Preview

Pros and Cons of Walmart Expansion

Good Essays
Open Document
Open Document
528 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Pros and Cons of Walmart Expansion
Wal-Mart

Suppose Wal-Mart has announced plans to seek approval from the planning commission of a small town to build a new store. Develop a list of the main arguments, pro and con, that could be presented at a public hearing on the matter by members of each of these two groups: 1. Owners of small businesses located nearby. 2. Town residents, and residents of nearby towns.
How might a Wal-Mart representative respond to the negative criticisms that might be brought up, and what other benefits could the representative offer the planning board to bolster Wal-Mart’s case for gaining the board’s approval?

Owners of small business – Con’s we don’t want Wal-Mart in our town
Because of the size of Wal-Mart they are able to lower prices low enough to drive mom & pop businesses out of business. This will turn, what is a formerly a bustling small rural town into a ghost town. Local citizens who pay taxes and shop and live within the community own the small businesses that make up a community. This keeps the money both spent and earned in the community. If a Wal-Mart is allowed to come in and compete, they will drive these local business out of business and Wal-Mart profits will be shipped out of the county and out of state. According to Freeman (2003) “This is accomplished through Wal-Mart's policy of paying workers below subsistence wages, and importing goods that have been produced under slave-labor conditions overseas.” Do we really want to provide Wal-Mart the opportunity to come into our community and destroy what has been established over decades of traditional family businesses.

Pro’s – Wal-Mart is good for business
It is true that when Wal-Mart moves into community businesses shut down. There have been many documentaries showing the empty buildings and the many closed shops downtown. What they haven’t shown are the businesses that fill those empty shops eventually. In their publication Sobel and Dean point out that it is a

You May Also Find These Documents Helpful

  • Good Essays

    Former bureau chief for the Economist, Sebastian Mallaby writes in defense of a large retailer in his essay, Progressive Wal-Mart. Really. Through his essay he explains that through the continual campaigns against the large corporation, Wal-Mart has been and still remains a benefit to working Americans seeking affordable goods. He elaborates on the crusade of Anti-Wal-Mart campaigns looking to paint the business as a detestable parasite, when all the company has done is keep costs low and earnings for its shareholders high while trying to defeat competitors, just as any company would.…

    • 671 Words
    • 3 Pages
    Good Essays
  • Good Essays

    In “Why Wal-Mart is good” Steve Maich makes a number of statements supporting Walmart and its expansion, while Liza Featherstone disagrees with “Down and Out in Discount America” and supports her own statements citing Walmart’s various evils. The authors primary disagree not only over the various values that are key to the Walmart debates, but also of important factual information.…

    • 679 Words
    • 3 Pages
    Good Essays
  • Good Essays

    Wal-Mart Fiscal Year 2011

    • 545 Words
    • 3 Pages

    Wal-Mart has also started opening more Neighborhood Markets, stores that are designated for grocery items only. This takes the busy shopping trip out of the regular Wal-Mart’s and initially attracts customers from other supermarkets who tried to avoid the busy crowds.…

    • 545 Words
    • 3 Pages
    Good Essays
  • Good Essays

    Wal-Mart 's army of around 3,400 stores has created some job opportunities, but think of all the jobs lost due to choking out small locally owned businesses as well as the thousands of factory jobs lost due to Wal-Mart 's low production demands. Wal-Mart 's size, convenience, as well as its variety of over 120,000 items makes Wal-Mart a fierce competitor to any business. Due to Wal-Mart being built in the majority of cities and towns no matter the social status, many striving small businesses cannot compete with Wal-Mart 's unbeatably low prices and convenience and are forced to terminate their business. This may be an example of "survival of the fittest", but this process is hurting the economy. Eighty percent of Wal-Mart 's suppliers are from China and that means the more Wal-Mart 's there are, the more foreign products floating around, and less American made production (Is Wal-Mart Good for America). This lack of American production is what causes American factories to shut down leaving their employees without jobs. Even if these employees decided to work with Wal-Mart, they would make around half of their normal salary, as well as no pension, health care, or the job security benefits that have been the norm in factory work. "A…

