Synopsis/Reflection
This business letter is written to the CEO of Walmart; Doug McMillon. I am writing to him in order to request a change in corporate policy regarding eco-friendly priorities, transportation specifically. I want Walmart to convert their transportation fleet from combustion engine vehicles to electric semi-trucks, I give the option of Tesla. I chose the problem of corporate pollution because I see it as a real problem with a real and achievable solution. Also, I believe Doug McMillon is aware of the environmental damage being caused and is open to criticism and new ideas to further better the company. In order to connect with McMillon, I used data directly from Walmart in order to form logos surrounding the problem. I also used pathos in my opening statements by creating a familiar story since almost everyone knows about Walmart and can understand the problems and opportunities at hand.
The main change I made when revising this letter was formatting. I reworded many statements and sentences within the paragraphs in order to make them read more clear. However, I mainly changed the positioning of paragraphs, data, and sentences in order to flow from one thought to another.
Final Draft
Tesla Semi-truck is shown above
Doug McMillon
CEO of Walmart
702 S.W. 8th St.
Bentonville, Arkansas, 72716
October 10, 2020
SUNY New Paltz
1004 Hawk Drive
New Paltz, NY, 12561
Dear Mr. Doug McMillon,
My name is Alex Constantino, I am currently a student at SUNY New Paltz studying general business marketing. I wanted to write this letter to a large corporation with a lot of power. When people think of large companies, they most often think of Walmart, the king of companies. Walmart is first to many people’s minds for good reason, with a total of 4,756 stores in the US and 11,501 across the entire world (Statista, Walmart US), I think it is fair to say that everyone has heard of Walmart. It is a part of daily life for so many, running to Walmart to grab extra socks or a few notebooks for school. With such size, one would think Walmart has the ability to do almost anything, including going green and making a substantial economic impact on local communities. I believe this assumption is correct, one corporation can make a positive environmental impact. Lowering emissions and generating fewer greenhouse gases, properly disposing of garbage, and switching to electric transportation vehicles are all prime examples of steps that can be taken to achieve this overall goal of a cleaner and healthier environment. In fact, I commend Walmart for already taking a few steps in order to achieve this goal. As you know, in 2017 Walmart reused or recycled 78% of its garbage instead of piling it into landfills (Spicer). That being said, I do believe that Walmart can do more to save the environment.
The main problems I have found with Walmart currently are the excessive use of combustion engine vehicles and waste management. Both are very serious issues but can be remedied if treated properly. Combustion engine vehicles have been the trusted method of transportation for years since electric vehicles have not been as advanced or reliable. When referring to a 2014 article written about vehicular pollution, it is stated that “at the time 92 million Americans live in areas with chronic smog problems and more than 55 million Americans will suffer from unhealthy levels of fine-particle pollution”, which is especially harmful to children and senior citizens (Friedman, Vehicular Pollution). Combine this mass air pollution with densely packed communities surrounding large Walmarts and manufacturers can cause immense health and safety problems. However, this can all change in the near future. Tesla is pioneering the electric vehicle movement and has provided large corporations with a new opportunity to make the switch to in the form of electric semi-trucks. Walmart Canada has noticed these opportunities and is capitalizing. Your neighboring corporation has placed an order of 150 Tesla Semi-trucks shortly following the official 2017 release of the semi. The shipment of trucks will cost Walmart Canada a whopping $30,000,000 at around $180,000 per truck (Tesla, Semi). Additionally, they have announced that they want to convert 20% of their transportation fleet to electric vehicles in 2022 and a complete 100% by 2028. I propose Walmart should follow in the footsteps of Walmart Canada in looking into and purchasing a fleet of electric vehicles, and looking to lower emissions as a result.
A common argument against businesses going green is the economic impact it has on the business. While this is a reasonable claim, we can review this Walmart Canada shipment of electric vehicles to combat this statement. Looking back at last year, 2019, Walmart accumulated revenue of $514.4 billion (Walmart, corporate financial). Revenue is not equal to profit, but we can estimate profit with a 2015 report of $482 billion in revenue and $14.7 billion in profit. This shows about a 3% profit margin, when applied to last year’s revenue the total profit would be roughly $15.4 billion. This means that daily profit comes out to roughly $42.7 million. This astounding number of 42.7 billion dollars, surpasses the 30 million dollar charge for a fleet of 150 tesla semi-trucks in one single day. Not only is a single fleet worth less than one day of profit, but these gas-saving, emission-reducing vehicles will repay the company fully through the long-term fuel savings. According to the Tesla website, not only do these vehicles consume less than 2 kWh per mile, but they also save $200,000+ on fuel savings. These savings will eventually pay off the previous losses, not even accounting for the acquired consumer trust. This should be absolute in Walmarts plan to better the company. As shown this change will not make a detrimental impact on the corporation’s earnings but will increase sales and respectability in the future. I see this as essential for Walmart especially in this transportation age of retail.
