Case Study Of Walmart De Mexico

671 Words2 Pages
bulb-icon

Recommended: Abstract on bribery

1) Case Study
I choose Wal-Mart de Mexico because of the need for bribery and the means of covering up the problem is a huge management problem, especially when dealing in every aspect of international business and management. We become wary by the media coverage like the ones in New York Times (NYT) in April, 2012 and subsequent follow ups of wrongdoings of such magnitude and questions whether social responsibility ,business ethics and governance of such Corporations are actually in placed and to what extent in this case.
2) Contemporary management issue in relation to this article
• Background and context of the Company: Wal-Mart Stores Inc. is an American multinational retail corporation that runs chains of large discount department stores and warehouse stores. To date it is purportedly to be the word largest public corporation according to “Fortune Global 500” list provide by Wikipedia: Walmart (2014). The Company was founded by Sam Walton in 1962, and together with his brother opened the first Wal-Mart store in Rogers (Arkansas), USA. In the 1990’s, Wal-Mart decided to go global, thus, Mexico was one which its globalization initiative concerntrated on.
• Key Issues for the Company: Wal-Mart de Mexico executives used unethical means to subvert democratic governance by knowingly bribing Mexican officials to obtain building permits, environmental clearance, and zoning clearance to open new stores over the years and also falsify accounting records to hide these payments. When this matter came to the attention of the senior management of Wal-Mart in USA, instead of hiring a third party to look into this investigation, the matter was reverted back to Wal-Mart general counsel in Mexico, the very people implicated at the centre of ...

... middle of paper ...

... then CEO of Wal-Mart, Lee Scot which seem flawed from the very beginning where he excluded people with the relevant expertise, instead of uncover and deal with the serious problem, he choose to suppress. I recommend that he should have lead from the top with process for prevention and responding to the wrongdoers of this bribery scandal. As evident in the above case bureaucracy approach to management was not conducive, and therefore I also recommend the contingency thinking approach which is more applicable that try to match managerial response with the problems and opportunities specific to different settings. “No one best way” to manage and organize due to varying circumstances (Bateman & Snell 2004). Wal-Mart should have immediately appointed an independent third party investigating team and its result directly to the boards of directors and Justice Department.

Show More
Related

  • Wal-Mart vs. Pyramids, by Laura Carlsen

    874 Words  | 2 Pages

    Overall, Carlsen is able to provide a convincing case against Wal-Mart and their latest “step in a phenomenal takeover of Mexico’s supermarket sector.” She conveys multiple rhetoric devices and is able to do so in a relatively short article. Though Laura effectively uses the three primary persuasive appeals logos, pathos, and ethos throughout the piece, her argument is most successful when she takes a more direct approach in reaching her target audience, saying “The dispute is not a battle between past and future. It is a struggle over a country’s right to define itself.” She also states Wal-Mart’s practices interfere with on the country’s “contemporary integrity” by constructing on the ancient site. Her tone, along with her use of various rhetoric appeals, contributes to creating an effective and successful argument.

    Read More

  • Wal-Mart

    1714 Words  | 4 Pages

    Wal-mart is currently the world’s largest company. It has seen continuous growth and financial success since it was founded in 1962. Today it is living off of a previous reputation of solid ethical business practices that are no longer being exercised. Sam Walton, the founder of Wal-mart, was considered to be “freakishly cheap… Cost-cutting was an obsession in the Wal-mart culture… on business trips, everyone, including the boss, flew coach, and hotel rooms were always shared.” (reclaimdemocracy.org. 2006). This was only part of the reason for Sam Walton’s success.

    Read More

  • Wal-Mart: The High Cost of a Low Price

    515 Words  | 2 Pages

    Wal-Mart represents the sickness of capitalism at its almost fully evolved state. As Jim Hightower said, "Why single out Wal-Mart? Because it's a hog. Despite the homespun image it cultivates in its ads, it operates with an arrogance and avarice that would make Enron blush and John D. Rockefeller envious. It's the world's biggest retail corporation and America's largest private employer; Sam Robson Walton, a member of the ruling family, is one of the richest people on earth. Wal-Mart and the Waltons got to the top the old-fashioned way: by roughing people up. Their low, low prices are the product of two ruthless commandments: Extract the last penny possible from human toil and squeeze the last dime from its thousands of suppliers, who are left with no profit margin unless they adopt the Wal-Mart model of using nonunion labor and shipping production to low-wage hellholes abroad." (The Nation, March 4th 2002 www.thenation.com/doc.mhtml?i=20020304&s=hightower).

    Read More

  • Wal-Mart and Corporate Social Responsibility

    1340 Words  | 3 Pages

    Corporation has is to increase profits for its stockholders. Through a utilitarian perspective, we can see that Wal-Mart is acts in a way to product the greatest possible balance of good over dissatisfaction for their stockholders. Wal-Mart upholds the fiduciary duties to their stockholders by not increasing wages of their employees, instead they take the sum of money and return it back to their stockholders and shareholders such as customers and suppliers. Wal-Mart creates the happiness for the amount of people who invest in the company. Ethics is about the consequences of an action and the consequence of Wal-Mart’s actions creates the greatest amount of good for the people who are the primary stockholders of the corporation.

    Read More

  • Data Analysis Of Wal-Mart Stores Inc.

