Wal-Mart Under Scrutiny

Wal-Mart Under Scrutiny

There are some major issues of concern that Wal-Mart needs to deal with. The firm is of the view that it shall draw its support for the major merger that is in line with the South African Massmart. There are high sums of money at stake.

The merger involves a sum of R16.5bn and Wal-Mart said it would withdraw from the merger if the Government of South Africa does not take a back seat about its conditions for the protection of the rights of the manufacturers from their home nation.

Many are in opposition of the Category Management system suggested by Wal-Mart. The clauses that this system has are not for the benefit of the domestic suppliers. They would be crushed by the competition in the market and the crippled structure of their own selves with this new system.

According to Massmart’s CEO, “It would be disruptive of the competition process championed under the Competition Act to impose local procurement targets on one retailer to the exclusion of its competitors”. There needs to be a peaceful correlation between the needs and wants of the customers as well as the laborers. The firm can attain its number one position only if it can learn to work for others as well.

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