Essay about Walmart Case Strategic Management

983 Words Mar 25th, 2012 4 Pages
June 1, 2011
MEMORANDUM
TO: H. LEE SCOTT
FROM: JOHN DOE JD
SUBJECT: WALMART CASE
This memo is in response to the requested analysis of the overall position of Walmart. The memo will first discuss the current position of Walmart. This will be followed by two issues, woman working in walmart not getting paid as much as men as well as not having very many upper management positions, and the perception that Walmart ruins small communities way of life once they open up their doors. The memo will then give a reccommendation for how to fix and improve the company to allow it to prosper in the future.
Overview
Walmart is successful by following a cost leadership strategy. Their sales revenues were $375 billion in 2008 but their profit was
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There are many obstacles that stand in the way of Walmart’s continued success including two of the issues listed below.

Unequal Rights for Woman Working at Walmart
Walmart has taken a lot of heat for paying female hourly and salary employees less than men for the same job and also giving woman fewer promotions. A study was conducted and the results showed that it took woman longer to enter management positions then it did for men. These negative practices has hurt Walmart’s reputation and if it is not addressed or this image is not cleared up through public relations, Walmart will face more and more lawsuits, and possibly a drop in female customers who care enough about equality for female employees.
Destroying Small Communities Way of Life
Whenever there is talk about a Walmart coming to a small town most of the local citizens and business leaders rally together to prevent them from coming at all cost. There is a perception that when Walmart comes to town it destroys once-thrieving downtowns, and runs small businesses out of business. People also see Walmart as paying meager wagers and selling products that were cheaply produced in sweatshops. As a result of all of theses perceptions, Walmart has a difficult uphill battle with a lot of communities where they would like to build new stores. The time and effort Walmart has to devote and spend to appease communities can be very expensive, which is why the company

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