...corporation in the United States with over 5,000 stores and a staggering 1.2 million employees. In fact, Wal-Mart’s staff accounts for 1% of the United State’s working population (Blodget, 2010). Unfortunately, such an enormous presence, combined with negative reviews, has turned Wal-Mart into the country’s most hated retailer of all time (Picchi, 2015). As such, Wal-Mart is constantly investigated, scrutinized, and sued. The following essay analyzes Wal-Mart’s effect on local communities and the corresponding implications the effects may have. In this essay, a community is defined as the combination of local businesses and people surrounding a Wal-Mart store. The analysis is divided into three Parts. Part 1 analyzes Wal-Mart’s effects on local businesses. Part 2 analyzes Wal-Mart’s effects on local populations. Both Part 1 and Part 2 suggest the potential organizational/ethical implications associated with Wal-Mart’s perceived effect. Lastly, Part 3 outlines potential solutions to Wal-Mart’s problems. Part 1: Effect on Local Businesses Wal-Mart reduces the number of small businesses within a community. According to a Hunter College study, local discount stores’ sales decline an average of 10-40% after a Wal-Mart moves in (De Blasio, 2011). As a result, many of the affected companies go out of business or move locations. For example, in 2006, after a single Wal-Mart opened in Chicago, 27% of small businesses in the...
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...THE PAPER Everyone handles themselves differently, and as we all know...Each individual has their own opinion. Business ethics multiplies the discussion, and getting everyone to agree is never a walk in the park. In the world of ethics a thin line separating ethical and un-ethical actions can quickly be crossed. Is a mass merchant like Wal-Mart acting ethically and good for America? Or has this monopoly game gone on too unethically long? Wal-Mart has a broad span of likes and dislikes from America, but after given the facts I can bet most would agree that Wal-Mart is bad for America. There are numerous ethical problems with Wal-Mart as well as numerous things that just don’t seem right with the company. Wal-Mart is nationally known for having awful wages for their employees. I believe this is unethical simply for the fact that what Wal-Mart pays their normal employees is not enough to support one self and not enough to live. The money a Wal-Mart employee makes in one year is a couple thousand dollars below the poverty line. There for making the statement that if you work at Wal-Mart you will be broke and poor and won’t be able to support another person, let alone a whole family. Another problem with Wal-Mart is the working conditions. Employees at Wal-Mart have been forced to work off the clock, have been locked in the building during night shifts, have had their overtime pay not paid in full, have had random wage decreases. Wal-Mart is also known for discriminating against...
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...The average Walmart Supercenter is between 90,000 and 260,000 square feet in size, and there are over 3900 of them throughout the United States of America. Often reported as being the largest retailer in the world, it is actually hard to describe just what Walmart is since it affects so many different people in so many different ways. With services ranging from pharmacy, sales of electronics, clothing, food and alcohol, Walmart incorporates the main business functions of many individual stores and businesses into one superstore located in most cities throughout the United States. While Walmart’s retail reach affects people in many positive ways, there are other people in every community that are affected negatively. This “effect” ranges from low prices on goods, to forcing smaller retailers out of business to impacts on the environment and pay equality. Traded as WMT on the New York Stock Exchange, Walmart is routinely ranked as the number one retailer in the world. With annual sales in 2011 reaching $421.9 billion dollars, it is not hard to imagine just how big of an impact Walmart has on the world of retail. Considering that the company started out as a small “5 and dime” franchise store in Bentonville, Arkansas in 1962 by founder Sam Walton, it really is incredible to see that the company now employs 1.6 million people. The company’s strategy of expansion and cost cutting are legendary with more than 1000 superstores being completed in only 5 years, and a commitment...
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...Fiscal Policy ECON372 Fiscal Policy Fiscal policy is the government’s way of stimulating or slowing down the economy. Actions taken by the government can slow growth if things are moving too fast or stimulate growth if the economy is in a lull. Walmart, a major retailer in the United States, is one of the many organizations that are influenced by fiscal policies. Tax rates and spending can affect the organization’s ability to sell goods and services as well as create jobs for the economy. Based on fiscal policies implemented and economic predictions, there are a few recommendations that can be made to Walmart in order to positively influence the economy and their business. Federal Government Spending Fiscal policy is changes in government spending and taxes in order to influence the economy in some way. It works by changing the level or composition of aggregate demand (AD). Government spending in the United States has steadily increased from 7% of GDP in 1902 to almost 40% today (Chantrill, 2015). A decent amount of federal spending has gone for health care, education, pensions, and welfare programs. Defense spending in the United States has fluctuated in the last century, rising from 1% of GDP, peaking at 41% in World War II, declining from 10 percent in the Cold War to five percent today (Chantrill, 2015). Government spending on education has expanded from about one percent of GDP in 1900 to peak at 6 percent in the second decade of the 21st century. Government...
