Ever wonder what Wal-Mart’s #1 Business Challenge is?

Maybe you would guess it is logistics, store cannibalization, inventory, or another retailer?

Well, if you did, you’d be wrong.

The answer, according to Wal-Mart’s old advertising agency, GSD&M, is REPUTATION!

Amazing, isn't it? Wal-Mart denied it for years, but now it looks like we were right. Wal-Mart’s poor values and bad business practices have hurt not only Wal-Mart’s workers, but Wal-Mart itself.

Now, we have always argued that American consumers care about values, not just value, but is it incredible to see Wal-Mart’s own advertising agency argue the exact same thing.

Truth be told, the memo, entitled "Wal-Mart Positioning Report", offers an incredible glimpse into why this campaign matters, and shows the real character of the American people – Values matter.

Now, if only Wal-Mart had read this memo, maybe they would realize that only by truly changing can they become a better employer and a more successful company.

Unfortunately, though, what did Wal-Mart do after their advertising agency drafted this memo? They fired them.

Anyway, take a read (it’s long, but incredibly interesting), and pass it along to a friend.