...Wal-Mart de Mexico Wal-Mart, one of the worlds largest companies, has been reported to be pushing bribes on people to get into different parts of Mexico and expand their markets. About 24 million dollars was said to be utilized to bribe Mexican city officials to redraw zoning maps, so that Wal-Mart was able build their storage warehouses and super centers in areas of high populations and even in locations of historic importance. People like mayors, members of the zoning boards, and governors were all bribed into these plans of international expansion. In the Wal-Mart de Mexico case, CEO Lee Scott is faced with the three options of how to handle the bribery of building of record locations throughout Mexico. He needs to decide whether he should ignore the problem, “quietly neutralize the problem”, or make the results of the investigation public. The following is a list of the stakeholders involved in this case (in no apparent order): The communities of the places the new facilities were built – These people lost business of their Mom and Pop stores making many people suffer and lose jobs. While being bribed to give up locations and being manipulated into potential poverty. The customers of Wal-Mart in Mexico - The consumers who are treated as though they are being thought of, by lower prices, and marketing schemes that seem more appealing towards them, all the while being teased. Wal-Mart as a company – Not only has the company lost much business because of this brutal...
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... Wal MartWal-Mart opened its first super store in Shanghai China, in 2005. By using the same tactics that is used within the United States, offering numerous items at low prices, China was still the ideal location for Wal MartWal-Mart to continue to thrive within the foreign market. Wal MartWal-Mart quickly started gaining the trust of the local government and local officials in order to expand quickly. By using local venture partners, Wal MartWal-Mart was able to bypass the government’s opposition to foreign businesses opening. Wal MartWal-Mart further was able to gain the trust of the local government byut allowing the All China Federation of Trade Unions (ACFTU) to operate within it’s stores in the countryover there, something that here within the United States Wal MartWal-Mart does not allow. Being able to offer China’s exports within its it’s own country, Wal MartWal-Mart is able to save money from the exporting and importing fees that are normally associated with its’s super centersupercenters, t. Thus creating a substantial gain in its earnings. Comparing China to the United States, the per capita is allowing Wal MartWal-Mart to draw the conclusion that it will be as equal to the United States when it comes to the success that it hopes achieves. II. Questions & Answers 1. What were some of the reasons behind Wal-Mart’s entry into the Chinese retail market? 2. Answer. The company needed to grow. With the huge success Wal-Mart had within...
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...BA 385 Final Case Exercise Part I. The Case. Read through the case called “The Hudson River Clean Up and GE” (Case # 25 in your textbook). Do not do any outside research; stick to the case as it is written up in your textbook. In the table below, identify twenty relevant stakeholders and their stakes. Be specific about what each stakeholder has to gain OR lose by the possible actions suggested in the case. You need only list one stake (describe it if you think it is not clear without a description). *Gain *Lose | |Stakeholders |Stakes | |Stakeholders |Stakes | |1. |Shareholders and Investors |Share value goes down due to huge |11. |Animals live in Hudson River |Better living environment | | | |expense in dredging plan | | | | |2. |Employees |Increased possibility of lay-off |12. |Suppliers and other business |Increased business opportunity | | | |due to huge expense in dredging | |involved in dredging plan | | | | |plan | | | ...
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...picture of the way we shop, and how it has changed over time. There used to be specialty stores like a TV shop, hardware store and independently ran car garages, but they are being replaced by mini malls, Wal-Mart’s, and Jiffy Lubes. These “little men” still exist but are hurting. It is close to impossible to compete with the low prices that these chains can offer. In the article “The Store to All Ends” the company Wal-Mart is scrutinized. Why is Wal-Mart so successful? How is it affecting the world? Have you ever heard this? “Wal-Mart is taking over the world!” This statement is a little outlandish, but in all seriousness, maybe it is somewhat true. As the years go on, it seems that companies such as Wal-Mart keep getting bigger and more powerful. With all the corporate greed and global competition to produce goods at the lowest possible price, no one is worried about any of the negative effects that are resulting from it. Along with these businesses gaining too much power, jobs are being lost, taxes are being raised, and it is us as consumers who are the only ones who can change it. Over the past few decades, Americans have watched both their small hometown businesses and larger, upper scale companies go out of business due to huge corporations such as Wal-Mart using their power to control the economy. Everyone is looking...
