The article “Labouring the Walmart Way,” author Deenu Parmar talks about how Walmart is able to achieve selling goods at a lower price then any average superstore. The author goes on to explain that Walmart’s antiunion efforts, employee selection, low prices and high retention rate all contribute to their major success. Walmart’s stance on ant unionism allows them to keep wage cost down and keep all their profits up. Not allowing a union keeps Walmart with the power to keep low wages and force unpaid overtime.
In the essay titled “Labouring the Walmart Way”, author Deenu Parmar explains the unhealthy effects of Walmart, how to stop them, and the challenges of doing so. Parmar begins by detailing how Walmart has done little for local economies. By hiring financially vulnerable people, the franchise insures that no one would dare to unionize; thus ensuring employees will only earn the bare minimum, and thus out-competing local competition. Parmar also goes on to explain how a local community removed Walmart. They were able to do this through the use of fierce union protests that made the store unprofitable.
‘Is Wal-Mart Good for America?’ On PBS Frontline, May 11, 2015 ‘Is Wal-Mart Good for America?’ is a documentary that examines the relationship between Wal-Mart’s rapid growth and its impact on the US economy ever since it blossomed in trade productivity in the mid 20th century. The documentary, published on February 2014 by PBS Frontline, conveys a deep understanding of how Wal-Mart changed the living standards of many Americans and took consumerism and retail logistics in the U.S. to another level; by cutting costs through offshore outsourcing to China and employing cheap Chinese labor. The documentary focuses on the changing relationship between big retailers and manufacturers and the transition in pricing and decision-making.
In the recent years Walmart has been far our performing its top two competitors; Costco and Target. With a market cap of 212,195,024, Walmart had beaten its competitors who remain at 65,969,279 for Costco and 43,701,237 Target (NASDAQ, Competitors). This means that for Walmart, the total market of all of their goods and services far surpasses its top two market competitors. As investors, you may ask why Costco is second to Walmart’s regarding sales. Well when we take a closer look, we see that “Walmart’s treatment of its customers and employees has not always been then best.
The main claim that is being targeted in Karen Olsson's article ''Up Against Wal-Mart'' is how Wal-Mart is a company which, despite soaring profits, one that shames Unionization and fights to keep ''associates'' quality of life low. There are several statements throughout the article made by Wal-Mart employees and union representatives that elude to the retail giant being a monopoly. The article mentions that even though workers are being pushed to the limit it is hard to survive without a second job or relying on food banks and government health care, which results in ideas like retirement being a foreign concept. The article sheds light on how Wal-Mart has a ''zero tolerance'' approach to unions, Managers are being taught to take offence
Walmart was founded in the summer of 1962 by Kingfisher, Oklahoma native Sam Walton. Although Walton’s original vision for the store was relatively modest, the half century since its founding has seen Walmart morph into one of the biggest companies in the world. Today headed by one Doug McMillon, Walmart boasts more than 5000 stores in the United States of America alone and employs more than 1.5 million people. Walmart is undoubtedly an American institution, yet each Walmart store feels like its own little country. Walmart seems to have its own laws and customs and the people who shop their on a regular basis appear almost primitive in their behavior as they go about raiding the store’s shelves and wrestling with fellow customers for discount flat screen televisions and bulk packages of two-ply toilet paper.
This video brought more insight on an economic perspective when it comes to Wal-Mart. Up until now, my knowledge has admittedly come from the vast cloud of Netflix documentaries. Which tend to show a much more empathetic, personal or sociological perspective of the inner happenings of the giant company. No matter what I am watching, the theme remains the same with Wal-Mart, economic gains for those able to supply mass quantities for the demands as retailers are “urged” to ramp up production, supply Wal-Mart and ship to America from places like China. Some of what surprises me most in “Is Wal-Mart Good for America,” is how one company has managed to single handedly create a global retail and economic trade model for an entire generation.
Rising income inequality and wage stagnation threaten the future of America’s middle class. While corporate profits break records, the share of national income going to workers’ wages has reached record lows. Wal-Mart plays a leading role in this story. Its business model has long relied upon strictly controlled labor costs: low wages, inconsiderable benefits and aggressive avoidance of collective bargaining with its employees. As the largest private-sector employer in the U.S., Wal-Mart’s business model exerts considerable downward pressure on wages throughout the retail sector and the broader economy.
Union Policy A lot of controversy has been raised around Wal-Mart because of the anti-union policy they have in practice throughout their corporation. The anti-union policy that Wal-Mart has in place, does not support the formation of unions, defined as groups created to help people voice their problem that have developed in the workforce, concerning wage, labor and safety laws. Wal-Mart is against the formation of unions and what the unions “fight” for. Some corporations are against unions, and some support them in belief that they workers can constructively change the way they are treated. Sometimes unions turn violent and protest the work force, this may be one reason that Wal-Mart has an anti-union policy.
This article discusses the competitive advantages of Wal-Mart and its impact on the local and global economy. Wal-Mart’s early investment helps itself gain the competitive advantages, which not only allows Wal-Mart to gain bargaining power, but also enables Wal-Mart to have an advantage over its competitors. In addition, Basker also states that Wal-Mart has a large influence on retail industry because its growth limits the profitability of other retail stores, especially the small one. We find this article useful because much of the content can be easily
The first Wal-Mart Discount Store opened its doors in Rogers, Arkansas in 1962 by its founder, Sam Walton. Walton believed in customer service and hard work, which got him to expand to twenty-seven countries in forty years. Today, Wal-Mart serves more than two hundred million customers weekly. Wal-Mart established its Ethical Standards program in 1992 to monitor working conditions in its supplier factories. The program covers a factories compliance with local and national laws and regulations, compensation, hours of labor, no forced/prison labor, no underage labor, no discrimination, freedom of association and collective bargaining, health and safety, environment, and the right to audit by Wal-Mart.
Furthermore, this paper will discuss some proposed solutions to the current ethical issues facing Walmart that could assist Walmart in its objective of continued growth in an ethical and sustainable manner. One of the major ways in which Walmart was able to grow and out compete its rivals was through its ability to provide retail goods to consumers at prices lower than competitors (Ferrell 407). Walmart ability to keep prices low is based on its ability to secure cheaply made goods from foreign manufacturers while also keeping the wages for its workforce low. The combination of cheaply made goods and a low paid retail staff means that Walmart can pass the savings to consumers which made it a popular retail shopping spot for lower to middle income Americans
There are criticisms on Walmart’s very low wages that are barely enough for employees to make ends meet. There are also criticisms about the long-term effects of the firm’s continued large-scale sales of cheap and sometimes hazardous imported
During the past decade, Wal-Mart, Kmart and Target three retail giants generate a combined sale of $123 billion (External Analysis Wal-Mart 2015). The success of the retail industry contributes largely to the advancements of science and technology and reduced costs. In the future, the success of Wal-Mart still relies on consumers’ concerns for value shopping and saving money. The company should pay close attention to the needs of customers and provide high-value and low-price products for consumers. Industry environment analysis includes five aspects: threat of new entrants, power of suppliers, inter-firm rivalry, power of buyers and threat of substitutes.
Walmart has succeeded in achieving the leading position in the retail industry. Walmart now stands as the biggest retailer in the world. However, the external factors constitute pressure on the company that must be address carefully. By analyzing the five forces of external factors we will define the nature and power of our rival power in the market. The five factors are competitors from rival, potential new entrants, substitute products, supplier bargaining power and customer bargaining power all of these competitive forces affecting Walmart position.
