Employee Reward Strategy for Heidelberg Insurance Services Assignment

Employee Reward Strategy for Heidelberg Insurance Services - Assignment Example In order to reduce the problems of lack of commitment, Poor quality performance and Lack of effective control, it is hereby recommended that the amount of times based salary in their monthly take home should be considerably reduced and a new system of commission based salary should be introduced. Commission should be directly proportionate to the volume of sales achieved by individual sales consultant. Also, the formula of higher the sales, the higher the percentage of commission should apply. Complete abandonment of fixed based salary is not recommended because it will reduce job security that may lead to high turnover. Also, if due to any reason i.e. illness, a sales consultant is not able to work for full number of days in a month; his/her commission income will sharply reduce. Thus, this fixed based salary will supplement that consultant's income in that particular month. Ultimately it will lead to enhanced commitment towards HIS. In an addition, to ensure effective checks and balances on the activities of sales consultants, amount of commission income should be made inversely proportionate to the number of complaints received against each of them. A Points System of Rewards i.e. ... Customer's feedback should also have strong impact on a sales consultant's pay package and quarterly/yearly bonus. To achieve this, customer satisfaction survey should be conducted after careful selection of sample. It will help in two ways. First of all it will make the customer feel that his/her feedback regarding the sales consultant's service to him is important to the company and thus it will develop a sense of attachment between him/her and the company. Secondly, it will help exercise effective control over the sales consultant. He/she will take great care at the time of making commitments - a problem that the company is facing and paying for by bad publicity by some unsatisfied customers. It is also highly recommended that the team of sales consultants should not be hired by one sales director only; they should be divided into 4 teams and each team headed by one team leader directly reporting to the sales director. It will be easy for team leaders and the sales director also to handle small groups of people that will help develop committed teams competing with each other in terms of sales and quality of output. Clerical Division Existing Payment System An organization's success depends not only on the performance of its sales team and / or of the senior management, the minor tasks performed by clerical staff are also important though relatively lesser than that of others. At Heidelberg, existing reward strategy does not reflects any thing that may motivate clerical staff to stay committed to the organization and to help achieve management's aim of reducing cost. Recommended Reward Strategy Since the job does not require a very high level of commitment, neither does

Isabel allende :: essays research papers

About the Author It was fifteen years ago that, Isabel Allende took the literary world by storm with the publication of The House of the Spirits, a novel which chronicled four generations of a Chilean family against the backdrop of Chile's brutal history. The Times of London heralded Allende as having "the rare ability to blend fantasy and legend with political fact and a well-plotted narrative to produce an enchanted world unlike anything else in contemporary fiction." The New York Times called the book "a unique achievement, both personal witness and possible allegory of the past, present and future of Latin America." Allende followed her impressive debut with Of Love and Shadows, Eva Luna, The Stories of Eva Luna, and The Infinite Plan, all bestsellers around the world. Critical accolades have greeted the publication of each of Allende's books, which have commonly been cited for their compassion, imagination, humor and originality. The House of the Spirits was made into a feature film with an all-star cast headed by Jeremy Irons, Meryl Streep, and Glenn Close. Of Love and Shadows, starring Antonio Banderas, was released a year later. Isabel Allende was born in Lima, Peru, in 1942 and raised in Chile, Bolivia, Europe, and the Middle East, as her peripatetic family followed her stepfather's diplomatic career. She worked as a journalist in Chile until the 1973 military coup. Allende fled her homeland, settling in Venezuela with her husband, son and daughter. "I felt, as many Chileans did, that my life had been cut into pieces, and that I had to start over again," she recalls. Isolated from her family, and in particular from her beloved grandfather who was close to death, Allende began to write a long letter in which she reassured him that the would always be kept alive in her memories. That letter grew into The House of the Spirits. PAULA, Allende's first non-fiction book is a deeply moving memoir inspired by the tragic fatal illness of her 28 year-old daughter. It, too, began as a letter from mother to daughter that becomes a meditation on a mother's life and a daughter's death.

