SRQ for Seminar on Wal-Mart

Article Title: “An Empire Built on Bargains Remakes the World”

Authors: Abigail Goldman and Nancy Cleeland

Author’s thesis: “Wal-Mart gives. And Wal-Mart takes away” (1).

Author’s evidence:

1. “The company has prospered by elevating one goal above all others: cutting prices

relentlessly…Yet Wal-Mart's astonishing success exacts a heavy price. By squeezing

suppliers to cut wholesale costs, the company has hastened the flight of U.S.

manufacturing jobs overseas. By scouring the globe for the cheapest goods, it has driven

factory jobs from one poor nation to another” (Goldman/Cleeland 1).

2. “As a member of Ironworkers Local 416, the 50-year-old father of four is well aware of

the retailer's anti-union stance. But when the family's credit card debt topped $10,000,

Wal-Mart's deals suddenly looked irresistible” (Goldman/Cleeland 2).

3. “Consumers' addiction to low prices is accelerating a shift toward a two-tiered U.S.

economy, with a shrinking middle class and a growing pool of low-wage workers”

(Goldman/Cleeland 2).

4. “Wal-Mart store managers earn about $95,000 annually, including bonuses, according to

the company. Supercenter managers earn $130,000. A management position requires

long hours — as many as 80 a week — and, often, a willingness to relocate. Rios worked

at six California Wal-Mart stores before taking the helm at Serene Avenue…’It doesn't

come free,’ said Rios, a divorced father who shares custody of his 2-year-old son.”

(Goldman/Cleeland 4).
 5. “The Allens lowered their expectations and took jobs at the Serene Avenue Wal-Mart.

Jacque, then 43, worked the counter at the in-store restaurant, Radio Grill. Larry, 46,

stocked produce. They each earned $8 an hour. Despite the letdown, Larry Allen said he

attacked the job with enthusiasm. Inspired by tales of well-paid Wal-Mart managers who

had started out as hourly employees, such as his manager Aaron Rios, he figured on

working his way up. That was Sam's way, he said” (Goldman/Cleeland 5). [Later] “Allen

was fired” (Goldman/Cleeland 7).

6. “A year ago, the Raley's grocery store here drew thousands of shoppers who spilled out

to neighboring businesses, buying flowers, mailing packages, getting their nails done.

Today, the store is gone. The remaining shops are struggling” (Goldman/Cleeland 6).

7. “Because Wal-Mart pays such low wages, many employees can't afford the health

insurance the company offers. And those who do have health coverage through the

company often can't afford deductibles that run as high as $3,000 a year” (7).

Author’s Conclusion about the Significance of the Topic:

“On some level, even Larry Allen understands. ‘I still believe in Wal-Mart,’ said Allen, who now

is on the union payroll as an organizer. ‘I like the idea of it- give a quality product at a low price.

It’s what the American public wants”’ (Goldman/Cleeland 7).

Summary

The authors Abigail Goldman and Nancy Cleeland have described in detail how Wal-

Mart runs its corporation, how it succeeds, and how it causes failure at the same time. The
immenseness that is Wal-Mart has grown on such a global scale that its workforce can found on

multiple continents and it is the world’s largest corporation. When Wal-Marts move into small

towns, all of its competitors are completely wiped out. People lose their jobs, and many are then

forced to go work at the Wal-Mart, where unionization is completely out of the question. As of

2003, Wal-Mart planned on invading the California grocery industry as its next monopolistic

move.

The Wal-Mart logo is a sign of distress and at the same time a sign of savior. Millions of

people that are against all that Wal-Mart stands for still reluctantly shop there because there is

literally nowhere else where you can get that much bang for your buck. This split-mindedness

and “the consumers’ addiction to low prices is accelerating a shift toward a two-tiered U.S.

economy, with a shrinking middle class and a growing pool of low-wage workers”

(Goldman/Cleeland 2).

It is not only the consumers that are affected by Wal-Mart’s domination. All of the

manufacturers of Wal-Mart’s products are even forced to succumb to their demands. When sales

representatives go to pitch their products to Wal-Mart, they are forced to sit alongside their

competitors, all of them itching for the chance to get inside a cubicle and make a deal. If Wal-

Mart refuses the seller’s asking price, the seller is forced to “whittle down [the price] like you

never thought possible” (Goldman/Cleeland 3).

Even with all of Wal-Mart’s success, its company executives and even its founder, Sam

Walton, have never taken advantageous of many “rich and famous” perks. They all fly coach,

drive average cars, and Sam Walton even shared hotels rooms with colleagues on business trips.

This “there is always something more to achieve” mindset is exemplified at Wal-Mart’s home

office. “Wal-Mart’s stinginess reaches from the executive suite to the loading dock”
(Goldman/Cleeland 4). They force truckers to unload cargo, they keep the temperature the same

throughout the year at all stores, and sometimes this goes too far. Each year, Wal-Mart is sued

dozens and dozens of times by employees, claiming that they take advantage of them with no

overtime, unsafe working conditions, etc. Some employees, though, dedicate their lives to Wal-

Mart. They go through management training, with the hopes of becoming assistant managers,

store managers, regional managers, etc., all for the higher wages and what seems to be the nice

working environment. This dedication causes employees to constantly have to move, and

rearrange their lives.

