Walmart

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Ans - Wal-Mart launched a sustainability strategy to dramatically reduce the company’s impact on the global environment and become “the most competitive and innovative company on the world”(Denend, L.(2007)).I believe the decision to launch a sustainability strategy was a brilliant move for the company because it takes advantage of the opportunity to significantly increase Wal-Mart’s reputation, thereby increasing consumer loyalty and profits in the long-run. Through this strategy, not only would Wal-Mart benefit, but the global environment as a whole.

Wal-Mart responded to public concerns of the company’s global environmental impact by contracting a nongovernmental organization (NGO) to research the issue. The Union of Concerned Scientists (UCS) compiled data regarding the impact in five areas: 1) greenhouse gas emissions, (2) air pollution, (3) water pollution, (4) water use, and (5) land use. From this research came Wal-Mart’s sustainability strategy. The company began to develop goals and objectives to reduce their impact on the environment (Denend, L.(2007)).

During the process of developing goals and objectives, the organization’s culture shifted from an internally focused culture to collaborative partnerships. Wal-Mart realized that in order to become sustainable, they needed help; so they sought input from every source imaginable, consultants, suppliers, manufacturers, eco-friendly competitors, academics, critics, etc. Ultimately, the company identified to three primary areas that it could set environmental goals to reduce Wal-Mart’s impact: energy, waste, and products. The direct goals would focus on increasing energy efficiency, transitioning to renewable...

2. As evidenced by Exhibit 9, Wal-Mart’s sustainability strategy has generally been very profitable. However, two initiatives described in the case benefit society and the environment, but apparently decrease Wal-Mart’s profits—holding recycling/take-back events as part of its e-waste project, and reducing its prices on CFLs and foregoing incandescent light bulb sales. Imagine that you are their internal champion; how would you justify pursuing them?

3. How is Wal-Mart motivating its suppliers to share information about and continuously reduce the environmental impacts of products and processes? How can it stimulate the development of disruptive, breakthrough innovations?

4. Imagine that you are Andy or Tyler, evaluating the progress of the electronics, seafood, and textiles networks. What factors explain the success (or lack of success) of these networks?

5. Think of one new game changer or innovation projects not described in the case. To support your proposal, outline the environmental benefits, the profit opportunity for Wal-Mart, the greatest challenges in implementation, and how Wal-Mart could overcome them.

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