Is Wal-mart Good for America?

Answer the following questions as you view the documentary.

1. What did you notice at the Wal-Mart shareholders meeting? Do you think this is
different from other shareholders' meetings? If yes, in what ways?
- Very different
- Mass meetings (stadium)
- Chant
- Team Wal-mart
- Celebrities (Halle Berry & Susan Lucci)
- Fun, upbeat atmosphere

2. How is Wal-Mart able to keep track of its inventory? Why is this important? List the
effects this has on producers.
- Telson (super computer)
- history, sale price, trend prices (encyclopedia)

- speedier delivery
- orders generated every night
- more available to customers

3. Trace the decline of Rubbermaid from 1994 to 2004. What factors most contributed to
this decline?
- Resin price increased (raw material)
- Wal-mart would not take price increase
- Dropped products
- Rubbermaid sold to Newell (sold all assets & jobs lost)

4. What is an opening price point? How does it influence sales?

- Cheapest item in the line (rock bottom price)

- lure customers in, see what they want to purchase (not always lowest price)

5. Wal-Mart started a campaign encouraging people to buy products that were made in
America. What influence did this have on Wal-Mart's buying practices? Be specific!
- Aggressive growth
- 1991, biggest retailer in USA
- Stock began to fall ($20.00)
- Began to purchase goods from China & move companies to China
 6. In 1994, President Clinton said that new trade agreements would create a market for
American products in China. What happened to the United States companies after
opening trade with China? Include statistics, companies and places.

Schengen, China Long Beach, California

- 3rd largest busiest port in the world
- WM imports $15 billion worth of goods
from China each year
- 90% imports to N. America & Europe
- WM accounts for almost all sales to USA
every year
- 35 WM Supercenters in China
- $36 billion worth of consumer products
(shoes, clothing, machinery, toys) in
- $3 billion raw materials (cotton, hides,
scrap metal, waste paper) out
- $120 billion trade deficit with China
(2003)

7. List the arguments in favor of outsourcing and those that are against it.
- more $ to purchase goods b/c of savings

- WM in favor (cheaper)

8. Compare the situation at Five Rivers Electronics and the Thomson Plant.
Thompson
Problem - made glass portion of TVs
- plants closing b/c of foreign
competition (Chinese)
- Chinese produced for prices USA
could not match
- products sold at all major
retailers
- 2003 lost the Sanyo contract b/c
WM demanded price
Result - plant shut down May 2003?
- glass cheaper from China
- 1000 ppl lost jobs
- uncertain futures
- less job opportunities for
future generations
Five Rivers
- 11% imports from China
- 1/3 of high end TVs ($350
million)
- filed trade complaint against
China (selling below market $)
- WM testified against Five Rivers
- Five Rivers won the case
- new import duties, higher
Chinese prices
- Five Rivers more competitive