International Business

Group Assignment
Topic: Leadership & Ethics
Wal-Mart’s Case Study

Group Members:

1. Nguyễn Trường Giang

2. Hoàng Huy Hưng
3. Nguyễn Mạnh Lâm
4. Nguyễn Phương Mai
5. Hà Hoàng An
Table of Contents

Part I: Leadership & Business Ethics ................................................................... 3

1. Leadership ................................................................................................... 3

2. Ethics in Business ....................................................................................... 4

Part II: Analyzing Case ........................................................................................ 6

3. Wal-Mart’s Background. ............................................................................ 6

3.1. Wal-Mart history. .............................................................................. 6

3.2. Wal-Mart’s code of conducts and ethics. .......................................... 6

4. Bribery Scheme in Mexico and US Labor Issues ....................................... 8

4.1. Wal-Mart Bribery Scheme in Mexico ............................................... 8

4.2. Labor Issue in US ............................................................................ 11

5. The weakness in the code of conduct and ethics of Walmart ................... 15

6. Wal-Mart’s solution to overcome ............................................................. 17

6.1. Comprehensive Anti-Corruption Audit Examination for wrongdoings

18

6.2. Anti-Corruption Reskilling ............................................................. 18

6.3. Partner selection based on Labor right Standards – Wal-Mart’s

Standards for Suppliers Manual .................................................................. 19

6.4. Wal-Mart E-Commerce Strategy .... Error! Bookmark not defined.

Part I: Leadership & Business Ethics

1. Leadership
Definition

Leadership istthe series of activities ortbehaviors or the ability of a company's

manager orta leader to set and achievetexcellent goals, take sound
andtdecisive actions, going cross the competitor, andtmotivate other people in
group ortcorporation to perform well.

Leadership could be
 Establishing achievable visionstand spreading thosetvisions to others
 Showing workers howtto effectively performttheir responsibilities
 Coordinating and balancingtthe conflicting intereststof all members and
stakeholders.
Features of Effective Leadership
Effective leadership in a person includeststrong features. They show honesty,
trustworthiness, and ethics intdoing business. Leaders behave in line with
how they speak and take responsibility for others’ success in the company.
Strong leadership involves alltclear social skills. Leaders speak with and
listen to staff members, share with other people, deal with problems,
questions, and concerns. Leaderstuse effective leadership skills for shifting
the operation forward and achieving success.

Good leadership can position wheretthe company is and where the company
wants to reach (destination)? They also know what is possible or impossible
and the way of following trends in thetmarkets or accept to take risks to raise
the company's businesstpowers in the future. In addition, they show their
confidence and provide a high leveltof positive energy for employees.
 Leaders create ways to motivatetstaff to work with others and achieve
excellent results or better performance.

2. Ethics in Business
Definition
Business ethics is a system of moral widely applied in the commercial world,
which demonstratestbehaviors that are acceptable in daily life especially in
doing business. Ethical behaviorstare becoming increasingly necessary in the
success of the company and building an impressive image of the business.
Ethics in Leadership
The managers control the progress for how the whole company runs daily.
Leaders within an organization can guide employees by direction and help
them in making decisions or working that not only beneficial as individuals,
but also for the whole organization. Building a foundation of ethical behavior
leads to create long-lasting positive relationships within a company. Doing a
business in an ethical direction would build close-bond between individuals
or between groups or departments within a working environment, further
creating stable development for the company.

The Importance of Ethics in Business

 The ethical foundation brings profit for the business
The principle of sustainable development is the basic principle of many major
corporations in the world, why their profits are millions of dollars without
any undesirable behavior? Because they are businesses for customers, put the
interests of customers up, bringing practical benefits, social responsibility.
They have a team of integrity, honesty, cohesion, and teamwork that all
create trust and peace of mind.
 Change of mind in everyone, business
From a business perspective, there are many businesses that do not pay
attention to the ethical issues of the business environment, this is where they
need to look back and take a step further. Ethics standards are the most solid
foundation for competitive enterprises and sustainable development.

