Page 32 - DMGT510_SERVICES_MARKETING

Unit 2: Service Marketing Environment

Along the path to success, Wal-Mart has remained No. 1 by staying true to Sam Walton’s Notes
basic values and beliefs:
1. Respect for the individual
2. Service to customers
3. Strive for excellence

Wal-Mart accomplishes this by bringing bright, active people from diverse backgrounds
together. Wal-Mart has always been an organization whose strength lies in the belief that
extraordinary results can come through empowering ordinary people. In the history of
major U.S. corporations, few are more passionate about principles.
Challenge

It is Wal-Mart’s first belief, “Respect for the individual”, that they are finding hard to
follow. Across the States, its employees have slapped it with various lawsuits.
In fact, Wal-Mart has been dropped from Fortune Magazine’s list of 100 Best Companies to
Work for America’s largest employer fails to deliver the benefits that its associates deserve
for making Wal-Mart the largest corporation in the world. It is no wonder
Wal-Mart has been left off the list when it:
Fails to provide affordable health care coverage to its workers, leaving them to

forgo health insurance because they cannot pay the bills;
Faces continuous legal problems, from discrimination cases to violations of the

National Labour Relations Act;
Tells associates that their union activities are being monitored, asks associates to

spy on co-workers on behalf of the company, and interrogates associates about their
union activities.
Solution
1. Pay their associates a living wage so that they can afford basic living expenses such
as a home, health insurance, and modest savings for children’s college and retirement.
2. Provide affordable healthcare.
3. Treat injured workers fairly and provide prompt and complete medical attention
for workers injured on the job.
4. Stop illegal interference with associates’ right to organize; cease all coercive,
threatening and bullying tactics to discourage organizing, and let the workers freely
decide.
5. Adopt less cut-throat, more co-operative policies that respect established commercial
districts and avoid pricing out small businesses.

6. End employment practices that discriminate against workers who are women, people
of colour, and lesbian, gay, bisexual and transgender.
7. Truly respect all associates as individuals irrespective of race, gender, religion, or
sexual orientation.
8. Respect the environment.

Contd...

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