At a more detailed level, the recommendation is expected to be implemented throughout the following steps:
1. The assessment of the company's needs for fresh produce, established in volumes per each category of fresh fruit and vegetable
2. The assessment of the farmers in the local community at the level of their production capacities
3. The comparative analysis of farmer capacity and store needs in order to identify whether the local production would be enough to cover for the entire needs of the stores; at this level, it would be remembered that the retailer needs increased volumes of products, whereas the capacities of the local farmers might be decreased
4. The analysis of the proposed collaboration from the financial standpoint. At this level, emphasis would be placed on the soliciting of price offers from the farmers and the comparison of the estimate cost with the Wal-Mart budgets available for the purchase of fresh produce. Also at this stage, focus would fall on the comparison of the costs incurred with the current system of fresh produce imports and the proposed system of fresh produce purchase from the local farmers. It is expected that the collaboration with the farmers be more costly since the scale economy advantages are decreased, but the non-financial advantages of the proposition would outweigh this cost.
5. The negotiation and signing of contracts with the local farmers in order to deliver the fruits and vegetables as needed by the retailer; the renegotiation of the contracts for the import of the fresh produce in order to only have them serve the purpose of complementarity -- in other words, imports would only be used when the local community is unable to deliver the entire quantity solicited by the retailer.
6. The promotion of the collaboration with the local farmers throughout the store, as well as throughout the local media. This measure has the advantage of communicating the strategic decision to the community, and as such enhancing the reputation and public perception of Wal-Mart.
7. Launching the actual sale of fresh produce from local farms and the reevaluation of the contracts and the collaboration based on demands and needs as identified throughout the actual collaboration.
Support for the local community, especially the farmers
The creation of new employment opportunities within the local farms
The provision of support for the economic recovery of the local community, required especially now as the economic crisis still reveals negative impacts
The generation of increased customer satisfaction, based on the possibility to purchase fresher local products
The general improvement in the image of the company and the means in which it is being perceived by the local community.
4. Conclusions
Wal-Mart is the largest retailer within the United States and it represents a symbol of American corporate life and success. Still, despite its success, the company often conflicts with another important American symbol, that is the local economic agent, be this a mom and pop store or a farmer.
The company is as such subjected to intense and fierce criticism due to the weak emphasis on community well-being and development. In order to address this issue, a recommendation has been forwarded for the company to purchase and retail fresh produce originating from the local farmers, rather than having it imported from cost effective foreign states. However it is complex and costly, the measure would enjoy the tremendous benefit of improving the company's public image.
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