Wal-Mart Revolution

Introduction

The aim of this paper is to discuss the book by Richard and Wendell 'The Wal-Mart Revolution'. The paper discusses the criticisms of the Wal-Mart Corporation in the light of evidence provided in the book by Richard and Wendell. The book criticizes the activities of the company and its impact on wages, labor issues, land-use policies and health insurance. The book provides factual information about the company, the retail industry of America, health-care policy, labor economies, and land-use realities in America. The authors of the book, Richard and Wendell, provide all evidences for Wal-Mart and conclude that the transformation in economic condition was for a better America. The authors concluded that the business strategies of Wal-Mart related to wages, consumer prices, productivity and other economic variables had a positive impact on the economy of America (Vedder & Cox 2006, 54).

Discussion

The book presents the history of Wal-Mart and retailing in general. The criticism on Wal-Mart is discussed which was done through magazines, films, websites, academic conferences and newspapers. The authors have discussed that the contribution brought by the Wal-Mart company has brought a global economic progress in America which have been enormous. In the era of 1970s and 1980s the increment in productivity was seen in manufacturing sector than in retail industry. Because of the pioneer Sam Walton, Wal-Mart faced enormous growth under a brilliant management. This management and growth overcame the traditional growth of manufacturing industry and boosted retail industry through Wal-Mart. The authors have also presented the factual information that the growth made by Wal-Mart and the retail industry has been there times greater than the growth faced by manufacturing industry. The three times growth comprised of 300 percent growth. American public gained huge welfare because of this growth. According to the U.S. Congress, Wal-Mart has automated the retail system of America. The company is responsible to introduce smooth communication systems and computer-readable tags on the products.

The authors also argue that the factories present in the third-world countries must be closed. The reason they presented is that they do not pay workers enough and make them poor. They are unable to meet the standards of first world industries. The authors have used basic economics to prove their point against the third world factories (Vedder & Cox 2006, 54).

Founded in 1962 by Sam Walton and based in Bentonville, Arkansas, Wal-Mart is a company operating with “red state” values, having originated in the South and originally restricting store openings to small towns with population sizes of 5,000 or less. The anti-union Walton designated his employees “associates” to promote management and store workers as a team. As he bought in bulk from producers (not wholesalers), he passed on the discount to consumers, realizing that it would lead to higher sales volume and greater profitability. Also, in terms of stocking its shelves, the company has relied on “family values” as a guide, following red-state sensibilities.

Soon after Walton retired as chief executive officer in 1988—he was succeeded by David Glass (1988-2000), ...