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1. What do I know about the case?

÷? Wal-Mart is the largest growing retailer in the world

÷? More than 4,750 Wal-Mart Stores shopped by 138 million customers a week
÷? Vontrols up to 30 percent of the market for household staples. Many company products
sold in Wal-Mart is between 15 ± 20 percent of their total business.
÷? It is known highly for their bargain prices that it offers customers. Usually after a new
store opens, it forces local rivals out of business costing jobs and disrupting communities.
÷? It has put companies out of business by demanding prices be lowered on products they
carry.
÷? Most of its employees are paid minimum wages and have no health insurance. They tend
to hire more part-time workers to hold down wages and benefits.
÷? ès Wal-Mart grows, its competitors are dwindling down. ès is the customers range of
choice.
÷? Wal-Mart tends to censor its media to the point it offers no sales of explicit materials on
compact discs or ³mature´ ratings on video games.
÷? Wal-Mart¶s biggest barrier to growth is its ³opposition at the local level.´

What do I need to know?

÷? [ow many companies market the majority of their business through Wal-Mart? [ow
many of those who do have been forced to close or move operations overseas?
÷? [ow many of Wal-Mart¶s employees fall on or below the poverty level?
÷? [ow many of Wal-Mart¶s employees have had to file bankruptcy due to medical bills?
÷? Why do communities offer tax breaks to Wal-Mart when it does more harm than good to
the community?
÷? Why do we help discourage buying èmerican by ³flocking´ to Wal-Mart?
÷? What is the average bill of a customer who shops at Wal-Mart?
÷? Why does the government not step in and require not just Wal-Mart, but any company of
a certain size to offer some type of medical insurance to its employees?
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÷? [ow many law suits have been filed by employees against Wal-Mart?

2. What are the ethical questions?

÷? Should a company of a certain size be obligated to offer medical insurance to its

employees?
÷? Should there be a requirement for large companies to employ a certain percentage of full-
time employees?
÷? Should large companies that get tax breaks be forced to contribute to the community in
other ways?
÷? Should we as citizens enable these large companies by accepting jobs that pay poorly and
offer no health insurance?
÷? [ow responsible are we in allowing these companies to come to our community?

3. Who are the primary stakeholders?

÷? Wal-Mart employees
÷? Vitizens of the communities with a Wal-Mart
÷? 2overnment (Welfare agencies and city or county government)
÷? Îendors selling to Wal-Mart
÷? åatrons of Wal-Mart
÷? üamilies of Wal-Mart employees
÷? ×ther community business owners

4. What are the reasonable options?

÷? equiring a company the size of Wal-Mart to give back in some way to the community if
it wants to open a store.
÷? Try to establish a bill requiring large companies to maintain the majority of its employees
as full-time where benefits can be offered.
÷? Vities or counties should not offer tax cuts to businesses that could ³disrupt the
community´
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5. Evaluation of the options

÷? When a company the size of Wal-Mart comes into a community, it has to be a willing
community first and foremost. These communities have the opportunity to set some
standards for themselves to somewhat prevent disruption and mayhem. There must be a
decision made to weigh the options of whether or not it would be beneficial to allow them
to open a store. ère tax cuts be offered? Why are they being offered? What is this
company going to do to make your community a better place to live? If these questions
cannot be answered in a positive way, choose not to bring them in.
÷? esearch towns of comparable size and see what implications have come from a Wal-
Mart opening. Learn from those implications and make this work for your community.
It should not be about just ³having a new Wal-Mart´ come to town. This should be a
decision to better the community as a whole. [ave town meetings and get the
community involved in the decision. If a town cannot deliver more pros than cons, then
the decision should be no.
÷? üind out why tax cuts should be offered. åart of having a large business come to town is
the revenue brought in from taxes. The city or county government should benefit just as
the power company and water company are benefitting from the large load they will be
supplying. There are probably other ways to bargain without losing the majority of
revenue that could be gained from their existence.

6. åractical Vonstraints.

÷? [aving the ideal piece of property on which to build such a large store.
÷? Infrastructure that must be in place for the store.
÷? oadway and traffic changes that must be made to accommodate the heavier traffic.

7. What actions should be taken?

I believe that I would first run ads in the paper to gather a town meeting about the store
coming. 2et all the input possible and make sure this is a move that will benefit more than harm
your community. Make contact with your city or county government and find out what if any
perks they are planning to offer to bring this company in. Share as much information with the
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public as possible. Vontact your political representative to see what options you may have to
bargain with. ès discussed in the case study, local opposition has been Wal-Mart¶s biggest
barrier to growth. If more communities band together to let them know they will not be run over,
they may have no other option but to change their ways. Inform other communities of the
measures you have taken. If Wal-Mart doesn¶t come to your community, they will sure be
headed to someone else¶s nearby.
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×ne Nation Under Wal-Mart

Individual Vase Study #1

March 7, 2011

M2MT 5253

Dr. Elkins
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