Enhance company reputation

With consistent ethical behavior, public image is becoming more active and
there are other important considerations for potential investors and current
shareholders. In order to maintain positive, businesses must commit to ethical
behavior because it involves treating employees, respecting the surrounding
environment and fair market practices in terms of price and terms consumer
treatment.
Part II: Analyzing Case
3. Wal-Mart’s Background.
3.1. Wal-Mart history.

Wal-Mart Inc. is a large company of American origin which also is the largest
retailer in the world in distribution to supermarket chains, grocery stores, and
discount stores. The founder of Wal-Mart was Sam Walton, who founded the
company in late October 1962. Bentonville, Arkansas, is the headquarters of the
company. Wal-Mart has been very successful, and the number of Wal-Mart
stores is the best evidence of this remarkable success. The largest retailer in the
world has had clubs in 28 countries (up to 2018) with different names. When it
comes to Wal-Mart, everyone is known for Wal-Mart's largest worldwide sales,
and the company employs more than 2.3 million people worldwide. As per
2016's Fortune Worldwide 500, its income came to roughly $480 billion, putting
this enterprise at the highest priority on the rundown.

3.2. Wal-Mart’s code of conducts and ethics.

'Message of President'
Express the view and message of the CEO of Wal-Mart, the Wal-Mart’s
president, Doug Million who acknowledges the importance of Statements of
Conduct and Ethics for all people in the company.

“Our Belief”:
Individual respect: This is something that when you work in any organization it
must be, that is the most basic attitude of a partner. Respecting your colleagues is
also about respecting yourself. Wal-Mart employees must learn to listen, share.
Customer service: One of the most important things in the service industry is
customer service. At this company, dedication to customers is encouraged and
reflected.
Excellence endeavor: Every effort, creativity, positive change is seen as a role
in every partner in the company.
Act with integrity: All things are in accordance with the law, the state.
Everything is public.

Introduction:
These moral declarations must be passed on to all Wal-Mart employees and
associates in all parts of the world, including third parties, who must adhere to
what is stated in the moral statement. Violation will be fully responsible,
especially, to report violations to the management.

Raising Concern and Speak Up’s notices about the circumstance where Wal-
Mart workers may confront the difficulty of questioning whether their lead
damages the Announcement of Morals or not. All things considered, they must
counsel Worldwide Morals for suppositions before taking proper activities. This
area likewise teaches on the best way to report the case that is in doubt of moral
infringement, which incorporates how to make an unknown report. There are a
few charges that require quick consideration from Worldwide Morals because of
their genuine nature, to be a specific gift, officer offense, hacking of data, false
records and records and worldwide notoriety dangers.

The trustworthiness has been a basic piece of Wal-Mart's way of life, or, in other
words, its interior lead. Wellbeing and soundness are its best need trying to make
a perfect working environment condition, giving that unlawful medications and
liquor are entirely prohibited. In addition, the regard for people is respected;
consequently, any segregation dependent on a representative's age, race, sex,
religion, incapacity, and so on is restricted. Aside from that, a wide range of
badgering, particularly unseemly conduct, hostile dialects and scaring acts are
unsuitable in the workplace. The organization likewise claims to maintain
strategies managing compensation and hour issues, some of which are least
wages, additional time installment and rest breaks. To take a stab at uprightness,
the irreconcilable circumstance must be thought about as it results from different
conceivable outcomes like money related venture, outer and previous work,
associations with providers, in addition to unmistakable blessings and
stimulation.