Megacorporations such as Walmart have an extreme influence on smaller businesses. They act as a mainstream example for these smaller companies and can enforce a business norm on the corporations. If a marketing plan is successful then it will be imitated and implemented in smaller companies. An example of this is if Walmart successfully implemented proper garbage disposal, as previously stated, small businesses will be compelled to do the same. This is very important for the expansion of eco-friendly businesses. If one well-known business is successful in going green, then other corporations will soon follow. This is currently being observed with smaller businesses such as Patagonia, IKEA, and Lush. These companies, all though varied, are all taking large strides towards a more sustainable and green future. Jennifer Nini at Ecowarriorprincess.net discusses IKEA’s 2020 sustainability strategy thoroughly. IKEA plans to source 100% of its wood, paper, and cardboard from more sustainable and recycled sources. Additionally, IKEA plans to produce as much renewable energy as it produces, which is an incredible leap towards full sustainability. This is not only an environment choice of course, as IKEA is still a business, “[IKEA] is committing to sustainability because it’s good business to do so” (Nini How Sustainable). This idea of environmental and economical benefits being parallel is not new or unknown (M. Menagh Business of Going Green). The fact that IKEA is taking these steps to better themselves and the environment shows that a very large corporation can make changes and still profit. These smaller companies prove to Walmart that this is possible. If Walmart takes the leap and endures a fully sustainable environment then they will benefit, as seen by IKEA.
In The Business of Going Green by M. Menagh, this concept is discussed thoroughly. It is commonly agreed according to government officials, mutual fund managers, and green consumer advocacy groups that making proper environmental decisions is an intelligent economical decision. Not only do these decisions result in friendly products and practices, but they also show the general public that you care about them and the environment, making the company trustworthy in the eyes of consumers. Arnie Koss, the cofounder of Earth’s Best Inc., was quoted in The Business of Going Green and stated “We felt that if we did things right and weren’t just hype, just a marketing facade, we would be appreciated” and of course Koss was correct in this statement. Reenforcing the connection between consumer and company is essential for effective marketing. Koss adds “They see us as a company that’s different, and they actually want us to succeed”, this brand loyalty is vital for building a strong company. Although Walmart and Earth’s Best Inc. are different types of companies the core mindset is the same. A trusted and legitimate company with good intentions will attract a larger consumer base. Walmart can achieve an even stronger consumer base by guaranteeing a safe environment for the future.
The main argument against eco-friendly endeavors in corporations is known as the “tragedy of commons”. This is when people or companies believe that if they do not use a natural resource to their advantage, then someone else will, and they will lose profits. Making money, or more importantly, losing money is a great fear of every company. The companies assume that using these natural, nonrenewable resources is acceptable since another company will come by and utilize the resource anyway. For this reason, many companies are afraid of going green and abandoning natural resources. As this is a reasonable fear, there are ways to get around this problem. One way is to “team-up” with other companies and environmentally focused organizations. Companies like Kroger and Walgreens have partnered with TerraCycle, a waste management company (PBS, Sustainable Business). This exact same plan can be followed by Walmart to address the second main issue of waste management. By working together companies gain more funding, leverage in the economy, and a wider audience from varying demographics, depending on the companies involved. Walmart can easily follow these steps and pair with an environmentally friendly company as an easy answer to this argument and as a potential solution to the waste management issue.
As a final statement, I want to quickly reiterate the proposals in this letter. I see Walmart as a very successful and powerful company. A company with a great deal of influence over the market and smaller companies. I believe that the beginning of a truly green and healthy environment can be started with Walmart. Showing that a mega-corporation can be extremely successful while still helping the environment. Transferring from industry standard, combustion engine semi-trucks to eco-friendly, electric Tesla semis. Also pairing with other, environmentally conscious companies with similar interests and goals is a smart option to easily and quickly gain support and customer reliability, and control waste management. Transferring to an environmentally conscious company will benefit any company and hopefully every company in the future. I hope that one day, I won’t just go to Walmart to grab an extra pair of socks but to also save the environment.
