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Slide 1FrontlineSlide 3Global Procurement CenterWal-Mart is a Discount StoreOffshore Global Center: ChinaResultHow?How?How does Wal-Mart know what consumers want?What does this mean?Wal-Mart has created a MonopsyWhy?Why Not?Wal-Mart Model of EmploymentInterview With CEO H. Lee ScottOpinions of those who are proponents of opening a Wal-Mart in Ashland, VAThose who disagree with opening a Wal-Mart in AshlandSprawl Busters: Helping Average Citizens Discourage Unwanted DevelopmentFrontline•Explores America’s obsession with discount stores despite massive job loss•3400 Wal-Mart stores•100 million people shop at Wal-Mart stores each week•Sales in 2003 topped $256 billionGlobal Procurement Center•Based in Shenzhen, China•Third busiest port in the world•Employs several hundred •80% of Wal-Mart’s 6000 global suppliers are located in China•Wal-Mart & China are a joint ventureWal-Mart is a Discount Store•Cheap labor because the jobs are in China•China employees make 50 cents a hour, $100 a month•Manufacturers a wide array of consumer goods •These goods, from clothing to electronics, can be bought at low pricesOffshoreGlobal Center: China•Wal-Mart imports $15 to $30 billion a year of China’s goodsResult•Alteration in United States’ EconomyHow?•Coercing the eruption of information technology & global economy•Operates the largest satellite system in the world•Powerful retailers manipulate production of goods to offshoreHow?•Wal-Mart has mastered the process of production, movement of goods, warehousing of goods, ensuring goods arrives on time at the right place, and for a cheap price•Developed in-house brands•Gain of supply-chain efficiencies by working directly with factories•More profit for Wal-MartHow does Wal-Mart know what consumers want?•Barcodes: Reveals everything about a product•Information about how often the barcodes are purchased are relayed to the manufactures from Wal-Mart•Hence, the manufacturers are dependent on Wal-Mart for demand informationWhat does this mean?•The manufacturer becomes dependent and subservient to the retailer, Wal-MartWal-Mart has created a Monopsy•Major buyers for groceries & toys•Controls 38% of the market for several goods•Manufacturers are forced to sell to them at low pricesWhy?•Wal-Mart wants to provide consumers with quality products & low pricesWhy Not?•Americans are consumers and workers•Americans may receive discounts for quality goods but loose jobs in the process•Not only effects U.S. but other countries as wellWal-Mart Model of Employment•Low-wages•Low benefits•Low skill•Rapid job turnoverInterview With CEO H. Lee Scott•Employee discussion•Exploitation vs. opportunitiesOpinions of those who are proponents of opening a Wal-Mart in Ashland, VAThose who disagree with opening a Wal-Mart in AshlandSprawl Busters: Helping Average Citizens Discourage Unwanted


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OSU BA 495 - Walmart Frontline

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