Wal-Mart’s plan to invade California came with much opposition and protest to the idea

from other California grocery stores as well as workers’ unions. By having its employees not

being unionized, Wal-Mart takes a lot away from the strength of unions, but it also provides

Wal-Mart with so many cost cutting shortcuts. There is nothing more that Wal-Mart pushes for

than non-unionization. Throughout the years, many Wal-Mart employees have argued for

unionization and attacked the company for not doing so. However, the superpower just fights

back…and wins.

Wal-Mart’s explosiveness not only brings trouble to the industry’s other members, but

also the surrounding environment. When grocery stores fall to the superstore, they neighboring

stores also lose customers due to less foot traffic. Additionally, more likely than not, Wal-Mart

also offers what these smaller stores are already offering, but at much cheaper prices. All in all,

despite what Wal-Mart has done to the economy, some people still believe that it helps more

than it hurts. They feel that Wal-Mart can be evil, but sometimes it may be the lesser of two

evils.
Response

I found this article to mean interesting, informative, and even some-what eye opening. It

is remarkable how one store can affect so much in the economy and even in the personal lives of

people. It is sad to see what Wal-Mart takes away. Jobs are lost, stores die, families are broken

up, etc. The Wal-Mart empire is in fact scary. It is frightening to see how it can command the

producers and consumers so heavily in order to make a profit. I, too, am split minded. I hate

what the corporation stands for and what it does to society, but then again, it can be so helpful.

In economic times like these, it is sad that Wal-Mart is causing many lost jobs but at the same

time, its low prices keep people from going broke. I hope than sometime, when the economy

turns around, Wal-Mart begins to realize what it has done and somehow pay for it. I applaud

those who stand up to the empire. Someday I believe that they will actually win a battle, and

from there, I am anxious to see what happens.

Questions

1. Who is to blame: Wal-Mart for taking other business out and becoming monopolies or

the consumers, who choose to go to Wal-Mart regardless of financial situation? Why?

2. In small town where Wal-Marts have taken over, do you think that mom and pop shops

will ever succeed again? Why or why not?

3. Is Wal-Mart’s choice of no unions fair from where they are coming from? If so, how so?

4. If Wal-Mart can cheapen their prices to cut out competition, isn’t possible that a new

company could develop and do the very same thing to Wal-Mart? Why or why not?

5. In the long run, how can Wal-Mart benefit the economy? How can it ruin it? Which is

more likely to occur?

Before reading this article, I knew of the superpower that is Wal-Mart. I knew that it carried

everything from bananas to bullets. I also knew that when it entered a new small town, it laid

down the law, and re constructed the town’s economy, taking out many mom and pop shops,

especially due to its unbeatable low prices. However, after reading this article, I became aware

of the technical aspects that make the empire succeed. I learned that Wal-Mart employees were

not unionized. I learned how Wal-Mart deals with manufacturers. I learned about where Wal-

Mart originated and how it has become the world’s largest corporation. This article also

provided me with knowledge of certain personal stories and struggles with Wal-Mart. Wal-Mart

receives both approval and condemnation…sometimes from the same people. By reading this

article, I have come to the conclusion that Wal-Mart is not a force to be easily reckoned with.

Assessment

For this seminar, my group consisted of Alyssa Lovato, Heather Thompson, Kevan

Cronk, Alex Kisor, Dakota Jablon, Reily Valentine, Madisen Gargiulo, and myself. During the

seminar, we tried to each play an equal role in the group. Kevan, being our group leader, read the

questions aloud to us and we each participated in the discussion when we had something to say.

I do not feel like I had a specific role within our group because the conversation flowed so

smoothly. This being a liberal school, we all had similar beliefs and therefore we really did not

argue. We all had negative comments are condemnations about the superpower that is Wal-Mart

but at the same time we realized why Wal-Mart succeeds and res acknowledge the company’s

sensible outlook. The article seemed very relevant to our lives today and therefore we all had an

interest in it and we all spoke our minds. We seemed to naturally transition from question to

question without having to stop and even read the questions. The thoughts just came naturally.
There was not a single person that controlled the conversation or someone who did not talk at all.

It was an even, fluid conversation. I believe that this seminar helped me to become more patient

and confident in speaking out loud. I do not feel that I lacked any skills. I accomplished being

able to connect with my peers via our opinions. I also feel that I worked toward accomplishing

my goal of not being stage-fright. We, as a group, mostly came to the same opinions. We also

finished on time and no one took an argument too seriously. Also, I did not feel any frustration

during the seminar or afterwards. By doing this seminar, I continued to learn that I do not have

to be shy and it is ok to speak my mind even though I am afraid to do so.

These Socratic seminars go perfectly hand in hand with the overall philosophy of the

HS@MC. In these seminars, the kids get to teach and connect with one another instead of just

listening to a teacher ramble on. The HS@MC also helps students become more individualistic

and more prepared for situations where you have to speak your mind among your peers.