Research Paper

Wal-Mart and Small Businesses

I became interested in Wal-Mart and small businesses because I did not know the fact that Wal-Mart’s development influences small businesses, though I often use it. Wal-Mart is a very convenient supermarket for customers, and it is the biggest supermarket in the U.S. It deals in various kinds of goods and there are even optometrists and pharmacists. Wal-Mart is expanding quickly. However, its development causes a problem, which is that Wal-Mart makes small businesses close. In spite of its strong management, some local businesses have found ways to survive around Wal-Mart (Krunchak, 2006). They have competed with Wal-Mart by running stores in the area where Wal-Mart is weak or selling different products from Wal-Mart. One of the owners in a small town in which a new supercenter is going to be built says that she will be able to compete with Wal-Mart by offering personalized services. Those who have survived are pleased with Wal-Mart’s moving because it draws more people into the small town. However, there are only a few stores that can survive like them. Wal-Mart is bad for most small towns. According to Anthony A. Mestas (2005), sales of local stores in a small town started to go down after Wal-Mart was built nearby. Citizens began to go to Wal-Mart rather than local stores when they needed something because it had various kinds of items and they were cheaper. Small businesses do not have enough power to compete with Wal-Mart. Then, they were forced to close. Wal-Mart's expanding destroys lives of many people who are running small businesses.

We should prevent Wal-Mart’s development, which makes small businesses close. We have to not only insist on the importance of protecting small businesses, but also take actions. There are three ways we should do that.

First, citizens should not go to Wal-Mart if they do not want it in their areas. If they avoid going to Wal-Mart and buying something there, its sales will not increase. It will be not able to get profits, and finally it will get into the red. Then, it will be hard for Wal-Mart to keep running. E. Luke (2004, par. 6) says that "if Wal-Mart cannot make money in a given area, it will either not move or will close the store."

Stores that are not needed by customers end up closing even though companies that manage them are big. If Wal-Mart is not accepted by residents, and it cannot make profits, it just moves into other areas where people need it.

In my home town, there are many kinds of restaurants. Each of them offers dishes and services of average or high quality. A few years ago, a huge food court was founded with a huge space for a parking area. In this food court, there are many kinds of restaurants that offer dishes and services of low or average quality. It is very convenient for customers because they have many choices. Moreover, they do not need to move around the town to find other restaurants when a restaurant they wanted to go to was crowded. It is convenient especially for families who have little children. However, before it opened, many restaurants around the food mall were concerned that their sales might go down if most customers started to go to the food court. An Italian restaurant where I was working was one of them. After the food court opened, so many customers visited there rather than the other restaurants. The number of customers and the sales of my work place went down sharply, as other employees and I had thought, though we tried to offer better services than before. However, after a while, people started to stop going to the food court because they had not been satisfied with dishes and services, and they started to go to other restaurants. Sales of my restaurant began to go up again little by little. After all, some restaurants in the food court closed.

In addition, it is more efficient to get items of higher quality in small stores that specially deal in one thing rather than those of low quality in Wal-Mart. Though low quality products can be got with low price, they are not functional, and they are easy to be broken. Customers have to buy the same kind of item many times. By contrast, high quality products are useful and sturdy. They can be used for a long time. It costs more money to get cheap items many times, than to get those that are expensive just one time.

Second, local government should deny Wal-Mart’s moving. They have responsibility to protect the stable lives of their people. Some city councils have refused to accept Wal-Mart’s moving. In those areas, people who run small businesses do not worry about Wal-Mart and failure of management.

One of councils that denied Wal-Mart’s moving is Stoughton, Wisconsin. According to B. Davis (2005), the Stoughton City Council refused Wal-Mart’s proposal to build a new huge supercenter in that area. Members of the council who opposed the proposal said that they did not accept it because Wal-Mart had not stated about its plan in detail, and they were concerned that Wal-Mart’s moving would destroy their town. Moreover, citizens thought they did not need a supercenter. They collected signatures and filed them with the council. They wanted the council to listen to their opinions and consider their feeling. The local government has to make a decision reflecting citizens’ opinions.

