Wal-Mart Case Study

In: Business and Management

Submitted By forevermoore
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Webster University | Management and Strategy | A glance into Wal-Mart | | Monica Kendra Leigh Spell | 2/5/2011 |

A case study of Wal-Mart discussing strategic initiatives |

Threats and Challenges
A SWOT analysis provides a description of an organization’s strengths, weaknesses, opportunities, and threats. It is an important tool in management decision making, because managers are able to look at what their areas of improvement need to be, what their strong points are, and how to integrate the two to benefit the organization. After conducting a SWOT analysis of Wal-Mart, a few threats and challenges were identified. Changes in executive leadership can and usually do pose challenges for an organization. In this regard, Wal-Mart is no different. Lee Scott took the post as CEO of Wal-Mart in January 2000. Some of his challenges throughout his reign as CEO were ethical issues, personnel dilemmas, health insurance reform, and pressures from external groups.
Ethics guides the managers’ decision making process by determining moral awareness, judgment, and character. The manager must acknowledge that an ethical issue exists, determine a solution that is within morals, and have the ability to carry out their ethical decisions. Managers must also wear a “veil of ignorance”, a term based on John Rawls experiment. This means that managers must place themselves in the group that the decision will negatively affect and weigh the decision. Ethical decision making also involves using the problem solving method. Ethics is important to the managers’ decision making process, because it can have costly consequences. The cost of unethical decision making include government fines, decline of employee commitment and morale, and an increase in government regulation. Unfortunately, Scott encountered some of these costs during his tenure as CEO.
Scott brought…...

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