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Lisa M. Gerdeman



Effective Professional Communication
                          MBA 595.N1
                         March 6, 2013
                          Dr. Kershaw




                                         1
Table of Contents
 Mission & Values                  3
 Brand                             4
 Identity                          6
 Reputation                        8
 Image                             12
 Corporate Social Responsibility   14




                                         2
Mission & Values
 Walmart’s mission is “helping people around the world
  save money and live better -- anytime and anywhere --
  in retail stores, online and through their mobile
  devices”.
 Walmart believes this mission, along with innovative
  thinking and leadership through service, has made
  them successful.




                                                          3
Brand
 “Save money. Live better.”
 Walmart’s brand strategy is built around these words.
 Their strategy of charging low prices every day is
  aimed at helping people save money, stretch their
  paychecks, and provide a better life for their families.




                                                             4
Brand
 Millward Brown BrandZ™ Top 100 is                                                                     BrandZ Rank 2012
                                                                                                          76
    based on 150,000 annual interviews on
    key brand metrics including:                                                                17                  18

       brand consideration
                                                                                              Walmart    Target   Amazon   Costco
       image
       usage & strength
       brand personality or character
       trust & recommendation
       price & desire
       corporate reputation
   Walmart ranks #17 on the top 100 list
   Amazon ranks closely behind at #18
   Target ranks #76
   Costco did not make the top 100
    Source: http://www.millwardbrown.com/brandz/2012/Documents/2012_BrandZ_Top100_Chart.pdf                                         5
Identity
Walmart wants the public to see that they are committed to not only providing
low costs, but also to financial success, to their communities, and to corporate
social responsibility.




                                                                                   6
 Source: http://www.walmart.com
Identity
Three key stories are currently highlighted on www.Walmart.com:
1.    Affordable, healthier foods
      The First Lady Michelle Obama visited several Walmart
       stores to celebrate Walmart’s progress on making food
       healthier and more affordable for families nationwide.

2.    Q4 2012 earnings
      Walmart announces Q4 earnings per share of $1.67, full
       year earnings per share of $5.02, full year dividends of
       $1.88 (up 18%). Walmart U.S. gains market share and
       adds $4.7 billion in comp sales for the year.

3.    Sustainability
      Walmart works with suppliers and buyers to make their
       products more sustainable and supply chain more
       ethical.


                                                                  7
Reputation
Positive Media Coverage
 Low prices
 Price matching
 Reduced lay-away fees
 Seasonal hires -during the Christmas season




                                                8
Reputation Rankings
These low price strategies have been successful for Walmart in terms of profits.


 In 2011, Walmart ranked 2nd on the                                            Fortune 100: Ranking
                                                                                                                   2007
                                                                                                                           Walmart Trend: Ranking
                                                                                                                            2008      2009     2010     2011
  Fortune Top 500 list –dropping from                                                           56
                                                                                                                      1                 1        1
                                                                                      38
  the #1 spot in 2009 & 2010.                                                                              24
                                                                                                                               2                           2
                                                                            2
 Both revenues and profits
                                                                         Walmart Target       Amazon     Costco
  continuously increased during the
  period 2007 through 2010 at                                                Fortune 100: Revenues                         Walmart Trend:
                                                                         $446,950    ($ in millions)                          Revenues
   Walmart.                                                                                                                  ($ in millions)
                                                                                                                                              $421,849 $446,950
                                                                                                                   $378,799 $405,607 $408,214
       In 2011 profits declined                                                    $69,865              $88,915
                                                                                               $48,077

 Walmart’s revenues and profit are
                                                                         Walmart Target       Amazon     Costco    2007     2008      2009     2010     2011
  much higher than their competitors.
       With that, they rank well above each                                    Fortune 100: Profits                       Walmart Trend: Profits
                                                                                                                                     ($ in millions)
            on the Fortune 500 list.                                      $15,699    ($ in millions)
                                                                                                                                              $16,389 $15,699
                                                                                                                   $12,731 $13,400 $14,335

                                                                                    $2,929               $1,462
                                                                                                $631


                                                                         Walmart Target       Amazon     Costco    2007     2008      2009     2010     2011