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...factor in the survival, development and success of any business” (Premeaux, 2009). In this paper there will be discussions on Walmart strategic initiative program and the effectiveness of it. Walmart is not only a leader in retail but leads concerning energy savings and conservation. Walmart has taken advantage of technology as it relates to renewable and perpetual resources such as the sunlight, solar panels, and wind. Not only does Walmart show that it is environmentally conscience, but also reinforces it is focus on the customer by strengthening productivity and reduce expenses with the “Powered by Walmart” initiative and at the same time to keep providing service for its customers and profits for its shareholder. Initiative Effects on Financial Planning The “Powered by Walmart” is an initiative that Walmart has implemented to reduce the company’s expenses by reviewing their processes and eliminating any unnecessary steps taking place and costs incurred. According to Walmart’s Fourth Quarter Fiscal Year 2012 Earnings Call on February 21, 2012 they expect to maximize their value by balancing global leverage (Walmart Annual Report, 2012). This message also stated that some of these “Powered by Walmart” initiatives had already begun taking place within various stores in the United States and the United Kingdom. Walmart has evaluated the staffing of locations and worked toward making sure that the stores are staffed with the right personnel for...
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...7-May-2013 1) Bullwhip effect defines as; It is a tendency of customer of material or product in short supply to buy more than they need in an immediate future (Bullwhip effect, 2010). There are several factors involved to cause bullwhip effect; overreaction to backlogs, neglecting to order in an attempt to reduce inventory, communication gap in supply chain, in-accurate demand forecasting etc. In order to deal with bullwhip effect, there are certain countermeasures to overcome the effect; proportional rationing schemes that encountered by assigning unit based on past sales. Vendor Managed Inventory (VMI) can overcome exaggerated demand forecast. Special purchase contracts that can be implemented in order to specify ordering at regular intervals to better synchronize delivery and purchase (Bullwhip effect, 2010). 2) The sales department of Volvo offered special deals which caused the increase in demand of green cars. The manufacturing department was not aware of the promotion and believed that consumers had started to like green cars (Michael Bean, 2006) 3) The bullwhip effect can be reduced by keeping prices low and keeping demand steady. This reduces periodic high inventory levels and the need to discount products (Ivey, 2011). VMI (vendor-managed inventory) is a model in which an accord is reached between the customer and the retailer based on customer demand. The customer to an extent decides the prices of the products in this model. Large amount of inventory...
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...the largest corporations in America, Walmart has a huge influence on the lifestyle and economics of many Americans. It caters to consumers looking to save money, and those effected by the recent economic decline. It is also the largest private sector employer in the nation. (Peled) Yet, behind those yellow smiles, is the face of corporate greed. In an effort to be more fiscally responsible, middle class shoppers, and especially the poor are compelled to shop at Walmart. Over the last decade, as the economy has worsened, and more people are looking to make ends meet and spend less, Walmart has enjoyed record profits. In fact, in 2013 they made a 17 billion dollar profit. (Gandel) However, its employees, many of whom earn a minimum wage are forced to apply for government funded public assistance. In April of 2014, the Americans for Tax Fairness, a coalition of 400 progressive groups, estimated that Walmart costs taxpayers 6.2 billion in Public Assistance. Essentially, taxpayers are supplementing the salaries of these often minimum-wage, hard working employees. Because these workers earn so little, they can only afford to shop at Walmart. In effect, Walmart is double dipping; not only are they profiting by paying their employees so little, but when their workers pay with government funds, they make a profit on that too. The only way those workers can survive on wages so little is by creating a dependency by working and shopping at Walmart. They might look like saviors, but...
