Operations Management - Location - Essay Example

It has, on the other hand, proven that a number of entrepreneurs have continued to rise as Wal-Mart continues to open new stores. Fishman (2006) claims that, States that have a vast number of Wal mart stores has nearly the same concentration of small businesses just like in states with a few of the stores. In fact, it is the states that have a number of Wal mart stores that have a high number of small businesses per capita. Nevertheless, Wal mart existences in areas have negative effects top the small business owners.

After observing the effects of a number of Wal-Mart openings keenly, researchers realized a 40 percent drop in sales at nearby mass merchandise chains and also, 17 percent sales drop at the region’s supermarkets. The small businesses located in the same regions with Wal-Mart often faces huge loses or become phased out of business due to the immense Wal-Mart’s everyday low prices and also, convenient shopping. There are a number of people who think that think Wal-Mart is extremely unhealthy for a region’s small business owners.

Andrea Dean of the University of West Virginia claims that, Wal-Mart has not had a serious negative effect on the local small businesses as critics think. Instead, Wall-Mart has unleashed forces that have overtime changed the nature of small businesses in America in unexpected ways (Fishman, 2006). With the introduction of Wal-Mart in a number of states, the small businesses fell over. These large stores are large chain stores that create large branches everywhere. With the loss of the small local stores, the towns losses the community feeling and interaction with neighbors.

In big stores like the Wal-Mart, individuals behave differently than they do in the more friendlier and family like small local businesses (Fishman, 2006). These small businesses have that warm environment that slows down the pace of living, and encourages shoppers to wander around and converse. Studies have led to the conclusion that a surrounding with the small businesses tend to lead to a livelier and active community than the one with significant businesses. Pros and Cons – Town Residents The existence of Wal Mart has led to high job creations to the area residents.

The company being a large one, there will be numerous job opportunities for the area residents. Wal-Mart has also led to an increase in the region tax revenues. According to Fishman (2006), the chains will also provide a wide selection of products and services under a single roof than what is available on the small businesses. Wal-Mart also provides residents with lower prices for all of its products and services than the existing area small businesses. Wal-Mart also provides convenience to its customers through immediate, no cost, nearby, and convenience parking space.

There are, however, cons to residents where the chains become set. There are numerous allegations that Wal-Mart is in violation of the federal and also, the state wage and labor laws that require it to pay overtime wags to its workers, which enables the company to lower its costs and also sell at lower prices (Fishman, 2006). Response of a Wal-Mart Representative A Wal-Mart representative can be influential in responding to the negative criticisms along a number of sectors. Foremost, Wal-Mart will bring increased employment to the area.

The chains will provide shopping access to