Hello Walmart Case Study

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Hello, Wal-Mart?

Hello, Wal-Mart?
Executive Summary
With the emergence of new Wal-Mart locations opening, many concerns have been brought to the attention of Wal-Mart executives. We have reviewed the many concerns of the town in which the new Wal-Mart is being proposed to being built. We also reviewed the concerns and benefits that the new Wal-Mart will have on small businesses and the local community. The concerns of the residents are something that needs to be taken seriously and we must address these concerns thoroughly. Also, we must address the concerns of the small businesses located in the area that the new Wal-Mart is being built. Once all the concerns have been addressed that the residents and small businesses have, we then provide a response to each group. We will show the many benefits that the new Wal-Mart will bring forth. Summary

Founded by Sam Walton in 1962 and incorporated on October 31, 1962 Wal-Mart is one of the largest retail corporations in the world, with about 8,500 stores in 15 different countries. Wal-Mart also operates under different names such as Walmex in Mexico, ASDA in The United Kingdom, Seiyu in Japan and Best Price in India. It also has Warehouses here in the U.S. known as Sam’s Club and Mas Club. Wal-Mart is always looking to expand to small towns and undeveloped countries, therefore Wal-Mart representatives are seeking approval from the planning commission of a small town to build a new store. The Representatives have to be able to overcome negative criticism from owners of small businesses located nearby and town residents, or residents of towns nearby. Arguments brought forth by the residents of the town, and residents of nearby towns are: * Employment opportunities with benefits.

* Job Growth in the community
* Crime Increase
* Traffic Congestion
* Anti-Union Sentiment.
Some arguments brought forth from the owners of small businesses are: * Destruction of all surrounding small businesses.
* Unfair Competition.
Arguments brought forth by residents of the town
There are many advantages of having a Wal-Mart, but with those advantages, many disadvantages are brought out as well. Many local town residents are concerned with the development of a Wal-Mart in the area. During the town meeting, residents want to voice their concerns with the issues that arrive with the construction of a Wal-Mart in their town. The following are concerns of many residents of the town and we would like to see how Wal-Mart will address them. The first of the resident’s concerns are the employment practices of Wal-Mart. Wal-Mart allegedly uses mostly temporary or part time employees of the community in order to avoid paying health benefits, vacation and other employee benefits. This may result in a lower standard of living directly impacting the surrounding communities. Also, Wal-Mart allegedly uses tactics to prevent employees from forming unions. For example, new employees are shown videotapes explaining that instead of unionizing, they benefit from the open door policy, allowing them to take their complaints beyond the supervisors to higher management. Employees complained that the sessions were intimidating. Many complaints are currently on file with the National Labor Relations Board.  Wal-Mart abides to the US laws to deter employees from forming unions and they will do anything to keep their employees away from unionizing. “According to former workers and managers of one store, surveillance cameras were installed to monitor union supporters. Workers were told that they will lose benefits if they organize.” (US: Wal-Mart Denies Workers Basic Rights, May 2007).

Other concerns of residents are that traffic and crime in the area will increase with the development of a Wal-Mart. Statistics show that in average, Wal-Mart Supercenter will create about 10,000 car trips per day (Stop Heights Wal-Mart). This causes congestion in the area and...
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