ASSIGNMENT

Instruction:

1. This is a GROUP assignment. Group consisting 4 to 5 members.
2. This assignment carries 20% and presentation 10% of the coursework assessment. 3. Answer all of the following questions. Students are encouraged to refer to related journals/publications apart from the text books. 4. Any extract from others (various sources) without proper citation would be constitutes as PLAGIARISM. 5. Submission date:

STUDENT NAME: _______________________
STUDENT ID NO: _______________________

Case 22: Wal-Mart: But We Do Give Them a 10 Percent Employee Discount

Case Summary

Wal-Mart stirs a lot of emotions from many people. People either love or hate the store and its influence has significantly impacted global retailing. Wal-Mart’s very simple strategy of Everyday Low Prices drives every single decision at Wal-Mart. As a result, payroll expenses are always monitored and evaluated, especially with close to 1.5 million employees worldwide. Therefore, there are huge financial benefits for Wal-Mart to cut every corner they can when it can reduce the cost structure of its business model. Examples such as “off the clock work” are not only present at Wal-Mart, but could also be considered an industry wide issue. In any setting in which a time clock records the number of hours worked by an employee, there is always the opportunity to abuse the system. While an innocent request such as “can you tidy up that shelf before you leave” may not have any cost impact, Wal-Mart appears at times to abuse the loyalty of its employees by asking them to work long after they have clocked out. Health benefits are another area where Wal-Mart has been able to minimize their cost structure for the employees. Placing hurdles for eligibility and having high level of deductibles allows Wal-Mart to block some of its