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...history of Walmart was founded in 1962 by Sam Walton in Rogers, Ark. It is an American multinational retail corporation that runs chains of large discount department stores and warehouse stores. They focus on making a difference in the lives of their customers, and helping customers and communities save money and live better. In 1969, the company officially incorporated as Walmart Stores, Inc. Walmart started its public trade on the New York Stock Exchange in 1972. With the continued rapid growth, Walmart was operating in 11 states with 276 stores by the end of 70’s decade. In the 1980s, the first Sam's Club opened, serving small businesses and individuals, and the first Walmart Supercenter opened, combining a supermarket with general merchandise. In the late 1980s and early 1990s the company rose from a regional to national giant, Walmart was the number-one retailer in the nation. In 2000s, Walmart focus on offering customers a seamless shopping experience, whether they are online, in a store or on a mobile device. Also, during these times, Walmart put some effort in implement several environmental measures to increase energy efficiency. Today, the company has grown to be the world’s largest and arguably, the most emulated retailer. The social cultural segment is concerned with a society’s attitudes and cultural values. A major social cultural trend is the continued growth of suburban communities. The increasing number of people living in the suburbs has a number of effects. Walmart...
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...Walmart Movie Analysis Threat Level Midnight MGMT 382, 12:00pm Monday Class Rheanna Ladron De Guevara Mohammad Shojaei Danielle Seymour Teresa Radtke Curtis Anson Amy Self Walmart is quite arguably one of the largest multinational grocery retailers in America. The corporation routinely produces record sales, earnings, and employs more than 2.1 million full time employees. Last year Walmart earned a record four hundred and five billion dollars in revenue. The company was founded in 1962 by business entrepreneur Sam Walton. Walmart’s past (2006) advertising slogan, “Low prices, always”, accurately reflects the appeal the store has to the masses. In an attempt to attain a wider and more diverse customer base, in recent years Walmart has adopted the new slogan: “Saving people money so they can live better lives.” While there’s no doubt about Walmart’s low prices, it’s questionable as to whether Walmart actually allows people to “live better lives.” Not only this, but the ethicality of Walmart’s business practices seem unsound to say the least. After watching the film “Walmart: the High Cost of Low Cost”, the ethicality of Walmart’s business practices and the impact the company has on the communities in which they expand into become apparent. While some argue that Walmart makes unethical decisions quite often that harm the communities they expand into, others assert that Walmart operates within the law and is simply doing business rather than acting unethically...
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...Vikram Bhakoo Class: Tuesday 6:15-9:15 MGMT90026 Supply Chain Management Group Assignment Dr. Vikram Bhakoo Class: Tuesday 6:15-9:15 By: Widad Alharthi 822694 Di Cao Wasinee Phornnarit Yang Chan By: Widad Alharthi 822694 Di Cao Wasinee Phornnarit Yang Chan Table of Contents Introduction: 2 1. Supply Chain Management Practices 4 1.1 Walmart 4 1.1.1 Strategic allignemnt 4 1.1.2 procurement and distribution 5 1.1.3 Logistic and distribution management 5 1.1.4 Inventory management 6 1.2 Amazon 8 2. Strategic Alliances 9 2.1 Walmart 9 2.2 Amazon 10 3. Technologies employed in the SC Network 11 3.1 Walmart 11 3.2 amazon 13 4. Challenges and risks 14 4.1 Walmart 14 4.2 Amazon 15 5. Comparison of sustainable strategies in Supply Chains 16 conclusion 17 References: 18 Appendices: 19 Section A: 19 Section B: 19 Section C: 20 Introduction: Executive summary: This report provides an analysis and evaluation of the current supply chain strategies employed by two leading retail corporates, Walmart and Amazon. The report draws attention to the following aspects; supply chain management practices, strategic alliances, Information Technology, challenges and risks,finally sustainability in the supply chain. Method of the analysis includes reviewing a collection academic journals from different databases, analysing company’s annual reports and viewing news article for new trends and...
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...unemployment in the host country, which is shown in the graph below: AS WL2 WL1 Wage Rate AD1 AD No.of Workers QDL2 QDL Walmart demands Indian labor to function and hence there is an increase in aggregate demand for labor from AD to AD1. Now the macroeconomic goal of lower unemployment has a better probability to be achieved than before. The increased employment and earnings may have a multiplier effect on India that might further stimulate economic growth. Developing countries including India tend to suffer from savings gap and this presence of FDI further emphasizes the stimulation of economic growth. However, we cannot consider this as a strong point. It is argued that Walmart would bring their own management teams and use low-skilled workers from India. They may not actually provide training and education to Indian workers. It is also anticipated that the profit earned by Walmart would be reinvested in India. Unless and until an agreement is made between the Indian government and Walmart that the profit must be reinvested in India, there is no assurance that this would happen. One of the major concerns against Walmart’s investment in Indian economy is its effect on the small Indian retailers. Walmart would be charging lower prices than the domestic retailers and hence the consumers of these might move towards Walmart....