4. Bribery Scheme in Mexico and US Labor Issues

4.1. Wal-Mart Bribery Scheme in Mexico
4.1.1. Bribery process

In 2005, Wal-Mart was sued that they were using a lot of money to make bribes
not only in Mexico but also in many other countries. This event quickly was
becoming a heated issue right at that time. To begin with, Wal-Mart's
represented lawyer was mailed by Sergio Cicero Zapata showing that the Wal-
Mart company in Mexico had made some bribery to benefit from market
dominance (Dominated market). Several conversations via e-mails or phones by
the previous official with the purpose of building permits for Wal-Mart de
Mexico were taken by making bribery to build several new stores throughout
Mexico. After investigations, there were estimated that approximately $24
million considered in bribery.
At that time, Wal-Mart realized that the development of the Wal-Mart de Mexico
could be interfered by some outstanding problems. Furthermore, executives of
Wal-Mart subsidiaries in Mexico would know that these obstacles could have
been kept in a secret with the public. As the result, they decided to pay briberies
to gain the benefit especially is construction permission. From the information
that Mr. Cicero provided, saying that he had used the envelopes of cash to be
bribed government officials. These people could be city council members, low-
level bureaucrats who issued permits — anyone with the power to influence on
Wal-Mart’s growth. The bribes became cost-effective when they were able to
gain a variety of benefits such as buying zoning approvals, reducing
environmental impact fees and even bribery the allegiance of neighborhood
leaders. Based on the results of investigations, The New York Times also
showed that many instances where permits were given within weeks or even
days of Wal-Mart de Mexico’s paying.
“Very aggressive growth goals,” had been set by Wal-Mart de Mexico’s leaders
had set which required expanding new stores "in record times". They
emphasized that they need to do whatever to get permits. In a talk-show with
The Times, Mr. Cicero said that “What we were buying was time,” and
payments were being encouraged strongly to achieve the goals.

4.1.2. The Fraud of Wal-Mart

“Since the fourth quarter of 2005, Harvard's lawyers and journalists have been
involved in the study of corruption in Wal-Mart's financial report. From there,
they raised doubts about Wal-Mart's fraudulent behavior in Mexico, where the
reports clearly indicated that Wal-Mart managers were aware of this misconduct
but that they had covered the action. Based on those reports and research, FBI
agents have concluded that there are reasonable grounds to suspect that Wal-
Mart has acted in bribes.”
“Juan Francisco Torres-Landa, a prominent Harvard-trained lawyer in Mexico
City was hired to debrief Mr. Cicero. During this period, Mr. Torres-Landa’s
notes show, Mr. Cicero described how Wal-Mart de Mexico had perfect ways of
bribery then hidden it all without any difficulties. Mr. Cicero implicated many of
Wal-Mart de Mexico’s leaders, including its board chairman, its general counsel,
its chief auditor, and its top real estate executive.”
In addition, The New York Times also showed that Wal-Mart de Mexico's
leaders are fully aware of the bribes, but they have kept it hidden, not reporting
back to the head-quarter of the company. In a confidential report to headquarter,
it was concluded that "there was evidence that Wal-Mart de Mexico violated the
laws of both the United States and Mexico". Although investigators asked for
further clarification, Wal-Mart executives issued a directive to stop the
investigation. So, it was reasonable when saying that Wal-Mart de Mexico's
executives were involved in this issue, but instead of reporting to the right
authorities, they attempted to conceal all those incorrect behaviors.
Despite efforts to prove that the results of investigations are effective, Wal-
Mart's executives had ordered their subordinates to make a new direction of
investigating. Accordingly, senior executives of the company may tighter control
over the surveys. However, within a few days, Wal-Mart USA transferred
control of the investigation to Wal-Mart Mexico and it was seemed to be
unrevealed
“After information of bribery was published, Wal-Mart did afraid of a loss of
corporate credibility, could lead to a significant drop in stock value as well as a
long-term impact on the business. Thus, they have recognized that Wal-Mart
Mexico has violated the Foreign Corrupt Practices Act (FCPA), which was a
national law that restricts American corporations and their subsidiaries from
bribing foreign government personalities. At the same time, a series of
information about Wal-Mart has made other bribes in many parts of the world.”
4.1.3. Consequences