    • 1034 Words
    • 5 Pages
    Good Essays
  • Good Essays

    Wal-Mart doesn’t limit its products to one specific need, but to any kind of need. When setting foot Into a Wal-Mart it may be overwhelming to see all of the products to choose from. “A quick look around at the store in Paris makes clear what an employee is up against: thousands of items (90,000 in a typical Wal-Mart)” (Olsson 612). To list a few items, Wal-Mart carries hardware, food, toys, and school supplies. Other stores that specialize in selling these products will lose a good percentage of customers that are needed to keep their business running. This variety can also potentially discourage customers from ever using different businesses. Nonetheless, these different areas of goods will satisfy the needs of many people when located in one area. People may come in for a specific item, simply because they are able to purchase it at the lowest price possible. Another common scenario is that someone may go there for multiple purposes instead of just one. For example, one can complete his or her grocery shopping, while purchasing a computer that is needed for school. Instead of traveling through town to find the same type of a computer for a lower price they can do it all at Wal-Mart because of the convenience the store offers. Not only small businesses but also larger companies can be hurt from this type of convenience. “The average Wal-Mart customer earns thirty-five thousand dollars a year” (Mallaby 621). Best…

    • 888 Words
    • 4 Pages
    Good Essays
  • Good Essays

    reserch paer on wal-mart

    • 997 Words
    • 4 Pages

    In the 1990’s most families made a dollar stretch due to lower inflation changes. As gas prices sky rocketed, in the 2000’s, families felt trapped, thriftier, and scrapping for pennies to shop for groceries. Present day Wal-Mart has given all families a way around large corporations that control prices. As a result, Wal-Mart has given a second chance on living the American dream and stretching a dollar to unimaginable possibilities. The essay Squeeze by Charles Fisherman gave me insight towards Wal-Mart, since it mentions the large control it has over large corporations. The essay projects Wal-Mart being negative towards large company but fails to mention benefit towards community. In addition, the 51,000 square acre food stores are perceived by some as a monopoly, damaging to the economy, and forcing low wage jobs. However, this new Wal-Mart has made significant changes to better the environment, provide better wages, and help families by forcing their vendors to run more efficiently. Though the issue has divided critics, Wal-Mart benefits local communities in America, since they provide low cost produce, support the environment, and help soldiers with jobs.…

    • 997 Words
    • 4 Pages
    Good Essays
  • Powerful Essays

    Walmart

    • 6499 Words
    • 26 Pages

    The first Wal-Mart store was opened in Rogers Arkansas in the Year 1962. From Wal-Mart’s company website a common misconception people have in regards to discount retailing is put to rest. That being this was the year it all started, When Kmart, Target, and Wal-Mart first opened. In actuality however, the chain of variety stores Sam Walton owned during the 1950’s faced stiff competition for many regional discount stores. In 1972, Wal-Mart stock was offered for the first time on the New York Stock Exchange. With this infusion of capital, the company grew to 276 stores in 11 states by the end of the decade. Also from the company’s official website, it is important to note that in 1983 the first Sam’s Club members-warehouse store opened. The first Supercenter opened in 1988, featuring a complete grocery, and 36 departments of general merchandise. By 1989, there were 1,402 Wal-Mart stores and 123 Sam’s Club locations. Employment had increased tenfold. Sales had grown from $1 billion in 1980, to $26 billion. Wal-Mart’s company website states that Today, 7,262 stores and club locations in 14 markets employ more than 1.9 million associates,…

    • 6499 Words
    • 26 Pages
    Powerful Essays
  • Powerful Essays

    We all want to do what is best for our families, our friends, ourselves and our country. However, our nation’s number one corporation is under constant ridicule for being a negative part of the American way. Wal-Mart is the overall number one on the fortune 500, over taking Exxon Mobile after a one year slip to the number 2 spot. However Wal-Mart is constantly being ridiculed by media and everyday citizens, its employees included. These opinions are often brought forth because of four major issues; the pay and benefits packages of Wal-Mart employees, the quality and buying of their goods from China, big box corporation killing local businesses ,and Wal-Mart taking jobs away and not creating new, stronger jobs .To answer each question I will use research from many different mediums, financial statements, and my personal experience as a three year Wal-Mart employee, and present facts and numbers that would be crucial in making an educated decision, following this information I will present what I believe is strong and weak about Wal-Marts current way of doing business, and then offer my solutions to answer these questions and answer the big question. Is Wal-Mart good or bad for America?…

