BUS 644 Operations Management
November 6, 2011
Wal-Mart is the largest corporation in the world, and it has obviously enjoyed tremendous success. But while many welcome its location in their communities, others do not. Some complain that its presence has too many negative effects on a community, ranging from traffic congestion to anti-union sentiment to unfair competition. “According to a recent study from Dartmouth's Tuck School of Business, the entry of a Wal-Mart does significantly impact sales at other local establishments (McDevitt, 2009). In regards to Wal-Mart impacting small businesses and town residents, it varies. There are both pros and cons of having Wal-Mart in local communities despite biases or beliefs of critics. Owners of small businesses located nearby.
After observing the effects of seven Wal-Mart openings, researchers saw a 40 percent sales drop at nearby mass merchandise chains and 17 percent sales drop at supermarkets” (McDevitt, 2009, P.1). Those small businesses within the same area of Wal-Mart often lose out on a lot of money or go out of business due to Wal-Mart’s everyday low prices and convenient shopping. With gas prices being at $4 a gallon, people wonder if customers will stay closer to home to shop, causing Wal-Mart to lose out on customers (Barett, 2008). There are those that think Wal-Mart is bad for local small business owners and those that oppose this viewpoint. Andrea Dean of West Virginia University argues that Wal-Mart has not had a negative effect on small businesses as critics think. Instead, the company has unleashed forces that have changed the nature of small businesses in this country in unexpected ways (Bandyk, 2008, P.1). Town residents and residents of nearby towns
Town residents may have concerns ranging from an increase in noise pollution to a decrease in property values and those residents in favor of having Wal-Mart in local communities argue that Wal-Mart could be beneficial...