“As a result, Wal-Mart has been sued by investors, allegations from authorities,
and even public protests outside Wal-Mart headquarters in Mexico. Senior
executives have hidden the company's wrongdoings despite hard-hitting advice
from General Counsel and internal investigators. And recent evidence suggests
that Wal-Mart has negotiated to soften the punishment of the US Foreign
Corrupt Practices Act (FCPA), which prohibits the delivery of anything valuable
for foreign officials to obtain or maintain a business. Wal-Mart's actions violated
Mexico's anti-corruption laws, and British corruption laws (which affect some of
Wal-Mart's companies). Now, under the FPCA, these executives are subject to
penalties for hosting a bribe.”
4.1.4. Conclusion: Wal-Mart’s bribery scheme

“For becoming the largest retailer market in Mexico after only a short time
entering into this country, Wal-Mart had used a large bribe to help the company
achieve the goals in Mexico market. However, it had violated business ethics
standards as well as some business laws not only in Mexico or the United States
but also all over the world.”
Bribery had been almost perfect until it was exposed by large-scale
investigations. At this event, Wal-Mart's senior executives made many mistakes
that led to all the worse. Specifically, they did not come up with policies to fix
the problem as soon as it was discovered. Instead, Lee Scott, who was the Wall-
Mart's CEO at the time, did not react to the company's bribery problems
positively but covered it up as well as kept holding up the authorities'
investigations
“The moral code seemed had been overlooked when Wal-Mart took bribes. These
standards play an important role in business. It is the foundation to bring the
company to success. In this case, Wal-Mart has lost faith in customers as well as
investors. In addition, the value of the company has been reduced accompany
with the decline of the stock value.”

4.2. Labor Issue in the US

4.2.1. The labor issues and accusations
 Unequal pay and treatment:
 Wal-Mart had taken responsibility for compensating $ 17.5 million in the case of
discriminating the recruiting and hiring of truckers. Plaintiffs include Daryl
Nelson and Tommy Armstrong, accusing Wal-Mart Inc. and Wal-Mart
Transportation Company ("Wal-Mart Transportation LLC") has "discriminated
racially against African-Americans in recruiting and hiring."
A group of 6 women, representing more than a million women in the Wal-Mart
group, filed suit against their bosses for sex discrimination in their work. The
lawsuit lasted for many years and the US Supreme Court is considering whether
to continue the trial. If this continues, this will be the largest sex discrimination
case in US judicial history. The group of women said that they and other Wal-
Mart women were paid less and had fewer advancement opportunities than their
male counterparts. Chris Kwapnowski, 47, who has worked at Wal-Mart since
1986 and is still working at a Wal-Mart store in California, she said: “I wasn’t
able to raise her salary for the first 15 years of her career while male
counterparts. Once, she asked the manager why a less experienced male trader
could get a raise while she was not, Kwapnowski's answer was because they had
to shoulder a whole family.”

 Full-time work:

Wal-Mart says a full-time worker receives $ 12 an hour (the same as the one for
a family of four in the United States). However, the PayScale consulting firm
revealed, the workers only receive $ 11 / hour. Even market research firm IBIS
World confirmed that this figure is only $ 8.81 per hour. Whether it is $ 12, $ 11
or $ 8.81, it is still too low, even lower than the poverty line. Not only is Wal-
Mart's reputation for low wages, but workers are also receiving almost no
welfare benefits from the company. Last year, a humorous story was told when
 all the Wal-Mart employees in Ohio were asked to collect food for the workers
to "have fun" during the holidays.

