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LSBF Global MBA - Case Study: Walmart walmart harvard case study.

InPresident Franklin D. Roosevelt signed the Fair Labor Standards Act into law, creating the first national minimum wage. The legislation came as a result of newfound interest among corporate retailers, particularly Wal-Mart, in development in the District.

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Wal-Mart, known for paying its employees lower wages and providing skimpy benefits compared to other retailers, experienced strikes on Black Friday as an employee response to these conditions. The retailer originally planned to construct and operate six new stores in the District. Proponents of the bill felt that its targeted approach toward big box stores would work to hold accountable large retailers that paid relatively low wages to their employees. According to a document drafted by Craig K. This drop, according to Lawrence Mishel here the liberal-leaning Economic Policy Institute, has led to increased wage inequality and a widening walmart harvard case study between the wealthy and the lower class.

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Large retailers have increasingly pursued walmart harvard case study development due to over-saturation of suburban markets across the country. When large retailers like Wal-Mart enter an urban setting, small businesses that define a neighborhood or a central business district are slowly driven out, removing some of the local cachet of the neighborhood or district.

InMaryland passed a bill requiring businesses walmart harvard case study 10, or more employees in the state to channel at least eight percent of their payroll to healthcare costs for employees. Wal-Mart was the only employer in the state that both met the 10,employee requirement and fell below the eight percent read article. However, no local or state government has attempted to institute changes as quickly as the District did with the LRAA, increasing the minimum wage for Wal-Mart and stores like it by two or three dollars in only two or three years.

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Opponents of the bill, including District Councilwoman and Mayor-Elect Muriel Bowser, felt that passing the bill would be detrimental to District citizens. Thus, any development, even if it meant a less-than-ideal wage situation, would have a positive effect on the community. Perhaps Bowser is correct.

walmart harvard case study

Of the six locations Wal-Mart is currently opening, none could have been described as part of a truly affluent neighborhood. One store is located in the Mount Vernon Triangle neighborhood, an area with a high rate of development and an accompanying high rent.

Case Study Walmart

Good or bad, following the proposal of the LRAA, Wal-Mart struck back by threatening to stop building three of the six stores that were already under construction and to not even consider the other harvad, which were still in the development phase. Since the veto, Wal-Mart has opened two stores inside of the District and is developing and constructing three more; one other store is in the works, but Wal-Mart has not yet found a developer for the location.

walmart harvard case study

What does this mean for the future? Perhaps little. After all, as of now the LRAA no longer carries any legislative weight. Wal-Mart has pressed on with construction and operation of its planned locations inside of the District. Gray received some walmatr for his decision from union leaders, although he received major support for his veto from many, including former District Mayor Anthony A. Although it is only one of a string of bills at the local and state level, the LRAA suggests that this could be beginning to change. Save my name, email, and website in walmart harvard case study browser for the next time I comment.]

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