2008 Woodie Awards
ONE WAY OR ANOTHER: The Bottom Line Is the Bottom Line
Marc Howard
Issue date: 12/14/05 Section: Opinion
- Page 1 of 1
As the economic behemoth known as Wal-Mart continues to expand, it swallows whole smaller retailers, leaving thousands of Americans jobless. By pressuring its suppliers to cut wholesale prices, the company has contributed to the migration of U.S. manufacturing jobs overseas. These things are unfortunate. But that, as they say, is just how it goes.
In this era of globalization, companies like Wal-Mart are able to go to any part of the world in order to get the cheapest goods they can for their customers. They're able to buy cheaper wholesale goods in China, Mexico or Bangladesh and would be remiss not to do so.
It just happens that the Wal-Mart Corporation is the most efficient at it. But even as Wal-Mart wipes out competition and eliminates jobs, keep in mind that it also creates jobs. Someone has to work at the Wal-Mart Supercenters as they continue to crop up all over the world. The company employs 1.3 million people in the U.S. alone.
Wal-Mart is now the world's largest corporation and was the first retail outlet ever to top the Fortune 500.
The company is currently raking in more than $200 billion in sales annually and its success can be attributed to a single factor: It offers consumers what they want. And what consumers want are quality goods at cheap prices.
Wal-Mart cannot be faulted for the efficiency with which it provides for its customers, and its customers can't be faulted for taking advantage of the deals.
Another effect that Wal-Mart's low prices and wages seem to have on the economy is that they drive down overall retail wages in many communities. The planned opening of dozens of superstores in California and the anticipated effect on local wages was a central factor in the late 2003 labor dispute between our three major supermarket chains: Ralph's, Vons and Albertson's and the United Food and Commercial Workers.
It is no company's business to see to it that wages are kept high. On the contrary, any manager or executive at any company would be negligent if he or she wasn't paying its employees as low a wage as possible.
The bottom line is that a corporation's main concern is the bottom line; how to increase profits and keep costumers coming through the door.
As harsh as this may seem, it is the American way.
Wal-Mart is a model for free-market economy success. Obviously, there has to be some fallout in the wake of the competition, which Wal-Mart is currently winning. But what can you do? That's what America is about, right? Competition.
In this era of globalization, companies like Wal-Mart are able to go to any part of the world in order to get the cheapest goods they can for their customers. They're able to buy cheaper wholesale goods in China, Mexico or Bangladesh and would be remiss not to do so.
It just happens that the Wal-Mart Corporation is the most efficient at it. But even as Wal-Mart wipes out competition and eliminates jobs, keep in mind that it also creates jobs. Someone has to work at the Wal-Mart Supercenters as they continue to crop up all over the world. The company employs 1.3 million people in the U.S. alone.
Wal-Mart is now the world's largest corporation and was the first retail outlet ever to top the Fortune 500.
The company is currently raking in more than $200 billion in sales annually and its success can be attributed to a single factor: It offers consumers what they want. And what consumers want are quality goods at cheap prices.
Wal-Mart cannot be faulted for the efficiency with which it provides for its customers, and its customers can't be faulted for taking advantage of the deals.
Another effect that Wal-Mart's low prices and wages seem to have on the economy is that they drive down overall retail wages in many communities. The planned opening of dozens of superstores in California and the anticipated effect on local wages was a central factor in the late 2003 labor dispute between our three major supermarket chains: Ralph's, Vons and Albertson's and the United Food and Commercial Workers.
It is no company's business to see to it that wages are kept high. On the contrary, any manager or executive at any company would be negligent if he or she wasn't paying its employees as low a wage as possible.
The bottom line is that a corporation's main concern is the bottom line; how to increase profits and keep costumers coming through the door.
As harsh as this may seem, it is the American way.
Wal-Mart is a model for free-market economy success. Obviously, there has to be some fallout in the wake of the competition, which Wal-Mart is currently winning. But what can you do? That's what America is about, right? Competition.