 Child labor and work break violations:

In January 2004, during an internal audit, Wal-Mart found a serious violation of

child labor laws and state regulations on rest and meal times. In January 2007, a
weekly record of 25,000 employees found 1000 child laborers working during
school hours or working overtime in a day. There were about 60000 breaks and
15,000 lunches lost. According to the New York Times, a former cashier said it
was hard to get a break when working at Wal-Mart. Another cashier working at
Wal-Mart in the state of Washington has said many times she almost fainted
because blood sugar was too low, but management did not give her time to rest.

 Illegal use of undocumented workers:

The number of staff in the best business in the American environment did not
exist in the paper. As it was reported in the fall of 2003, the following person
was not an external Wal-Mart. On the date 23 months 10 the year 2003, the
claims have been 61 hashtting the Wal-Mart at 21 states. When they leave, the
employees have 250 gatekeepers, who do not have the paper.

 Work safety:

The latest Wal-Mart scandal is about the safety of employees. According to

January 18, 2004, New York Times reports many branch stores to lock the door
so that no one can enter or leave the building. Wal-Mart said it was to ensure the
safety of the store's employees and managers have the key. Wal-Mart also
warned that any employee using the escape route could be fired. So many
employees were stuck in the store without the manager or the key there as the
New York Times story detailed.

4.2.2. The Response of Wal-Mart.

Wal-Mart made a TV show called "good jobs" with the participation of many
employees in the company. The program talks about the good and active
working environment of Wal-Mart employees. In this program, a woman said
her son could cure his liver due to Wal-Mart's health insurance.
Politically, Wal-Mart has contributed positively, contributing $ 475,000 in cash
to Republicans in election campaigns in 2000 and 2002, and $ 500,000 in
Democrats over the same period. In 2003, Wal-Mart has contributed more than $
1 million is for other campaigns in the federal-85% of Republicans and 15% for
Democrats - becoming the largest contribution to the election campaign in 2002
and the second largest in 2003.
Wal-Mart in America has launched new tactics that will specifically mark the
products of the business owners are women and the exterior of the product that
clearly states "Woman-owned". This can be considered a new type of Fair-Trade,
roughly translated as a fair-trade fair. This concept has become popular for many
years, just as the product is marked "Bio".

4.2.3. Reformation of Wal-Mart.

Wal-Mart's internal audit in 2000 identified large child labor offenses. Long-
term research has established the adverse effects of overwork on academic
achievement. In 2012, Wal-Mart carries out an agreement refers to the ban on
the use of child labor, forced labor or pay below the minimum wage.
A few years ago, Wal-Mart raised the minimum wage from $ 9 to $ 11 an hour.
They also began to pay their employees during childbirth and adoption.
Currently, Wal-Mart pays only for business and supply chain management.
These areas "relate to industry and future career opportunities," said
spokeswoman Erica Jones.
Wal-Mart will corporate with three universities to allow 1.4 million employees
(full time and part time) with the opportunity to attend school. This move aims to
keep workers and attract new people. Wal-Mart will pay tuition and course fees.
And employees pay only one dollar a day during the course.
"We know that from a business perspective, this has a lot of benefits," says Drew
Holler, vice president of human resources at Wal-Mart USA. "A lot of job
applications will be sent here."

