How Wal-Mart Won Chicago Essay

531 WordsFeb 26, 20153 Pages
Jessy Bitwa Business 2425 E050 2/21/2015 Allen Wolf “How Wal-Mart Won Chicago” Page 90 - 91 Assignment #4 Spring 2015 1. What role did demographics play in the case? Explain. Demographics played a major role in Wal-Mart winning Chicago because statistical data from both rich and poor people in different communities were put into play in all areas Wal-Mart had opened up. When Wal-Mart opened up in Chicago in a community where 40% were unemployed, Wal-Mart was thought to be a “slam dunk” for the community to find jobs but it was not which caused unions and organizations to persuade the city council to pass a ordinance that Wal-Mart had to pay its employees $10 an hour including benefits. Another example how demographics played a major role was how in the suburbs with rich communities Wal-Mart was not faced with ordinance because everywhere you turned in the suburbs you will find businesses similar to Wal-Mart. So basically demographics was really a win-lose for Wal-Mart whether they chose to open in a rich community (which helped them financially) or in a poor community (which “almost” hurt them financially). 2. What specific mix of political and economic factors made Wal-Mart’s job especially difficult in this case? The political factors that made Wal-Mart’s job difficult was the fact that unions and organizations similar to Wal-Mart felt they could not beat Wal-Mart’s sales and growth, so they tried to hit Wal-Mart with ordinance such as $10 minimum wage with benefits for all its employees. Not only that but Wal-Mart has been fighting a economic war with the labor force until the recession hit which caused both Wal-Mart and the labor force to reconsider their future plans. Wal-Mart had to think its future strategies to stay afloat. Such as increasing community spending and maintaining stores in the metropolitan area of

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