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Post by elizabeth on Feb 10, 2007 14:49:40 GMT -8
11/26/06: I think this is great! Wal-mart has announced that they are going to wish there customers a Merry Christmas this year. There employees in previous years were only aloud to say "happy holidays". This is huge to me. Finally recognition to the holiday that I believe in. I guess Wal-mart isn't worried about being "PC" this year. Here is the link to the article. Maybe now we can call the big tree down town a "Christmas Tree" rather than the "holiday tree"... www.money.cnn.com/2006/11/09/news/companies/walmart_christmas/index.htm?postversion=2006110909
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Post by Josh on Feb 10, 2007 14:50:45 GMT -8
11/26/06:
Speaking of Walmart,
Can anyone fill me in on why Walmart is so darn controversial? I mean, is it primarily because they undercut their competition (smaller, independent stores), or does it have to do with supposedly taking advantage of foreign labor (or domestic?).
I feel I should know about this, but I've just not taken the time to look into it. Anyone up on this stuff?
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Post by Alex on Feb 10, 2007 14:53:04 GMT -8
11/28/06:
Below are some of the pro's and con's I've heard the last few years. I only have experience with the some of the consumer and vendor discussions, the rest are just news clips and anecdotal discussions.
Personally I think some of the effects are real but often overblown. For instance if the market wants better quality goods it will pay for them. Business that have a competitive advantage still compete, and there are other regional market forces that kill businesses besides Wal-mart moving in.
After a point it's vogue to bag on Wal-mart, blaming them for all the sins and hardships of the land. So I find I have to accept complaints cautiously. That being said Wal-mart's strategies often make them an open target - like shooting fish in a barrel.
Consumers -
Pros: Very low prices, wide range of products, an effort to make products accessible to buyers
Cons: Often sacrifice quality for price, limited selection of higher end & specialty products, limited selection within a product range, product sale is in some cases more important than product performance
Local Area Impact -
Pros: Provides large consumer attraction, creates a lot of jobs on location, influx of money into area
Cons: Tends to drive other businesses out, including specialty shops. Jobs and benefits created are often inferior to jobs lost, Some complain about increased traffic in the area or claim they're an eyesore
Societal Impact -
Pros: Makes several visible efforts at philanthropy, including regional charity, employee assistance, and regional aid (such as providing supplies faster than FEMA after Hurricane Katrina)
Cons: very low employee compensation, some regions have complaints about gender discrimination, overall philanthropic efforts are visible not always considered generous
Vendor Impact (people who sell to Wal-Mart) -
Pros: Huge volumes - even if they only let you make a penny on the product it's a lot of pennies
Cons: They make the rules, including what is made, how much it will cost to make, how much space it will take up, etc., Price pressures help drive production out of US, Some suggest their 'low-cost at all cost' strategy promotes poor worker conditions where their products are produced.
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Post by Josh on Feb 10, 2007 14:54:36 GMT -8
12/8/06:
Alex,
That was first-rate. Very helpful. And I have to say your analysis really helped me clear up my personal position on the issue.
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hume
Advanced Member
Posts: 136
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Post by hume on Feb 10, 2007 14:56:40 GMT -8
12/20/06: 1. Their low low employee compensation is viewed by some (including me) as not strictly a market-driven behavior, as their labor costs are, in practical terms, being subsidized by government and by anyone who pays health insurance premiums. That is, by paying hundreds of thousands of people a below-living-wage AND failing to provide anything like affordable health care for many of them, Walmart essentially dumps a bunch of people onto state-funded food & other assistance programs, and guarantees that when Employee X gets a hernia and shows up at the ER, the rest of us foot the bill for that treatment. www.ufcw.org/press_room/fact_sheets_and_backgrounder/walmart/benefits.cfm 2. Encouraging outsourcing to China & the like: if you remember back to the 1980s, there was a major TV ad campaign by Walmart called "America First," with Sam Walton himself featured. After Sam's death in 1992, the company took a dramatic turn: instead of highlighting American-made products, they became the largest retailer of ultra-cheap foreign-made goods. To the degree that we find ourselves purchasing more and more poorly made, inexpensive goods made in China & elsewhere -- whether this is a good or a bad thing -- Walmart is largely to thank for the trend (it didn't just "happen that way," nor was it inevitable -- or at least, while it may be inevitable, it need not have happened almost overnight). Some people view this as "promoting a global race to the bottom" -- I admit it's not a clear-cut issue. But anyway, you can see why Walmart gets some heat over this. www.pbs.org/wgbh/pages/frontline/shows/walmart/interviews/gereffi.html
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Post by rose on Feb 10, 2007 14:58:04 GMT -8
12/27/06:
So are you saying that clothing companies like Nike, Adidas, Guess, Gap, etc. did not outsource to other countries to have their clothing/shoes made prior to the early 90's, when Wal-Mart might have started going down this road?
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Post by Josh on Feb 10, 2007 14:58:50 GMT -8
Did you say Guess, Rose?
That's SO 80's.
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hume
Advanced Member
Posts: 136
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Post by hume on Feb 10, 2007 15:00:16 GMT -8
Good question, I dunno. Perhaps the shoe makers led the way on this. And I'm "agnostic" on the whole outsourcing thing myself (don't know much about dollars and cents anyway). But I do recall those "America First" ads, even tho I'd never seen an actual Walmart store (weren't any out here at the time), so the sudden shift in the company's purchasing philosophy seems kind of hypocritical. (But can you hold companies to the same moral standards as individuals? If not, why have we given them the legal rights of individual citizens?) The Frontline documentary (link below) on Walmart suggested that our current trade deficit with China can be partly attributed to Walmart, if that's of any interest. www.pbs.org/wgbh/pages/frontline/shows/walmart/
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Post by rose on Feb 10, 2007 15:01:29 GMT -8
I read parts of the link you posted re: Walmart, and it was very interesting reading. I focused especially on the interview with a past store manager, and that was an eye opener. The interviews definitely made me rethink my opinion of Walmart (I only started shopping there in the last 6-9 months). Their ethics in business dealings with their suppliers sound sub-par, at best, and honestly frightened me a bit (or a lot). Yikes, maybe Walmart is the antichrist! (and here I always thought it was the pharmaceutical companies!)
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Post by Josh on Feb 10, 2007 15:03:43 GMT -8
Sorry for that huge sidetrack, Elizabeth.
I'd have to say I'm all if favor of people being able to 'greet' people at holidays however they'd like. I'm not offended if people wish me a Happy Hannukah!
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