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...Organization Strategy Paper Affordable prices, quality products, and competitive prices is what make’s Wal-Mart the leading retailer industry in the country today. To achieve desired business goals the Walmart organization practices strategic planning processes that defines advantages or developments within the company’s goals and expectations. Presently the Walmart organization has considered expanding the company operations; however, the company has three options to consider before the expansion takes place. These options include selling more stock, bonds, and merging with another organization. Without growth, success cannot be achieved. Growth is the ultimate goal of organizations. Growth benefits organizations in that it; funds new projects, increases market share and consumer awareness, attracts bright new minds, enhances the ability to develop new ideas and ultimately leads to financial success. Growth in an organization can occur naturally, but most often is created. The Wal-Mart Corporation must compare and contrast and make a recommendation about which strategy the organization must choose in making the best decisions. By doing this the organization must consider the following strengths and weaknesses, opportunities, threats, and effects of globalization. The Merger Option In contrast to selling stock or issuing bonds to raise capital, merging with another company enables firms to acquire less debt, and retain more equity. Investopedia (2012) explains...
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...Activity 2.3 Case Study: Wal-Mart and the yuan debate Why is the value of the yuan so important? Wal-Mart’s business strategy relies on low production costs which it can pass on to its customers. If Wal-Mart were a country then it would be China’s eighth largest trading partner ahead of Russia, Australia, and Canada. Wal-Mart’s non-Chinese owned suppliers operating in China number nearly 5,000 and all of them benefit from a low valued yuan compared to the dollar. The 176 million worldwide customers of Wal-Mart also benefit from the low valued yuan. With nearly 70% of Wal-Mart’s products coming from China a sharp increase in the value of the yuan against the dollar can be devastating for the company as the increased costs for Wal-Mart and would most likely passed on to customers. It could also hurt American customers whom Wal-Mart claims it saves the average household roughly $2,500 dollars every year. (Peng, 2011) If you were the CEO of Wal-Mart and were preparing for a meeting with the most vocal members of the US Congress on China’s currency “manipulation”, what would you say to them? I would point out that while it may be politically easy to blame China especially when it comes to an uniformed electorate, the rise in costs associated with policies aimed at encouraging China to lets its yuan to appreciate against the dollar will do harm in other ways. Average Americans (also known as voters) will feel an appreciated yuan in their wallets. China may be an easy target...
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...Wal-Mart’s Economic Influence on the American Economy and American Protectionism Policy ------------------------------------------------- Prepared by: Ugur Kaya Professor: John Bottomley Date: 09 December 2011 Word Count: 1570 EXECUTIVE SUMMARY The purpose of this report is to present Wal-Mart’s influence on the American economy in the long term. This report has considered Wal-Mart’s damaging effects on local stores and manufacturers which cause loss of jobs in the American society. Furthermore, effects of importing goods from foreign countries and selling it in local market are discussed. After taking above criteria into consideration, it is demonstrated that Wal-Mart impacts the American economy badly in long term. In order to recover the damages done to local manufacturers, retail stores and other injured parties/individuals, the American government may impose a protectionist policy. Table of Contents INTRODUCTION 1 BACKGROUND 1 DISCUSSION 2 CONCLUSION 4 WORKS CITED 5 INTRODUCTION The purpose of this report is to determine if and why or why not the United States of America may become more protectionist of the American economy than it is currently. In order to decide if harm is being done to American economy in the long term, Wal-Mart’s economic influence on the American economy will be taken into consideration as an example. BACKGROUND Wal-Mart is the largest company in the world, in the history. This is proven by numbers, revenue...
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...Case analysis on McCormick Company Background: McCormick is a world’s leading manufacturer and provider in spices, herbs and seasonings industry, founded in 1889 in Baltimore. Its yearly sales account for around 21% market share in global market and 17% market share in US market. McCormick sources globally and has more than 1500 suppliers. McCormick operates in two business segments: consumer and industrial. The consumer segment is to sell spices, herbs, extracts, seasoning blends, sauces, marinades and specialty foods to the consumer food market under a variety of brands worldwide; it is the primary driver of their business representing approximately 58% of sales, 80% of EBIT profits. The industrial segment sells seasoning blends, natural spices and herbs, wet flavors, coating systems and compound flavors to food manufacturers and the food service industry, both directly and indirectly through distributors and represents 42% of sales and 20% of EBIT profits. Competitive Environment analysis: Major competitors in the industry include Lawry’s, Krafts Foods Group Inc., Unilever, Associated British Foods, Goya Foods, Badia Spices, Alberto-Culver Co. and Morton Salt. Even though McCormick is the leader in this market, all its competitors are trying to differentiate with others and promote sales to compete with McCormick. How to maintain its competitiveness and lower price becomes one of McCormick’s challenges in terms of the business environment. In terms of competitive...
