MANA 3319
1/16/2008
In-Class Assignment 1.
Video: Global Giant
INSTRUCTIONS: Watch the Video with your group and answer the following questions
after discussing with your group. Each work sheet should be submitted individually.
1. According to Michael Porter a Company can achieve Competitive advantage either
by offering the lowest price or by offering the best quality. What is Walmart’s source
of Competitive Advantage? How can you substantiate this?
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Lowest Price
Logo: Always low Prices
Advertisement – slashing prices
Lower wages/ lower benefits for workers
Source product from low cost producers
2. What three things can you say about Walmart’s commitment to Human Rights
Standards? McGregor proposed two theories of management- Theory X and
Theory Y. According to these:
Theory X assumes that employees are inherently lazy and lack ambition. It is a
negative perspective on human behavior
Theory Y assumes that most employees do not dislike work and want to make useful
contributions to the organization. It is a positive perspective on human behavior.
What do you think is Walmart’s management approach to its workers?
Walmart’s commitment to Human Rights:
a. surprise inspections trying to improve conditions
b. poor working and wage conditions
c. source from producers with dubious records
Walmart’s approach is Theory X the women in Bangladesh were locked inside the
factory, lower wages/ no benefits/ do not keep workers needs foremost (if you
answer Theory Y you need to substantiate it)
3. What are the problems Walmart is facing because of its approach:
a. With regard to employees
Lower wages/ low benefits/ bad working conditions
Increase in lawsuits
Criticism
Lower employee retention- part time employees, employees who are
supplementing their incomes
b. With regard to customers
Bad for the community
Low prices translate to lower wages
Low quality
Good for customers in the short term.
Customers and community have to support the healthcare costs.
A Pandey
MANA 3319
1/16/2008
4. Customers say they “get what they want in Walmart”. Would Walmart change their
policies, in light of this? What would you shop in Walmart for? Would you shop in
Walmart even despite their spotty human rights record? What do you think is likely
to happen?( Hint: Think about the stricter Legislations passed because of the
Accounting Scandals)
a.
b.
c.
d.
Probably not.( give a reason)
This is your answer
Again your answer
Maybe legislation could FORCE Walmart to change their policies, force
independent inspectors and better working conditions and thus RAISE
prices, maybe that could impact Walmart negatively rather than a
change they themselves initiated.( be more critical and creative in
thinking the answer to this one)
A Pandey