One of the perspectives of power that Wal-Mart will use in dealing with the suppliers is the use of zero tolerance where all undesirable practices like subcontracting will be imposed to severe penalties without the company knowledge (Fishman, 2006). The penalties will start to be effective on March again all the companies that are not allowed to manufacture and supply clothes to Wal-Mart will be published on the website explaining that the company is not genuine. The second perspective is accountability and ownership of the supplier who must be certified to make sure that they are going to be accountable of what they are going to supply to Wal-Mart (Stern, 1969). The reason why Wal-Mart need accountability and ownership to a specific country is to ensure that compliance will be achieved making sure that third party agents are eliminated in the supply chain. Wal-Mart is open to any supplier who can supply clothing without subcontracting or use of third party agents who normally supply brands at expensive price as compared to those companies that are ordered to supply brands to Wal-Mart.
Another perspective of power that Wal-Mart will consider is improved safety in the factories, for example, the suppliers from United States and Canada will have to meet so that the new policy change of improved safety can be deliberated upon (Buzzell, 1987). The local governments and suppliers will have to carry the safety precaution and measures need to boost factory safety. The reason is because employees in the factories are experiencing death that emanate from poor conditions from the factories and thus the reason as to why Wal-Mart is restricting the suppliers from subcontracting their orders. The expectation of Wal-Mart is that the known factory that have been given the orders will be the only one who will supply brands without involving third party agents who do not provide high quality clothing and within the stipulated time.
One of the sources of power in Wal-Mart ...Show more