Despite having several qualities of a monopoly, Wal-Mart has actually been struggling since the great recession. As of the beginning of the fiscal year 2017, Wal-Mart's operating expenses as a percentage of net sales increased 21.8%, meaning that its net operating revenue fell 10.4% (to 5.11 billion). Things like the great recession in 2008, labor lawsuits, as well as government legislature such as cutting funding for food stamps, all effect Wal-Mart's profitability.
The great recession (in which there was a consistent decrease in GDP from 2007-2009) impacted Wal-Mart's profits. This effect is not unique to Wal-Mart, as recessions historically have a negative effect on consumer spending, and Wal-Mart is one victim among many.
Another major factor effecting Wal-Mart are labor lawsuits. As a major producer and employer, Wal-Mart receives a high degree of public scrutiny. In 2016, Wal-Mart lost a 224millionlawsuitsfordeprivingworkersoflunchbreaks.SettlingonthisandotherlawsuitswilleffectWal−Mart′soverallrevenue.Lastly,governmentlaborlawshavebeenbroughtonWal−Martinrecentyears.Onesuchlaborlawisthelawthatprotectsworkers′abilitiestoengageinlegallysanctionedprotests.Allegedly,Wal−Martthreatenedworkerswhodidthis.Whilethisisnotawage−relatedcomplaintspecifically,Wal−Martwillhavetopaylegalfeesandinvestinpublicrelationsexpensestocombatlawsuitslikethisone.Still,Wal−Marthasraisedwagesto11 effective in 2018, and expanded its maternity benefits. It stands to remain a behemoth in the retail world.
https://occupydemocrats.com/2016/04/11/walmart-loses-224-million-lawsuit-186000-workers-retailer-stole-workers-lunch-breaks/
https://www.reuters.com/article/us-walmart-labor-idUSBREA0E1PY20140115
Thursday, December 13, 2018
What economic principles are affecting Walmart, and what are their positives and negatives?
Subscribe to:
Post Comments (Atom)
What is the theme of the chapter Lead?
Primo Levi's complex probing of the Holocaust, including his survival of Auschwitz and pre- and post-war life, is organized around indiv...
-
The statement "Development policy needs to be about poor people, not just poor countries," carries a lot of baggage. Let's dis...
-
Primo Levi's complex probing of the Holocaust, including his survival of Auschwitz and pre- and post-war life, is organized around indiv...
-
De Gouges's Declaration of the Rights of Woman was enormously influential. We can see its influences on early English feminist Mary Woll...
-
As if Hamlet were not obsessed enough with death, his uncovering of the skull of Yorick, the court jester from his youth, really sets him of...
-
"Mistaken Identity" is an amusing anecdote recounted by the famous author Mark Twain about an experience he once had while traveli...
-
James is very unhappy on a number of occasions throughout the story, but he's especially unhappy with his life situation as the story be...
-
The difference between Charlie at the beginning and the ending of the story Flowers for Algernon by Daniel Keyes lies in his degree of conte...
No comments:
Post a Comment