Accelerating Unemployment Rate in the U.S. According to Fishman (2003), Wal-Mart’s strict social structure and social control forced suppliers to “lay off employees and close U.S. plants in favor of outsourcing products from overseas to survive the pricing demands” (p. 2). That means just because Wal-Mart wants to pay less, and charge less, thousands of vendors are affected in a negative way. Although Wal-Mart isn’t the first or only company to …show more content…
What people don’t see unless they are a supplier of Wal-Mart themselves is that Wal-Mart is truly a bureaucracy that tries its best to benefit themselves and the consumer rather than the vendors. Below are some examples of the bureaucratic method of enforcement by Wal-Mart:
Pricing. As stated before, Wal-Mart demands from its suppliers that each year the price they will pay, and the price they will charge their customers, have to drop. Wal-Mart has a very tight policy on pricing. Some of these policies begin as early as luring in the fresh victim: a possible supplier unknown to Wal-Mart’s demands.
Retailers: Getting Screwed