Foda walmart

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Wal-Mart: Staying on Top of the Fortune 500
A Case Study on Wal-Mart Stores Inc.
This case study was produced for the Corporate Strategy and Public Affairs Lecture, The Graduate School of Political Management, George Washington University. April 2002, Washington DC

Contributors to this Report:
Patrick Hayden, Seung Lee, Kate McMahon, Mike Pereira The case study is an examination of howWal-Mart's Corporate Strategy affects its Public Affairs and Government Relations Strategy  http://mike-pereira.com

Executive Summary
Wal-Mart Stores Inc. is the largest retail company in the United States and has been ranked number one on the Fortune 500 Index by Fortune Magazine. Wal-Mart has four parts to their corporate strategy. 1. Dominance in the Retail Market 2. Expansion in the U.S. andInternational Markets 3. Creation of Positive Brand and Company Recognition 4. Branch Out into New Sectors of Retail Wal-Mart’s public affairs strategy must work to make implementation of these policy goals happen. Its public affairs strategy enables the company to move into other sectors of the marketplace and expand into foreign countries. The public affairs strategy also involves gainingaccess to politicians who can help Wal-Mart achieve its goals. WalMart has a very active Political Action Committee that gives almost a quarter million dollars annually. While Wal-Mart’s public affairs strategy works well with its corporate strategy. W e feel that there are a few recommendations which could make the company work better. Recently, Wal-Mart has been criticized for their opposition toallowing their employees to be unionized. Wal-Mart needs to clarify their reasons for their opposition to unionization. The public affairs strategy must also address the negative feelings harbored by some groups who feel that Wal-Mart is encroaching into far too many other sectors retail than it should. These concerns must be addressed if Wal-Mart is to enjoy continued success in creating positivename recognition. Wal-Mart will need to implement these recommendations if they are going to remain at the top of the Fortune 500, while simultaneously keeping a good reputation and making their name synonymous with cheap prices and good quality merchandise.

Table of Contents
Executive Summary ...................................................................................... 2 Table ofContents .......................................................................................... 3 I. II. III. IV. Background .......................................................................................... 4 Wal-Mart Company Strategy............................................................. 11 Wal-Mart Policy Issues......................................................................19 Stakeholder Analysis ........................................................................ 23 Timeline ......................................................................................................... 8

Market Stakeholders ................................................................................ 23 Non-Market Stakeholders........................................................................ 25 V. VI. Political/Public Affairs Strategy .......................................................... 27 Alternative Strategies for Wal-Mart ................................................... 30

Conclusion................................................................................................... 34Bibliography................................................................................................. 35

I.

Background

Last year, Wal-Mart had revenues of $191 billion. Wal-Mart's 2002 sales topped $218 billion, with sales growth at 13.8 %. Its 2002 net income was $ 6.7 billion, a growth of 6 %. Wal-Mart has 1,283,000 employees, as of 2002; a growth of 11.2 % (www.fortune.com). Wal-Mart is the largest retail store in the United States, and...
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