1. Case 6-9 Stephen MacNeilCody Chaplain Jim Zolty Melissa Jenkins Eyosias Solomon Brandon Withers Wal-Mart

2. Outline Key Problems Company’s Situation Recommendations

3. Key Problems Selective Cultural Gatekeeping Employment Issues Government Issues Supply Chain Tyranny

4. Selective Cultural Gatekeeping Censored CD’s Censored/Removed Magazines –“fine line between pornographic and provocative” Preven Pill –“moral dilemma”

5. Employment Issues Underpaid Employees –2003 average associate made $13,861 a year, almost $800 below the federal poverty line for a family of three. Lawsuits & Sexual Discrimination –Largest civil rights class action ever Turnover rate

6. Government Issues U.S. Economy’s dependence on Wal-Mart Lobbyists in Washington Overturning local ordinances by petition Government can not control Wal-Mart

7. Supply Chain Tyranny Wal-Mart dictates: –Delivery schedules –Inventory levels –Specifications of products –Product selection –Merchant selection Bought 10% of all US imports from China in 2003

8. Company’s Situation World’s largest retailer –$245 billion in sales in 2002 –Partly responsible for low inflation rate in recent years Saved customers $20 billion in 2002, by offering lowest prices Low price, family-oriented, patriotic culture Sends conflicting messages

9. Company Situation Low Prices –14% lower average grocery prices –82% of all American households made at least one Wal- Mart Purchase in 2002 Everything under one roof; “SuperCenter” Hollywood’s biggest outlet of CDs and DVDs Controls large share of business done by most every major US consumer products company

10. Recommendations for Cultural Gatekeeping Use marketing research to understand what customers truly want –More emphasis on focus groups –Survey customers in and out of store –Check sales receipts to compare what customers are buying

11. More Recommendations Pay more competitive wages and provide incentives to workers Reduce cost by reducing store hours Settle lawsuits quietly Improve public relations Do not open stores in small towns Provide more leniency to suppliers

12. The Mixed Image Wal-Mart is the best and worst thing that has happened to the United States Best thing because: Low prices have reduced the inflation rate Worst thing because: If Wal-Mart collapsed, there could be a national security issue So many people are against Wal-Mart, but they can not live without it.

13. Fix the Mixed Image!