Nicolas Pirog: January 2008 Archives
In recent years social responsibility has become all the rage in the corporate world, with companies in every industry eager to be seen as "green" and "socially responsible". Who would blame them? A 2007 Cone Cause Evolution and Environmental Survey revealed that 92% of Americans have a more positive image of a company that supports a cause they care about. Even better, 87% are likely to switch from one product to another (price and quality being equal) if the other product is associated with a good cause.
So when Wal-Mart announced on January 23rd its ambitious plans to become a greener company and offer cheaper health care to companies, it was easy to be skeptical. Wal-Mart has long been known for its low wages and often devastating impact on small businesses around its stores. But the Bentonville giant can't be discounted that easily. What makes Wal-Mart stand out is its sheer size: over $350 billion in sales annually, and a supply chain second to none.
What does this mean? If Wal-Mart actually follows through on its promises (which include forcing suppliers to meet stricter ethical standards, selling hybrid cars, and helping companies manager health care costs), the impact could be huge. Not only because Wal-Mart is so big, but also because other retailers will want to avoid being left in the dust.
Is Wal-Mart doing all this because it wants to help the environment? Probably not. But in this case, it might not matter.
-"Wal-Mart Chief Offers a Social Manifesto", 01/24/08, New York Times
-"Wal-Mart 2006 Annual Report", Wal-Mart.com
So when Wal-Mart announced on January 23rd its ambitious plans to become a greener company and offer cheaper health care to companies, it was easy to be skeptical. Wal-Mart has long been known for its low wages and often devastating impact on small businesses around its stores. But the Bentonville giant can't be discounted that easily. What makes Wal-Mart stand out is its sheer size: over $350 billion in sales annually, and a supply chain second to none.
What does this mean? If Wal-Mart actually follows through on its promises (which include forcing suppliers to meet stricter ethical standards, selling hybrid cars, and helping companies manager health care costs), the impact could be huge. Not only because Wal-Mart is so big, but also because other retailers will want to avoid being left in the dust.
Is Wal-Mart doing all this because it wants to help the environment? Probably not. But in this case, it might not matter.
-"Wal-Mart Chief Offers a Social Manifesto", 01/24/08, New York Times
-"Wal-Mart 2006 Annual Report", Wal-Mart.com
If you've turned on a TV in the past few weeks, chances are you've seen an ad for the new Chevy Malibu, the "car you can't ignore". While the mid size sedan market has long been dominated by the Toyota Camry and the Honda Accord, the Malibu is GM's latest attempt to change Americans' perceptions of American cars. Not only has the Malibu garnered rave reviews, it's apparently selling so fast that GM is struggling to meet demand. It has certainly been a while since GM has had problems meeting demand with a mid size sedan. But the Malibu's new design, along with a massive advertising campaign, has apparently convinced many Americans to take another look at American cars.
Still, many consumers (44% of them, according to an AOL-AP Autos poll) think that Japan makes the best cars, this despite recent improvements in GM's dependability ratings. So GM is putting out cars like the Malibu, and hoping that in time, it can recapture some of the market that it lost to Toyota and Honda. It's likely that GM's turnaround will take years: many consumers, especially younger ones, are highly skeptical of American cars.
In the end, this will be an uphill battle for GM and the Detroit three. But it would seem that GM is at least headed in the right direction. A billboard outside of Detroit featuring the Malibu contains these words: "We're tired of being a foreign car in our own country". I think that says it all.
-"Too many buyers for Malibu", Detroit News, January 3rd 2007
-www.jdpower.com
-"Americans still favor foreign cars" (http://www.msnbc.msn.com/id/16524038/)
Still, many consumers (44% of them, according to an AOL-AP Autos poll) think that Japan makes the best cars, this despite recent improvements in GM's dependability ratings. So GM is putting out cars like the Malibu, and hoping that in time, it can recapture some of the market that it lost to Toyota and Honda. It's likely that GM's turnaround will take years: many consumers, especially younger ones, are highly skeptical of American cars.
In the end, this will be an uphill battle for GM and the Detroit three. But it would seem that GM is at least headed in the right direction. A billboard outside of Detroit featuring the Malibu contains these words: "We're tired of being a foreign car in our own country". I think that says it all.
-"Too many buyers for Malibu", Detroit News, January 3rd 2007
-www.jdpower.com
-"Americans still favor foreign cars" (http://www.msnbc.msn.com/id/16524038/)
