Wal-Mart's employees work part-time but get "paid" for full-time with out getting the benefits of working full-time. Also they don't even get medical insurance but have to depend on the government for support. Also they need to pay their suppliers more to compensate for their low-costs. They outsource so much that they don't need that much money.
This famous department discount store has gotten a lot of bad press from being so niggardly with funds and benefits, and many socially responsible adults no longer want to be seen going in or coming out of the store. So it is time for a new model with slightly higher prices and quality of products.
There is no caring in the macro environment of the store. They provide little or no customer service the only thing keeping them in business is their best-cost provider strategy. The store is unorganized and non ergonomic. I feel they are going down the drain eventually because they have lost sight of the mission and vision.
Research has already shown that if Wal-Mart paid every employee a better wage, and passed all the costs on to the consumers, it would only raise the cost of the average shopping trip by pennies. Wal-Mart has already proved that they are interested in profits, not their employees. Many who work there cannot afford the company health insurance plan, which Wal-Mart is already changing, so that fewer employees are eligible. And, even for those that are eligible, Wal-Mart will simply cut their hours, so that they're not. In addition, it is shown than many Wal-Mart employees are still on government assistance, despite having work. So, there would be little harm in having Wal-Mart change their business model, because passing the cost on to consumers would be barely noticed, and their employees would likely have a better quality of life.
Wal-Mart, like any business, thrives on making a profit. However, there are certain ways that profit can be made a little more ethically. There are some practices, in regards to how they treats employees, that should be improved upon. For example, the company should allow its employees to unionize and exercise collective bargaining. If the prices are a little higher, so be it.
Wal-Mart's business model is strictly about charging less. But when they charge less, someone has to pay. Usually, the local employees pay, as they have to work for less money and no benefits, while watching local businesses close because they can't compete. In addition, suppliers pay, as they have to outsource and save money in every possible way to meet Wal-Mart's prices. And foreign communities pay, as their people work for slave prices in unsafe factories to meet the Wal-Mart demands. All this is unethical, and if most shoppers knew how many people were getting hurt to save them six or seven cents, they would stop shopping at Wal-Mart. Wal-Mart needs to change its ways.
We all like low prices, and mega-retailer Wal-Mart has brought low prices to most of the country and continues to advertise price cuts. I'm no longer cheering the cuts, because the savings at the checkout are resulting in problems elsewhere. Wal-Mart has been sued multiple times by employees, because managers trying to meet cost targets have cheated employees and not paid them for all the hours worked. Wal-Mart's demands for ever lower prices for suppliers was an important force accelerating the loss of manufacturing jobs to China. In many cases, entire U.S. factory lines were packed up and shipped to China. Another negative impact of the drive for lower prices is that Wal-Mart has imported hazardous products from China. Several times, Wal-Mart has had to recall jewelry and other products sold to children after discovering that the products had dangerous levels of very toxic metals like cadmium. If Wal-Mart is poisoning children, prices are too low.
Wal-Mart is known for hiring anybody and the people who work for them generally are looking for honest work. If Wal-Mart slightly raised their prices for the good of their workers, they may just get even better workers. They treat their Chinese workers horribly and it's not right to treat hard-working humans like that.
Wal-Mart provides jobs for many Americans, as well as cheap goods for all Americans. Wal-Mart serves its customer base by getting the best deals for them. If current suppliers are not efficient, then Wal-Mart will go to the next supplier to get the better deal. This keeps the retail-supplying business competitive, and allows the best suppliers to take the lead. If Wal-Mart did not do that, it would cause customers to pay more, and that would be to the detriment of the poor who rely on cheap goods to survive. In addition, Wal-Mart pays higher than minimum wage to its employees. And though there may be some corruption in some of its practices, Wal-Mart proves to be beneficial overall to customers and employees alike.
I believe that Wal-Mart should definitely develop a new business model, based on their negative reputation and the sub-par treatment of employees. In addition, the "quality" of many of their products needs to be upgraded. By doing so, they can justify slightly higher pricing, which in turn will help alleviate the pressure placed on suppliers and employees.
As someone with a tight budget, if Wal-Mart to increase their prices, it would be very difficult to still get all of the necessities. It would be harder to get food and toiletries as a normal human needs every month. Not every family in need qualifies for food stamps, so they rely on cheap prices like the ones at Wal-Mart. Prices need to stay the same.
Both the employees and suppliers have willingly entered into an agreement with Wal-Mart to provide their goods and services, and the payment or wage is agreed upon, up front. It is the responsibility of the supplier to demand more money for their product, and the employee is free to leave work, if they do not feel they are being fairly compensated. There is no reason for Wal-Mart to pay more money than they have agreed to.
Wal-Mart is not widely known for their exceptional employees. People go there for a one-stop shop with low prices. They are supposed to have the lowest prices and, if they raised the prices, there would be no reason for people to go there, as opposed to Publix or Target. I like knowing Wal-Mart is cheap.
An unnecessary rise in prices would drive their key customers to alternative stores. Wal-Mart's suppliers agree to supply their goods at a low price, therefore, allowing Wal-Mart to sell at that low price. As prices for supplies increase, Wal-Mart's prices will also increase, but should remain lower than competitors, in order to succeed with their business model.
Wal-mart has set up a business model that works. The only reason many people, including myself, shop there is for the low prices. If prices were to increase, then they would loose much of their customer base. So, in the end, even though they would be charging more, they would end up losing money.
Capitalism is a good thing, and Wal-Mart is a master at it. Every new Wal-Mart store has many times more employment applicants than openings. Suppliers work very hard and make serious investments to get their products on Wal-Mart shelves. Wal-Mart suppliers must have a permanent representative living in the Bentonville, AR city where Wal-Mart is headquartered, so that that supplier problems can be resolved quickly and efficiently.
There need to be stores that a customer can go to and get merchandise without straining their budget. There is a reason why Walmart is still in business, and Blockbuster and Circuit City have declared bankruptcy. In this economy, customers are looking to get the most bang for their buck. Now, more than ever, we've all become frugal because money is tight. If Walmart started charging their customers more money, where would people turn that didn't have a lot of money? Some people shop for groceries there because of the bargains. Stores like Walmart (and Dollar Tree and Aldi) need to exist to give people an option when they need merchandise, and have no where else to turn.
Wal-Mart should not charge customers any more than they already do. If they were to do so they would surely lose some of their customer base to competitors. Wal-Mart definitely has some competition out there, especially these days when businesses are constantly slashing prices in order to keep and acquire new customers during this time of recession. Wal-Mart is known for its affordable prices, even more so than the quality of their products. So, to hike those low prices up would be a bad business move. People would just go elsewhere, and possibly enjoy better quality products. Wal-Mart reaps enough profit to be able to make its customers, suppliers and employees happy. They just have to be willing to do so.