suppliers think that the management of walmart is good to keep low the upkeep but sometimes Walmart is a bit harsh regarding its pricing strategies which again involve the suppliers who supply the products to walmart.

Answer Q3

Every firm’s goal is to gain profit but still need to be ethically conducted, for wal-mart case might be a “NO” for the business management to always seek the lowest price for its customers due their unethically doing towards their employee, where they cut off the wages and salary and being pushed by working overtime.

The reason for seeking less for customer and stockholder is the loyalty of its customer itself, maybe some people concern about the employees and that makes them won’t go shopping at wal-mart anymore, or the destroy of the company itself when one day all of the wal-mart branch are sued and the value of the stock is broke

Answer q4

The opportunities forgone the employee of the Wal-Mart.

The one who pays the cost is the walmart employees, since walmart pay their employees with low price salary and demand their work to high intensity then they will be able to press their inventory price towards the market.

Answer q5

For the employee, it helps the company to attract, retain and motivate the

employee. For example, by giving benefits to the employee, it can improve that person’s

quality of live and providing a level of protection and financial security for workers and for

their family members. An employee with a positive attitude towards the company, is less

likely to look for a job elsewhere. It is also likely that it will attract more competent employee

because of the high positive impact on employee wellbeing and motivation, many people

want to work for the company.

Also, by doing the CSR, the company gives back some of their profit to give benefits

back towards the society as a form of gratitude of the profit they get from the community.

By doing so, not only it will do good in people’s mind, good CSR can improve their brand

images so that it will increase sales of the products and services.

Answer q6

According to walmart’s ethical standards and resources, they have this standardization that the

potential suppliers must meet Walmart’s expectations related to social and environmental

conditions. However, on the other hand, Walmart have some issues on how they treat their workers,

whereas, according to Walmart's Standards for Suppliers, they expect the suppliers to promote the

welfare of workers. In conclusion, it is Walmart’s responsibility to do their business in an ethical

manner and consistent