Hiring family members for high positions. But we're getting off track. Wal mart is practically universally hated and despite that, continues to thrive (they just bought all the leases from the defunct Canadian target stores...).
They really don't hire family members for high positions. There've been few occasions (the eldest son, for instance), but that's not enough to accuse them of nepotism. And they bought 13 Target store locations. (Lowe's also bought 13; Canadian Tire is purchasing others) Target had 133 locations, fyi.
Connection + working to be qualified is different than nepotism. If any individual dedicated their life to be Chairman at Wal Mart, for instance, tailoring their education and career to eventually be a candidate there, provided they're of at least average intelligence, then they'd probably find a way to be a good candidate.
Same thing works in hockey. If you dedicate your life to the sport, you'll wind up in a good position there. Problem is, very few people dedicate themselves to hockey. That's why so many names are recycled; not because it's an old boys club (which it probably is anyway), or because of nepotism.