Wal-Mart Case Review
BUSI 514
Operation Management
Professor Kipley
Alfie(ZHEN) Zhang
Wal-Mart Case study
Background
Sustainability standards for supplier
Wal-Mart disclosed its sustainability standard to all Wal-Mart suppliers in the world in 2008. It requires Wal-Mart Supplier take more environmental and social responsibilities. To do so, in order to maintain its competitive quality image of Wal-Mart products. With growth slows down in U.S, Wal-Mart focus on expansion in the world, especially in China.
Executive Summery
Wal-Mart Company Strategy
“Save people money so they live better”
In 2008, Wal-Mart has new senior management team change. The new team is facing the challenge of expansion in China in a sustainable way. This case study provides challenges, opportunities analysis and solution to Wal-Mart’s current situation.
Wal-Mart is facing sustainable Challenges in main three areas: low price versus high sustainable cost, un-sustainable local suppliers, and distributions. In Chinese culture, they concern more about the future so they tent to spend less and save more. It brings out the first challenge of Wal-Mart that How to keep competitive price in China. Second, Wal-Mart Chinese suppliers are mostly local small and median business. It increase the difficulty of meeting the needs of consumer and low quality control. Most importantly, the owners are now education with sustainable development thinking. It is hard for Wal-Mart to push sustainable strategy to its product on the shelf. The last difficulty is Chinese un-sustainable logistics. Due to the lack of the domestic infrastructure, the cost of inland logistic is too high for Wal-Mart. Wal-Mart has to outsource its truck fleets to Chinese logistic companies. It is difficult for Wal-Mart to push better fuel usage during the distribution, keep the delivery to super store on time, and decrease the distribution cost.
On the other hand, China is full of possibility to Wal-Mart. First, China is the second largest
Operation Management
Professor Kipley
Alfie(ZHEN) Zhang
Wal-Mart Case study
Background
Sustainability standards for supplier
Wal-Mart disclosed its sustainability standard to all Wal-Mart suppliers in the world in 2008. It requires Wal-Mart Supplier take more environmental and social responsibilities. To do so, in order to maintain its competitive quality image of Wal-Mart products. With growth slows down in U.S, Wal-Mart focus on expansion in the world, especially in China.
Executive Summery
Wal-Mart Company Strategy
“Save people money so they live better”
In 2008, Wal-Mart has new senior management team change. The new team is facing the challenge of expansion in China in a sustainable way. This case study provides challenges, opportunities analysis and solution to Wal-Mart’s current situation.
Wal-Mart is facing sustainable Challenges in main three areas: low price versus high sustainable cost, un-sustainable local suppliers, and distributions. In Chinese culture, they concern more about the future so they tent to spend less and save more. It brings out the first challenge of Wal-Mart that How to keep competitive price in China. Second, Wal-Mart Chinese suppliers are mostly local small and median business. It increase the difficulty of meeting the needs of consumer and low quality control. Most importantly, the owners are now education with sustainable development thinking. It is hard for Wal-Mart to push sustainable strategy to its product on the shelf. The last difficulty is Chinese un-sustainable logistics. Due to the lack of the domestic infrastructure, the cost of inland logistic is too high for Wal-Mart. Wal-Mart has to outsource its truck fleets to Chinese logistic companies. It is difficult for Wal-Mart to push better fuel usage during the distribution, keep the delivery to super store on time, and decrease the distribution cost.
On the other hand, China is full of possibility to Wal-Mart. First, China is the second largest
Cited: (2006). From" Made in China" to " Sold in China" the raise of Chinese urban consumer. McKinsey Global institute. J.Woetzel, L.Mendonca, & Devan, J. (2009). Preparing for China 's urban billion. McKinsey Global Institute.