Response Paper: The Wal-Mart Effect
Thesis Statement:
Wal-Mart has a great influence on the American economy and in future of manufacturing one day Wal-Mart will be global distribution center without technically breaking any laws.
Introduction
Wal-Mart is America's national treasure, the most powerful retailer in the world dictating the rules of business. Americans spend $ 35 million every hour at Wal-Mart this cycle repeats 24 hours a day (Fishman 09). What we know about the principles of the activities of this giant retail store is surprisingly very little because the company keeps its business principles as a secret from all its partners and employees. The author of this book is the holder of the prestigious award in business journalism and he gained access to previously unknown facts by interviewing the managers and other employees of Wal-Mart. This paper presents a response to the book The Wal-Mart Effect by Charles Fishman. This paper analyzes influence of Wal-Mart store on American economy and it affects on other companies in the same business.
Response
After reading this wonderful book, I learned many new and unexpected things about Wal-Mart; however, I will try to respond on what was the most memorable. There is no doubt that today Wal-Mart is the world's largest retail network and the basic principle on which the company’s success bases is the lowest possible price that company offers to its customers. Sam Walton founded the company in 1962, during its first 18 years company was not very well known. In the 80's and 90 Wal-Mart turned out to be a well known from an unknown company as a major player in the market (Fishman 35). In 1990, Wal-Mart had become the second-largest retailer. In 2004-2005, the company opened an average of 4-5 supercenters per week across the country (USA) (Fishman 55).
Today I want to introduce you to a remarkable book by Charles Fishman, “Wal-Mart effect ", which details the company, showing us all its positive and negative sides. All this makes the Fishman absolutely impartial. Charles Fishman is the editor in chief of the popular American business magazine. This book has resulted in a quite a big job, telling about the particular facts of the life of the company and how Wal-Mart affects the other companies of the same nature around world (Fishman 201).
But let us not rush things because many people may not know about Wal-Mart. Wal-Mart is the largest retailer in the world, which (due to its size) dictates the rules to other companies, even so big as Procter & Gamble. Wal-Mart stores are open 24 hours a day. Where customers can find everything, they need ranging from alcohol and sugar ending with toys and appliances all at a lowest prices, which are not anywhere else (Fishman 35).
In the book, The effect of Wal-Mart Charles Fishman does not tell the story of the company (although, of course, casual concerns that). He turned his attention primarily to the company's strategy and in fact, what effect it has on the global economy on the other enterprises in the life of an ordinary American. What is nice is the fact that the book is written impartially. Fishman is not a supporter or opponent of Wal-Mart. He just tells us the facts to build a logical chain showing something good or bad in the history of the company (Fishman 77). Yes, he talks about how Wal-Mart defeated small family shops of America, talks about how Wal-Mart ruining other shops, small and medium entrepreneurs who have to work with the company because of the low prices, selling their products in loss and gradually going bankrupt (if they will not be in Wal-Mart, they will be others that will ruin them). There is a history of labor in China, Bangladesh, and Chile about dirty stories with low-paid labor and environmental pollution. However, at the same time, Fishman talks about how Wal-Mart converts the small towns of the United States and provides jobs to millions of people in order to provide access to its customers to the goods that are sold at the lowest price (Fishman 160).
At Wal-Mart is, both positive and negative sides; the company is quite modest wage employment officials; however, this does not prevent them from working in the Wal-Mart family. What is so compelling in this company is that people go into it? To this question, there is an answer in the book Fishman. How is it that thousands of workers are suing Wal-Mart, claiming discrimination present in the company and experienced employee Gary Ramey says, “You might just entice me to say something bad about Wal-Mart Obviously, the Wal-Mart is not a simple phenomenon that cannot be seen from one point of view either positively or negatively. The Company has both good and bad moments in our lives and the interesting point is that Fishman examines both sides.
In response to the book The Wal-Mart Effect, I would say that Wal-Mart Global casts a shadow over the lives of hundreds of millions of American people. Due to its size, the company has a huge impact on many other companies because Wal-Mart’s network is huge; it produces huge purchases from its suppliers which results in Wal-Mart as an addiction to the American people (Fishman 155). Wal-Mart always tries to reduce product price, which naturally affects the suppliers. Due to the low prices at Wal-Mart, the other companies lose customers and go bankrupt. Indeed, when Wal-Mart opens a new store in town, it often turns out that the nearby shops purchase cheaper goods at Wal-Mart in retail than in bulk from their suppliers. Because with this arises a natural question about jobs. Wal-Mart employs 1.6 million Americans, each new store creates about 500-600 jobs (Fishman 55). The desire to reduce the prices should also desire to increase efficiency. Wal-Mart is working closely with carriers and trying not to allow the machine to go blank
Conclusion
Wal-Mart has a great impact on the American economy; for example, the estimated inflation in 2001 was about 2.5%. However, this result is an error: it is overvalued by 15%. In calculating the inflation impact Wal-Mart simply not considered. This also shows that Wal-Mart has reduced inflation to 15%, resulting in a decent amount by multiplying savings on the population. Another example is the fact that Wal-Mart does not provide a report on its activities for more than required by law. As a result, an estimated Americans consumed the cake $ 850 million in each year in 2004 and 2005. However, these figures do not include cakes sold in Wal-Mart, but it is at least $ 150 million and the figure is growing. So in fact, the consumption of cakes in America is growing, simply reporting on this is not so easy to get. Author also shows in this at some points that public attitudes towards Wal-Mart is some time negative, many openly complain about the network. However, after all this 97% of Americans go there at least once a year in the Wal-Mart. Many simply can not afford not to go there, because it saves a very decent money.
Works Cited
Fishman, Charles. The Wal-Mart Effect: How the World’s Most Powerful Company Really Works--and HowIt is Transforming the American Economy. Penguin Books, 2006. Web. 19 Mar. 2013.