In addition, local government has to keep their city as it is. Each city has its history. If Wal-Mart moves into a small town, more people will start to go there. That seems good for a small town to prosper. However, increased visitors will cause some problems with the environment or safety, which will destroy a historical place and the specific atmosphere of the town. Citizens have established their town with specific emotion. They do not hope for the change of their town in such a way.

Loss of small stores can connect to the decline of the town. There are a lot of people who need small stores. For example, there are people who have close relationship with people who are running small businesses. They must be good friends or like members of family. If small business people are forced to close, they will not be able to make their living and will no longer be able to stay in that area. Then, they will have to leave for other area. People will lose their reliable friends. Also, it is one of the pleasures for tourists to go shopping in many kinds of small stores to get food or souvenirs. Just looking at items makes them excited. They also can enjoy talking with clerks. If small stores close because of Wal-Mart, tourists will lose their pleasure. The town where there are just a few small stores is not attractive to tourists.

Finally, customers should boycott Wal-Mart to publicize the problem and call people to join them. To boycott is to refuse to buy products of a specific company. People should appeal to public opinion. Boycott affects the company in loss of sales and influences the public opinion.

For instance, Nestle boycott is one of the successful boycotts. In 1960s, dairy business companies expanded in developing countries, because the birth rate had decreased in developed countries. Nestle was one of those companies. People in developing countries started to use powdered milk for babies. Therefore, the number of babies who were fed on powdered milk rather than mother’s milk increased. Because breast-milk is made by stimulus of babies' sucking at mother's nipple, lack of mother’s milk occurred. “Mother’s milk is nutritionally superior to manufactured formulas” (Allen, 2005, par. 6). However, babies had to drink milk in which bacteria bred. A lot of babies died of diarrhea and lack of nutrition. “Nestle was ‘killing babies’” (Allen, 2005, par. 10). Then, the boycott against Nestle started in America. It spread in Canada, New Zealand, and Australia. The World Health Organization (WHO) enacted International Code of Marketing of Breast-milk Substitutes (WHO Code), which regulated the sale and distribution of breast-milk substitutes. Nestle agreed to practice this code. Though the boycott against Nestle is still continuing because it broke the code, “it is consumer pressure that has promoted Nestle to address this issue” (Gammell, 2005, par. 41).

A boycott influences both change of company’s policy and public opinion. The large-scale boycott is often reported through media such as TV, radio, newspapers and so on. Most people have not thought about the problem between Wal-Mart and small businesses seriously. A boycott gets attention of both people who have been interested in the problem and those who have not. If people understand the problem, which is that Wal-Mart makes small businesses close, and if they have sympathy with that, they will begin to think about preventing Wal-Mart’s development. Also, they will convince their family or friends to oppose Wal-Mart. Opposite opinions will spread in the whole country. Finally, people all over the world will think about the problem. A boycott will pressure Wal-Mart to change its mind to consider running in an ethical way.

In addition, a boycott makes for making new laws to prevent firms from running just for profits and damaging people. In the case of Nestle Boycott, WHO made the WHO Code to protect babies. Wal-Mart is obviously damaging small businesses. If the boycott spread in the world, and appeals are accepted by the government, it will start to care about the problem of Wal-Mart and lives of people who are running small businesses, and it will enact new laws to regulate the surplus expanding of private firms.

In conclusion, we should take actions to prevent Wal-Mart’s development. Wal-Mart never stops expanding. Just understanding the problem or insisting on the importance of protecting small businesses do not influence it. It is important to take action against Wal-Mart.

Reference:
Allen, C. (2005, June 26). When Mother's Milk Is Not Good Enough. Los Angeles Times. Retrieved on February 28, 2006 from latimes.com.

Davis, B. (2005, December 1). At the Least, Stoughton Should Do Its Homework. The Capital Times, Madison, Wisconsin. Retrieved from Lexis-Nexis on February 28, 2006.

Gammell, C. (2005, October 7). Nestle Accused over Fairtrade Coffee Launch. Press Association. Retrieved from Lexis-Nexis on February 27, 2006.

Kruchak, M. (2006, January 19). Proposed Small-Market Wal-Mart Good for Kindersley: Merchants. The Star Phoenix, Saskatoon, Saskatchewan, Canada. Retrieved from Lexis-Nexis on January 25, 2006.

