Where does the companies get the name ‘big box’? The companies gained this title due to their physical characteristics; that is their extensive footage, broad line-up of items available for sale, windowless and squared display, and their location in residential areas. They are usually referred to the enormous and destroyer stores such as Wal-mart, Best Buy, Sears, and Home depot. For the past few decades, these companies have shaped the economy and physical landscape of various countries, such as America, Canada. In the United States, the most popular country, these companies are the most gigantic and moneymaking companies there are to be found. Even though these stores have a positive impact on the world, many local residents are affected by the costs related to the management and development of these companies. The government should mandate that all 'Big Box' companies give back to their communities so as not to undercut small local businesses or local retail shop or enterprises, to fight poverty, and to promote an environmentally friendly and healthy environment.
Firstly, the 'Big Box' companies have helped to increase productivity and caused consumer prices to fall. They use high-volume sales against price mark-ups to generate profits; therefore, they are often able to sell their goods at lower prices, which attract more clients to purchase in their companies compared to small local and independent stores. The higher is be the number of consumers, the higher is the profit. But, these stores have mainly an impact on local low-income residents and retail shops. With the large amount of money they have, they invest it in advertising, special promotions; therefore the chains are able to undermine small regional shops and crus...
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...y are largely contributing to the welfare of the local residents and shops? It is unfair to penalize these companies to the detriment of the community. The government has no right in imposing such discriminatory law against these ‘big box’ companies. These laws will have a negative impact on the sustainability of the company, thus resulting into a bankruptcy.
To conclude, ‘big box companies’ should integrate a win win business model in the form of Corporate Social Responsibility by engaging in social actions which have a positive impact on the environment, consumers, employees, communities, stakeholders and all other members of the public. This creation of shared value is based on the idea that corporate success and social welfare are interdependent. A business needs a healthy, educated workforce, sustainable resources and adept government to compete effectively.
Wal-Mart, a "Big-Box Retailer" employs more than 2.1 million associates worldwide and has two-thousand seven-hundred stores in the United States with many more in Argentina, Brazil, Canada, Central America, Chile, China, Germany, Japan, Korea, India, Mexico, Puerto Rico, and the United Kingdom, making Wal-Mart the largest retailer in the world. "Wal-Mart accounts for upward of 30 percent of U.S. sales, and plans to more than double its sales within the next five years" (Lynn 29-36). Why is Wal-Mart so successful, and is Wal-Mart actually bad for America?
Over the past 20 years, the nature of the American retailing market has changed dramatically, going from Mom and Pop's boutiques to mega retail stores like Wal-Mart. Especially in the last decade, Sam Walton's discount stores have proliferated in almost every city across the United States and Canada. But the opinions about the effects of Wal-Mart in small towns divide the rural population in two groups. Through economic, cultural and social arguments, the anti-Wal-Mart activists and the advocates defend their point of view about the expansion of the store in small communities.
In order to gain the success it has had, Wal-Mart has no doubt affected small businesses. But in the place of small business Wal-Mart has been able to do far more for Americans than small businesses could. It provides consumers inexpensive necessities for life, it provides work for those who would otherwise have none, and it has a stake in the global economy that benefits our own with trading. Wal_mart
A Macro-Sized Microcosm describes how Wal-Mart is a ‘macro-sized microcosm’ for America’s socioeconomic problems. New technology in the marketplace has created a conflict between labor and capital. This is ruining the U.S. manufacturing base. This reading states that Wal-Mart benefits by relying on suppliers and subcontractors. Wal-Mart buyers demand the lowest price possible, making it competitive with their suppliers. A way they do this is by adding cost efficiencies. These demands make it difficult for suppliers to provide employees with decent wages and suitable working conditions. The government endorses these circumstances. The federal and state governments support Wal-Mart with about $4 billion. This includes “free or reduced price land, tax breaks, sales tax rebates, state corporate income tax” et cetera. Most Wal-Marts in the U.S. receive government subsidy. This makes the price of commodities low and keeps them ahead of the
Wal-Mart is a place where millions of consumers shop daily. When people shop at a huge retailer such as Wal-Mart it is evident to see they are helping the economy by keeping the largest retail chain in the nation for business. Wal-Mart supports the economy by having supercenters all around the globe, which creates stores, jobs, income, and profits. A chain of events occurs which benefits the economy, and betters the lives of millions. Wal-Mart “has opened an average of 16 new super centers a month for five years.” [Fishman.Pg 3] The growth rate of the company is substantially higher than any other company in the world. Wal-Mart helps factory workers and companies by providing mass amount of job opportunities. Stated from the passage of Wal-Mart effect by Fishman: “It reaches deep inside the operations of the companies that supply it and changes not only what they sell, but also changes how those products are packaged and presented, what the lives of the factory workers who make the products are like it even sometimes changes the countries where those factories are located”[Fishman.pg2]. The excerpt f...
There have been many criticisms and outrages about Wal-Mart and its growing presence, as many people who oppose the company believe it brings nothing but negative outcomes to communities and economies around the United States. This claim is not true as Wal-Mart may have some downfalls and unintended negative effects but overall proves to have a positive affect on the economy of the United States as a whole. Wal-Mart pays its employees comparable rates, gives them comparable benefits, has little to no effect on surrounding small businesses (often times even having positive effects), does not play a negative role in the unemployment problem in the U.S., and provides communities with employment, access to cheap goods, and provides low income consumers with the opportunity to increase their quality of life.
