Assignment Strategic CSR-3.doc - Assignment Strategic CSR Course Strategy Organization I The Wal-Mart case 1 If you were a member of Wal-Mart’s top

Assignment Strategic CSR-3.doc - Assignment Strategic CSR...

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Assignment Strategic CSR Course: Strategy & Organization I: The Wal-Mart case 1. If you were a member of Wal-Mart’s top management, what arguments would you make to a community group that is trying to stop the building of a Wal-Mart in their community? If you were the leader of the community group resisting Wal-Mart’s expansion into your community, what arguments would you make? The arguments in favor of a Wal-Mart are: - By offering guaranteed low prices, Americans can spend less on day-to-day necessities and improve their quality of life. - Wal-Mart provides jobs and career training for low-skilled workers who would otherwise be unemployed; Wal-Mart should be seen as a wide-scale anti-poverty program. The arguments against the building of a Wal-Mart are: - Wal-Mart has a long history of underpaying its workers while overpaying its executives and corporate leadership. - Wal-Mart takes advantage of workers, who, with few other employment opportunities, are forced to accept jobs that offer unreliable hours, no benefits, low compensation, poor working conditions, and little useful job training. - By operating as a monopoly, Wal-Mart has driven down the price of goods and services and directly contributed to the failure of small, locally owned businesses around the nation. - Wal-Mart leaves an ecological footprint. By selling cheap products not meant to last, it contributes to widespread consumer waste. 2. Do you see any possibility for Wal-Mart to adopt one of the CSR strategies as described by van de Ven and Jeurissen (2005) or is their corporate strategy irreconcilable with CSR? Wal-Mart is in a market of weak competition. Because of the lack of competition, the firm has market power, which means that the company can reduce its quality, without losing too much business. Market power enables a firm to invest in CSR strategy; thus, Wal-Mart should be able to adopt a CSR strategy described by van de Ven and Jeurissen (2005) It is not possible for the company to use the ethical product differentiation strategy because people are not ready to pay a premium price. The first incentive to buy in this store rather than another one is the low price (Ven & Jeurissen, 2005). Instead, Wal-Mart could use the Stakeholder Management strategy. The management and guarding of the interests of stakeholders is essential if a firm wants to strengthen its architecture and get a competitive advantage (Ven & Jeurissen, 2005). With the Wal-Mart case, it is possible to see that employees are not treated fairly. The store can improve this by
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  • Spring '19
  • Marketing, Corporate social responsibility

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