Flashcards
Case Study- Wal-Mart
Flashcards do conjunto (28)
- 1What is Wal-Mart?Wal-Mart is a chain of discount department stores (including ASDA in UK). One of largest TNCs in the world and largest retail TNC (many top TNCs are oil companies).
- 2When did Wal-Mart begin and where?Began in 1962 when Sam Walton opened firstly in Arkansas, USA.
- 3What happened after it opened first?More stores opened across Arkansas, then across USA, and more recently across the globe via acquisition of other retail companies. E.g. Seiya in Japan, ASDA in UK and Bompreco in Brazil.
- 4How do Wal-Mart trade? Under their own name?Some Wal-Mart stores continue trading under their own name, e.g. ASDA, while others are re-branded as Wal-Mart.
- 5How does Wal-Mart divide labour?Wal-Mart divided it labour across different countries. Headquarters are still in Arkansas, but most manufacturing carried out where costs are lower (cheaper labour and resources), e.g. electrical goods made in China and clothes in India.
- 6Where is Wal-Mart expanding to?Wal-Mart is starting to expand into NICs such as India, which have huge new markets. E.g. Wan-Mart and an Indian company called Bharti Enterprises are opening new retail outlets together in the style of Wal-Mart stores.
- 7How does Wal-Mart help accelerate globalisation?Like other TNCs, Wal-Mart helps to accelerate globalisation- it links countries together through the flow of money, people, trade and information. It brings the culture of its country of origin (USA) to other countries.
- 8What does Wal-Mart offer customers?In USA, Wal-Mart gives customers all they need in one building at low costs. They’ve successfully introduced this in other countries, e.g. ASDA now stocks none food items. Hasn’t been successful in all countries.
- 9Even though Wal-Mart is a global brand,how has it retained a local approach?Retained local approach by buying local compaines. Its stores aren’t all exactly the same, though many of the products are, e.g. George clothing supplies ASDA in UK and Wal-Mart in USA. Selling same products globally helps create common patterns of consumption between different countries.
- 10Impacts on USA Social: . Provides customers with...Wal-Mart provides costumers with wide choice if goods, e.g. ‘super-centre’ stores sell things like garden furniture and car tyres as well as food and clothing.
- 11Impacts on USA Social: . OpenMany stores open 24 hours, so customers are able to shop when needed.
- 12Impacts on USA Social: . Jobs at Wal-MartMany jobs at Wal-Mart stores are poorly paid with few benefits (e.g. health care, so employees have to rely on state benifits. E.g. in California in 2004, it’s estimated that the state paid $86 million to support Wal-Mart employees.
- 13Impacts on USA Social: . Working conditionsWal-Mart has been accused of having poor working conditions. E.g. in 2005 it had to pay $172 million compensation because employees had been denied meal breaks.
- 14Impacts on USA Economic: . EmploymentEmployment- each new store creates jobs, e.g. Vineland (USA) opened in 2009, creating 700 jobs.
- 15Impacts on USA Economic: . Low pricesLow prices- Wal-Mart one of cheapest supermarkets in USA
- 16Impacts on USA Economic: . Decline in manufacturingDecline in manufacturing industry- Wal-Mart buys a lot of products from suppliers outside the USA, e.g. electronic goods are made in China and Malaysia, which has caused loss of manufacturing jobs in the USA.
- 17Impacts on USA Economic: . Loss of local businessesLoss of local businesses- Wal-Mart stores can cause smaller shops in the area ti close as they can’t match the low prices.
- 18Impacts on USA Economic: . Local jobsThis can cause loss of local jobs, e.g. it is estimated that for every 100 jobs created at Wal-Mart, 50 retail jobs are lost from local businesses over the next 5 years.
- 19Impacts on USA Environmental: . GasesWal-Mart produces huge amounts of greenhouse gases but it has opened ‘green stores’ that run on renewable energy.
- 20Impacts on USA Environmental: . LocationDomestic stores often very large and out-of-town- building them takes large areas of land and people driving to them creates traffic and pollution.
- 21Econ impacts on host: . Creates jobs . Local companies and suppliers.Wal-Mart creates lots of jobs in construction, manufacturing and retail services. E.g. Mexico, Wal-Mart employs over 209,000 people.
. Local companies and farmers supply goods to Wal-Mart. E.g. in Canada, Wal-Mart works wit h over 6000 Canadian suppliers, creating around $8 billion of business for them annually. - 22Econ impacts on host: . Local suppliers expanding . Forced prices. Local suppliers to Wal-Mart may be able to expand their business by starting to export goods to Wal-Mart stores in other countries.
. Wal-Mart has been criticised for forcing suppliers to accept low prices for their products. - 23Econ impacts on host: . Competing . Econ leakage. Local companies suffer in competing with Wal-Mart. Wan-Mart stores cause smaller shops in area to shut- they can’t compete with low prices and range of products on sale.
. People from host country spend their money in Wal-Mart stores, but most sent back to USA- economic leakage. Rather than contributing to host country’s economy. - 24Social impacts on host: . Skilled jobs less developed . Reliable wage. Wal-Mart offers skilled jobs in less developed countries. E.g. all Wal-Mart stores in China are managed by locals, not candidates from USA.
. In its poorest host countries, working for Wal-Mart can offer more reliable wage than other jobs, e.g. subsistence farming. - 25Social impacts on host: . Poor working conditionsWorking conditions may be poor. E.g. some Wal-Mart suppliers have long working hours- Beximco in Bangladesh supplies clothing to Wal-Mart and although Bangladesh has maximum 60 hour working week, it’s claimed that Beximco employees regularly work 80 hours a week.
- 26Social impacts on host: . DonationsWal-Mart donates hundreds of millions of dollars to improve things where ti operates. E.g. in 2008, Wal-Mart in Argentina donated $77,000 to local projects focusing on reducing hunger, and supported 29 soup kitchens feeing nearly 12,000 people across the country.
- 27Environmental impacts on host: . TechnologiesWal-Mart invests in environmentally friendly technologies and sustainable development. E.g. in Puerto Rico, 23 Wal-Mart stores are having solar panels fitted on to their roofs to generate electricity.
- 28Environmental impacts on host: . Land areaWal-Mart stores use large areas of land for factories and stores. E.g., the largest Wal-Mart store in Hawaii covers 29,000 m3.
Informações
- Descrição
- A2 A2 Geography (Development and Globalisation ) FlashCards sobre Case Study- Wal-Mart, criado por Alice Kimpton em 29-11-2016.
- Criado por
- Alice Kimpton · nov 2016
- Atualizado
- 22 jan 2017
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