Management_499_Strategic_Management__Mission,_Vision_and_Stake_Holders

MGT 499 Module 1 Case David T. Fessler TUI Dr. Bari Courts April 10, 2010 Strategic Management: Mission, Vision and Stake Holders Is Wal-Mart's stated vision aligned with the needs of their stakeholders' As I read through the website, I don’t find anything that exactly says “Wal-Mart’s mission or vision, however, I think that when the site talks about Wal-Mart’s purpose, they are talking about the vision of the company. Here is what it says their purpose is: Saving people money to help them live better was the goal that Sam Walton envisioned when he opened the doors to the first Wal-Mart. We know that price matters to our customers, whether they live in the United States, the United Kingdom, Argentina or Japan. That's why we offer the best quality merchandise at the lowest prices in all our stores, from school supplies, to household items and top quality groceries. We also look at savings that go beyond the prices you see in our stores. Saving money is a means to helping our customers live better. By offering the best possible prices on the products our customers need, we can help them afford something a little extra. Whether it's a grandmother who can buy her grandchildren a special gift because she saved money on her prescriptions, or a young family saving money to buy their first home, we see our mission come to life every day. Saving people money so they can live better is at the heart of everything we do, and these are just a few examples of the many ways we bring that mission to the community each and every day. Simply put, helping people live better is more than something we do, it’s who we are. So this set of statements is what defines what Wal-Mart is all about. It is what is at the core of their day to day business. Those are the reasons they do what they do or at least that is what the website says. There are many interesting matters I learned about Wal-Mart while doing this paper that I wasn’t aware of. I have always watched on Television and saw the headlines on the internet of Wal-Mart being attacked by interest groups or local opposition, but never really paid any mind to it. I also did not realize the scope of power the company has and how much more it can obtain in the future. I think it is truly remarkable how Mr. Sam Walton transformed his dream to own his own business into what we now know as the world’s largest retailer Wal-Mart. Only in America does one get that kind of opportunity for success, but must have the mental fortitude to seize it. I also found Wal-Mart’s three basic beliefs interesting as well. Here is what they are: 1. Respect for the Individual; we’re hardworking, ordinary people who’ve teamed up to accomplish extraordinary things. While our backgrounds and personal beliefs are very different, we never take each other for granted. We encourage those around us to express their thoughts and ideas. We treat each other with dignity. This is the most basic way we show respect, 2. Service to our customers; our customers are the reason we’re in business, so we should treat them that way. We offer quality merchandise at the lowest prices, and we do it with the best customer service possible. We look for every opportunity where we can exceed our customers’ expectations. That’s when we’re at our very best and 3. Striving for excellence; we’re proud of our accomplishments but never satisfied. We constantly reach further to bring new ideas and goals to life. We model ourselves after Sam Walton, who was never satisfied until prices were as low as they could be. Or that a product’s quality was as high as customers deserved and expected. We always ask: Is this the best I can do' This demonstrates the passion we have for our business, for our customers, and for our communities. It makes me wonder what Sam Walton would think if he walked into a Super Wal-Mart of today. Would he be proud of how his vision has turned into an international giant among retailers' Would he be disgusted at the rude customer service reps' Would he be satisfied with the prices at the stores' Anyhow, there are many other questions I can think of that I would find interesting to ask Mr. Walton. However, I want to write about the stakeholders more specifically the customers and the employees. I want to focus on the vision and how it affects these groups, because I believe that Wal-Mart has forgotten about its roots and its basic principles that got them to where they are today. I know that the current state of the economy is playing a huge part on the slow down of Wal-Mart’s growth, but I also do think that some if not most of it is its (Wal-Mart) own doing. Anyone that goes into a Wal-Mart today can easily argue its three basic beliefs. Many of its employees can also argue at least the first belief. • Identify the main stakeholders; pick one or two, e.g., the customers, the employees, the stockholders. Customers and employees. • and then analyze whether the mission fits what you would see as the stakeholders' goals and objectives. First, let me start off by saying that both points can be argued on whether Wal-Mart is good or bad for customers and employees alike. However, I personally think that Wal-Mart does more good than bad. Here is why I think this way. Much has been written about when Wal-Mart comes into town, the economy still does not grow and it does not create jobs as it advertises it will do. The reason they give is that for every Super Wal-Mart opened, two grocery stores close. Although that may be true, the biggest beneficiary continues to be the consumer. When people are given the choice of the same or a comparable item at lower cost than another, most people will go for the lower priced item. Therefore, Wal-Mart helps the consumer anytime it comes to town. Others