Wal-Mart:What the Template Business of Global Capitalism Might

Reveal About the POST-Post-Fordist Future

Walmart: A brief history

Founded 1962 in Bentonville, Arkansas by Sam Walton

Incorporated 1969, and went public in the New York Stock Exchange (as WMX) in 1972.

First store in Bentonville, AK

Changes in Walmart Logo 1962-present

Walmart Today, A Snapshot:

Worlds LARGEST: Public corporation, EVER Private employer 15% market share of ALL

general merchandise and food sold.

In the US:

Over 11% share of total GDP

Criticisms of Walmart Extensive foreign

product sourcing (70%!)

Low rates of employee health insurance enrollment(dependence upon government healthcare programs)

Negative Environmental Impact

Resistance to union representation

Sexism

Pressures on employees to vote for specific parties during national elections.

Criticism with Humor

Overview of Analysis

Walmart has grown beyond the scale and influence of any business the world has ever seen

Walmart as trendsetter and market-MAKERNow functions more as global

commodity chain and logistics operation

Can influence market faster and more directly

If…Then…SO…

In examining Walmart’s business practices, recent initiatives, and forthcoming plans, we can gain insight into the future direction of the global economy.

Allen Scott’s notion of “Flexible Production Regime

Harvey’s notion of “Creative Destruction”

“Always Low Prices”:Making Penny Pinching the World

Business Standard

Walmart requires all suppliers to submit to strict efficiency standards to cut costs in:

Production processes Product design Materials/Packaging Labor Transportation

“Plus One” PrincipleRequires that every year suppliers must cut costs or improve quality

“Retail Link”Collects POS data from around the world and made available to suppliers

Enhances sensitivity to consumer trends- “micro-marketing”

Logistics Revolution and “Lean Retailing”

Characteristics of Lean Retailing: UPC tags and scanning devices Computerized Inventory

Management Automated Distribution Centers Adoption of communication

standards throughout supply chain

Logistics Revolution: 70’s+

•Led Voluntary Interindustry Commerce Standards Initiative

Left: Workers posing at a Walmart distribution center

~SeEinG tHe FuTuRe ~(maybe)

Walmart and the Sustainability Index

As a market-MAKER, Walmart’s actions set the standards in the global supply chain.

What could Walmart’s plans for creating a “Sustainability Index” and product “Life Cycle Database” suggest about the future of the global economy?

Sustainability Index Specifics

Walmart will provide each of its 100,000 global suppliers with a survey of 15 questions to evaluate their sustainability.

Will develop a rating system that will be visible to consumers on all products.

The questions and rating system are divided into four areas: Energy and Climate, Natural Resources, Material

Efficiency and “People and Community “-Walmart Corporate Sustainability Index Fact Sheet

Natural Capitalism& Implications for the Future

Walmart being Walmart, if it implements this index, the rest of the retail industry will follow Will change consumer spending habits and

consequently reshape supply chain

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Sustainability efforts are in line with characteristics of Natural Capitalism

After Higher StandardsWill Walmart’s requirement of higher

environmental standards for their suppliers have a positive spillover

effect for other problematic parts of the supply chain?

Let’s hope so.