WalMart Essay Example | Topics and Well Written Essays - 3250 words

WalMart - Essay Example The city council in Chicago has even passed an ordinance disallowing Wal-Mart from opening within city limits. This paper argues whether Wal-Mart is a destructive force or is good for the local economy. Wal-Mart has 3,400 stores in the US and is largest employer in US second only to the Federal Government. It is the largest grocer and plans to open 100 Supercenters in the next five years. It is sheer size, growth and profitability of Wal-Mart that it is in a position to define corporate trends. It is now in a position that it can dictate and perfect the nature of discount stores. Wal-Mart has the image of a friendly, all-American company employing happy workers and smiling greeters who are eager to help and grateful to work at Wal-Mart (Bianchi & Swinney, 2004). As a globalizing force, Wal-Mart exerts influence on the regional, local and national economy. It has restructured the American workforce and consumer behavior (Lavallee & Boyer, 2006). Its basic strategies revolutionized the global retain industry and led Wal-Mart to unprecedented heights. Wal-Mart never avoids critics. On the contrary they respond actively as they did when the city council of Los Angeles proposed to ban the store from the city. Wal-Mart revealed through a study of the economic impact that average savings per family per ear would be $500 if Wal-Mart opened a store in Los Angeles (Bianchi & Swinney). Apart from this, new jobs would be created which further boosts the local economy as spending power goes up. Wal-Mart counters its critics with two words – low price. Its low price policy helps millions to buy more from their meager pay checks. They can even indulge in minor luxuries. This makes the entire economy more efficient and productive. In the micro level this translates into low prices with better product. At the macro level it means economic growth, more jobs and higher tax revenues. Wal-Mart has helped to hold down inflation in US. A McKinsey & Co. study