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...Wal-Mart’s Foreign Expansion Abstract Wal-Mart is the world’s largest retailer because it learned to successfully translate its merchandising strategy into foreign countries. Initially they tried the same techniques that worked in the U.S. They quickly learned that in order to be successful, they’d have to change their strategy to support the local market. Although some may not agree with their method of entering into joint ventures with local competitors and then taking over their companies, they must agree it was a successful strategy that made Wal-Mart the power house company it is today. Their strategy allowed them to learn the culture while establishing a bond with the community. They gained full access to the competitors’ way of doing business along with their resources. Wal-Mart’s Foreign Expansion How did Wal-Mart become the largest retailer in the world? It started out on a small scale level in Rogers, Arkansas. Sam Walton put his mind and his savvy business practices to work on a vision that most of us never even dream of. Even after his death, Wal-Mart’s financial status continues to climb higher every day. Due to its rapid expansion in the U.S, it quickly ran out of room to grow. The U.S. has 260 million shoppers, but expanding globally allowed Wal-Mart to reach 6 billion shoppers (Kavilanz, 2007). It did not take a rocket scientist to realize it was time to develop a plan to expand globally. The issue was could they translate their merchandising strategy wholesale...
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...environmentally friendly? Discuss. Wal-Mart prosecutes green initiatives is striving to transform itself into a company that’s seen as environmentally friendly. Wal-Mart’s green initiatives consist of completion of the purpose, enhancing the visibility of the brand, and getting more investments. Wal-Mart’s green initiatives are to complete the purpose of the company. Wal-Mart main purpose is to protect the environment. Wal-Mart’s green initiatives could improve marketing by catching the attentions from green-minded customers. This could lead to the increasing in profit for Wal-Mart’s company. Besides that, Wal-Mart’s green initiatives may create new business market all over the world as nowadays many of the suppliers are not focusing on produce products that are environmentally friendly but benefits that they will get soon. Apart from that, Wal-Mart’s green initiatives may enhance connections. This is in light of the fact that the products would give benefits to the customers and then become popular product among the other products and soon will lead to enhance connections. On the other hand, Wal-Mart’s green initiatives may enhance the visibility of the brand owing to the product is giving many benefits to the customers and this will lead to get more attentions from either customers or suppliers and soon image will also involuntary enhance. Therefore, the company will get many investments from the other organizations and collaborating with Wal-Mart’s company. As a consequence,...
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...Sam Walton founded Wal-Mart in 1962. In 1991, Wal-Mart opened its first store outside of the United States in Mexico City, Mexico. Globalization helped Wal-Mart tremendously. They first tested the idea of selling of groceries, had restaurants, banks, and video stores in Europe and Brazil. At the time that many companies were closing factories in America Wal-Mart developed a program called “Bring it Home To The USA,” in which Wal-Mart was replacing items bought from overseas to buying them in the US. Although the company was using products that were made in the U.S. Wal-Mart was rapidly growing overseas. In 1991 they had only one store in Mexico. By 1998 they had over 600 stores overseas, which accounted for about 5 percent of their growth in sales and profits. Wal-Mart was very successful in the United States but in order for them to survive and grow they had to begin building stores overseas (Govindarajan & Gupta, 2002). Wal-Mart also had so many stores in the United States that their only other option to continue to grow was to move into other countries. Wal-Mart has been able to grow into the number one retailer in the United States. According to Bloomberg, the current Chief Executive Officer (CEO) at Walmart is Michael Terry Duke. Mr. Duke has been the CEO at Wal-Mart Stores Inc. since 2006 (2011). And Bloomberg also reports that Charles M. Holley Jr. is the current Chief Financial Officer of Wal-Mart and has held that position since late 2010. Mr. Holley’s education...
