Presented By: Phillip Dyer, Courtney Gappmayer, Ryan Green, Jaimie King, and Morreen Klement

Inside View Insert

History 1962 – Walmart founded in Rogers, AR 1969 – Incorporated as Walmart Stores, Inc. 1970 – Open to the public 1990 – Nation’s leading retailer 1991 – Company opened internationally in Mexico 1999 – World's largest private employer 2003 – World’s largest grocery chain

Present-day Walmart On average, Walmart serves over 176 million 7000 facilities in 13 countries Net sales for 2011: $419 billion "The two most important words I ever wrote were on that very first sign, 'Satisfaction Guaranteed.' They're still up there and they have made all the difference." -- Sam Walton, Founder of Walmart

Gender Discrimination

Issue Defined 2/3 of Walmart employees are women. Only 10% are store management. Betty Dukes took a class-action discrimination case all the way to the supreme court. For the lack of promotions and raises. Case Involved 1.6 million female employees. Case was disqualified.

Alternatives Create a pay equity Consider more women for promotions

Leadership and Power

Issue Defined Thomas Coughlin Board of Directors member Hunting and travel buddy of founder Sam Walton. Forced to resign Stole as much as $500,000. Asked a subordinate to approve an expense without receipts.

Alternatives Create strict separation of powers Run extensive background checks for executives

Employee Treatment

Issue Defined Lack of meal/rest breaks Tampering with overtime

Alternatives Obey the law Create a policy for overtime Create a system for projected overtime report

Urban Sprawl

Issue Defined Roads, parking, and traffic flow Decrease in green One Walmart = 25 acres

1990 vs. 2010

2004 vs. 2008

Alternatives Plan a distance to limit stores in city limit Pay for better road system and replacement of green used

Suppliers

Issue Defined Cost burden on suppliers Moving companies overseas Suppliers rely on Walmart for large orders Expanding their market share Taking over delivery to its distribution centers Lower own costs, raise everyone else’s

Alternatives Lessen restrictions on suppliers Stop switching suppliers once chosen

Abandoned Walmarts

Issue Defined Unnecessary Walmarts Special secret Walmart planning team Stealing customers Abandoning when objective complete Keeping potential buyers at bay

Alternatives Environment - Team seeks out buyers for the abandoned locations Goal of finding a buyer within 1 year of abandonment Philanthropy - Walmart donates and invests necessary materials into converting abandoned sites into Tornado Shelters

Recalls

Issue Defined Over 240 product recalls since 1984 Walmart’s willingness to sell deficient products Products can injure or harm customers

Alternatives Increase quality control internally Increase quality assurance from suppliers

Unions

Issue Defined No representation for employees Walmart controls all employment negotiations

Alternatives Introduce company-wide union for all employees Enforce all existing unions and enable employees to elect their own unions

Summary

Recommendations Gender discrimination Leadership Create a pay equity Leadership Create strict separation of powers Treatment of employees Urban Sprawl Plan a distance to limit stores in city limit

Recommendations Suppliers Abandoned Walmarts Recalls Unions Lessen restrictions on suppliers Abandoned Walmarts Team seeks out buyers for the abandoned locations Recalls Increase quality control internally Unions Introduce company-wide union for all employees

Hey, WalMart? Do the Right Thing.