Pros And Cons Of Walmart

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Register to read the introduction… This could foster a belief locally that Wal-Mart is trying to impose US values and habits. In turn, this could lead to resentment and a public backlash in the form of shoppers boycotting its stores. In recent years Wal-Mart has had difficulties in Germany, Argentina and Japan because it failed to understand local customs and culture. Additionally UK or European Governments attitudes in the form of commercial regulations, financial incentives or working practices could change over time, making Wal-Mart/Asda business less profitable. Wal-Mart could respond by locating elsewhere resulting in large job losses for UK workers.

Wal-Mart’s strategy appears to be; by way of buy outs and joint ventures, move into an area, and dominate the market by undercutting the prices of local competition. Once this is achieved it consolidates into fewer but larger stores. Effectively this undermines local economies, reduces choice for consumers, eliminates jobs in the long term and can make consumers travel further to buy goods (Basker, 2007; Fisherman, 2006;). A repercussion of this could be the public could reject Wal-Mart/Asda and shop
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In 2005 the company’s annual growth was at 2% running behind industry growth rates of 3%. This was taken as a sign that Wal-Mart/Asda was growing too big to fast and not concentrating on its core purpose; the supply of groceries.

Wal-Mart as a company remains anti-union citing unionisation increases costs. In an effort to deflect union scrutiny it has offered profit sharing and share option schemes to all employees. Despite these efforts problems still persist. The GMB trade union claims Wal-Mart/Asda plans the introduction of unsafe working practices, puts undue pressure on staff to take shorter breaks and wants to remove staff access to the arbitration service ACAS UK.

In January 2003 union leaders in the United States warned the British public to avoid Wal-Mart. Charles Kernaghan, director of the US National Labour Committee,
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The suppliers know that due to Wal-Mart’s huge network and economy of scale, if they do not agree to the prices set, it can buy produce elsewhere which could in the long term put the supplier out of business. As an extreme example of this, Ralph Gonsalves, Prime Minister of St Vincent and the Grenadines, said in 2003 that he had seen a negative effect on the islands' economy after the takeover of Asda by Wal-Mart: “What they want to do is to drive everyone out of the market and then to raise the prices. The people who supply Wal-Mart are paying people starvation wages in Central America and Latin America in conditions that no civilised country would accept” (Trading away our rights,

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