Wal Mart Business Operations Case Study (Great English is a must!! No grammar errors!)
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Thank you for your support 1.Why do you think Lee Scott, President and CEO of Wal-Mart, says that Wal-Mart has, generated
fear, if not envy in some circles? (1 mark)
Well, Wal-Mart is very wealthy and powerful. With power and wealth, any company has lot of
advantages and ways to stay on top, whatever the means. Wal-Mart is the first company to exceed a
quarter of a trillion dollars in global sales. Its the worlds largest private employer with a business
plan, Sell cheaper, sell more. Thinking that, its no surprise that the merest action of this power
tower provokes fear and envy in those most affected by its influence.
2.Why cant small businesses compete with Wal-Mart? (3 marks)
The entry of a Wal-Mart does significantly impact sales at other local establishments. One reason why
small business struggle is that they tended to reduce the number of brands they carried, lowered their
price, and also cut promotions but Wal-Mart cant be beaatan by price so these business just ended up
losing customers and revenue. Wal-Mart has lower prices and a wider variety of products Another
reason is that Wal-Mart receives incentives given by local governments.
3.What advantages do small businesses have over Wal-Mart? (2 marks)
As opposed to the common belief that Wal-Mart has the sole upper-hand when it comes to business,
small business actually have some advantages over it. Small business can really connect to
customers. With a smaller client base, getting to know them, and developing the bonds needed for a
lasting business relationship would be easier. Also, with fewer customers, provide better customer
service could be provided. In the end this provides for a unique experience for the customers.
Moreover, small business can offer a more individualized product and can be more flexible about
what they do in terms of marketing.
4.What incentives do local governments provide Wal-Mart to encourage it to come to their
communities? (3 marks)
Local governments thought of an enticing plan for Wal-Mart. These local governments often provide
tax incentives/abatements, subsidies, infrastructure like roads and sewers so that Wal-Mart would
come to their communities.
5.What negative effects does Wal-Mart have on communities? (4 marks)
Unexpectedly for some, as a big company, Wal-Mart had negative impacts. On properties, values
fell, especially in downtown business core. On local business, most closed down, some deteriorated,
suffered and ratail wages were lowered. On town centres, there were vacant buildings, ad town
culture was lost. Lastly, on traditional community cohesiveness, community bond eroded.
6.How does Wal-Mart keep labour expenses low? (4 marks)
Wal-Mart kept labor expenses low by keeping eye on 4 factors. One, with its employees – fewer
employees forced to do more with less. Two, as for the wages wages were kept low and there were
no overtime payments. Third, benefits these were inadequate or poor plans that are often
unaffordable. Fourth, with Government Welfare Programs – employees were encouraged by WalMart to offset poor wages and benefits.
7.How does Wal-Mart discourage organized labour (unions)? (5 marks)
Many ways and factors were used by Wal-Mart in order to discourage labor unions. First, as a
proactive company, they made use of anti-union response team. The company also profiled employee
organizers. One extreme way the company did too is monitoring employee behaviour, here
employees are prevented from communicating/organizing at work. Another one is the use of political
tactics employees were told that raises will be frozen because of the demands of another group.
Lastly, to easily report employee behavior they have the so-called 24 hr. hotline snitch line.
8.Do any unions exist at Wal-Mart? (1 mark)
Walmart respects the rights of its associates, including the decision to join a union or not. Associates
have the recognized right to make such a decision without intimidation, coercion or influence from
ANYONE AT ALL. The company is always ready to discuss this issue or any other work-related topic with
associates who wish to do so. Walmart is not against unionization. However, while a union may
represent its members who work for other employers or competitors in the retail commerce industry
well, Walmart believes that if its values and beliefs are applied there is no real or marked advantage to
joining a union.
9.How does Wal-Mart get more work out of its employees without adding to its labour costs? (3
marks)
Wal-Mart gets more work out of them by abusing and illegal means. The company gives no
overtime payments, employees must often work off the clock, if not they will face dismissal, and the
company employs illegal immigrants.
10.What do critics say about how Wal-Mart treats employees who are women and visible minorities?
(2 marks)
It seemed that Wal-Mart was able to apply equality on its workforce. The company tolerated the
culture of male chauvinism. Other than that women were asked to perform degrading jobs and they
were overlooked for management positions. As for the minorities, the company tolerated the culture
of racism.
