1. How is Walmart deriving business value from its sustainability strategy?
2. Imagine that you are Andy Ruben or Tyler Elm, Evaluating the progress of the electronics, seafood, and textile networks. Which of these networks have been most successful in creating business value by reducing environmental impacts? What factors explain the success (or lack of success) of these networks?
3. How is Walmart motivating its suppliers to share information about and reduce the environmental impacts of products and processes?
Answers
1. To make the best use of its sustainability strategy, and thus to derive business value from it, Walmart focused on the improving its supply chain & waste management system, reducing its energy consumption, finding new sources of returns for e.g. by selling carbon credits, utilizing solar power by installing solar panels on store rooftops and thus not only cutting on its enerfy consumption but also adding up as a new source of energy.
2. The following table shows how the networks have impacted the business value of Walmart, where ‘+’ suggests a positive impact, ‘-‘ suggests a negative impact, and ‘0’ suggests no impact or neutral.
Networks
Seafood
Electronics
Textile
Alignment of environmental & Economical benefits
+
-
+
Effective network leadership
+
0
+
Consumer health label
+
-
-
Consumer operating savings
-
+
-
Credible Eco labels
+
0
-
Simplification of linear supply chain
+
-
+
3. Walmart, to motivate its suppliers to share information about and reduce the environmental impacts of their products and processes is trying to consolidate the supply chain i.e. it’s trying