Custom «Wal-Mart Performance» Essay Paper Sample
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Wal-Mart is one of the major superstores in United States and it has branches in almost all states and Major towns. However, its expansion to smaller cities with an aim of tapping the clientele in such town is being opposed by the public. Wal-Mart had a proposal of building 40 new chains of stores centers and restaurants at California which was to be selling groceries among other items. However, they have experienced conflicts with the public, leaders and other small businesses at Inglewood, California. The proposal was to build the superstore at near Hollywood park which was to create 1000 permanent jobs to the locals and earn the distressed city tax base about $3 - $5Million and earn revenue of $100Million in new bonds.
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Although the community was to get 1000 permanent job the laborers of United Food and Commercial Workers (UFCW) were protesting to the entry of Wal-Mart in the region because it was not part of Unionized Staff as in the case with the unionized California grocery. Due to the fact that Wal-Mart was not supporting unionized staff in relation to wages and awards they assumed that once they allow it to operate in the region it will not adhere to work policies set by the unions. While church groups and the community opposed the proposal of building the stores there due to increase by traffic and the transport systems have not been upgraded to meet such abrupt development, public safety was also another factor being considered that its development will make the city less safety and lastly was environmental concern due to increased population and industrial activities which would have a negative effect to the environment.
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Small businesses were also opposing the proposal due to the uncouth competitive behavior of Wal-Mart. Due to its large operations is able to get goods and services at a cheaper cost hence they can launch operations with low costs which are not competitive with an aim of pushing the small businesses out of the market then they would introduce high prices which are profitable later.
City council was also skeptical of the operations of Wal-Mart as they were not willing to abide with rules in the city such as planning and other regulations. Despite the fact that they would earn $3-$5 as tax if the company set up the stores there. The dilemma of city council to accept the proposal of the company would be like setting a bad precedence as it will do the same in other cities. There are many companies in the city which are following the bylaws and regulations and if they allow Wal-Mart to operate without following such laws it will affect their operations.
Wal-Mart used paid signature and collected 10,000 signatures to place the proposal for balloting, if voted it will be exempted from city zoning, planning and environmental regulations. It also spent $1 to advertise the initiative by a hired advertiser; citizens criticized the move and said that if the strategy succeeds at Inglewood Wal-Mart might use it as a model to other cities and in the world. However, Inglewood residence voted 60 to 40 against Wal-Mart and it had to follow the due procedures of the cities in terms of regulations. While the vice president of the corporate affairs at Wal-Mart explained that leaders at Inglewood was able to convince the majority of the voters to vote against. Which have made the city loss shopping of choice and job opportunities as it is in other cities and he vowed to keep on with the strategy.
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Management Process of Wal-Mart
Wal-Mart did not follow the management process in its planning to have the stores in California. The company did indentify the issue but decided to implement it without analyzing and consulting all stake holders for its success. It should have analyzed its implications, how it would affect them and other stakeholders. Although they did the research of the potential market they didn’t research on the needs of the public as opposed to how they perceive them in terms provision of Jobs and tax revenue to the city.
If they would have analyzed the Issues concerning the city council, public, church organizations and its leaders they would have been able to have better judgments on what was expected of them and how they can be able to prioritize in their plans. This would have been very essential before formulating their policies in the organizations. If the strategy which they were formulating they had involved all the stakeholders they would have reached at a compromised place which all parties are in agreement on what they would do and what they should not do. This would have saved the company from the embracement of losing in the polls as the majority of the public did not accept their proposal.
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The company did not follow the program design as they had not reviewed the implementation results. Hence, they were taken by surprise when the implementation which they were planning failed to take effect and they faced determined public which was opposing their proposal despite of trying to push it through dictatorial means of hiring marketing and paid signature collection to enforce its strategy to the public.