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Reviewing and Revising Wal-Marts Benefits Strategy Essay Example

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Reviewing and Revising Wal-Marts Benefits Strategy

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Reviewing and Revising Wal-Marts Benefits Strategy. The two main challenges that have been discussed in 2005 are the environmental concerns and the human resources. The issue of dis-satisfied Associates was evident from the 2003 case study as it has been mentioned that the wages at Wal-Mart were much less than the competitors (Ghemawat, Bradley & Mark, 2004). Walton believed in frugality and hence the compensation was tightly controlled at all levels. Even their policy to share information with the Associates was with the need to keep the payroll under control. They always linked the base salary of the managers with store performance as these managers were responsible to keep the payroll expenses under control. Wal-Mart provides its store managers with a “

preferred budget” for employment which would allow managers to staff their stores so that managers can staff their stores at adequate levels but there is always a gap between the preferred and the actual budget. The stores are always understaffed and the difference between the two budgets tells the managers how much more work they need to extract from their workforce (Head, 2004). The medical plan of Wal-Mart for their employees was too expensive and the Associates had to manage through Medicaid on their own. In 2003 it was evident that they were trying to squeeze their suppliers. To save costs, they usually dealt with unbranded suppliers. They did use technology to link themselves with their suppliers so that they could exchange real-time information. Wal-Mart had already come under criticism for its labour standards, as they insisted that their suppliers comply with the standards concerning child labour, workplace safety and any other local laws (Ghemawat, Bradley & Mark, 2004). The 2001 audit revealed that more than half of the international suppliers’ factories violated the norms. Even though the company claimed that finally all the suppliers had complied but in 2003 they were voted as the “Sweatshop Retailer of the Year”. Wal-Mart faces strategic social challenges such as weaving their social and political awareness into their corporate strategy. Reviewing and Revising Wal-Marts Benefits Strategy.

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Reference

Berner, Robert. (2005). Lee Scott On Why Wal-Mart Is Playing Nicer. Social Issues: Q&A; Pg. 94 Vol. 3953

Bonini, Sheila M. J., Mendonca, Lenny T., & Oppenheim, Jeremy M. (2006). When social issues become strategic. McKinsey Quarterly. 2006 no. 2.

Chambers, S. (2006). Reviewing and Revising Wal-Mart’s Benefits Strategy. Supplemental Benefits Documentation. Wal-Mart Stores.

Evans, J. Strategic Management: Implementation and Control. McGraw Hill Primusonline.

Ghemawat, P., Bradley, S., & Mark, K. (2004). Wal-Mart Stores in 2003. Harvard Business School.

Greenhouse & Barbaro, 2005). Wal-Mart Memo Suggests Ways to Cut Employee Benefit Costs. The New York Times. October 26, 2005 Wednesday

Head, Simon (2004). Inside the Leviathan. The New York Review of Books. 51(20) (Dec 16).

News Centre. (2008). Wal-Mart: from zero to hero?. Retrieved online 16 November 2009 from

http://www.moneycontrol.com/watchlist1/searchnews.php?call=687474703a2f2f7777772e696e646570656e64656e742e636f2e756b2f6e6577732f627573696e6573732f616e616c797369732d616e642d66656174757265732f77616c6d6172742d66726f6d2d7a65726f2d746f2d6865726f2d3834313431322e68746d6c3f723d525353

Payton, P. (2005). Wal-Mart Experimental Stores: Environments of scale. EUROPEAN RETAIL DIGEST. ISSU 48, pages 7-12

Porter, M. E. (1996). What is strategy? Harvard Business Review

Rugman, Alan M., Waters, Lesli L., & Dossett, A. (2005). Wal-Mart and Carrefour as Home-Region Multinationals. European Retail Digest. 48.

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preview essay on Reviewing and Revising Wal-Marts Benefits Strategy
  • Pages: 10 (2500 words)
  • Document Type: Article
  • Subject: Business
  • Level: Undergraduate
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