Wal Marts Effects On Communities Essay

2342 words - 10 pages

Wal-Mart can be found in most cities around the United States and they employ roughly 1.4 million U.S. citizens. They provide Americans with everyday low prices and better deals that other local department stores cannot match. There is no doubt that Wal-Mart has the cheapest prices on most of their products. But this actually hurts Americans more than it helps! The anti-Wal-Mart campaign will reach its 20th birthday next year thanks to some very bad publicity and business practices held by the world’s largest supercenter. Communities everywhere are standing up to the giant, claiming that Wal-Mart is bankrupting their stores and providing less than adequate wages and benefits to their ...view middle of the document...

Sam wanted a place where customers could go to purchase their goods for the lowest possible price; originally opening in rural areas, providing a service to those who needed it most. However, Sam was very much aware of the criticism brought upon him. Such criticism included how his stores were crippling local businesses and downtown retail. To combat this, Walton was very active in rural cities, promising job creation and donations to local communities (A+E Networks).
In 1988, Sam Walton stepped down as CEO of Wal-Mart Store Inc. and named David Glass as his successor (Wal-Mart Stores Inc). The year before Glass was named CEO sales grew by $16 billion; the year after he was named CEO, sales more than doubled to $55 billion for the end of the year. There is no doubt that David Glass knew, fiscally, what he was doing when he took the job as Chief Executive Officer (CEO) but at what cost to the public and America did Wal-Mart make such astounding gains in 1993, the year that followed Sam Walton’s resignation? Following Wal-Mart’s record setting year, David Glass was under heavy scrutiny for practices conducted at Wal-Mart stores and manufacturing facilities around the world. In an interview with NBC, Glass was asked about Wal-Mart buying shirts from a factory in Bangladesh that used child labor (Saporito). With Wal-Mart supposedly being a “Buy-American” company, this brought heavy embarrassment on Glass who did not know how to respond. The interview was then cut off prematurely by another executive from Wal-Mart. This interview could very well have started the publicity downfall of Wal-Mart. The company once known for low prices, community involvement, and a pro-America frame of mind, now find themselves on the wrong side of a publicity nightmare brought upon by immoral business practices and decisions.
With the start of a publicity nightmare well underway, the media would only add fuel to the fire. New accusations of American manufacturing plants closing as a result of Wal-Mart buying clothes from international manufacturers resulted. Industry leading bicycle maker, Huffy, was at their peak in the 1970’s and 1980’s until the changing of the tides in 1988. By the mid-90’s Huffy was in deep financial trouble, accusing big-box stores of claiming most of their business. Wal-Mart was their biggest buyer, but wanted too many bikes for too low of a cost. Huffy, wanting to stay competitive, had no choice but to agree to the terms. If Huffy had declined the terms, Wal-Mart would’ve simply gone to the next bicycle maker making Huffy irrelevant. In 1995 Huffy’s bottom line was in the hole $5 million. Huffy even asked the Local Union that represented their workers if they could lower wages and the Union agreed. However, Huffy continued to lose money, eventually closing both American based plants for the cheaper manufacturing costs in China. Though, this too could not save the renowned bicycle maker, forcing Huffy to turn over their...

Other Papers Like Wal-Marts Effects on Communities

Organizational Culture Analysis

1720 words - 7 pages associates and the teams which they are familiar with at Wal-Mart. We will focus on Wal-Mart’s values, attitudes, and beliefs of its associates. As well as the symbols that people associate with when they think of Wal-Mart. Wal-Mart has a strong culture as seen by its values, hero (Sam Walton), rites and rituals, and culture network Wal-Marts stories, and symbols. Observable Artifacts of Wal-Mart Wal-Mart represents a strong

Organizational Culture Analysis

1705 words - 7 pages and founders of an organization create, use, and interpret these symbols that are vital to a company’s culture (About Us, n.d.). We are going to analysis Wal-Marts culture to understand the behavior within Wal-Mart. Culture helps to explain patterns of behavior and thought that characterize associates and the teams which they are familiar with at Wal-Mart. We will focus on Wal-Mart’s values, attitudes, and beliefs of its associates. As well

Marketing Unit 5 Ip

1678 words - 7 pages THE GLOBAL COMPANY OF WALMART WESLEY LEATHERWOOD MARKETING 205 AIU ONLINE SEPTEMBER 29, 2013 ABSTRACT The main line of business of Wal-Mart is allowing customers to shop anywhere anytime online, on mobile devices, and in stores. The vision is to create opportunities and bring value to customers and communities around the world. The marketing mix strategy changes in the different locations of business and it is important to know how to