                                                                                                                                                       9
 Source: http://money.cnn.com/magazines/fortune/fortune500/?iid=H_F_QL
Reputation
Negative Media Coverage
 Labor disputes
    Disputing: low wages, poor treatment, & unpleasant
     working conditions
 Black Friday complaints
    Opening on Thanksgiving day
 Alleged bribery scam at Walmart de Mexico
 Protests against Walmart entering the New York City
  market



                                                          10
Reputation Rankings
                                                                                                                      ®
                                                                                                   Harris Reputation Quotient
 Walmart ranks #40 on the Harris                                                           40

  Poll Reputation Quotient®                                                                               22
                                                                                                                          10

 Walmart’s score is rated “Fair”.                                                                                                       1

                                                                                          Walmart        Target       Costco           Amazon
 Competitors rank better
        Amazon is rated “Excellent”
                                                                                                                  ®
                                                                                              Harris Reputation Quotient Score

        Target is rate “Very Good”                                                                                            82.62
                                                                                                                               77.95     Walmart

        Costco is rated “Very Good”                                                                                           74.82
                                                                                                                                         Target
                                                                                                                               66.03     Costco

 Walmart’s score dropped from 69                                                           2011          2012            2013
                                                                                                                                         Amazon


    in 2012 to 66 in 2013.


Source: http://www.harrisinteractive.com/vault/2013%20RQ%20Summary%20Report%20FINAL.pdf                                                      11
Image
 Top 100 Best Companies to Work For                                        Most Admired Companies
 2/3rd of score                                                            Survey of business people asked to
         The survey asks questions related to their                         vote for the companies, from any
          attitudes about management's
          credibility, job satisfaction, and                                 industry, that they admired most.
          camaraderie.                                                      Walmart ranks #23
 1/3rd of score                                                            This ranking is down from previous
         The Culture Audit asks detailed questions
                                                                             years
          about pay, benefits programs, hiring
          practices, internal                                               Competitors Costco & Amazon are
          communication, training, recognition                               up
          programs, and diversity efforts.
 Walmart was not ranked in the top 100 on
  this years’ survey.
                Top 100 Best Companies to Work                                          Top Most Admired Companies
                              For                                                    2009    2010   2011        2012
                                                                                0
         10
                                                                                                                        Wal-Mart
          8
                                                                                10              9
          6                                                                             11                 11           Target
          4
                                                                                                                        Amazon
          2                                                                     20
          0                                                                                                        23   Costco
                Wal-Mart         Target         Amazon            Costco        30
                                                                                                                                   12
   Source: http://money.cnn.com/magazines/fortune/most-admired/
Walmart’s Response to
Negative Media Coverage
 Planning and preparation are important in crisis communication and crisis management.
    Walmart issued statements responding to each of these crises.
 Labor disputes and Black Friday
    Walmart believe that the protests do not reflect the attitudes of all employees, but merely
      a small sampling.
    Walmart believes the disputes are unwarranted. I believe they need to communicate the
      reasons why and promote Walmart’s labor policies in a positive light & that they offer fair
      opportunities for all.
    In my opinion, Walmart did not take ownership or sympathetically show that they hear
      the voices of the employees and that they would address their concerns.
    If they haven’t already, Walmart needs to develop an effective employee communication
      strategy specifically for these labor disputes.
 Bribery scam
    Walmart denied the allegations
    Walmart did not communicate much beyond their initial statement regarding the issue
 NYC protests
    Walmart’s response was good.
    Walmart clearly identified the reasons it wants to enter the market and list their
      supporters –which included the mayor.

                                                                                                13
Corporate Social Responsibility
   Hunger relief & healthy eating
                    Walmart is fighting hunger by making food healthier, making healthier food more affordable, and by
                     strengthening the global food supply chain.




   Sustainability
                    Walmart is believes in sustainability because it's the right thing for the environment. Walmart encourages
                     their employees to make positive contributions to the environment and, in turn, believes they will
                     encourage customers to do the same.




   Women’s economic empowerment
                    Walmart is working towards initiatives that will change the lives of countless women around the world.




   Career opportunity
                    Walmart provides career training and job opportunities to our nation’s veterans and military families.
                     Diversity is also core to Walmart’s culture.