say that when Wal-Mart comes in and smaller stores are forced to close because they cannot compete with Wal-Mart lower prices, consumers are forced to drive further for the same goods. I find that somewhat of a compelling argument, but I disagree with it, because here I am a customer, I live in suburban in Ohio; my closest Wal-Mart is about 8 miles away. I have a Giant Eagle supermarket 1.5 miles away and a Kroger supermarket 5 miles away not to mention all the convenient stores, Walgreen’s and CVS stores I must pass before I get to Wal-Mart. I will always choose Wal-Mart when doing large grocery purchases. The only time I go to Giant Eagle or Kroger is if I only have a few items to purchase and out of convenience I will pay the higher prices at these locations. So to say that Wal-Mart will force the consumers to drive long distances because there is less competition is ludicrous. Now, it might be a different story in rural America, but even then people will always choose Wal-Mart no matter how many supermarkets there are simply because Wal-Mart’s vision to always provide lower prices. From this point of view, Wal-Mart is staying true to its mission. Wal-Mart is falling short on its three beliefs which are huge in shaping their vision and mission. Customer service has declined. They used to treat customers as the reason they’re in business, but as of lately that is just not true. I believe part of the problem has been Wal-Mart being to aggressive in cost cutting to expand and continue to bring lower prices that they have sacrificed the quality of services their customers receive at their stores. We now have the super long lines at check out, hey have gone to self-checkout counters that fail more than they work and they still require an associate assistance, but now one associate has to deal with five or six self-checkout lines, therefore the associate cannot be at six places at one time, which in turn allows customer service to suffer. The quality of people they hire is also an issue, since the pay is low, then it will not attract the quality of people to treat their customers as they envision. Some of the associates attitudes might be like: Why should I go the extra mile for $8.00 an hour' My question is why wouldn’t you' No one made these people fill out an application, but they are the type to always be part of the problem and not the solution; which brings me to the employee and how it relates to Wal-Mart’s mission. The mission of Wal-Mart in relation to its employees is simply to have respect for the individual, to strive for diversity, treat people with dignity and encourage the expression of new ideas and thoughts just to name a few. Employees play a key part in Wal-Mart continuing to provide the customer always low prices. Employees are encouraged to come up with new ways of saving the company money so they can pass the savings to the consumer, which will enable Wal-Mart to open more stores therefore creating more jobs. Wal-Mart is one of the biggest employers in the world, but people always have something to say about who is on top. There are so many anti-Wal-Mart groups out there and I don’t understand why. There are the lawsuits of sexual discrimination, the accusations of people asked to work overtime without pay or that many associates earn salaries well below the national poverty line. I am sure some of these accusations have a basis for it and some don’t, but the bottom line is that if these people did not work at Wal-Mart, where would they work' Would they be homeless instead of earning below the poverty line' Will the women be back at home taking care of the kids instead of filing a lawsuit because they feel they did not get the same pay or preference men did' Those people who allegedly worker overtime without pay, they had a choice. So Wal-Mart is not perfect, but I believe it does more good that bad. If Wal-Mart ceased to exist right now, it would do more harm than good. How many people would be complaining then' So In its own way, Wal-Mart is sticking by its mission when it comes to their employees, it provides a vehicle for people to have dignity and purpose when they wake up everyday. I have been to Wal-Mart and can attest to its diverse workforce, the management needs work, but that will come with time and perhaps more pressure from the government and interest groups. Overall, Wal-Mart is now an integral part of society and the U.S. economy. It will continue to provide jobs for people and will continue to provide customers with low prices. There will always be those people finding reasons to attack Wal-Mart, but they will be the first to complain if Wal-Mart went bankrupt and there would be 1.4 million less jobs in the United States. They can talk about Wal-Mart being anti-union and how that is bad for employees, but one only needs to look at the auto industry to see how well the unions have worked for that sectors. If Wal-Mart were to ever unionized, it would lose control on giving the customer lower prices, because those greedy union bosses would hike up their fees driving cost up to the consumer. Thank you Wal-Mart for telling the unions “NO”, I like my always low prices. References http://www.walmartstores.com. 11 Feb 09. < http://walmartstores.com/AboutUs/> Bianco, A., Zellner, W., Brady, D. , France, M., Lowry, T., Byrnes N., & Zegel, S. (2007). Wal-Mart's Midlife Crisis; Declining growth, increasing competition, and not an easy fix in site. Business Week. New York, April 30, 2007, Issue 4032, page 46. Bianco, A., Zellner, W., Brady, D. ,France, M., France, M., Lowry, T., Byrnes, N., & Zegel. S. (2003). IS WAL-MART TOO POWERFUL' Low prices are great. But Wal-Mart's dominance creates problems -- for suppliers, workers, communities, and even American culture. Business Week. New York: Oct 6, 2003., Iss. 3852; pg. 100