There are also workers and suppliers, who don’t think that Wal-Mart is good for America. Many local businesses are out of business because they cannot compete with Wal-Mart’s low prices. By striving for lower prices, Wal-Mart turned to outsourcing and now the majority of company’s suppliers come from China. Wal-Mart’s outsourcing has a dual effect: it provides low prices for products, more earnings for shareholders and on the other side it drives American suppliers out of business, which means people are losing their jobs. However, some argue that outsourcing unskilled labor will open up opportunities and will lead
They both participate in giving back, they both take corporate social responsibility seriously, and both make their store experiences memorable. But in the end, what about each of these stores is drawing people inside their doors? In 2013, Walmart made six and a half times more than Target did in annual revenues. How can a smaller retailer like Target Corporation, who has only recently expanded outside the US, compete with the international leader called Walmart? The following sections will reflect research done on both companies that will explain how they each remain competitive based on their marketing and brand strategies, target marketing, corporate philanthropy and CSR, and financial operations.
The tactics used to maintain corporate supremacy are not beneficial to anyone other than it's CEOs and share holders. With 8 cents of every dollar spent in America and over 80 percent of Walmart's suppliers located in china, it is easy to see that Walmart's business model is detrimental to our economy. The uncompromising, elitist attitude that Walmart practices, forced some employees to try to unionize the company. The American employees receive a minuscule average pay of just $9.45 per hour, for what can be compared to slave labor. It is not uncommon for one employee to do many jobs.
Because many want to work, have family, but no degree; a lot of businesses open their doors when they can monetarily! “By setting an artificial minimum on wages, lawmakers unintentionally raise the unemployment of the most disadvantaged and make it nearly impossible for teenagers and other unskilled citizens to enter the labor pool,” says Stephen Chapman spouting openly concerning the argumentative pay raise(3 Meisner, et al). When the hourly wages go up the small business doors tend to close. Raising the minimum wage does nothing for them other than causing the cost of living to go up, and causes them to pay a little more in income tax. Just those two ideas alone put them having less money in the aftermath of the raise, than they did before this cold remnant of fairness hits too
Wal-Mart’s sales were growing, and that meant that Target’s sales would go down since consumers preferred Wal-Mart for Target. The inability of Target’s managers to identify a solution to the problem of dropping sales and develop a viable course of action also affected Target’s performance. Another micro environmental factor was the thriftiness of customers all over America, which endeared them to Wal-Mart. The impatience of Target’s shareholders and the pressure they exerted on the company’s board to deliver was also a major factor. The marketing strategies that were adopted by the management also failed to turn things around.
This is also known as a vertical organizational structure (Walmart, 2012). The effective organizational structure of Wal-Mart has enhanced the company, allowing the achievement high market performance in all of its outlets world-wide, despite facing intensified competition in the world goods market. Wal-Mart stock is investment grade rated (AA rating) by both Moody’s and Standard & Poor’s. This identifies Wal-Mart as a very safe and proven investment choice (Internet Brands, 2012). Wal-Mart stock is considered by professionals to be safe, with a substantial dividend payout.
Wal-Mart’s sales were growing, and that meant that Target’s sales would go down since consumers preferred Wal-Mart for Target. The inability of Target’s managers to identify a solution to the problem of dropping sales and develop a viable course of action also affected Target’s performance. Another micro environmental factor was the thriftiness of customers all over America, which endeared them to Wal-Mart. The impatience of Target’s shareholders and the pressure they exerted on the company’s board to deliver was also a major factor. The marketing strategies that were adopted by the management also failed to turn things around.
The employees in turn spend their food stamps at Wal-Mart so they can get low prices, thus creating an endless vicious cycle of dependence on the employer that is holding them underwater. “Wal-Mart is a Chinese company with American board members, (Wal-Mart movie).” A reported 18 Billion a year is spent on imports and the American jobs are stolen. Stolen along
US industries were producing more goods then it could sell, this is bad because if the people are not buying goods it becomes useless and people needed to but them so that the economy grows but instead people didn’t buy because they had them already, therefore it was wasteful as no one wanted to buy, so it decreased the wealth of the economy. The most important reasons why the Wall Street crash happened were; the speculation ‘on the margin’, this was important because buying shares with a banks money and not being able to repay
citizens. Illegal immigrants undermine American business owners by charging considerably lower prices for labor, such as contract work and construction. Who wouldn’t want to pay a lower price to get their flooring installed? So who suffers? The owners if these businesses are losing work to these illegal immigrants every day.