WalMart Ethik und soziale Verantwortung (WalMart Ethics and Social Responsibility, in German) [1of3]

Abstract


This document offers a blow-by-blow narrative as this writer riffs off a nine-year-old article as regards the prospects of Wal-Mart entering Europe (Fernie & Arnold, 2002). APA formatting will remain in place.



Introduction

There is a saying that hindsight is 2020. This document seeks to leverage that.

Spoiler alerts: the base of this document is a 2002 article, presumably written earlier in the same year that the deutsche mark was retired for the euro … and four years later Wal-Mart walked away from Germany altogether (Hall, Bawden, & Butler, 2006).



Wal-Mart goes to Europe

In the Fernie and Arnold’s abstract, it seems that the Wal-Mart strategy to enter Europe by targeting Germany the UK and France seems founded primarily on highest level of sales with an undercurrent of strategic geographic positioning, with an eye toward further expansion. In and of itself there is nothing wrong with this approach (though it seems somewhat simplistic, and one hopes that there really was more to it than that; though there is no indication). The article shows its age early; in the introduction, Wal-Mart had yet to become the globe's biggest corporation (though soon it would be). The introduction also references the projection that, 8 years hence (no last year, at this writing), Wal-Mart's revenues would approach 700 billion. Unless this is being read wrong (and it seems light to the writer as well), on page 30 of the 2009 annual report (in the consolidated statement of income), net revenue appears to be at just over 405 million (Wal-Mart, 2009).

The authors then go on to acknowledge that for Wal-Mart to meet its forecasted growth it needs to make its mark outside of the US, and then quickly refers to Europe as a key target. Doing the math on this quickly, there are seven continents and Wal-Mart is already in North America. That leaves six, and Antarctica does not look promising. Africa does not look much better at this turn in history. That leaves South America, Australia, Asia and Europe. Given Wal-Mart's historical expansion to Canada and Mexico first, it makes sense that Europe would garner such as spotlight.

Then the article turns to a commentary on how Wal-Mart may find itself succeeding, speaking of efficient supply chain logistics (aka collaborative planning forecasting and replenishment / CPFR). By now, one can almost smell the fail. If this is the rationale that management is putting forward it seems that the management itself may need to be reassessed. There is nothing new here, nothing nuanced, Wal-Mart is the Michelangelo of supply chain management. It is sensed that the success had been so sweet that one dare not question anything.

The article goes on to elicit the feel-good attributes. “Wal-Mart's small town roots influence its behaviour despite its large size. It attempts to be an integral part of the community fabric”. Humbly submitted, attempts might more honestly be substituted with the word postures. In addition, there is more. “A store greeter welcomes shoppers and employee "associates"”. …and tags returns, and checks for receipts, and dries carts when raining, and corrals & organizes carts at the front of the store. The “greeting” part is emphasized, but that is a small part – though it IS the part trumpeted. The cherry on the sundae of this paragraph however, is, “A unique organisational culture is embodied in the morning cheer”. Such mass regular pep talks are a staple of call centers, particularly under 75 employee questionable ethics call centers. This technique borrows heavily from the traditions of propaganda.