Locke E. A. (2004, February 22). Three Cheers for Wal-Mart. Capitalism Magazine. Retrieved on February 7, 2006 from http://www.capmag.com/article.asp?ID=3534

Mestas, A. A. (2005, October 6). Small-town Grocer Hangs up Apron. The Pueblo Chieftein, Pueblo, CO. Retrieved from Lexis-Nexis on January 23, 2006.

Research Paper Proposal

EAP2 WW
Research Paper Proposal

Wal-Mart and Small Businesses

I became interested in Wal-Mart and small businesses because I did not know the fact that Wal-Mart’s development influences small businesses, though I often use it. Wal-Mart is a very convenient supermarket for customers and it is the biggest supermarket in the U.S. It deals in various kinds of goods and there are even optometrists and pharmacists. Wal-Mart is expanding quickly. However, its development causes aproblem which is that Wal-Mart makes small businesses close. According to Anthony A. Mestas (2005), sales of local stores in a small town started to go down after Wal-Mart was built nearby. Citizens began to go to Wal-Mart rather than local stores when they needed something because it had various kinds of items and they were cheaper. Small businesses do not have enough power to compete with Wal-Mart. Then, they were forced to close. However, some local businesses have found the ways to survive around Wal-Mart (Krunchak, 2006). They have competed with Wal-Mart by running stores in the area where Wal-Mart is weak or selling different products from Wal-Mart. One of the owners in a small town in which a new supercenter is going to be built says that she will be able to compete with Wal-Mart by offering personalized services. Those who have survived are pleased with Wal-Mart’s moving because it draws more people into the small town. Capitalism and no government intervention make Wal-Mart’s development easy.

I plan to write about three things that can be done to prevent Wal-Mart’s development. First, citizens should not go to Wal-Mart to make its sales decrease if they do not want it in their areas. Second, Local government can deny Wal-Mart’s moving. Finally, customers can boycott against Wal-Mart to tell the problem and call people to join them.

I have found some articles that give the opinions of owners of particular small stores and that tell how small businesses can survive. I need more articles about how local government and customers can help small businesses.

Reference:
Kruchak, M. (2006, January 19). Proposed Small-Market Wal-Mart Good for Kindersley: Merchants. The Star Phoenix, Saskatoon, Saskatchewan, Canada. Retrieved from Lexis-Nexis on January 25, 2006.

Mestas, A. A. (2005, October 6). Small-town Grocer Hangs up Apron. The Pueblo Chieftein, Pieblo,Co. Retrieved from Lexis-Nexis on January 23, 2006.

Argument Essay

Wal-Mart and Small Businesses

Wal-Mart is a very convenient supermarket for customers and, it is the biggest supermarket in the U.S. It deals in various kinds of goods and there are even optometrists and pharmacists. Wal-Mart is expanding quickly. However, its development causes a problem, which is that Wal-Mart makes small businesses close. According to Anthony A. Mestas (2005), sales of local stores in a small town started to go down after Wal-Mart was built nearby. Citizens began to go to Wal-Mart rather than local stores when they needed something because it had various kinds of items and they were cheaper. Small businesses do not have enough power to compete with Wal-Mart. Then, they were forced to close. However, some local businesses have found ways to survive around Wal-Mart (Krunchak, 2006). They have competed with Wal-Mart by running stores in the area where Wal-Mart is weak or selling different products from Wal-Mart. One of the owners in a small town in which a new supercenter is going to be built says that she will be able to compete with Wal-Mart by offering personalized services. Those who have survived are pleased with Wal-Mart’s moving because it draws more people into the small town. Capitalism and no government intervention make Wal-Mart’s development easy.

We should prevent Wal-Mart’s development, which makes small businesses close. There are three ways we should do that.

First, citizens should not go to Wal-Mart if they do not want it in their areas. They do not have any right to regulate or limit Wal-Mart’s expanding because of capitalism. It does not allow them to ask for government intervention. If they avoid going to Wal-Mart and buying something there, its sales will not increase. It will be not able to get profits, and finally it will get into the red. Then, it will be hard for Wal-Mart to keep running. Wal-Mart will end up closing.

Second, local government should deny Wal-Mart’s moving. They have responsibility to protect the stable lives of their people. They have right to keep their city as it is. Some city councils have refused to accept Wal-Mart’s moving. In those areas, people who run small businesses do not worry about Wal-Mart and failure of management.