Wal-Mart and It's Organizational Behavior Issues

3009 words - 13 pages conflicts on the floor and customers will see Wal-Marts’ performance standards gradually declining because of these circumstances. In 2006, an activist group called the Los Angeles Alliance for a New Economy or LAANE, said that “Wal-Mart reports that full time hourly associates make on average a little over $10 an hour. In addition, most employees are only allowed to work 34 hour workweeks. When multiplied by 52 weeks, this equates to a

Internal and External Factors

1587 words - 7 pages like Wal-Mart uses high-tech gadgets to plan out their next big investment. Normally, front-line managers are presented with I-Pads and cell phone devices in order to stay and keep up-to-date information on the business. They also use these devices to do business with other clients. Nowadays, teleconferencing is a big deal. If a front line manager cannot make it to a big meeting or seminar, they may include him or her via this channel so that

Strategic Initiative Planning

1516 words - 7 pages initiative that Wal-Mart is working into has major effects on the company’s financial planning. Wal-Mart is projecting total e-commerce sales of nine billion dollars this year of its total one hundred and fourteen billion in global sales. The company decided to focus its e-commerce efforts into only four countries; the U.S., United Kingdom, Brazil and China. This allows the company to focus marketing efforts in those regions, which leads to a more

Wal Mart Case Issues and Perspectives

1012 words - 5 pages ISSUES Supply Chain / Logistics India’s transportation system is not as advanced as other countries systems’. In India many roads are not paved yet which will slow down the famous Wal-Mart supply chain. Wal-Mart’s core competency is price. One cannot find lower prices than they find in Wal-Mart on such a large assortment of products. One of the reasons that price can be Wal-Marts’ core competency relies on the efficiency

Wal Mart Mini Case

1160 words - 5 pages , I will explain things that Wal-Mart has done well in certain markets, mistakes that was made, where, and why. First of all, I will like to state that Wal-Mart has done an overall terrific job in utilizing their resources, market factors, and market indicators to locate adequate locations for its globally, international business. Wal-Marts global strategic planning provided them the chance for top management to identify opportunities

Social Responsibility

737 words - 3 pages Wal-Mart, one of the biggest retail stores in the United States is widely known for its convenience and its wide range of products. Wal-Marts primary focus is their consumers which are potential employees, consumers, and investors. Having a positive presence in the community that it serves and also aiding in economic advancements is key to Wal-Mart. Wal-Mart is now trying to develop different ways in which it can markets itself as a socially

Walmart Marketing Paper

4220 words - 17 pages labor related lawsuits every year, which costs millions of dollars for the company. The business currently operates in Brazil, Mexico, China and India markets. Walmart should increase its presence in these markets to sustain future growth. Walmart superstores have a negative impact on local retailers and communities. b) Industry Analysis Wal-Mart sells multiple items within their stores to satisfy every persons needs from low income families or

Toyato Production System

528 words - 3 pages Vendor Managed Inventory system. Wal-Mart has given vendors access to Wal-Marts Point of sale system. The POS sends an electronic message to wal marts vendor which allows vendors to track in real time the inventory needs of different retail locations. This system reduces cost for both Wal-Mart and the Vendor because Wal-Mart does not need to be sending somebody to constantly check the shelves to see if the good is still in stock. Wal-Mart does

Related Essays

The Marketing Environment: Wal Mart Corporation Essay

1666 words - 7 pages -end general merchandise department would include Sears Holding Corporation', the slowly diminishing K-Mart chain, and Target whose trying different approaches including building Super Target stores to compete with Super Wal-Marts. With Wal-Mart moving into the grocery business it has put a strain on grocery retailers also including: H-E-B, Kroger, Albertson's, Publix, Giant Eagle, SafeWay, Winn Dixie, Food Lion and Save-A-Lot just to name a few

Environmental Factors Paper

1649 words - 7 pages philanthropy (Wal-Mart, 2012). Wal-Mart has 10,020 stores in more than 28 countries. They employ 2.2 million people and serve 176 million customers per year (Wal-Mart, 2012). This paper will look at Wal-Mart and analyze environmental factors that have effects on Wal-Marts marketing decisions both domestically and internationally. Global Economic Interdependence and the Effect of Trade Practices and Agreements Global

Walmart Negative Effect Essay

2424 words - 10 pages 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

Management: Theory, Practice And Applications Essay

1227 words - 5 pages Employment Practices Advisory panel on April 24, 2006 (Communities, 2006). The panel will work with the senior management to develop and implement progressive enhancements to equal employment opportunity and diversity for the largest retail company workforce. The advisory panel effects the ongoing commitment for all of the associates to give them the opportunity to thrive, advance and succeed at a Wal-Mart or a Sam’s Club (Communities, 2006