    1853 Words  | 4 Pages

    Wal-Mart initially began its operations in 1945, when Sam Walton leased a ‘Ben Franklin’ franchise variety store in Newport, Arkansas. After relocating to Rogers, Arkansas in the early 1950s, Sam Walton’s ‘Ben Franklin’ became ‘Walton’s 5 & 10’. By 1962, Walton found himself the chain owner of 11 different Walton’s stores across Arkansas. He then decided to rename the chain ‘Wal-Mart’, after himself. On October 31, 1969, after further expansion across the state, the chain was incorporated as Wal-Mart Stores, Inc. Three years later, Wal-Mart was approved and listed on the New York Stock Exchange (NYSE).

    Read More

  • The Pros And Cons Of Wal-Mart

    1454 Words  | 3 Pages

    Wal-Mart has been the center of employee wages exploitation and for years they have been practicing the same labor abuse throughout the nation in order to save their labor expenses and maintain profit. Weldon Rich Olson, a former W...

    Read More

  • The United States Of Walmart Rhetorical Analysis

    1503 Words  | 4 Pages

    Within an excerpt from, “The United States of Wal-Mart,” John Dicker explains that Wal-Mart is a troubling corporation. Dicker begins his article by discussing why the store is so popular within the news in an age of global terrorism, coming to the conclusion that Wal-Mart has a huge scope in the United States and that it has more scandals, lawsuits, and stories than any other supercenter. Continually, he goes on to explain that Wal-Mart outsources jobs and their companies demands makes it hard for employees to have livable wages and good working conditions. Furthermore, Dicker addresses the claim that Wal-Mart provides good jobs, by destroying this perception with statistics showing how employees live in poverty and that their union scene

    Read More

  • Wal-Mart is Bad For America

    841 Words  | 2 Pages

    In 1962, Wal-Mart opened their first store in Rogers, Arkansas. In 1970, Wal-Mart's first distribution center and home office in Bentonville, Ark. open and Wal-Mart went public on the New York Stock Exchange. Just nine years from that, Wal-Mart's annual sales exceeded one billion dollars. In 1988, Wal-Mart super centers opened across the country. In a merely three years from that, Wal-Mart opened their own store in Mexico City, Mexico; making Wal-Mart an international corporation. Not even sixty years has past, and yet, Wal-Mart is over-powering our country.

    Read More

  • Organizational Analysis of Walmart

    773 Words  | 2 Pages

    It’s the largest private employer in USA. And every year approximately of 93% shopping is done from Wal-Mart in America.

    Read More

  • Foreign Corrupt Practices Act Is Outdated

    866 Words  | 2 Pages

    ...ff. By the end of 2014 Wal-Mart will have appointed 10 market-level Chief compliance officer in its International division to build and lead the compliance teams in the company’s retail markets around the world. This effort is critical for promoting the long-term sustainability and capability of the company’s anti-corruption compliance team.

    Read More

  • Walmart Part 3 Case Study

    2338 Words  | 5 Pages

    How does managerial planning for Project Impact take place at different levels within the organization?

    Read More

  • Strategic Management of Wal-Mart

    1002 Words  | 3 Pages

    Wal-Mart Stores Inc. is in the discount, variety stores industry. It was founded in 1945, Bentonville in Arkansas which is also the headquarters of Wal-Mart. Wal-Mart operates locally as well as worldwide. It operated 1209 discount stores, 1980 super centers, and 567 Sam’s Club by January 31, 2006. It has also extended its operations to many international countries. It runs its retail stores in two forms: Sam’s Club and Wal-Mart Stores. The Sam’s Club sells assorted product lines such as hardwares, electronics, jewelry, and to mention a few. The Wal-Mart stores also offer similar products in addition to the following: health and beauty products, apparel for women, men and children, household appliances etc (www.yahoo.finance.com). The Vision Statement, Mission Statement, Values and Code of Conduct, Corporate Governance: Directors, Executive Management, Committees and Stakeholder will be the key elements that will discussed in this report as it relates to Wal-Mart. In addition to that, the major trends in the general/macro environment and industry will be analyzed.

    Read More

  • Walmart De Mexico Case Study

    1928 Words  | 4 Pages

    The core issue in this case is about how Wal-Mart de Mexico covered a vast bribery orchestrated by government officials, authorities, and executives from Mexico. Wal-mart de Mexico perfected the art of bribery by using fraudulent accounting and building stores so fast by getting zoning maps changed and making environmental objections disappear. Wal-mart de Mexico’s executives bribed government officials to aid in getting permits faster, since this is a process that typically takes months to complete. However, the company’s executives managed to get them materialized in days. Bribes were also

    Read More

  • Case Study Of Walmart Stores, Inc.

    1478 Words  | 3 Pages

    Wal-Mart Stores, Inc. is a renowned retail goods superstore that sits atop the Fortune list at number one. It would be very difficult to find an individual who is unaware of Walmart’s position as the largest brick-and-mortar retail chain in the world. The company has thrived over the past few years and is continuing to grow by effectively managing its store operations and distribution strategies. One of the major contributors to the business consistently meeting market expectations is directly attributable to their management approach. Walmart has revolutionized the way retail companies manage their supply chains in more ways than one. But, perhaps the most revolutionary was the practice of unprecedented coordination with suppliers (Chekwa,

    Read More

  • Wal-Mart: The Challenge of Making Relationships with Stakeholders

    1203 Words  | 3 Pages

    Employee stakeholders have another story. The discrimination lawsuits ranging from female employees not getting equal pay or equal positions, to disabled employees, class-action lawsuits stating that Wal-Mart doctors questionnaires to prevent disabled workers from applying, Wal-Mart does not rank very high with these employees. Lawsuits stemming from Wal-Mart’s failure to monitor labor conditions at oversea factories and hires illegal immigrants add to the rift in relations between the employees and the company. Wal-Mart continues to deny charges...

    Read More

More about Case Study Of Walmart De Mexico

Open Document