    • 6224 Words
    • 25 Pages
    Powerful Essays
  • Powerful Essays

    Freeman, Richard. "Wal-Mart Collapses U.S. Cities and Towns." Executive Intelligence Review - LaRouche Publications. 21 Nov. 2003. Web. 16 Nov. 2011. <http://www.larouchepub.com/other/2003/3045walmart_iowa.html>.…

    • 1497 Words
    • 6 Pages
    Powerful Essays
  • Better Essays

    Immediately after watching the Frontline piece, “Is Wal-Mart good for America?” I felt that Wal-Mart was wrong for some of the things they are doing. The movie focused on how Wal-Mart was hurting American businesses, leaving many people without jobs. They do this by forcing their suppliers into meeting their price demands, which in turn leaves the supplying company’s managers with no choice other than to cut prices at all cost. Cutting the cost of raw materials can only account for part of the manager’s solution, next is employee wages and benefits and eventually out-sourcing the labor all together. However, after analyzing the situation further and doing more research I feel that Wal-Mart is doing more good than harm.…

    • 749 Words
    • 2 Pages
    Better Essays
  • Good Essays

    Is walmart really what America needs?Walmart has been one of the largest company in the United States. It has around 5,000 markets worldwide.Why is it really that succesful in the United states? It all started being a small market for small city that did not have much and only sell U.S goods. But was sold to another company which stand to this day and made walmart what it is today. There are three main reasons why they say walmart is good for America. walmart is what the producers want to buy. They are offering consumers a wide range of goods. But its also has its cons in many ways its making workers from other companies have no jobs and shutting down their companies.…

    • 473 Words
    • 2 Pages
    Good Essays
  • Good Essays

    Walmart, a super retail store that offers a product for almost all needs at a low price, is guilty of closing many local mom and pop shops. The documentary film “Walmart the High Cost of Low Price” illustrates the effects felt by the local small business owners when a new Walmart opens in the area. Usually when there is a grand opening of a new business in an area there is a decrease in sales. When someone as large as Walmart moves into the area it is almost impossible to keep a local shop open for long because of the overhead compared to the huge decrease in sales. This affect is not only felt by business owners but also by the surrounding community. Home owner Jon Hunter got his house appraised to sell, and because of the new Walmart soon…

    • 426 Words
    • 2 Pages
    Good Essays
  • Good Essays

    July 2nd, 1962 Sam Walton opened the first Walmart in Rogers, Arkansas. Walmart is a name that is commonly known in every household across the United States of America. It’s right around the corner to nearly all Americans and a haven for bargain hunters, so people think. Walmart brings jobs and helps the economy when they move to the area. This is another misconception Walmart wants you to believe. Walmart actually is doing the exact opposite. Sure it creates jobs, poverty level paying jobs with less than forty hours a week and no benefits. People who own and operate their own businesses, who actually stimulate their local economy, are at risk for going bankrupt and losing everything they have. Why would people want to spend money when they can get a similar product at Walmart for half the cost? There’s a simple answer to that question, people don’t want to spend money they don’t have to. Millions of people in the United States are living paycheck to paycheck working minimum wage jobs. These people can’t afford to buy products from a local family run store. The only places they’re able to go and get everything they need is Walmart and other big box businesses who can offer cheap…

    • 1896 Words
    • 8 Pages
    Good Essays
  • Good Essays

    Everyone loves Walmart, its cheap, it has just about anything anyone could need, and its very popular. However the super store is taking a huge toll on small business owners by running them into financial problems and damaging the local economy. “Wal-Mart store openings kill three local jobs for every two they create by reducing retail employment by an average of 2.7 percent in every county they enter.” (Popularresistance.org) Taking that into mind really shows what Walmart is doing to damage the economy but what they do to small business owners. After Walmart opened stores in Chicago, a quarter of the small businesses around the store closed due to financial woes. Having the store in small communities is terrible…

    • 568 Words
    • 3 Pages
    Good Essays
  • Good Essays

    Walmart claims to fuel local economies, provide great jobs, and give people the prices that they need. The reality is that a Walmart absorbs a lot of the profit that small businesses rely on and instead of many unique stores you get one giant superstore…

    • 637 Words
    • 3 Pages
    Good Essays