please read the passages and answer the “For Discussion” questions CLOSING CASE
ID: 393182 • Letter: P
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please read the passages and answer the “For Discussion” questions CLOSING CASE HOW WAL-MART WON CHICAGO In a retail desert on the South Side of Chicago, $3 million to elect a cadre of pro-union aldermen to amid vacant lots and signs promoting 'affordable the city council bankruptcy," sits a highly contested 200-acre plot The mayor looked outside the city limits and that's the future of Wal-Mart. The company famous saw that unions hadn't tried to stop Wal-Mart from for low prices and high growth is nearly tapped operating in the suburbs. "Why didn't the unions out in the sticks and suburbs. Today, just 47 of its object in the 'burbs? Suburbs are flooded with 4,300 Wal-Mart and Sam's Club stores are in big those stores," the mayor says. As for the argument cities, and most of those are in Dallas and Houston. that small businesses in the city would be imperiled go to New York and see all the small stores which Since 2006 a single Wa-Mart has been home have closed up. It's not because of Wal-Mart. It's steading in Austin, a mostly African American Chi because people are not spending. Daley also cago community with an unemployment rate of says Wal-Mart's management "got caught up in 40 percent, its alderman says. Now the company a national thing" by being too sensitive to attacks Urban America is the company's last frontier wants to put two dozen more stores in the city, in- cluding a 145,000-square-foot Supercenter on that from unions The open warfare between labor and Wal 200 acre plot. In an area ravaged by poverty and Mart showed no signs of ending until the recession desperate for the 400 jobs the Supercenter would forced both sides to reconsider. Chicago's politi provide, you'd think this would have been a slam cal leaders realized the city couldn't continue to lose sales tax dollars to big boxes in the suburbs Afer the first Chicago Wal-Mart opened, while failing to embrace the jobs offered by, the unions and community organizations successfuly WalMarts of the world. WarMart had to feec obbied the city council to pass an ordinance re the growth monster to keep shareholders happy auiring Wal-Mart and other big box retailers to So on May 3 [2010] an unprecedented informa at least $10 an hour, with benefits. The legis negotiation between company executives and lo ation infuriated Wal-Mart and its chief advocate, bor leaders was held near O'Hare Internationo Mayor Richard M. Daley. In response, Daley, the Airport, according to three people who attended country's longesttenured bigcity mayor, exercised The executives joked that Sam Walton would b his first and only veto, then watched labor spend turning in his grave if he knew about it, though th dunk. It was notExplanation / Answer
1.Demography plays a strategic place for any business to operate. The case illustrated the same when Wal-Mart has to deal with many local stakeholders before starting their operations. The Wal-Mart has focus last on urban areas and more on suburbs as they deal in low pricing and high growth.
2.The political and economic mix factors made Wal-Mart to negotiate with unions and local council to provide them benefit so to start their business operations peacefully. Economically it is sound for Wal-Mart as it is already expanding and focused on these suburb area for starting their business. They had to settle to many terms by unions and council as it is economical for them to start their business.
3.No, Wal-Mart could not have handled the situation better but understanding the local factors and labors concern is crucial so wal-mart has to take more positive and affirmative approach or it may end in tussle with unions and local community.
4.Neither good nor bad can be said about Wal-Mart. It is doing as to what any business could have done at its place. The motive of the business shall ideal be sustainable development and taking the community and society together. While it’s offering discount fare to consumers by cutting their internal cost, it needs to understand about the community, society, labors concern etc. as well.
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