An organization’s Corporate Social Responsibility (CSR) drives them to look out for the different interests of society. Most business corporations undertake responsibility for the impact of their organizational pursuits and various activities on their customers, employees, shareholders, communities and the environment. With the high volume of general competition between different companies and organizations in varied fields, CSR has become a morally imperative commitment, more than one enforced by the law. Most organizations in the modern world willingly try to improve the general well-being of not only their employees, but also their families and the society as a whole.
Big box stores are not bad, people just need to remember the local businesses need their support in order to keep helping the community these local owners are what builds strong communities so if you’re saving money buying from big box stores make sure to give back to your local businesses by spending it doing something fun locally.
In the United States and all over the world, the entry and operations of big retailers like Wal-Mart into a small town sparks great controversy within the community. The fact that people contemplate on the fact that the policies and actions of Wal-Mart are destructive to a small town’s economy is not new. Most small town’s economies are run by subsistence and self-reliant traders. With time, the traders embrace the division of labor and specialization of skills in accordance with the trade, production and manufacturing needs of the community. In such a market, a simple move like a decision by the producers to sell directly to the consumers may spark
When Wal-Mart establishes itself in a town, it makes its competitors to close their businesses since they cannot compete in the current market. There are several businesses that go out of business when this company sets up a branch in the town. However people don’t agree with this since customers are the ones who go to purchase goods from Wal-Mart. If there are people who should be blamed are the customers since they flock into the retail market to buy from them. This is the reason why these retail businesses are out of business. The reason that makes customers go to shop at Wal-Mart is that, there is ample parking, low prices and they also provide superior goods and services to the customers.Down town destruction started earlier before Wal-Mart was established. Wal-Mart is trying to bring with it new technologies that are aimed to cope with the current technologies. We ought to find new ways of doing things and this is exactly what is happening with Wal-Mart. For instance, Wal-Mart might be embracing technology to supplant it. Internet shopping might be some of the new business technologies that they are trying to embrace.
One of the most famous and successful company in America is Walmart. Walmart is a retail corporation that sells almost all your everyday needs in life for a ridiculously cheap price with their mission stating “We save people money so they can live better”. As Walmart is such a huge franchise it is inevitable that there will be criticism towards it. Most people who are living near a Walmart are a stakeholder as they are probably shopping at Walmart such as my family and me. Also Walmart currently employees more than 2 million people worldwide who are all stakeholders.
The corporate social responsibility is a commitment by a business to contribute to economic development while improving the quality of life for employees and their families’ as-well as contributing to the society. Walmart is a well-known company that offers customers the items they want and need at a low cost, with nearly 4,000 stores in the United States. According to the Fortune 500, Walmart was ranked number 1 in 2015. Just like any other superstore Walmart needs to continue the use of social responsibility by recreating a relationship between business and the community especially if they want to dominate the competition in 2016. The use of sustainability, strategic philanthropy, causing market, shared values, stakeholders and global perspective will help readers understand the purpose of social responsibilities in the corporate world.
Walmart needed high levels of growth to continue to survive and saturation of domestic market. Global retail expansion has attracted many large-sized companies with targets to increase business profits and market share. Global expansion not only attracts large organizations but also small to medium-sized companies, companies new to international expansion, as well as those who are already expanding in the international arena. However, there are also well-known retailers who failed in their expansion in certain global markets due to regulatory, legal and cultural challenges, competition, and attempting to change local shopping behavior. The lower pricing strategy was their basic strategy to expand Walmart’s philosophy, “Every Day Low Price” to all parts of the world. The only challenge was the distribution system; the company had given in to union demands from the state-run. Walmart was not influenced. The marketing strategies still involved huge discounts and great values on all of their products, similar to strategies in their home country: maintaining low prices every day, especially middle-class customers, yet maintaining profits. They also suggested
Since brands depend on delivering a uniform, consistent product, global brands has traditionally adopted a “one size fits all” strategy (Crothers). Wal-Mart continues to expand internationally because it relates to other U.S global brands such as McDonalds. “ McDonalds grounded on one simple idea: provide desirable food and drink at low cost.”(Crothers 130). Wal-Mart’s strategy was almost the same to begin with. What they have in common is convenience and low cost. Its fast and quick just like McDonalds’. Customers at Wal-Mart can buy anything at one place and one time. It’s a superstore and everything you need is there. Customers do not need to leave to go to another store, which is why Wal-Mart is so successful. Smaller retail companies get replaced because they don’t have a chance with competing with Wal-Mart. A Wal-Mart store opening can destroy almost three local jobs for every two they cre...
This insight has led to Corporate Social Responsibility becoming increasingly important in our society nowadays. It has more or less become part of business ethics. A socially responsible company should be an ethical company. And an ethical company should be a socially responsible company. Companies that manage to apply business ethics to all aspects of their business conduct can be regarded as well-run businesses, that are strongly committed to good corporate