Wal-Mart Bribery Case Case Solution And Analysis, HBR Case Study Solution & Analysis of Harvard Case Studies

Wal-Mart Bribery Case Case Solution

PROBLEM ANALYSIS:

Wal-Mart has always wanted to build its stores in the populated locations of the Mexico. It wanted to continue its retail operations in Elda Pineda’s alfalfa field, this is an ideal location for it as this is the main entrance into the town and it is not much far from the historical monuments and pyramids located near the town. It was expecting large number of customer traffic in its alfalfa field, due to the tourism and the highly populated and dense nature of the location.

While in the process of acquiring the location for continuing its commercial operations, its faced an obstacle with respect to the city’s zoning procedures. The leaders of the location wanted to prohibit the construction near pyramids and they also believed that the town’s entrance was already congested enough that even a single commercial construction took place, then the traffic would not be easy to handle.
Wal-Mart’s hopes were doomed when they came to know that the 2003 zoning map would prohibit commercial development near Mrs. Pineda’s field. The executive responsible for the development of Wal-Mart in the desired location was not willing to let go of this ideal location to place their retail sites.In response and counter to these consequences they came up with an unethical and illegal solution, they agreed on bribing the authorities to heal the possible threat and damage.

They paid bribes to authorities to make favorable changes to the coning maps of the town, as the zoning map was not to be considered by the law until it was published in a government newspaper. Before the zoning map was sent to the newspaper, Wal-Mart De Mexico arranged a bribe payment to an official to make changes to the map, which would allow the construction and development plans of Wal-Mart.

The operations of Wal-Mart have now started and they have successfully been able to function in the ideal location. Despite their success in acquiring and initiating their store site in Mrs. Pineda’s fields, they are facing a number of criticism and societal opposition as their operations in the location are heavily affecting the cultural and environmental condition of the town. The town perceives the activities of the retail giant to be in against of the cultures and traditions of the town and a number of strikes, hunger sit-ins and protests through different mediums are being conducted by the concerned people living there.

A number of strong entities have already started investigation on their own platforms. These authorities and entities are finding a number of convincing and considerable evidences to conclude to the point that they were involved in the illegal and unethical act of bribing for attaining leadership and edge over their competitors in the Mexican market.

Wal-Mart’s leading executives have found out regarding these negative happening in the Mexican territory and they had also started an investigation for finding out about the unethical acts of executives of the company. A number of managers and individuals, against whom a number of provident evidences were found, have been fired by the organization and they are making every possible amendment to control the situation in Mexico.

The image of the organization is at stake right now.A number of protests are being conducted out by the town members and the organization’s activities are being perceived in against the betterment of the town’s cultures and natural treasures located in the town. Wal-Mart is damaging the environmental conditions as well. The organization is concerned about the steps that would settle the long driven issue through ways that would not damage the organization and the society as well.
The organization must take some efficient steps to overcome the situation in order to remain an operating entity and organization in the location...................

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Wal-Mart Bribery Case Harvard Case Solution & Analysis