5. The weakness in the code of conduct and ethics of Walmart

The weakness in the code of conduct
Normally, the rules of conduct for a company are not subject to theoretical and
legal scrutiny, but it must also be based on the actual evidence and the personal
opinion of the judge. From there we can provide the core of the weakness of the
Walmart in the code of conduct.
In theory, the rules of engagement in Mexico are rather loose and the
involvement of Walmart in Mexico is somewhat perceived as a spell and is not
considered unethical in this country. However, based on Walmart's operating
principles and international anti-corruption laws, Walmart's bribe of bribing the
Mexican government to take advantage of the market is seen as unethical.
On the other hand, during the investigation, Walmart ignored the
recommendations and advice of investigators. For example, Wal-Mart, the top
executives including the office secretary and ethics officer, received sincere and
firm advice from the company's internal investigator (a former FBI agent) and
the general counsel. That advice was buried. Despite significant losses, Wal-
Mart was able to report to authorities in the United States and Mexico. More
effectively, they could handle the misconduct of senior Wal-Mart officials in
Mexico, yet the man has since been elevated to Wal-Mart headquarters in
Arkansas.
Walmart's flaws in the Code of Conduct against Labor in the United States
In the Walmart principle, they make clear the policies that protect their workers.
For example, they issue feminist rights protection policies and buy labor
insurance. They also have channels for gathering the staff's ideas on human
resource management and from there the managers will come up with solutions.
However, the reality is that employees responded that they were treated badly,
were forced to work extra hours. Even people who stand up for the rights of
workers are considered to be badly behaved and fired. So it's clear that Walmart
is breaking their own labor rules
The ineffectiveness of the Walmart Code of Conduct
In many companies, laws or codes of conduct are born not to provide tools to
help managers and workers work more effectively. It is just a stereotypical
criterion that helps reconcile work and the decisions of the two parties must be
based on actual and moral circumstances. Other ethical issues are not
documented but mainly about cultural and human consciousness such as
environmental protection, human rights protection or equal rights. It is easy to
see that Walmart violating ethical standards in business in which Walmart
leaders have chosen to use their money to gain exposure. From an ethical
perspective, this is unacceptable especially in a country with a loose government
and bribery like Mexico.
The case of US labor does not just demonstrate the untrustworthy choices of the
supervisors, yet additionally a shortcoming of the codes of behaviors. It did
exclude an instrument to manage such an issue. The work issue is a common
issue that numerous organizations needed to bargain. Similar issues occurred
with the organization again on account of US work issues. This time, as a result
of lacking instruments to manage the work and representatives' sentiment, the
administrators picked the second method to explain the issues: overlooking the
conclusions, terminating the agitators and power the rest to work. Subsequently,
the entire organization endured and Wal-Mart was sued commonly.

6. Wal-Mart’s solution to overcome

“Like the rising of the economic process, there has been detected a high trend of
involvement of MNCs in developing countries in terms of corruption activities
and employee rights abuses.”
“According to the Report from AAPPG 2006, MNCs ought to have a large
responsibility for the rampant corruption in developing countries that receives
many billions of bucks from FDI.”
“Moreover, USA- primarily based MNCs also are being investigated huge cases
of felony payments to authorities’ officers in FDI – received nations to urge
blessings in business performances because of the enact of the Foreign Corrupt
Practices Act (FCPA) folks.”
Since Wal-Mart is unquestionably Associate in Nursing example of MNCs
primarily based in the USA, however, it's invested with its offer chain and
branches globally. it's Delaware associate} astonishing shock to the felony
activities in Wal-Mart in its most proud market of North American country
North American nation} that Wal-Mart de North American nation has become
the foremost prosperous retail business during this giant market in South
American.
“Another scandal that Wal-Mart has concerned it is that the conflict with North
American country unions. it's the fact that Wal-Mart large variety of workers
with the quantity of one.3 million yank features a high proportion of low-paid
workers. because of the fierce claim for United Food and business staff
International Unions and Organization United for Respect at Wal-Mart (OUR),
Wal-Mart, as an MNC that must keep its image and world trademark ought to
implement actions to beat labor problems.”
“Last but not least, Wal-Mart has shown its active role in managing and
overcoming the scandals that they need to be created, significantly Wal-Mart has
outlined its weaknesses and enforced solutions for the long-run goal of turning
into additional clear and ethnic in the world market, guaranteeing its leading
position and ethics apply.”

