Wal-Mart's Sustainability Strategy (A)

Wal-Mart's Sustainability Strategy (A) Description

In October 2005, in an auditorium filled to capacity in Bentonville, Arkansas, Lee Scott, Wal-Mart's president and CEO, made the first speech in the history of Wal-Mart to be broadcast to the company's 1.6 million associates (employees) in all of its 6,000+ stores worldwide and shared with its 60,000+ suppliers. Scott announced that Wal-Mart was launching a sweeping business sustainability strategy to dramatically reduce the company's impact on the global environment and thus become "the most competitive and innovative company in the world." He argued that, "Being a good steward of the environment and being profitable are not mutually exclusive. They are one and the same." He also committed Wal-Mart to three aspirational goals: "To be supplied 100 percent by renewable energy; to create zero waste; and to sell products that sustain our resources and the environment." Against this backdrop, the case introduces Andrew Ruben, vice president of corporate strategy and business sustainability, and Tyler Elm, senior director of the same group. Ruben and Elm, who were chosen by Scott to lead the sustainability strategy, recognized that they needed to keep environmental improvement tightly coupled with business value and profitability for the strategy to succeed. The case describes Wal-Mart's efforts to accomplish this, focusing on three of the company's primary focus areas (seafood, electronics, and textiles) and their effect on the company's operations, supplier relationships, and results. It also explores how Wal-Mart is measuring and communicating its ideas about sustainability to its suppliers, associates, customers, and the public.

Case Description Wal-Mart's Sustainability Strategy (A)

Strategic Managment Tools Used in Case Study Analysis of Wal-Mart's Sustainability Strategy (A)

STEP 1. Problem Identification in Wal-Mart's Sustainability Strategy (A) case study

STEP 2. External Environment Analysis - PESTEL / PEST / STEP Analysis of Wal-Mart's Sustainability Strategy (A) case study

STEP 3. Industry Specific / Porter Five Forces Analysis of Wal-Mart's Sustainability Strategy (A) case study

STEP 4. Evaluating Alternatives / SWOT Analysis of Wal-Mart's Sustainability Strategy (A) case study

STEP 5. Porter Value Chain Analysis / VRIO / VRIN Analysis Wal-Mart's Sustainability Strategy (A) case study

STEP 6. Recommendations Wal-Mart's Sustainability Strategy (A) case study

STEP 7. Basis of Recommendations for Wal-Mart's Sustainability Strategy (A) case study

Case Analysis of Wal-Mart's Sustainability Strategy (A)

Wal-Mart's Sustainability Strategy (A) is a Harvard Business (HBR) Case Study on Organizational Development , Texas Business School provides HBR case study assignment help for just $9. Texas Business School(TBS) case study solution is based on HBR Case Study Method framework, TBS expertise & global insights. Wal-Mart's Sustainability Strategy (A) is designed and drafted in a manner to allow the HBR case study reader to analyze a real-world problem by putting reader into the position of the decision maker. Wal-Mart's Sustainability Strategy (A) case study will help professionals, MBA, EMBA, and leaders to develop a broad and clear understanding of casecategory challenges. Wal-Mart's Sustainability Strategy (A) will also provide insight into areas such as – wordlist , strategy, leadership, sales and marketing, and negotiations.

Case Study Solutions Background Work

Wal-Mart's Sustainability Strategy (A) case study solution is focused on solving the strategic and operational challenges the protagonist of the case is facing. The challenges involve – evaluation of strategic options, key role of Organizational Development, leadership qualities of the protagonist, and dynamics of the external environment. The challenge in front of the protagonist, of Wal-Mart's Sustainability Strategy (A), is to not only build a competitive position of the organization but also to sustain it over a period of time.

Strategic Management Tools Used in Case Study Solution

The Wal-Mart's Sustainability Strategy (A) case study solution requires the MBA, EMBA, executive, professional to have a deep understanding of various strategic management tools such as SWOT Analysis, PESTEL Analysis / PEST Analysis / STEP Analysis, Porter Five Forces Analysis, Go To Market Strategy, BCG Matrix Analysis, Porter Value Chain Analysis, Ansoff Matrix Analysis, VRIO / VRIN and Marketing Mix Analysis.

