1. Is it easy to become enamored with a company when it has enjoyed so much success over the years? What are Wal-Mart’s weaknesses?
Becoming enamored with a company should not depend on the amount of success it may or may not have had. I like a company that I can stand behind and support. The question isn’t whether a company is successful or not, it should be how did the company get to the level of success it is at. Wal-Mart’s name has recently been synonymous with controversy. Wal-Mart’s founder was known for his charismatic style, emphasis on customer service, and high esteem for Wal-Mart employees; however it can be argued that none of these exist within the company today. From personal experience, I can attest that there is no longer an emphasis on customer service, and employee morale is low. The company also has a negative corporate image amongst potential customers partially due to the controversy around the treatment of employees and the conditions under which many of their products are manufactured. Because of these factors, it is difficult for me to become enamored over a company who has had as much success as they have had.
2. Does Wal-Mart’s new neighborhood store format run counter to the cost-cutting emphasis that is at least partially responsible for the success of its traditional stores? Explain.
Wal-Mart’s new neighborhood store format do not run counter to the cost-cutting emphasis responsible for the success of its traditional stores. Wal-Mart still offers the same low cost products at these neighborhood stores, with the only difference being they offer groceries in addition to their other low cost products. This new store format makes it more convenient for customers in the vicinity to shop at their stores versus local mom and pop shops offering products at higher costs.
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