In our review process, we will examine Wal-Mart Inc. In this essay we will review the Wal-Mart processes and identify a decision that will be made in the next six months. From the decision, we will then identify items of relevant and non-relevant information on costs in a decision making situation at Wal-Mart (Walmart. Corporate).
Wal-Mart stores Inc. is a US based corporation that runs a large chain of discounted departmental stores. According to the 2010 Fortune Global, it is the world’s largest public corporation by revenue. Wal-Mart serves more than 200 million customers per week in more than 8,650 retail stores in 55 countries around the world.
Wal-Mart processes. Wal-Mart’s supply chain management has been its cornerstone success and remains its primary competitive advantage in the retail store industry. Their distribution system has regarded as the most efficient and its logistical functions which allow it to be the market leader. The focus though here will be the company’s decision to making their logistical processes ‘green’ and more environmental friendly. The global sustainability report of 2010 progress update is designed to show that Wal-Mart is continued towards key initiatives and goals to providing new endeavors that were launched in 2005and January 2010 (Wal-Mart Global Sustainability Report 2010 progress update).
Wal-Mart sustainability program has got three goals; create zero waste, sell products that can sustain resources and the environment as well as be supplied by 100% by renewable energy. The other broad sustainability goal is to sell products that sustain people and also the environment. But Wal-Mart’s initiative to eliminate 20 million metric tons of greenhouse gases from its supply chain in the next five years is recommendable. This program makes a positive difference for the company as it would emit a lot of carbon without the program. The company reports that this initiative is equivalent to removing 3.8 million cars from the roads world for a year. This will in turn cut costs for its consumers at the same time making its suppliers more energy efficient in their use of raw materials, transportation, manufacturing processes and waste disposal (Wal-Mart Global Sustainability Report 2010 progress update).
But this initiative by Wal-Mart has got its own implications. They include; this sustainability report implies that everyone else will pay for the ambitious plan as Wal-Mart shareholders win. Wal-Mart has over the years crafted impressive environmental records including in wind power, and energy efficient buildings. This spells doom for some suppliers who will even go out of business while others will move their operations to wring more costs and carbon (Lurie B. 2010).
Another is that Wal-Mart built its name as a low-cost retailer for consumers who are seeking goods at great prices. But again some of these energy saving goods like energy efficient bulbs do cost more. This clearly is a deviation and may have adverse effects on their sales unless the right messages are communicated to its consumers (Lurie B. 2010).
Wal-Mart is an international retail chain that runs a chain of discounted departmental stores. In the company’s 2010 sustainability report, it wants to ‘go green’ and thus reduce the amount of greenhouse gas emissions and sell products that can sustain resources and the environment. But these initiatives have some impacts on the consumer. There’s fear that the price of energy saving goods will increase and these costs will be transferred to the consumer. This may adversely affect their profits. So it is yet to be seen whether the company will go green and the likely implications to its profitability.