Texas Business School Approach to Organizational Development Solutions

In the Texas Business School, Wal-Mart's Sustainability Strategy (A) case study solution – following strategic tools are used - SWOT Analysis, PESTEL Analysis / PEST Analysis / STEP Analysis, Porter Five Forces Analysis, Go To Market Strategy, BCG Matrix Analysis, Porter Value Chain Analysis, Ansoff Matrix Analysis, VRIO / VRIN and Marketing Mix Analysis.

We have additionally used the concept of supply chain management and leadership framework to build a comprehensive case study solution for the case – Wal-Mart's Sustainability Strategy (A)

Step 1 – Problem Identification of Wal-Mart's Sustainability Strategy (A) - Harvard Business School Case Study

The first step to solve HBR Wal-Mart's Sustainability Strategy (A) case study solution is to identify the problem present in the case. The problem statement of the case is provided in the beginning of the case where the protagonist is contemplating various options in the face of numerous challenges that Wal Mart is facing right now. Even though the problem statement is essentially – “Organizational Development” challenge but it has impacted by others factors such as communication in the organization, uncertainty in the external environment, leadership in Wal Mart, style of leadership and organization structure, marketing and sales, organizational behavior, strategy, internal politics, stakeholders priorities and more.

Step 2 – External Environment Analysis

Texas Business School approach of case study analysis – Conclusion, Reasons, Evidences - provides a framework to analyze every HBR case study. It requires conducting robust external environmental analysis to decipher evidences for the reasons presented in the Wal-Mart's Sustainability Strategy (A).

The external environment analysis of Wal-Mart's Sustainability Strategy (A) will ensure that we are keeping a tab on the macro-environment factors that are directly and indirectly impacting the business of the firm.

What is PESTEL Analysis? Briefly Explained

PESTEL stands for political, economic, social, technological, environmental and legal factors that impact the external environment of firm in Wal-Mart's Sustainability Strategy (A) case study. PESTEL analysis of " Wal-Mart's Sustainability Strategy (A)" can help us understand why the organization is performing badly, what are the factors in the external environment that are impacting the performance of the organization, and how the organization can either manage or mitigate the impact of these external factors.

How to do PESTEL / PEST / STEP Analysis? What are the components of PESTEL Analysis?

As mentioned above PESTEL Analysis has six elements – political, economic, social, technological, environmental, and legal. All the six elements are explained in context with Wal-Mart's Sustainability Strategy (A) macro-environment and how it impacts the businesses of the firm.

How to do PESTEL Analysis for Wal-Mart's Sustainability Strategy (A)

To do comprehensive PESTEL analysis of case study – Wal-Mart's Sustainability Strategy (A) , we have researched numerous components under the six factors of PESTEL analysis.

Political Factors that Impact Wal-Mart's Sustainability Strategy (A)

Political factors impact seven key decision making areas – economic environment, socio-cultural environment, rate of innovation & investment in research & development, environmental laws, legal requirements, and acceptance of new technologies.

Policy Making Impact on Wal-Mart's Sustainability Strategy (A)

Government policies have significant impact on the business environment of any country. The firm in “ Wal-Mart's Sustainability Strategy (A) ” needs to navigate these policy decisions to create either an edge for itself or reduce the negative impact of the policy as far as possible.

Data safety laws – The countries in which Wal Mart is operating, firms are required to store customer data within the premises of the country. Wal Mart needs to restructure its IT policies to accommodate these changes. In the EU countries, firms are required to make special provision for privacy issues and other laws.

Competition Regulations – Numerous countries have strong competition laws both regarding the monopoly conditions and day to day fair business practices. Wal-Mart's Sustainability Strategy (A) has numerous instances where the competition regulations aspects can be scrutinized.

