Wal-Mart Pro and Cons

Topics: Wal-Mart, Department store, Supermarket Pages: 6 (1379 words) Published: April 7, 2009
Wal-Mart Stores, Inc. (or Walmart as written in its new logo) is an American public corporation that runs a chain of large, discount department stores. It is the world's largest public corporation by revenue, according to the 2008 Fortune Global 500.[5] Founded by Sam Walton in 1962, it was incorporated on October 31, 1969, and listed on the New York Stock Exchange in 1972. It is the largest private employer in the world and the fourth largest utility or commercial employer, trailing the British National Health Service, and the Indian Railways. Wal-Mart is the largest grocery retailer in the United States, with an estimated 20% of the retail grocery and consumables business. It also owns and operates the North American company, Sam's Club. Wal-Mart operates in Mexico as Walmex, in the UK as ASDA, and in Japan as Seiyu. It has wholly owned operations in Argentina, Brazil, Canada, and Puerto Rico. Wal-Mart's investments outside North America have had mixed results: its operations in South America and China are highly successful, while it was forced to pull out of Germany and South Korea when ventures there were unsuccessful. Wal-Mart has been criticized by some community groups, women's rights groups, grassroots organizations, and labor unions, specifically for its extensive foreign product sourcing, low rates of employee health insurance enrollment, resistance to union representation, and alleged sexism. Ouestions : Suppose Wal-Mart has announced plans to seek approval from the planning commision 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 groups : 1. Owners of small business 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, what other benefits could the representative offer the planning board to bolster Wal-Mart’s case for gaining the board’s approval?

Pro and cons of owner of small businesses located nearby


1. Improve surrounding economy, because it provided jobs for hundreds of workers who would normally have commuted to other places.

2. surrounding restaurants and specialty shops that were not direct competitors will get increase on sales

3. Wal-Mart and stores like it add to the quality of life in large and small communities because they provide consumer choices that otherwise would not be available

4. Supports and uses best of best technology to create efficient employee practices


1. Walmart existence disruptive to small business

2. Walmart can change the wholefabric and tenor of a community

3. Wal-Mart's growth negatively impact worker's wages

4. The Cost of Wal-Mart's entry into a community can be significant

5. Wal-Mart hurts other businesses when it comes to town.

6. Almost monopsony in the market
7. Market control is too vast ' when Wal-Mart moves, so do many others 8. Has put thousands of US based companies out of business by low prices o Importing goods from foreign countries for extremely low costs makes it nearly impossible for the US factories and manufactures of appliances and electronics to compete with the US standard of living and employee benefits plus the cost of raw materials 9. Vastly invests USD into foreign markets, ultimately attributing to the weakening dollar 10. Provides poor standards for there employees, with extremely low benefits, and low respect for employees themselves. o This may be a radicalist view at providing value to the shareholders, there needs to be some middle ground that allows the company to grow on more things than competitive prices. Wal-Mart has one of the highest employee turnover rates above industry counterparts.

Pro and cons of town residents, and residents of nearby towns


1. Wal-Mart is beneficial...
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