Finally, customers should boycott Wal-Mart to publicize the problem and call people to join them. Most people have not thought about the problem between Wal-Mart and small businesses seriously. People who know about the problem in detail have to tell customers about that. Then, they should appeal to public opinion by using media such as TV, newspaper, and so on. Boycott affects the company in loss of sales and influences the public opinion.

In conclusion, we should take actions to prevent Wal-Mart’s development. Wal-Mart never stops expanding. Just understanding the problem does not influence it. It is important to take action against Wal-Mart.

Reference:
Kruchak, M. (2006, January 19). Proposed Small-Market Wal-Mart Good for Kindersley: Merchants. The Star Phoenix, Saskatoon, Saskatchewan, Canada. Retrieved from Lexis-Nexis on January 25, 2006.

Mestas, A. A. (2005, October 6). Small-town Grocer Hangs up Apron. The Pueblo Chieftein, Pueblo, Co. Retrieved from Lexis-Nexis on January 23, 2006.

Practice Essay Exam #2

Free-market capitalism means that everyone can do anything anywhere freely. In other words, people are free to make money and get profit. The government does not regulate or control them. They can determine what products they produce and how much they will cost.

I agree with Wal-Mart’s moving into the Carbondale-Murphysboro area and setting up a supercenter. As the free-market system says, Wal-Mart has the right to open and run anywhere. They can buy the land, build a market and offer products with a low price and with their business policy. I think the plan that Wal-Mart moves into that town is good for residents because Wal-Mart is very convenient for people in rural areas. They like Wal-Mart and they need it.

Summary & Response #2

Ways to Survive for Small Businesses

In the article, "Proposed small-market Wal-Mart good for Kindersley: merchants," Matt Kruchak states that some local businesses have found the way to compete with Wal-Mart. Wal-Mart is going to open in a small town in Saskatchewan. Business people welcome that plan because they think people will come to that town if a big store like Wal-Mart is built. According to a study of Dr. Kenneth Stone, Wal-Mart's growth has made many other businesses close. However, he says that there are some ways that local businesses can survive. They are to run a store in the area Wal-Mart is weak and to sell different products from Wal-Mart. One of the owners of local businesses says that customers want better service. She also says if local businesses offer personalized things for customers, they will continue going to small stores.

I think it is difficult for small businesses to survive in the areas where Wal-Mart is because small stores cannot supply various kinds of items, customers want cheaper items, and it is difficult to keep supplying fine service for all customers.

First, small stores cannot supply various kinds of items. There are various kinds of goods in Wal-Mart. It enables customers to get items in the same place. Wal-Mart is more convenient for customers than small stores. Small stores deal in only one thing such as food, clothes, electrical appliances, and so on. If they try to have other things, there is not enough space to display them.

Next, most customers choose items by price rather than quality. Wal-Mart divides items with very low price. Some small stores have high quality goods, but they are expensive. If there are similar items, customers choose cheaper ones. Although some stores have brand items that are not in Wal-Mart, people go to the big city where brand shops are more than small town because they cannot be satisfied with just a few shops.

Finally, it is difficult to keep supplying fine service for all customers. High quality service is important to draw customers. However, there is a limit to personalized service. If small stores can get many customers by good service, their service will not be able to come up with increased customers someday. They have just a few clerks, so they may neglect their service. Then, customers will stop going to small stores.

In conclusion, it is very hard for small businesses to survive around Wal-Mart because small stores cannot supply various kinds of items, customers want cheaper items, and it is difficult to keep supplying fine service for all customers.

Reference:
Kruchak, M. (2006, January 19). Proposed Small-Market Wal-Mart Good for Kindersley: Merchants. The Star Phoenix, Saskatoon, Saskatchewan, Canada. Retrieved from Lexis-Nexis on January 25, 2006.

Summary & Response #1

Wal-Mart Makes Small Businesses Disappear

In the article “Small-town grocer hangs up apron,” Anthony A. Mestas states that McClain’s Super Market will close because of drought and Wal-Mart. Its sales started to go down after Wal-Mart was built near the Super Market. Citizens did not do much shopping for they did not have much money. They want to Wal-Mart when they needed to get something because merchandise was cheaper. Although a Wal-Mart spokesman said that the company does not want to plunge small businesses into going bankrupt, there are facts that have been making them impossible to keep running. A director of Rocky Ford Growth in Progress says that Wal-Mart surely drives small businesses to close, but they have to find the way to survive around Wal-Mart. She also says that they need citizens’ support to run small businesses in rural areas.

