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Frontline

Frontline. 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 billion. Global Procurement Center. Based in Shenzhen, China Third busiest port in the world

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Frontline

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  1. Frontline • 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 billion

  2. Global 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 venture

  3. Wal-Martis 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 prices

  4. OffshoreGlobal Center: China • Wal-Mart imports $15 to $30 billion a year of China’s goods

  5. Result • Alteration in United States’ Economy

  6. How? • Coercing the eruption of information technology & global economy • Operates the largest satellite system in the world • Powerful retailers manipulate production of goods to offshore

  7. How? • 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-Mart

  8. How 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 information

  9. What does this mean? • The manufacturer becomes dependent and subservient to the retailer, Wal-Mart

  10. Wal-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 prices

  11. Why? • Wal-Mart wants to provide consumers with quality products & low prices

  12. Why 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 well

  13. Wal-Mart Model of Employment • Low-wages • Low benefits • Low skill • Rapid job turnover

  14. Interview With CEO H. Lee Scott • Employee discussion • Exploitation vs. opportunities

  15. Opinions of those who are proponents of opening a Wal-Mart in Ashland, VA

  16. Those who disagree with opening a Wal-Mart in Ashland

  17. Sprawl Busters: Helping Average Citizens Discourage Unwanted Development

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