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...waste, selling sustainable products and using 100 percent renewable energy. With this strategy the company not only aimed to resolve the problem of paying fines to state and federal regulators for its environmental damage but also change its bad reputation among customers. The company also realized its sustainability strategy creates cost advantages and this should turn out an opportunity to maintain its lower price strategy. Customers’ reactions to Wal-Mart’s new sustainability strategy showed that low or middle class consumers’ expectations are not limited to purchase only low price products; they are also willing to buy green, sustainable ones when they find them in affordable prices. This was a sign that Walmart is on the right track. Today’s business practice of Walmart needs to transform more -through quick wins which are actions that makes business sense based on available technologies, products and processes; innovation projects which base on emerging technologies, processes, and innovation; big game challenge which is a way to lead the market works for sustainability, not against it- to complete its sustainable pathway successfully and reach the sustainable business practices level. In this way, they should identify opportunities to develop supply chain, coordinate manufacturers and compete with the rivals. Company should find new ways to get greener supply chain with less capital, lower the operating costs and catch more competitive advantages in the market. Even though...
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...have a good security plan in effect. Every risk cannot be avoid the goal is to have the right plans and strategies in effect to prevent injuries from happening. Such as robbery, theft, slip and falls, fire hazards, and employee sprains or strains. Wal-Mart is a global retailer that sells more than one product, which means they have more than on safety and security risk assessment. Below are a few security and safety risks plans for food, security, slip and falls, sprain or strains, and fire safety hazards. Walmart is using better suppliers when it comes the safety of their food products. Walmart requires that their food suppliers be certified by safety programs under the umbrella of the Global Food Safety Initiative. To help with its food safety and security risk Wal-Mart takes that extra mile ensuring that their food is harmonized and leading-edge food safety standards throughout the entire food production chain ("Food and Safety", 2012). Walmart has trained employees to handle cold and hot foods correctly. To ensure that all food products bought and sold by Wal-Mart is handled, stored, cooked, and properly packaged. Wal-Mart uses guidelines given from the U.S. Food and Drug Administration along with GFSI standards. Second, Walmart realizes that a security plan is necessary in trying to security its employees, customers, and the facility. This is why they have installed safety and security technology inside and outside their stores. Walmart stores have installed closed...
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...or service. Step three is explaining the importance of marketing for organizational success. The fourth step analyzes the factors of strengths, weaknesses, opportunities, threats, and trends (SWOTT) of the new product or service. Step five is the marketing research approach for developing the marketing strategy and tactics of the new product or service (Perreault, Cannon, & McCarty, 2011). Organizational Overview Team Charlie chose the Walmart organization for completing this assignment. Walmart is one of the best known organizations in the world that have successful marketing plans and strategies. Sam Walton is the founder of Walmart and opened the first store in Rogers, Arkansas, 50 years ago in 1962 (Walmart, 2012). Currently Walmart operates in more than 10,000 retail stores under 69 diverse banners in 27 different geographic locations across the world. They service customers and members in excess of 200 million times per week with sales of approximately $444 billion continually for the fiscal year 2012 (Walmart, 2012). Sam Walton’s visionary leadership and focus point centered on helping customers and...
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...Labor Laws and Unions Walmart is one of the biggest retail stores in the world. Walmart operates worldwide with current total count of its stores reaching 9.667 stores worldwide (Walmart Corporate, 2011). Interestingly, Walmart is an organization that is currently non-unionized. This paper will provide brief background information on Walmart organization. Legal issues and obstacles that Walmart could encounter will also be identified. The writer will determine which federal, state, or local laws could be broken because of the legal issues and why. Finally, recommendations to minimize possible litigation will be provided. The second part of the paper will deal with scenario if Walmart joining a union. Effects of the union on Walmart will be discussed next on the paper. Organization’s benefits of joining a union will be analyzed. Process of unionization will be discussed. And ways on how a union bargains and its effects on Walmart will be considered. Walmart’s Background Walmart begins in 1962 along with other retail stores such as Kmart and Target. Walmart has a humble beginning, with its owner Sam Walton put up 95 percent of their money to open the first Walmart stores in Rogers, Arkansas. Walmart finally goes public ten years later in 1972 which brings more capital to the organization. Walmart starts booming in the 1980s, where in the period of 10 years, sales grow from $ 1 billion in 1980s to $26 billion in 1989. In 21st century, Walmart is serving more than 176 million...
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