Thank you for taking the time to read this letter and understand the benefits of this potential switch. I believe with the right business, the tragic state of the environment can be reversed and saved. I see Walmart as that right business, you have the proper power over the market, and can influence smaller companies to follow in your new green footsteps. I hope you come to your own conclusions and make an effort to strive for a more eco-friendly world.
Best Regards,
Alex Constantino
Works Cited
Frazee, G., 2020. 4 Reasons It’s Hard To Become A Sustainable Business. [online] PBS NewsHour. Available at: <https://www.pbs.org/newshour/economy/making-sense/4-reasons-its-hard-to-become-a-sustainable-business> [Accessed 19 October 2020].
Friedman, David. “Vehicular Pollution.” Pollution A to Z, edited by Richard M. Stapleton, vol. 2, Macmillan Reference USA, 2004, pp. 272-278. Gale eBooks, https://link.gale.com/apps/doc/CX3408100263/GVRL?u=newpaltz&sid=GVRL&xid=cc710d5f. Accessed 19 Oct. 2020.
Menagh, M., 2020. The Business Of Going Green: Ebscohost. [online] Web.b.ebscohost.com. Available at: <https://web.b.ebscohost.com/ehost/detail/detail?vid=0&sid=a01dfcb7-4d2e-4dee-9cb2-8353dccf4f56%40sessionmgr101&bdata=JnNpdGU9ZWhvc3QtbGl2ZQ%3d%3d#AN=9107152730&db=a9h> [Accessed 19 October 2020].
Nini, J. and Nini, J., 2020. How Sustainable Is IKEA, Really? – Eco Warrior Princess. [online] Ecowarriorprincess.net. Available at: <https://ecowarriorprincess.net/2018/03/how-sustainable-is-ikea-really/> [Accessed 19 October 2020].
Spicer, A., 2020. Walmart Wants To Be Environmentally Friendly — And Discovers Just How Difficult ‘Sustainability’ Is. [online] MarketWatch. Available at: <https://www.marketwatch.com/story/walmart-wants-to-be-environmentally-friendly-and-discovers-just-how-difficult-sustainability-is-2018-08-14#:~:text=Walmart%20has%20now%20converted%2028,or%20even%20sell%20the%20garbage.&text=Walmart%20had%20a%20challenging%20job.> [Accessed 19 October 2020].
Statista. 2020. Number Of Walmart Stores In The U.S. 2012-2019 | Statista. [online] Available at: <https://www.statista.com/statistics/269425/total-number-of-walmart-stores-in-the-united-states-by-type/#:~:text=How%20many%20Walmart%20stores%20are,valuable%20brands%20in%20the%20world.> [Accessed 19 October 2020].
Rough Draft
Doug McMillon
CEO of Wal-Mart
702 S.W. 8th St.
Bentonville, Arkansas, 72716
October 10, 2020
SUNY New Paltz
1004 Hawk Drive
New Paltz, NY, 12561
Dear Mr. Doug McMillon,
My name is Alex Constantino, I am currently a student at SUNY New Paltz studying general business marketing. When people think of large companies they most often think of Wal-Mart, the king of companies. Walmart is first to many people’s minds for good reason, with a total of 4,756 stores in the US and 11,501 across the entire world, I think it is fair to say that everyone has heard of Wal-Mart. It is a part of daily life for so many, running to Wal-Mart to grab extra socks or a few notebooks for school. With such size one would think Wal-Mart has the ability to do almost anything, including going green and making a substantial economic impact. I believe this assumption is correct, one corporation can make an environmental impact. Lowering emissions and generating less greenhouse gases, properly disposing garbage, and switching to electric transportation vehicles are all prime examples of things that can be done to achieve this overall goal of a cleaner and healthier environment.. Infact, Wal-Mart has already taken a few steps in order to achieve this goal, according to Andrew Spicer with WarketWatch.com, in 2017 Wal-Mart reused or recycled 78% of it’s garbage instead of pilling it into landfills. That being said, I do believe that Wal-Mart, along with many other big businesses, can do a little more to further save the environment.
