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Wal-Mart

Wal-Mart. Professor Chuck Craypo. Overall Opinion on Wal-Mart. Favorability of Companies. Wal-Mart’s Impact on the Poor. Wal-Mart’s Productivity Loop. Consequences of Wal-Mart’s Productivity Loop. Step 1: Reduce Costs Squeeze suppliers Extracts producer revenues

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Wal-Mart

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  1. Wal-Mart Professor Chuck Craypo

  2. Overall Opinion on Wal-Mart

  3. Favorability of Companies

  4. Wal-Mart’s Impact on the Poor

  5. Wal-Mart’s Productivity Loop

  6. Consequences of Wal-Mart’s Productivity Loop Step 1: Reduce Costs • Squeeze suppliers • Extracts producer revenues • Relocated manufacturing overseas • Increase foreign debts • Erodes Wages and Benefits • Low wages in a low-wage sector • Working off the clock • Skimps on benefits, e.g., health care • Fleeces communities and tax payers • Increases social costs • Erodes physical infrastructure • Erodes human capital

  7. Consequences of Wal-Mart’s Productivity Loop Step 2: Reduce Retail Prices • Improves consumer living standards • Increases consumer purchasing power • Displaces existing retailers • Drives out small chains and independent producers • Displaces existing suppliers • Excludes local businesses from internal Wal-Mart supply systems • Triggers retail price wars • Pressures industry rivals to imitate its operative behavior • Extends to national and global markets

  8. Consequences of Wal-Mart’s Productivity Loop Step 3: Increase Sales • Increases efficiency of supply systems • Higher sales volume means greater economies of scale • Further erodes domestic manufacturing goods • Higher market shares adversely impact non-Wal-Mart supply system • Further loss of manufacturing • Facilitates additional consumer debt

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