Please read the assigned short case Walmart Inc. carefully and answer ALL questi

Question

Please read the assigned short case Walmart Inc. carefully and answer ALL questions below. Your response should be typed with a maximum of ten pages.

http://www.nytimes.com/2012/04/22/business/at-wal-mart-in-mexico-a-bribe-inquiry-silenced.html?pagewanted=all&_r=0      WALMART CASE

http://highered.mheducation.com/sites/0072969431/student_view0/guide_to_case_analysis.html      Guide to Case Analysis

Please fully answer the following questions about the case in your report:

1. Summarize and discuss the core issue in the case. Do not repeat the entire case details but only pertinent information at the heart of the case.

2. Identify any ethical and/or moral dilemmas in the case. What is an ethical decision-making?

3. Did the company violate any law in this case? If so, discuss all potential legal violations committed by the company.

4. Using the three types of stakeholders (organizational, product-market and capital market), explain how this scandal affects each of the company’s important stakeholders such as employees, customers, suppliers and shareholders.

5. Suppose you are the CEO of the company. How would you react to this news? Provide a short and long term crisis management plan to handle this situation.

6. Did the incident affect Wal-Mart’s financial position? Compare Net Sales, Net Revenue, ROA, ROE and stock price for 2003-2004 (pre-scandal) and 2006-2007 (post-scandal). Note that the scandal was publicized mainly in 2005. Create spreadsheet line charts for each ratio and attach them at the back of the paper. [Discuss the charts in the body of the paper by citing them as figure 1, 2 etc.]

7. Going forward, does the scandal affect Wal-Mart’s international operations in both developed and emerging countries? If so, how?

Explanation / Answer

i) Well, after going through the information provided on the web page you mentioned, the core issue here is the bribes being given by the the employees of Wal Mart in order to get the most from the Mexican market. The employees did whatever they could in order to have the maximum number of stores they could open in the country and at the same time to make the company the most dominant one in the entire market. All this happened with full knowledge to the former executive of the very company.

With the company in a fix, the ordered an enquiry by a former FBI agent to find out the matter. With the findings coming out against the wish and interest of the company they ordered to shut the very investigation. The company even promoted the very executive to the post of vice chairman of Wal Mart.

So, this is a case of pure ethical violation on the part of Wal mart. All the the so called ethical talks and good things came out after the revelations made in this particular article.

ii) Well, as I said, the company violated the ethical norms of the industry and attempted all the wrong means in order to get hold of the entire Mexican retail market. As far as ethical decision making is concerned, the decisions that are undertaken takin all the right directions with a view of the law of the land is being considered as an ethical decision.

iii) Here, it is a clear case of bribery and laws taking care of corporate scandals and bribery cases should be taken into consideration while going on with this kind of case.

iv) In reality, no one actually got affected by this scandle in this company as Wal mart achieved all the targets it had set in the beginning and the case got uncovered years after all the happenings. So, all the stakeholders actually got benefited out of all this.

Regards.

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