Mega corporations such as Wal-Mart have extreme influence on smaller businesses, for better or for worse. They act as a mainstream example for these smaller companies and can enforce a business norm on the corporations. If a marketing plan is successful then it will be imitated and implemented in smaller companies. An example of this is if Wal-Mart successful implemented proper garbage disposal, as previously stated, small businesses will be compelled to do the same. This is very important for the expansion of eco friendly businesses. If one well known business is successful in going green, then other corporationswill soon follow. This is currently being observed with smaller businesses such as Patagonia, IKEA, and Lush. These companies, all though varied, are all taking large strides towards a more sustainable and green future. Jennifer Nini at Ecowarriorprincess.net discusses IKEA’s 2020 sustainability strategy thoroughly. IKEA plans to source 100% of their wood, paper, and cardboard from more sustainable and recycled sources. Additionally, IKEA plans to produce as much renewable energy as it produces, which is an incredible leap towards full sustainability. This is not only an environment choice of course, as IKEA is still a business, “[IKEA] is committing to sustainability because it’s good business to do so” (Nini How Sustainabe). This idea of environmental and economical benefits being parallel is not new or unknown (Bekwith and Newman Business of Going Green).
In The Business of Going Green by M. Menagh, this concept is discussed thoroughly. It is commonly agreed according to government officials, mutual fund managers, and green consumer advocacy groups that making proper environmental decisions is an intelligent economical decision. Not only does it provide earth friendly products and practices, but it also shows the general public that you care about them and the environment, making the company trustworthy in the eyes of consumers. Arnie Koss, cofounder of Earth’s Best Inc., states “We felt that if we did things right and weren’t just hype, just a marketing facade, we would be appreciated” and of course Koss was correct in this statement. Reenforcing the connection between consumer and company is essential for effective marketing. Koss adds “They see us as a company that’s different, and they actually want us to succeed”, this brand loyalty is vital for building a strong company. Yes, brand loyalty can be gained through other actions but being environmentally conscious will surely gain traction.
This leads back, of course, to Wal-Mart. Wal-Mart has been making various efforts to “go green” in the recent years. Walmart Canada, for example, has placed an order of 150 Tesla Semi-trucks shortly following the official 2017 release of the semi. This will cost Wal-Mart Canada a whopping $30,000,000. Additionally, they have announced that they want to convert 20% of their transportation fleet to electric vehicles in 2022 and a complete 100% by 2028. Now, $30 million might sound like an unreasonable amount of money for any one company to spend, but let’s look at Wal-Mart’s earnings, sourced directly from Wal-Mart. Looking back at last year, 2019, Wal-Mart accumulated revenue of $514.4 billion dollars. Now revenue is not equal to profit, but we can estimate profit with a 2015 report of $482 billion in revenue and $14.7 billion dollars in profit. This shows about a 3% profit margin, when applied to last years revenue the total profit would be roughly $15.4 billion dollars. This means that daily profit , comes out to roughly $42.7 million dollars. This astounding number of 42.7 billion dollars, surpasses the 30 million dollar charge for a fleet of 150 tesla semi-trucks in home single day. Not only is a single fleet worth less than one day of profit, but these gas saving, emission reducing vehicles will repay the company fully though the long term fuel savings. According to the Tesla website, not only do these vehicles consume less than 2 kWh per mile, but they also save $200,000+ on fuel savings. These savings will eventually pay off the previous losses, not even accounting for the acquired consumer trust. I see this as essential for Wal-Mart especially in this transportation age of retail.
A main argument against eco friendly endeavors in corporations is known as the “tragedy of commons”. This is when people or companies believe that if they do not use a natural resource to their advantage, then someone else will, and they will lose profits. Making money, or more importantly, losing money is a great fear of every company. The companies assume that using these natural, nonrenewable resources is acceptable since another company will come by and utilize the resource anyway. For this reason, many companies are afraid of going green and abandoning natural resources. As this is a reasonable fear, there are ways to get around this problem. One way is to “team up” with other companies and environmentally focused organizations. According to PBS, companies like Kroger and Walgreens have partnered with TerraCycle, a waste management company. By working together companies gain more funding, leverage in the economy, and a wider audience from varying demographics, depending on the companies involved. Wal-Mart can easily follow these steps and pair with an environmentally friendly company as an easy answer to this argument.
As a final statement I want to quickly reiterate the proposals in this letter. I see Wal-Mart as a very successful and powerful company. A company with a great deal of influence over the market and smaller companies. I believe that the beginning of a truly green and healthy environment can be started with Wal-Mart. Showing that a mega corporation can be extremely successful while still helping the environment. Transferring from industry standard, combustion engine semi-trucks to eco friendly, electric Tesla semis. Also pairing with other, environmentally conscious companies with similar interests and goals is a smart option to easily and quickly gain support and customer reliability. Transferring to an environmentally conscious company will benefit any company and hopefully every company in the future.
Thank you for taking the time to read this letter and understand the benefits of this potential switch. I hope you come to your own conclusions and make an effort to strive for a more eco friendly world.
Best Regards,
Alex Constantino