Walmarts Working Class

Chief marketer Stephen Quinn was interviewed by Geoff Calvin on the strategies he enforced on the makeover of Wal-mart. In recent quarters, Wal-mart was doing terribly in sales when the economy was at its worst. Individuals lost their jobs which lead to little to no sales at Wal-marts nationwide. Quinn then began to look at the problems behind these inaccurate sales and he came up with; individuals who had little income, due to the recession that hit the economy badly were Wal-Mart majority shoppers, Wal-Mart prices had to change also, and if the prices did not change, Wal-Mart would have soon been out of business in just a couple of years down the road. As Quinn and his marketing and managemnet’s teams work hard on this new makeover, Wal-Mart  main focus were to keep and develop new customers and help them save money and live better. Executives at Wal-Mart guarantee that shopping at Wal-Mart will give their customers the lowest price and top brands than any other retail store. As the economy began to grow after the recent recession, Wal-Mart’s sales began to pick up dramatically and are now the #1 retailer store.Walmart’s location tends to have exceptionally better sales in rural and suburban areas than in large cities areas.Wal-Mart has all kinds of groups shopping at their store, but everyone is there to save money. Indeed Wal-Mart has individuals who are well off in life, but they too want to save money as those who are not so well off in life. As Wal-Mart was creating their makeover, they notice that their rival surrounding stores were creating lower prices than Wal-Mart stores and customers began to respond and start to shop at those stores. Wal-Mart took action, not only did Wal-Mart reduce their prices, but they also made majority of their stores a one stop shop, where customers can shop for groceries, clothing, home furniture items, and much more at a cheaper price. Wal-Mart also introduces the concept called price matching. This concept was basically when a customer brings in a sales paper from another store and compares Wal-Mart and the other store prices. If the other store price were better and lower than Wal-Mart, Wal-Mart would than price match that price and give the customer the price of the lower cost. Quinn and his marketing team target families and individuals who had little income.  They focused on revamping their prices so that those individuals can save their, buy what they want and need, and live a better life. Even before the recession had struck the nation, Walmart’s strategies were still focusing on the working class and/or the middle class. As I was reading this article it shows how Wal-mart operates its business in order to maintain its spot as the#1 retail store in the United States and it also shows how their low cost method is what benefits their customers the most. However, the implications of Walmart’s quality their employment practices may not be up to part to some people, Walmart has still shown tremendous profitability in their market.  http://money.cnn.com/2011/12/14/news/companies/walmart_stephen_quinn_leadership.fortune/index.htm

Question: Even though Walmart target market is the working class, how would you express its conditions of management skills with its workers who work there?

Is Outsourcing Really Decreasing Americans’ Jobs?

Over the last few years, the United States once hit rock bottom and suffered major economic difficulties forcing people to lose their homes and jobs. However very few companies did not feel the economic crisis due to outsourcing. The term outsourcing basically means a organizaton, business, and/or services no longer perform their business “in house”. The service, organization, and/or business is now located outside of those places. Companies usually transition to outsourcing to save money and/or to lessen the burden on having to pay United States taxes. What do I mean by saying companies wanting to save money by outsourcing? Paying wages here in the United States is very expensive compared to paying individuals overseas. For example, the state of Illinois minimum wage is currently $8.25, maybe even more for someone working in a manufacturer, however the same work that someone else is doing is payed about $5.00 for the same work and maybe even more labor than the United States worker. This differences can save major companies money and for this very reason is why most of them are starting to outsouce. One major company that I am sure everyone is familiar with is Apple. As you all know Apple have been around for many years in which making products such as iphones, computers, laptops, ipods, and so much more. Controversy have been spoken lately on how their workers that are producing these proudcts are working in poor conditions and are getting paid very little money. However recent articles have stated that ‘Cheap labor is not the only reason why they decide to outsouce. An article that was done by Casey Chan, mentioned that China(where Apple’s factory is located) has higher qualified engineers than the United States, futhermore China’s workers and factories are better than the United States. Taking those reasons into consideration as to why Apple choose to outsource, can you really blame this company for wanting better qualified engineers and/or wanting to better their company so they can continue to produce some of the best technology that almost every American has once purchased? Another problem that arise from oursourcing are the individauls that are layed-off due to the fact that factory jobs were starting to transition to outsourcing. The problem increasing because majority of factory jobs require very minimum training to get the job, but once a person is hired for the job, proper training takes place for that person to get the job down. On the other hand, once those same individals who were layed off trying to find a job can be extreme diffcult, which then those same individuals can not purchase as much goods and service anymore, which then are forcing these companies to outsource to save money and or break even for their services or products. Chapter 2 demeostrates reaons why “outsouring” or global is good. One reason was the it can increase strategies and assessment in a given country. Learning from other countries can greatly help others gain knowlege to increase their businesses and/or services.

Outsourcing will always remain. How do you feel about outsourcing? Does it really dismiss jobs or increase opportunities?

www.wisegeek.com/how-does-outsourcing-affect-the-us-economy.htm and gizmodo.com/…/why-apple-doesnt-make-the-iphone-in-america