The Julie Roehm Saga at Wal-Mart Stores, Inc.
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Case Details:
Case Code : HROB108
Case Length : 17 Pages
Period : 2006-2007
Pub Date : 2008
Teaching Note : Available
Organization : Hindustan Unilever Ltd; Axis Bank; Vodafone Plc.
Retail
Countries : USA
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Excerpts
Background Note
Spurred by the thought of saving money for his customers and of earning margins through volume, Sam Walton (Walton) founded Wal-Mart in 1962. It later became the archetype for leadership, success, and technology in the retail world...
Changes at Wal-Mart?
During the year 2005, while Wal-Mart was struggling to
increase its revenues, its earnings fell steeply, and stock prices were lower
than at any other time since 1999 (Refer to Exhibit VI for Wal-Mart Stock's
prices)...
Roehm & Her Work
Roehm was hired in January 2006 to fill the newly created position, and she
joined the company officially on February 8, 2006. She was asked to report to
the chief marketing officer (CMO) John Fleming (Fleming)...
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Life at Wal-Mart
The new position with Wal-Mart meant that Roehm had to
relocate to Bentonville, Arkansas, from the suburban Detroit with her husband
and two kids. In her compensation package, Wal-Mart promised to pay a base
salary of US$ 325,000, a signing bonus of US$ 250,000, plus restricted stock of
about US$300,000, stock options valued at approximately US$ 500,000, and an
annual performance bonus of up to US$ 400,000...
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Wal-Mart Fires Roehm
In November 2006, news came out that Roehm and Womack
had left the company. Roehm said, "I was hired by Wal-Mart as a change
agent a little less than a year ago. One of my first orders of business
was to help spearhead a comprehensive agency review. Now that I have
established the marketing communications organization and completed the
agency review, it's time to tackle my next challenge. I have enjoyed my time at Wal-Mart and I wish my many friends and colleagues there much future success."... |
Excerpts Contd...>>
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