I think Wal-Mart should not build new stores in rural areas because small businesses are forced to close, citizens lose reliable people such as pharmacists and eye-doctors, and setting up pharmacies and ophthalmology in Wal-Mart may cause problems for customers' health.

First, small businesses are forced to close. Wal-Mart deals in a large variety of goods with cheap price. That is attractive to customers. Then, customers start to go to Wal-Mart rather than local stores when they do the shopping. Small stores which deal in just one thing such as food, electrical appliances and so on will have a lack of sales. They do not have enough power to compete with big stores. They will no longer keep running their stores. Then, they will close.

Second, citizens lose reliable people such as pharmacists and eye-doctors. There are ophthalmologists and pharmacists in Wal-Mart. It is more convenient for customers to go there while they are doing the shopping at Wal-Mart than to bother to visit individual ones. If patients or customers do not come to individual drugstores or ophthalmology, pharmacists and eye-care providers will lose their jobs. Professions such as those are very important skills to keep alive in rural areas. If they lose their jobs, they cannot live in that area. People who have a physician in charge will lose them.

Finally, setting up pharmacies and ophthalmology in Wal-Mart may cause problems for customers' health. In spite of the many customers who visit pharmacies or ophthalmology in Wal-Mart, there are just a few stuff members who have the qualifications and professional knowledge. It is hard for them to treat many customers. If other stuff who do not have correct knowledge advise customers, they may ruin their health. That is very dangerous and will be a serious problem.

In conclusion, Wal-Mart should not expand in rural areas because small businesses around Wal-Mart are forced to close, citizens lose reliable people such as pharmacists and eye-doctors, and setting up pharmacies and ophthalmology in Wal-Mart may cause problems for customers' health.

Reference:
Mestas, A. A. (2005, October 6). Small-town Grocer Hangs up Apron. The Pueblo Chieftein. Retrieved from Lexis-Nexis on January 23, 2006.

Practice Summary & Response

Problems of Wal-Mart's Development

In the article “Some cities resisting Wal-Mart expansion,” Emily Kaiser states that Wal-Mart has a problem with expanding in both urban areas and rural areas. Wal-Mart is expanding quickly. People who live in rural areas oppose the idea of building new supercenters in their area because it they want their town to remain small. Some places also begin to oppose Wal-Mart’s development. It is difficult to build big stores in urban areas because there is not enough space. If stores are built, they will not have one floor but a few floors. Customers like the convenience of getting items they want on the same floor. Though there are some ways to solve this problem, effective results cannot be seen.

I think that Wal-Mart should not expand any more. There are some reasons I think so. First, it changes our way of life. Second, building big stores may change lives of local residents. Finally, Wal-Mart can weaken economies of other countries.

First, Wal-Mart changes our way of life. Before, people went to several stores to get necessities because there was no store that had everything. However, people started to go to Wal-Mart to do shopping after it was built. It made our way of life faster than before and made people busy. Then, they cannot have time to feel relaxed.

Second, building big stores may change lives of local residents. They like their peaceful lives without the disturbance. If the big stores like Wal-Mart are built, their life styles or rhythm will change from peaceful to restless. Moreover, if people start to go there rather than to local stores, they will be closed. Then, people will lose their jobs. Also, the system of local economy will not work well.

Finally, Wal-Mart can weaken economies of other countries. Recently, it is opening stores in other countries. If they become more popular, products made in foreign countries will begin not to be sold. That may destroy traditional systems. Furthermore, that makes economic systems and foreign trade confusing.

In conclusion, Wal-Mart changes our way of life, building big stores may change lives of local residents and Wal-Mart can weaken economies of other countries. I think Wal-Mart should not develop their business any more. It is already big enough to make big money.

Reference:
Kaiser, E. (2003, July 12). Some Cities Resisting Wal-Mart Expansion. Reuters. Common Dreams News Center. Retrieved on January 17, 2006 from http://www.commondreams.org/headlines03/0712-06.htm