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...merchant like Wal-Mart acting ethically and good for America? Or has this monopoly game gone on too unethically long? Wal-Mart has a broad span of likes and dislikes from America, but after given the facts I can bet most would agree that Wal-Mart is bad for America. There are numerous ethical problems with Wal-Mart as well as numerous things that just don’t seem right with the company. Wal-Mart is nationally known for having awful wages for their employees. I believe this is unethical simply for the fact that what Wal-Mart pays their normal employees is not enough to support one self and not enough to live. The money a Wal-Mart employee makes in one year is a couple thousand dollars below the poverty line. There for making the statement that if you work at Wal-Mart you will be broke and poor and won’t be able to support another person, let alone a whole family. Another problem with Wal-Mart is the working conditions. Employees at Wal-Mart have been forced to work off the clock, have been locked in the building during night shifts, have had their overtime pay not paid in full, have had random wage decreases. Wal-Mart is also known for discriminating against females during the hiring process. Wal-Mart also has been documented for making employees miss their break/meal periods, as well as the overlooking off illegals being hired and forced to work for cheaper pay and longer hours. This is just a short list of a lot of unethical decisions by Wal-Mart. If a Wal-Mart were to move...
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...Wal-Mart’s 2011 income statement shows that the company’s net sales increased by 3.4% in 2011 as opposed to only a 1.0% increase in 2010. The balance sheet reflects growth over the past three years as well, with a continual revenue increase of over three million dollars from 2010 to 2011. The cash flow has also increased over the last year by eleven million dollars. Some things on the balance sheet that were of some concern were the shareholders equity declined and the long term debt increased (Wal-Mart 2011 annual report). My concern with the shareholder’s equity declining is that other potential shareholder and investors may look at this and think twice about investing in the company. The one thing an investor hopes to receive is a return on their investment, cash flow is up, and net sales are up but equity is down. The long term debt increased from 2010 to 2011; this is not a major concern because of where the United States economy is and was over the past few years. Companies have taken on more debt because of the economical climate of the country. Moving forward management should place emphasis on the profit gains and not the profit loses, show that... [continues] Business Analysis Part II This business analysis will compare the financial strength and wellness of Wal-Mart, Target, and Sears. The income statements, balance sheets, and cash flow reports for Wal-Mart, Target, and Sears have been researched to complete this analysis. The analysis will cover the period...
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...Nike Dwayne Wood June 7, 2014 Professional Communications Strayer University Dwayne Wood, Professional Consultants Inc. 5454 Executive Way – Virginia Beach, VA 23456 http://www.professonalconsultants.com 07 June 2014 Mr. Mark Parker, CEO Nike Inc. 1 Bowerman Dr. Beaverton, OR 97005 Dear Mr. Parker: This document presented to you is a presentation requested from my President on how Professional Consultants Inc., could help Nike Inc. come up with a strategy of how to create a cheaper brand. We know how important the bottom line is to your company and that is why we already have associates working on impact statements and balance sheets for your company. This report shows that with a small investment and a little research, together we could create a brand that is affordable for low income families. Creating a brand that low income families can afford, would further extend the company while making millions of dollars. Professional Consultants Inc. knows that Nike has a very strong brand we just want to make it stronger, also while helping people that cannot afford the Nike brand, able to afford a much cheaper brand. It is with great pleasure in preparing this report for you, Mr. Parker, and while working on it I have learned many different elements about the shoe business and about Nike Inc. Please call me directly at (757)466-2000 when I can be of further service. Sincerely, Dwayne Wood Associate Consultant Table of Contents Title Page...
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...Classic Airlines Solution Odessa Mattern Marketing/571 University of Phoenix Heidi Kelley April 18, 2011 Introduction This paper will be to analyzing and apply a problem-solving process situation at Classic Airlines. Using in the process to come up with the final analysis for Classic Airline. The beginning will give background on the company. The middle will address the problems that Classic Airline is facing It will also show how the challenges and opportunities in each department within the organization. The ending will be the SMART end goals that will measure the end results. Background on Company Classic Airlines has been in business for 25 years and is the world’s fifth largest airline with more than 375 jests that serve 240 cities. Classic Airlines employ 32,000 employees and earned $10 million on $8.7 billion in sales. In the past year, Classic Airlines have seen a decrease of 10% in share prices and a 19% decrease in the number of Classic Rewards members; with a 21% decrease in flights among the remaining member (University of Phoenix). Problems Classic Airline Facing Though profitable, Classic is no stranger to the challenges that plague today’s airlines. The following are problems that Classic is facing: * 19% decrease in Classic Rewards members * The travel downturn that followed September 11, 2001 * Rising cost of fuel and labor * 10% decrease in share prices * Negativity from Wall Street, the media and the public *...
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