Walmart in Mexico Walmart Background Walmart started from humble beginnings as a small discount retailer in Rogers Ark, but has expanded to become one of the largest retail chains across the world (Hill and Jones 252). The company offers assortment of merchandise and services at low prices to its customers and has lived to Sam Walton’s philosophy of enabling people to save through offering the customers goods and services at lower prices. The company currently operates more than 11,000 retail outlets that are located in more than 11 countries and employees over 2.2 million associates across the world (Hill and Jones 253).
Walmart business strategy aims at offering customers with additional value at low prices and creating customer shopping convenience. The ‘Every Day Low Price’ strategy ensures one stop-shopping for anything, everywhere and at the lowest prices. The customer operates extensive network of retail outlets, supermarkets, discount centers, supercenters, hypermarkets, warehouse clubs, restaurants, drug stores and websites that improve the customer shopping experience thus ensuring high customer loyalty (Hill and Jones 252). The company products and services can be grouped in to six merchandise units that include entertainment, health and wellness, grocery, hardlines, apparel and home applicances.
The retail stores are stocked with electronics, fabrics, accessories home furnishings and housewares, beverages and financial services that include prepaid credit cards and check cashing services. The company also offers entertainment services such as movies and music. Walmart first store outside the United States was in Mexico in 1991and was opened after acquisition of Cifra. The company later acquired a license to operate a bank in Mexico (Hill and Jones 252). Walmart’s diversity approach is the US aims at providing equal employment opportunities and promoting the employment of minorities and fostering affirmative action.
About 75 percent of the US store management teams started their jobs as hourly associates and were later promoted to higher responsibility positions (Hill and Jones 276). A diversity challenge in the US is the constitutional requirement of equal opportunities in employment practices. Mexico Culture, Laws and diversity management issues The diversity challenge in Mexico is the multicultural society that has conflicting values and identities due to the indigenous ethnic groups and Spanish immigrants.
The country has cultural divisions due to influence of Indian groups and Spanish explorers. The main language is Spanish and Indian language incorporates certain Mexican Spanish grammar and syntax while other indigenous groups continue to speak their indigenous language (Hill and Jones 254). The indigenous populations are the poorest and there is high unequal distribution of wealth. The degree of women participation in the economy is low due to clear division of gender roles. Although Mexican laws treat men and women equally, there are differences in privileges and authority due to assignment of different economic and social roles between men and women.
There is high power distance due to a culture of social hierarchies due to differences in social economic status that are entrenched in the relationships between the citizens. The Roman Catholicism is the dominant religion, but Protestant Christians are active in Southern Mexico areas (Hill and Jones 257). Mexican labor laws prohibit discrimination such as age-based hiring practices, but the labor authorities have not fully enforced the laws. The employer cannot dismiss an employee without a just cause and the law provides for profit sharing with employees.
The labor laws do not encourage diversity or affirmative action. In order to maintain a positive brand image and reputation in Mexico, Walmart must implement diversity in its employment practices through encouraging the employment of minority groups, through providing women senior management positions and encouraging the employment of the rural populations (Hill and Jones 289). Diversity Mission Statement for Walmart in Mexico The diversity challenge is to promote the employment of minority groups and women who may not understand Spanish language or have the necessary academic qualifications.
Walmart diversity mission statement should be committed to a diversity and inclusive workplace that supports diversity at the business level and in communities in all cities that it conducts business. The diversity statement should support inclusion at the hourly associate level to the management level through recruitment, training, development and retention of diverse candidates. Walmart should implement established policies and programs that are able to measure diversity at the workplace in order to ensure diverse knowledge, ideas and beliefs and ensure that individual employees have an opportunity to exploit their full potential despite their ethnic or religious affiliations (Griffin 164).
The mission is to reflect the rich cultural diversity of the country and Walmart will support fairness and inclusion in all aspects of its business such as supplier selection, recruitment, social responsibility initiatives and marketplace. The company will foster an inclusive culture that is guided by the core values of integrity, respect, quality, accountability and diversity in all interactions within and outside the company (Griffin 165). Walmart will accomplish the diversity mission by ensuring providing supportive and respectful work environment where the minority groups can nurture their talents.
The company will provide additional work facilities to physically challenged employees. The company will also seek to increase the number of minorities and women in their workforce through targeted recruitment and training programs that encourage diversity. The company will ensure the new recruitments reflect the multi-lingual, multi-ethnic and multi-religious diversity of Mexican population (Griffin 165). The company will also arrange social and networking events at the educational institutions in the rural areas that aim at educating the potential job candidates about the opportunities that are available at the company and the company diversity policies.
The company will also ensure that the senior management teams and other departmental staff reflect a diverse composition in order to entrench a culture of diversity appreciation in the corporate culture. Walmart should promote gender equality since it will enable the company understand the changing needs of their female customers. The company should provide at least 30 percent of the management positions to women and recruitment policies should aim at attracting and retaining talented women in their workforce (Griffin 166).
Walmart wil also support diversity in the communities through participating in social responsibility initiatives that aim at improving the social welfare of the minority groups such as building schools in the rural areas, supporting the education of girls and other vulnerable groups such as handicapped individuals (Griffin 166). Works Cited: Griffin, Ricky. Management. NewYork: Cengage Learning. 2012. Hill, Charles and Jones, Gareth. Strategic Management Theory: An Integrated Approach. New York: Cengage Learning. 2009.