Hello Walmart

Hello, Wal-Mart? Ashford University BUS644 subroutine Management Dr. Ronald Beach November 26, 2011 Hello, Wal-Mart? It is very green for every cardinal that lives in a teensy townships bulks lot to get any in all their groceries at Wal-Mart. During the pop off 50 years of creation, from a menial town on Arkansas, Wal-Mart became the crowinggest sell fellowship of the world. At this time, this company is one of the major enforceers of the world and has to a greater extent than 4,000 transshipment centers just in America. It is very difficult for a subatomic demarcation to compete with this company. directly before passing play forward, it is very important to understand how Wal-Mart operates. The main strategy of their operation is getting the cheaper supplies and sells their products a very low damage to the customers. some other of their strategies is to centralize all kinds of products in one store. The key element for this argumentation is to dissect the ma rket considerations when they open a rude(a) location. There ar tools to help companies to agree a chance out the best location. For example, according to Stevenson (2011, P. 48), geographical Information Systems is a computer found tool for collecting, storing, retrieving, and displaying demographic data on maps. Now that we know this, lets see the following disadvantages of opening a new Wal-Mart in a small town. Disadvantages for owners of small business located near atomic number 18 several. Lets depart by mentioning that small towns are surround by and full of small business that support the topical anesthetic anesthetic economy and employ the local population.With the presence of Wal-Mart, small businesses that support similar products allow for be oblige to reduce their price to the minimum in order to compete with the bad retail company. According to Dartmouth College, in 2009, they conducted a field that indicates the the clash a Wal-Mart store has on a l ocal business is match to its distance from that store. The leader of that study admits that this ingredient is stronger in smaller towns. Wal-Mart is using what people call predatory pricing. Wal-Mart buys products from cheaper suppliers this issue hurts the local suppliers and local economy.Small businesses bequeath be stimulate to reduce their price to the minimum if they desire to compete. All the currency that small businesses will generate goes to local banks and stays in the residential area in the case of Wal-Mart, this money goes to the main banks in other towns or cities, and the bottom line is this money does not stay in the area. According to the set of Local Self Reliance as Wal-Mart expanded small business retails dropped more than 39% and many a(prenominal) small businesses are now unlikable.Lets imagine this town a few years posterior with all these small business closed and for any reason Wal-Mart has to leave the town. The consequences will be catastrop hic. other point to take in consideration is the possibility that Wal-Mart is doing a monopoly of the sales in the small towns. With their scrappy campaign of reducing prices to the lowest minimum, and go a commission small businesses, they are obligating the consumers to only go to Wal-Mart for their needs. The disadvantages from the town residents and the residents of close towns are to a fault several.Lets start to mention the impact of a new Wal-Mart store in the life of these residents. Earlier it was mentioned how small business were, in many times, obligated to close. These issues take away a direct impact in the life of the residents, since these small businesses contract local people. People are forced to, in many cases, to leave the town because they cannot consecrate the costs of living. Wal-Mart only can convey a smaller group of people than many small businesses together.After all, the only lay out to work will be at Wal-Mart and without a competitor they will sanction the wage pay and the benefits of their employees. When small businesses are closed they destroy the moral and the way of life of the community. When these businesses close, residents will lose their livelihood. many a(prenominal) of these new Wal-Mart stores get the land at very cheap price they transmit with them traffic, delinquency, and a big reduction of price in the land of the residents surrounding these stores all this translate as a big reduction of taxes that these small tows will receive.According to the demonstrate of Local Self Reliance many studies have found that when locally have business are displaced by Wal-Mart, the involution and voter turnout falls, the number of progressive nonprofit organizations drop and residents are less(prenominal) similarly to know and interact with their neighbors. Now after hearing all the arguments of these ii groups, it is time for Wal-Mart representative to respond to all these allegations and propose some of the adva ntages to open a new store in a small town.The first thing to analyze is that where ever a Walmart is, residents of that town and nearby towns are finding a big reduction in the cost of their products. Another of the good things that Wal-Mart will scram to the town is a good market ideas and competition. Owners that bring good ideas can benefit of the presence of a big store like Wal-Mart. There is a main mover here, with an economy like the present, a store like Wal-Mart will bring to the town lower prices for the customers, a reduction of transportation, and an add-on of jobs for the community.When we talk about transportation, it heart to causal agent less to find all the products in the same place. When we talk about jobs, it means new jobs for the residents close to the store. One of the more important arguments to favor Wal-Mart is the support of the community through programs by their customers. References Stevenson, W. J. (2011). Operation oversight (11th ed). New York McGraw-Hill/Irwin. Retrieved from http//www. ilsr. org Retrieved from http//articles. chicagotribune. com/2010-07-04/business/ct-biz-0704-soda-wars-20100703_1_chicago-wal-mart-costco-and-wal-mart-pricing