Page 35 - DMGT510_SERVICES_MARKETING

Services Marketing

Notes Socio-Cultural

Wal-Mart’s founder Sam Walton believed in servant-leadership, which makes it their
mission to serve their associates and customers with compassion and integrity. Their
emphasis is on their associates, children, families, the local community and other local
programmes that improve the quality of life in their communities.
Specifically, Wal-Mart focuses their giving on:
Community education and scholarships

Family health and welfare needs-particularly the youth

Economic and workforce development programmes that benefit the communities

Environmental issues

Community-based organizations

Challenges
Today with the legal problems that Wal-Mart has, a lot of its good work goes unnoticed.
Although Wal-Mart claims to generate employment in the community where it sets up
shop, research shows that for every three jobs generated, two are lost. It takes Wal-Mart
three years to completely wipe off the small retailers in the community. With its supply
chain well networked, local companies have no option but shut down. Wal-Mart needs to
be compassionate towards local communities.

To conclude, Wal-Mart will have to revise its employee policies worldwide, if it is aiming
to be an employer of choice. It would need to introspect while expanding, especially in
international markets where competition is more intense and price is not really an issue.
Questions
1. If Wal-Mart were to enter India, how should they evaluate their environment?
2. Is there a case for them to ignore SLEPT factors - as there are hardly any regulations
on retailing?
3. Give Socio-cultural reasons to elucidate why Wal-Mart may not succeed in India.

Source: Service Marketing: Concepts, Planning and Implementation, C K Bhattacharjee, Excel Books
Self Assessment

State whether the following statements are true or false:
1. ICICI Retirement benefits plans usually target the middle aged people.
2. Foreign banks need to adopt Indian cultural values in order to function successfully here.
3. Free SMS packs and Free Night Talk time plans are usually designed keeping the youth in
mind.
4. Daycare services target traditional Indian joint families.
5. The banking firms in India have to abide by the rules and regulations laid down by the
RBI.

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