Walmart and Its Urban Expansion Strategy

Question (1)

Should Wal-Mart give up on entering Chicago?

This answer will analyse if Wal-Mart should give up on entering Chicago. According to the topic "Wal-Mart and its urban expansion strategy" on page 217, Wal-Mart was the world's largest corporation with sales of $256 billion a $9 billion profit, and 1.3 million employees which indicates that Wal-Mart is the very sound company in financial performance and the most admired company in Fortune's annual survey.

I would suggest that Wal-Mart should not give up on entering Chicago. However there are issues Wal-Mart needs to rectify. The new opening in the new territory is a challenge the new ideas and the new opening of business does not occur naturally but results from hard work, trial and error. Wal-Mart must realise that, low prices, low costs, helpful sales people and efficient distribution etc - has not be sufficient.

The people in Chicago must see adequate benefits and rewards for them by having opened the store. There were scar of labour incidents and unethical business practises in the past and Wal- Mart must comply with legal system and follow regulations and policies of the Govt.

Question (2)

If not, should it agree to the demand of the Chicago Federation of Labour?

The Chicago Federation of labour has made three demands:-

1. Wal-Mart agree not sell groceries at any of its Chicago stores to avoid driving down the wages of its supermarket competitors

2. The company remain neutral in any union-organising campaign and

3. It pays its Chicago employees a 'living wage' (Chicago Sun-times, May 26, 2004)

These three demands made by the Chicago Federation of Labour are very

Reasonable but the Federation of Labour must understand that by opening a new in this kind of area, lots of people will have their first job, and skills. The people will get not only the wages; they can learn skills and other incentives.

Question # 3

What should it do to build a majority in the city council?

Wal-Mart should build support for the stores in both the communities and Chicago more broadly. Wal-Mart must be willing to step of its comfort zone and what it used to doing in Chicago to be supported by the community. Wal-Mart must prove that opening a new store not only create jobs but also attract revenues for the community and neighbouring retailers which generates taxes that pay for the law enforcement jobs and roads and everything else. ( Columbia Chronicle via U-Wire, May 17, 2004)

Question #4

Formulate

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