6.1. Comprehensive Anti-Corruption Audit Examination for wrongdoings

After the bribe of Wal-Mart de Mexico was leaked, the company dispatched
investigators to Mexico City, and they discovered the evidence of the ex-CEO's
presence there. Then, to avoid similar incidents like the one in Wal-Mart de
Mexico, company leaders have created a system of checks with hundreds of
auditors, independent investigators, and lawyers. The whole world to sweep the
Wal-Mart affiliates around the world.
The audits were conducted in China, Mexico, and Brazil as they were the most
corruptible. Wal-Mart hired Greenberg Traurig law firm and BIG 4 companies
KPMG to reconsider. As a result, significant violations have been identified due
to cultural corruption in these countries.
Auditing is one of the most powerful tools companies use to fight corruption and
bribery. Anti-corruption by auditing helps the company's management to detect
abnormal and improper actions in its annual financial statements. It is because of
the importance of auditing that many MNCs have applied anti-corruption
auditing to their pre-eminent policy before they reached the global level.
As a result, by annual inspections, Wal-Mart has created a system that allows
them to better control their affiliates in the international marketplace. It is also
the system that Wal-Mart has discovered many cases of corruption in their
branches.
6.2. Anti-Corruption Reskilling
Wal-Mart has made suggestions to make anti-bribery and corruption-related
thinking more transparent and ethical. As a result, they gained the attention of
the workforce that helped them solve bribery and corruption problems.
Over the past several years, all newly hired contributors in the United States will
receive moral training, indicating that Wal-Mart has reviewed and reinforced the
high ethical standards it has set itself. So far, Wal-Mart has trained anti-
corruption for more than 100,000 affiliated companies and they have designed
anti-corruption training directly for employees who have a working environment
to interact with government officials.
Doing so is fundamental to both the company's leadership and the available
workforce that can help maintain a clean environment and reduce corruption in
your company. The results show that today all Walmart employees understand
anti-corruption and anti-bribery, especially those outside the United States.

6.3. Partner selection based on Labor right Standards – Wal-Mart’s

Standards for Suppliers Manual

There are many potential risks of bribery and corruption in Wal-Mart's

subsidiaries as well as their counterparts. Because of this, Wal-Mart has set
standards and imposed it on its partners and affiliates outside the United States.
Thus, Wal-Mart imposed the basic idea of labor rights in Wal-Mart's code of
conduct into the supply contract as a contract term. In addition, Wal-Mart has
promised to use the supplier's goods and offer lower discounts if the supplier
complies with the standards set by Wal-Mart.
One of the criteria for choosing Wal-Mart partners is that they comply with Wal-
Mart's Standards for Suppliers Manual. Wal-Mart's basics standards include anti-
corruption, the right of labor, the right of Wal-Mart to inspect the compliance
with Wal-Mart Code of Conduct (Standards)
6.4. Wal-Mart E-Commerce Strategy

The company has consistently faced fierce competition from competitors in the
same business segment, with pressure to keep margins low and cost savings,
Wal-Mart is always entangled in issues of wages for his workers Wal-Mart's
pressure on Wal-Mart to raise employees' salary. The company's leadership
decided to raise at least $ 9 an hour for the lowest level and about 500,000
workers in Wal-Mart benefited.

Company leaders have hoped that with rising wages, their employees will be
able to become regular customers at Wal-Mart stores, resulting in higher sales
and profits. Not to say that Wal-Mart's annual salary is growing and profits so
that also reduced.
In order to keep the profits unchanged, as Wal-Mart has spent more on employee
salaries, the company has decided to invest in e-commerce as

Amazon's rivals are doing. Increasing profits is just one reason Wal-Mart invests
in e-commerce and they have seen the potential profitability of the e-commerce
market. In addition, Wal-Mart is a company with a large customer base, is the
largest retailer in the world and is present in 27 countries. And on the basis of
being the largest retailer in the world, Wal-Mart has fair competition resources
with its competitors in the market, which has the brand power, capital, and trust
of its customers throughout the years. In addition, direct shopping helps them not
have to ask for the papers in the country. As is the case in Mexico City, Wal-
Mart de Mexico wants to accelerate the development process to take over the
market bribes and corruption to obtain earlier licenses and gain local