Wal-, Mart

Wal-Mart

Ashford University – Operations Management: BUS644

Instructor: Gail Hoskyns-Long

Date - Submitted: March 26, 2011

Wal-Mart is one of the largest corporations in the world. Currently, the company employs about 2.2 million associates worldwide. The fiscal year 2012 sales equaled to about $443 billion dollars. The company’s motto is “Saving people money to make them live better”. The organization serves customers and members at least 200 million times per week. With a great reputation and financial backing, Wal-Mart is a force to be reckoned with. Wal-Mart has decided to open a new store in a small town and will require the town board’s planning commission approval. However, owners of small businesses and town residents have mixed views regarding a new store opening in the area.

Owners of small business nearby are concerned that Wal-Mart may take away from their overall profits. While in this economy, small businesses are struggling to stay afloat with high rent, Wal-Mart can come in and occupy the space with more incentive to meet demand. In a recent study conducted by Loyola University, on quarter of small business in a four mile radius close within 2 years of Wal-Mart opening. Also, business with-in close proximities of new Wal-Mart stores opening have about a 40 percent chance of closing. Not to mention the issue of small businesses may lose their employees to Wal-Mart. In an article written by David Neumark he stated “Analyzing national data, the study found that the opening of a Wal-Mart store reduces county-level retail employment by 150 jobs. Because Wal-Mart stores employ an average of 360 workers, this suggests that for every new retail job created by Wal-Mart, 1.4 jobs are lost as existing businesses downsize or close” (Neumark, 2007). On a positive note, opening up a Wal-Mart can bring in more customers to the area which can increase small company’s revenues depending on the business type.

Small businesses are not the only ones...