                                                                                                                                  14
Corporate Social Responsibility
 Although Walmart focuses a lot of corporate
  communication on CSR, they did not rank within the top
  50 companies on the Corporate Social Responsibility Index
  (CSRI).
 Amazon ranked #5
 Target ranked #29
 Costco ranked #43

               Most Socially Responsible
                      Companies                         43

                        29


                                        5


    Wal-Mart         Target         Amazon          Costco



  Source: http://www.bcccc.net/pdf/CSRIReport2011.pdf         15
Corporate Social Responsibility
 Social responsibility is vital to a company’s profits.
    75% of Americans take into consideration corporate social
     responsibility before making an investment decision.
 There is also a strong correlation of good corporate
  citizenship and a strong public image.
    Walmart is not perceived to be a highly socially responsible
     company (according to the CSRI) …even though they seem to
     be doing a lot in this realm
 I believe that Walmart needs to improve communications
  regarding their CSR efforts which, in turn, should help to
  improve their image and reputation.
    This is particularly important now that their reputation rank
     seems to be declining.

                                                                     16

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Mba 595.n.1 corporate communication and reputation audit l gerdeman

  • 1. Lisa M. Gerdeman Effective Professional Communication MBA 595.N1 March 6, 2013 Dr. Kershaw 1
  • 2. Table of Contents  Mission & Values 3  Brand 4  Identity 6  Reputation 8  Image 12  Corporate Social Responsibility 14 2
  • 3. Mission & Values  Walmart’s mission is “helping people around the world save money and live better -- anytime and anywhere -- in retail stores, online and through their mobile devices”.  Walmart believes this mission, along with innovative thinking and leadership through service, has made them successful. 3
  • 4. Brand  “Save money. Live better.”  Walmart’s brand strategy is built around these words.  Their strategy of charging low prices every day is aimed at helping people save money, stretch their paychecks, and provide a better life for their families. 4
  • 5. Brand  Millward Brown BrandZ™ Top 100 is BrandZ Rank 2012 76 based on 150,000 annual interviews on key brand metrics including: 17 18  brand consideration Walmart Target Amazon Costco  image  usage & strength  brand personality or character  trust & recommendation  price & desire  corporate reputation  Walmart ranks #17 on the top 100 list  Amazon ranks closely behind at #18  Target ranks #76  Costco did not make the top 100 Source: http://www.millwardbrown.com/brandz/2012/Documents/2012_BrandZ_Top100_Chart.pdf 5
  • 6. Identity Walmart wants the public to see that they are committed to not only providing low costs, but also to financial success, to their communities, and to corporate social responsibility. 6 Source: http://www.walmart.com
  • 7. Identity Three key stories are currently highlighted on www.Walmart.com: 1. Affordable, healthier foods  The First Lady Michelle Obama visited several Walmart stores to celebrate Walmart’s progress on making food healthier and more affordable for families nationwide. 2. Q4 2012 earnings  Walmart announces Q4 earnings per share of $1.67, full year earnings per share of $5.02, full year dividends of $1.88 (up 18%). Walmart U.S. gains market share and adds $4.7 billion in comp sales for the year. 3. Sustainability  Walmart works with suppliers and buyers to make their products more sustainable and supply chain more ethical. 7
  • 8. Reputation Positive Media Coverage  Low prices  Price matching  Reduced lay-away fees  Seasonal hires -during the Christmas season 8
  • 9. Reputation Rankings These low price strategies have been successful for Walmart in terms of profits.  In 2011, Walmart ranked 2nd on the Fortune 100: Ranking 2007 Walmart Trend: Ranking 2008 2009 2010 2011 Fortune Top 500 list –dropping from 56 1 1 1 38 the #1 spot in 2009 & 2010. 24 2 2 2  Both revenues and profits Walmart Target Amazon Costco continuously increased during the period 2007 through 2010 at Fortune 100: Revenues Walmart Trend: $446,950 ($ in millions) Revenues Walmart. ($ in millions) $421,849 $446,950 $378,799 $405,607 $408,214  In 2011 profits declined $69,865 $88,915 $48,077  Walmart’s revenues and profit are Walmart Target Amazon Costco 2007 2008 2009 2010 2011 much higher than their competitors.  With that, they rank well above each Fortune 100: Profits Walmart Trend: Profits ($ in millions) on the Fortune 500 list. $15,699 ($ in millions) $16,389 $15,699 $12,731 $13,400 $14,335 $2,929 $1,462 $631 Walmart Target Amazon Costco 2007 2008 2009 2010 2011 9 Source: http://money.cnn.com/magazines/fortune/fortune500/?iid=H_F_QL