11.Why does Wal-Mart build its stores on the edges of municipalities? (1 mark)
The main reason is that building on the outskirts of communities forces local governments pit one
jurisdiction against another. Doing this makes way for the government to provide incentives.
12.What problems are created when a large corporation like Wal-Mart is supported with government
(taxpayer) revenue? (1 mark)
As a company that is favored or given more priority, it affects those that that are not on the same
level as they are. Examples are services and programs. Some if it like emergency response services
and education programs suffer due to underfunding.
13.Why was Donna Lisenby, Catawba Riverkeeper, frustrated with Wal-Marts reaction to the
environmental concerns she raised about the storage of fertilizer on Wal-Mart parking lots? (1 mark)
She was very upset that the concerns she raised apperead to be futile since Wal-Mart was not very
responsive. Moreover it appeared to have no environmental policies or systems in place to deal with
those concerns.
14.How does the film describe conditions in Wal-Marts factories in China? (3 marks)
The film showed that even though Wal-Mart is a successful company, it has it own undeniable
secrets. The company to be taking advantage of its workers. Employees had to work for longer
hours but compensated with only low wages. Whats worse is that there are unfair policies, and poor
working and living conditions. It was reveals that not a single factory has implemented Wal-Mart’s
basic standards, and workers suffer serious rights abuses.
15.How do Wal-Marts business practices affect world business standards? (1 mark)
Basically, like any other big shots as people would say, Wal-Mart has a wide range of influence.
Wal-Mart layed the foundation that reshaped the retail industry. More than that, as the worlds largest
company, it established standards that other companies follow. It is such a big company that is so
obsessively focused on cost-cutting, that its actions affect landscape, work, income distribution,
consumption patterns, transport and communication, politics and culture, and the organization of
industries.
Movie Analysis
The document watched changed my perception in regard to the Wal-Mart who I considered to be a
respected brand which focuses on it’s employees. The documentary is, from my point of view, a searing
expose of the greed and systemic poor treatment of its workers by the largest corporation in the world. I
strongly believed that this documentary can be considered a teaching tool for progressive groups around
the country who want to do their part in stemming the tide of corporate greed and the shameful treatment
of working-class men and women. While closely watching and analyzing it, i was able to see that the
evidence against the company is overwhelming, but instead of trying to rectify the situation Wal-Mart has
established a “war room” staffed by their own experts and spin-doctors. Greenwald charts Wal-Mart’s
systematic abuse of its workers beginning with low wages: it employees (nearly 600,000 men and women
in the United States) earn nine dollars and seventy cents an hour, making their average annual income
seventeen thousand dollars. And if that isnt bad enough, former Wal-Mart managers talk about the
practice of cheating workers by forcing them to work extra without pay or deleting time from their
timecards. I believe that all of these are actually against the human rights and actions should be taken, no
matter if we talk of a small brand or a large one as this one.Abroad things are much worse: workers in
China put in eleven hours a day and are paid $3. They are offered dormitory housing for which they are
required to pay rent and utilities. In Bangladesh, workers are paid $0.18 per hour for fourteen hour days
for garments that sell abroad for $14.96. For me this is a clear example of work exploitation. Neverthless,
the impact it had on local business also left me speechless.The adverse impact of Wal-Mart on local
businesses comes across loud and clear in the accounts of various families who were forced to close down
their stores since they could not compete with the giant retailer. They also complain about the unfair
advantage given Wal-Mart by state and local governments eager to have the big company in their
community. This adds up to millions of dollars in subsidies given to the superstore in exchange for the
economic boost that is envisioned for the town or suburb. I strongly believe that the message in this
documentary is very clear: actions need to be taken against these kind of huge stores which do not respect
their employees. Accounts of racism and gender discrimination add to the long list of complaints against
the corporation and as a strong fighter against these, I must confess that my perception when it comes to
Wal-Mart has totally changed. Authorities in charge of the human rights just be more vigilant when it
comes to this situation as we are discussing about the life of a human being. There is no doubt that this is
not a local issue, and there is a high possibility that other well known brands are doing the same. Due to
that, I strongly believe that everyone should watch this documentary as it points out a different version of
the ideal workplace these stores tried to make us believe.
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