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Wal-Mart Location Study

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Wal-Mart Location Study
Executive Summary Memo
To: Prof. T. Schuyler Hale
From: Rodolfo Nolasco, Miguel A Quiroga Jr., Anthony Ramirez, and John Ramirez
Subject: Hello, Wal-Mart? Case Study 2
Restatement of Problem: Wal-Mart is the largest retail corporation in the world. While many welcome its location in their communities, others do not. Suppose Wal-Mart has announced plans to seek the approval from the planning commission of a small town to build a new store. Develop a list of the main arguments, pro and con, that could be present at a public hearing on the matter by members of each of these groups: Owners of small businesses located nearby: o Increased Traffic = Increased Business (pro) o The Anchor Effect (pro) o Effects on Product Quality and Customer Service (pro) o Inability to Compete (con) o Effects on the Local Economy from Displaced Employees (con)

Town residents and residents of nearby towns: o Convenience (pro) o Increased Property Values and Sales Tax Revenues (pro) o Increase in Local Jobs (pro) o Increased Crime (con) o Increased Traffic Headaches (con) o Questionable Wage and Benefit Practices (con)

Wal-Mart boasts 10,130 stores and club locations in 27 countries, employing 2.2 million associates, and serving more than 176 million customers a year (Walmart). These staggering numbers make Wal-Mart the largest retail corporation in the world. When the retailer moves into a new area, there are strong arguments for and against its presence in the community. In the following pages, various views are presented from small business owners and local residents on the pros and cons of allowing Wal-Mart to become a new neighbor.
Small Businesses: Opportunities
Increased Traffic is Increased Business While there are some that view Wal-Mart as a threat to small businesses, there are some small businesses that believe they


Cited: Afra, Andrea. Free Press Houston. 6 September 2008. 3 2012 . Biondillo, Vincent. Norhill Realty. August 2011. March 2012 . Casey, Kevin. Intuit-Will Walmart Kill Small Business in New York. January 2011. March 2012 . Sobel, Andrea M Dean and Russell S. "Has Wal-Mart Buried Mom and Pop?" Cato Institute 2008. Walmart. Walmart Houston . . Walmartstores.com: History. March 2012 . Walmat Houston - Myth vs. Fact. . Whaley, Katherine. KHOU. October 2010. March 2012 . "Why Wal-Mart Can Be Good for Small Business." - Risky Business (usnews.com). U.S Business Money. Web. 24 Jan. 2008. .[pic]
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