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Wal-Mart's Sustainability Strategy

In: Business and Management

Submitted By aeroplaneee
Words 1263
Pages 6
With the launch of the Sustainability Strategy in 2005, Walmart was able to generate cost savings and profits from different areas of its supply chain. Having faced challenges to convince all its stakeholders to participate in this strategy, there is long way from setting a firm foundation for their strategy supply chain wide and to reach a consensus with its stakeholders on the need to focus on sustainability. However, with 2006 coming to an end, Ruben and Elm are pressured to evaluate the performance of their sustainability strategy based on both business and sustainability factors, and to decide whether to continue or halt the programme.

Analysis of sustainable strategy
Being profit-driven, Walmart has to ensure that business value is derived from the sustainability strategy, in order to maintain its dominant retail position. One benefit was cost reduction throughout the value chain of its products. Waste was effectively eliminated and efficiency in production, packaging, transportation, store operations and customer use was realized.
There was introduction of an additional revenue stream by selling the firm’s carbon credits through reduction in carbon emissions. Furthermore, it allowed Walmart to seek strategic level input from outside parties, creating collaboration with various companies to come out with new and innovative green products. Assurance of supply is also achieved, where Walmart was able to lock-in available supply or contribute to the preservation of scarce resources. Better suppliers’ quality was realized, since suppliers that follow good environmental practices are most likely better managed. Through the strategy, Walmart consolidated its suppliers, creating business value by maintaining long-term relationships with them and improving transparency in the supply chain, reducing supplier costs.
In the strategy, the priority of…...

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