  • 10. Reputation Negative Media Coverage  Labor disputes  Disputing: low wages, poor treatment, & unpleasant working conditions  Black Friday complaints  Opening on Thanksgiving day  Alleged bribery scam at Walmart de Mexico  Protests against Walmart entering the New York City market 10
  • 11. Reputation Rankings ® Harris Reputation Quotient  Walmart ranks #40 on the Harris 40 Poll Reputation Quotient® 22 10  Walmart’s score is rated “Fair”. 1 Walmart Target Costco Amazon  Competitors rank better  Amazon is rated “Excellent” ® Harris Reputation Quotient Score  Target is rate “Very Good” 82.62 77.95 Walmart  Costco is rated “Very Good” 74.82 Target 66.03 Costco  Walmart’s score dropped from 69 2011 2012 2013 Amazon in 2012 to 66 in 2013. Source: http://www.harrisinteractive.com/vault/2013%20RQ%20Summary%20Report%20FINAL.pdf 11
  • 12. Image  Top 100 Best Companies to Work For  Most Admired Companies  2/3rd of score  Survey of business people asked to  The survey asks questions related to their vote for the companies, from any attitudes about management's credibility, job satisfaction, and industry, that they admired most. camaraderie.  Walmart ranks #23  1/3rd of score  This ranking is down from previous  The Culture Audit asks detailed questions years about pay, benefits programs, hiring practices, internal  Competitors Costco & Amazon are communication, training, recognition up programs, and diversity efforts.  Walmart was not ranked in the top 100 on this years’ survey. Top 100 Best Companies to Work Top Most Admired Companies For 2009 2010 2011 2012 0 10 Wal-Mart 8 10 9 6 11 11 Target 4 Amazon 2 20 0 23 Costco Wal-Mart Target Amazon Costco 30 12 Source: http://money.cnn.com/magazines/fortune/most-admired/
  • 13. Walmart’s Response to Negative Media Coverage  Planning and preparation are important in crisis communication and crisis management.  Walmart issued statements responding to each of these crises.  Labor disputes and Black Friday  Walmart believe that the protests do not reflect the attitudes of all employees, but merely a small sampling.  Walmart believes the disputes are unwarranted. I believe they need to communicate the reasons why and promote Walmart’s labor policies in a positive light & that they offer fair opportunities for all.  In my opinion, Walmart did not take ownership or sympathetically show that they hear the voices of the employees and that they would address their concerns.  If they haven’t already, Walmart needs to develop an effective employee communication strategy specifically for these labor disputes.  Bribery scam  Walmart denied the allegations  Walmart did not communicate much beyond their initial statement regarding the issue  NYC protests  Walmart’s response was good.  Walmart clearly identified the reasons it wants to enter the market and list their supporters –which included the mayor. 13
  • 14. Corporate Social Responsibility  Hunger relief & healthy eating  Walmart is fighting hunger by making food healthier, making healthier food more affordable, and by strengthening the global food supply chain.  Sustainability  Walmart is believes in sustainability because it's the right thing for the environment. Walmart encourages their employees to make positive contributions to the environment and, in turn, believes they will encourage customers to do the same.  Women’s economic empowerment  Walmart is working towards initiatives that will change the lives of countless women around the world.  Career opportunity  Walmart provides career training and job opportunities to our nation’s veterans and military families. Diversity is also core to Walmart’s culture. 14
  • 15. Corporate Social Responsibility  Although Walmart focuses a lot of corporate communication on CSR, they did not rank within the top 50 companies on the Corporate Social Responsibility Index (CSRI).  Amazon ranked #5  Target ranked #29  Costco ranked #43 Most Socially Responsible Companies 43 29 5 Wal-Mart Target Amazon Costco Source: http://www.bcccc.net/pdf/CSRIReport2011.pdf 15
  • 16. Corporate Social Responsibility  Social responsibility is vital to a company’s profits.  75% of Americans take into consideration corporate social responsibility before making an investment decision.  There is also a strong correlation of good corporate citizenship and a strong public image.  Walmart is not perceived to be a highly socially responsible company (according to the CSRI) …even though they seem to be doing a lot in this realm  I believe that Walmart needs to improve communications regarding their CSR efforts which, in turn, should help to improve their image and reputation.  This is particularly important now that their reputation rank seems to be declining. 16