Import restrictions on products – Before entering the new market, Wal Mart in case study Wal-Mart's Sustainability Strategy (A)" should look into the import restrictions that may be present in the prospective market.

Export restrictions on products – Apart from direct product export restrictions in field of technology and agriculture, a number of countries also have capital controls. Wal Mart in case study “ Wal-Mart's Sustainability Strategy (A) ” should look into these export restrictions policies.

Foreign Direct Investment Policies – Government policies favors local companies over international policies, Wal Mart in case study “ Wal-Mart's Sustainability Strategy (A) ” should understand in minute details regarding the Foreign Direct Investment policies of the prospective market.

Taxation & Regulation Impact on Wal-Mart's Sustainability Strategy (A)

Corporate Taxes – The rate of taxes is often used by governments to lure foreign direct investments or increase domestic investment in a certain sector. Corporate taxation can be divided into two categories – taxes on profits and taxes on operations. Taxes on profits number is important for companies that already have a sustainable business model, while taxes on operations is far more significant for companies that are looking to set up new plants or operations.

Tariffs – Chekout how much tariffs the firm needs to pay in the “ Wal-Mart's Sustainability Strategy (A) ” case study. The level of tariffs will determine the viability of the business model that the firm is contemplating. If the tariffs are high then it will be extremely difficult to compete with the local competitors. But if the tariffs are between 5-10% then Wal Mart can compete against other competitors.

Government Scheme & Subsidies Impact on Wal-Mart's Sustainability Strategy (A)

Research and Development Subsidies and Policies – Governments often provide tax breaks and other incentives for companies to innovate in various sectors of priority. Managers at Wal-Mart's Sustainability Strategy (A) case study have to assess whether their business can benefit from such government assistance and subsidies.

Consumer protection – Different countries have different consumer protection laws. Managers need to clarify not only the consumer protection laws in advance but also legal implications if the firm fails to meet any of them.

Political System & Stability, and its Impact on Wal-Mart's Sustainability Strategy (A)

Political System and Its Implications – Different political systems have different approach to free market and entrepreneurship. Managers need to assess these factors even before entering the market.

Freedom of Press is critical for fair trade and transparency. Countries where freedom of press is not prevalent there are high chances of both political and commercial corruption.

Corruption level – Wal Mart needs to assess the level of corruptions both at the official level and at the market level, even before entering a new market. To tackle the menace of corruption – a firm should have a clear SOP that provides managers at each level what to do when they encounter instances of either systematic corruption or bureaucrats looking to take bribes from the firm.

Independence of judiciary – It is critical for fair business practices. If a country doesn’t have independent judiciary then there is no point entry into such a country for business.

Government attitude towards trade unions – Different political systems and government have different attitude towards trade unions and collective bargaining. The firm needs to assess – its comfort dealing with the unions and regulations regarding unions in a given market or industry. If both are on the same page then it makes sense to enter, otherwise it doesn’t.

Economic Factors that Impact Wal-Mart's Sustainability Strategy (A)

Social Factors that Impact Wal-Mart's Sustainability Strategy (A)

Technological Factors that Impact Wal-Mart's Sustainability Strategy (A)

Environmental Factors that Impact Wal-Mart's Sustainability Strategy (A)

Legal Factors that Impact Wal-Mart's Sustainability Strategy (A)

Step 3 – Industry Specific Analysis

What is Porter Five Forces Analysis

PESTEL stands for political, economic, social, technological, environmental and legal factors that impact the external environment of firm in Wal-Mart's Sustainability Strategy (A) case study. PESTEL analysis of " Wal-Mart's Sustainability Strategy (A)" can help us understand why the organization is performing badly, what are the factors in the external environment that are impacting the performance of the organization, and how the organization can either manage or mitigate the impact of these external factors.

Step 4 – SWOT Analysis / Internal Environment Analysis

Step 5 – Porter Value Chain / VRIO / VRIN Analysis

Step 6 – Evaluating Alternatives & Recommendations

Step 7 – Basis for Recommendations

References :: Wal-Mart's Sustainability Strategy (A) case study solution