11F_4040_W10_Wal-mart_Crisis_Management_

11F_4040_W10_Wal-mar - Case Analysis Wal-Mart Case Advertising in Special Condition Crisis Management MC 4040 Fall 2011 Wal-Mart History Starting

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Case Analysis — Wal-Mart Case — Advertising in Special Condition: Crisis Management MC 4040 Fall 2011 Wal-Mart History : Starting off with Sam Walton’s idea of low prices in the 1940s, Wal-Mart has since then become the world’s largest public corporation, topping the list of Fortune’s Global 500 for the sixth time in seven years. With headquarters in Bentonville, Arkansas, this retail giant has over 2 million employees worldwide, with 1.4 million within the United States alone, making it one of the largest private employers in the nation. Issues: As with any global corporation, Wal-Mart engages in multiple and complex relationships with a number of different stakeholders. Labor unions, environmentalist groups, grassroots organizations, religious groups and community members have criticized Wal-Mart for its perceived lack of concern in its current business practices and policies. Complaints have included unequal employment opportunities to lack of health insurance leading to lawsuits, which were close to 5,000 in 2000. The opposition came to a head in 2005, as two advocacy groups specifically targeting Wal-Mart were formed in spring 2005 to unite disgruntled community members: “Wake-Up Wal-Mart,” a union group backed by the United Food and Commercial Workers, and “Wal-Mart Watch,” a joint project of the Center for Community and Corporate Ethics. The mission of both groups was to cause the corporation to improve its practices for its employees, its customers, and the surrounding communities in a more ethical and acceptable way. A documentary directed by Robert Greenwald, Wal-Mart: The High Cost of Low Price , was released on November 4, 2005,
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Case Analysis — Wal-Mart Case — Advertising in Special Condition: Crisis Management MC 4040 Fall 2011 which was highly critical. Through a series of interviews and video footage interspersed with statistics, Greenwald attempted to depict the unethical business practices Wal-Mart implemented on a daily basis and the negative effects these practices had on employees and small business owners. A study on the impact of Wal-Mart supercenters in rural communities found that small towns can lose up to 47 percent of their retail trade as soon as 10 years after the establishment of a Wal-Mart. Wal-Mart soon found itself witnessing the repercussions
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This note was uploaded on 01/16/2012 for the course MC 4040 taught by Professor Fletcher during the Fall '11 term at LSU.

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11F_4040_W10_Wal-mar - Case Analysis Wal-Mart Case Advertising in Special Condition Crisis Management MC 4040 Fall 2011 Wal-Mart History Starting

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