Hello, Walmart?

Hello, Wal-Mart?

Operations Management

BUS644

Hello, Wal-Mart?

Wal-Mart has been the center of controversy for some time now in America. It seems like you cannot turn the news on any week without seeing another employee dispute or Wal-Mart trying to clean up their image. Below are some arguments that both sides would have about placing a Wal-Mart in their community.

Owners of small businesses located nearby.

Some of the pros would be that Wal-Mart would create jobs and simulate the economy, which would increase the small business revenue. Not only would it create the jobs of the employees that work for Wal-Mart but also construction jobs in a time where construction is scarce. The more people working in the community, the better for everyone in the community.

Another pro would be more traffic into the community. Normally when a Wal-Mart is in a given area, families travel from outside the area to do their shopping and will also stop at other local businesses.

Some of the cons would consist of having all of the products under one roof at such low prices; it will drive all small businesses out of business in the local area. Wal-Mart has known to do this before. It would drive out the mom and pop retailers and drive all the business to Wal-Mart due to their low prices.

Wal-Mart has also received government subsidies to fund their construction of new retail outlets. This comes to great expense to the tax payers in the local community. Wal-Mart receives these subsidies to run sewer and water to their stores, develop new roads to and from the facility and also traffic lights. Local store owners normally do not receive any government subsidies to help run their business, it is normally the responsibility of the store owner to make improvements to their property and surrounding areas.

Town residents and residents of nearby towns.

The pros would be the town could benefit from having the low prices of a Wal-Mart type of store. Many...