Catchment Area Analysis for 24 Hour Fitness in Cochin

CATCHMENT AREA ANALYSIS FOR 24 HOUR FITNESS IN COCHIN, KERALA SYNOPSIS OF CATCHMENT AREA STUDY SL NOTABLE OF CONTENTSPAGE NO 1Catchment area PTA, STA, TTA2 2Vytila and vicinity7 3Property demand12 4Infrastructural growth12 5Findings14 6Strategy for 24 hour fitness14 7Reference15 CATCHMENT AREA PRIMARY TRADE AREA LOCATIONDRIVING DISTANCE Elamkulam2 mins Vytilla2mins TERTIARY TRADE AREA LOCATIONDRIVING DISTANCE Gigi Nagar15 mins Panapilly Nagar16 mins SECONDARY TRADE AREA LOCATIONDRIVING DISTANCE KSRTC BUS STAND7 mins Kadavanthara8 mins 24 Hour Fitness is an international fitness brand.The trade area is divided as primary, secondary and teritiary on the basis of time taken by drive to reach the destination. 1-5 mins drive is considered for primary, 6-10 mins for secondary and 11-15 mins for teritiary trade area. This is based on the fact that, time required to reach a fitness centre is highly deterministic. TRADE AREA ANALYSIS: PTA – PRIMARY TRADE AREA STA – SECONDARY TRA DE AREA TTA – TARTIARY TRADE AREA Primary Catchment The Primary Catchment is within 0-5 minutes’ drive to 24 Hour Fitness. The areas are: †¢Vyttila †¢ElamkulamTherefore the primary catchment of 24 Hour Fitness is strategically situated amidst the densely populated Vyttila and Elamkulam areas. Secondary Catchment The Secondary Catchment is within 5-10 minutes’ drive. The areas are: †¢Kadavanthra †¢Ponnurunni Therefore the secondary catchment of 24 Hour Fitness is the densely populated Kadavanthara which is a residential area. Tertiary Catchment The Tertiary Catchment is within 10-20 minutes of drive time. The areas are: †¢Giri Nagar †¢Panampilly Nagar †¢Chalikkavattom Therefore the tertiary catchment of 24 Hour Fitness is the thickly populatedGiri Nagar, Panampilly Nagar and Chalikkavattom which is a core residential area. The primary, secondary and teritiary trade areas cover the important and potential residential areas of Coc hin. The target consumers of 24 hour fitness can easily access the brand with this location. Road Ways The Sahodaran Ayyapan road from west to Vytila is common for all the target consumers from Kadavanthara, Panampally, Kaloor. This is the primary roadway for 24 Hour fitness. This location completely restricts the flow of customers to the Gold Gym Vytila, which is a competition. The Edapally Vytila road brings in customers from north.These are the primary roadways which is sccesible for the target customers. It is giving a direct competition to Gold Gym, Vytila, which is comparatively low priced and infrastructuraly poor compared to 24 Hour Fitness. Vytila and vicinity Vyttila is an intersection as well as the name of a region in the city of Kochi, in the state of Kerala, India. It is one of the largest as well as the busiest intersections in Kerala. This node intersects the main north-south artery of the state of Kerala, namely, the National Highway 47, with three city roads of Koc hi viz, the S. A.Road (east-west), the Vyttila-Petta Road, and the Thammanam Road. Vyttila hosts the Kochi Mobility Hub, which converges different ways of surface transport (namely, local as well as long distance buses, rail, Metro Railand inland water transport) to the city onto a single node. Institutions Vyttila is home to hospitals like the Welcare Hospital and the Mother & Child Hospital. The State Bank of India, State Bank of Travancore, Punjab National Bank, Corporation Bank, Vijaya Bank,Bank of Baroda, Federal Bank, South Indian Bank all have branches in this area. Toc H Public School, St. Rita's H.S Ponnurunni, C. K. C. L. P. S are schools located in Vyttila. There are several supermarkets (prominent among them include V-Mart and the Margin Free Market chain of mini-super markets) in this area in addition to several mom & pop stores and pharmacies. Eateries like K. R Bakes, Aryaas, Best Bakers, delight Bakers and traditional ‘Thattukadas' are also decent hangouts for people across age groups in the junction. Schools Vyttila hosts the following schools ?Toc H Public School ?C. K. C Girls High School, Ponnurunni ?St. Rita's Boy's High School, Ponnurunni Hospitals ?Welcare Hospital Mother & Child Hospital ?Ranjini Eye Hospital Shopping and entertainment The Kundannoor-Edapally streatch of the National Highway 47 passing through Vyttila, is home for the largest malls in the state of Kerala. The Largest shopping mall in the state – Gold Souk is located in Vyttila on NH Bypass. The mall has 4 Screen Multiplex Cinemas, Spacious Hypermarkets, Food courts, Restaurants and branded retail outlets. There are several supermarkets (prominent among them include V-Mart and the Margin Free Market chain of mini-super markets) in this area in addition to several mom & pop stores and pharmacies.Eateries like K. R Bakes, Aryaas, Best Bakers, delight Bakers and traditional ‘Thattukadas' are also decent hangouts for people across age groups in the junctio n. The Oberon Mall, one of biggest malls in Kochi with its cinemax theatres, is also situated along the way from Vyttila to Edappally. Real Estate, Builders and Apartments: †¢Confident Group †¢Mather Group †¢Good Day properties †¢Mansions †¢Good earth †¢Aurora †¢Siddhi †¢Dubex River garden †¢Real India †¢VKL group †¢Sri Ram Krishna Builders †¢Skyline Orion Villa †¢Santhi Shreyas †¢Jewel Homes †¢Water Lilly Premium apartments Financial Institutions Axis Bank †¢Icici Bank †¢Bank of Baroda †¢South Indian Bank †¢State Bank of India †¢Thammanam Service Co-operative Bank Restaurants †¢Pizza Hut †¢Hotel Aryas †¢Smoke House †¢Muruga Hotel †¢Qualis Hotel †¢Hotel Anugraha †¢Albarad Restaurant †¢Nyle Plaza †¢Janahridayam †¢Hotel Mermaid Property Demand The proposed site is between the Vytila Junction and Elamkulam Bridge. The property cost at thi s site averages to 10-12 lakhs per cent. This is one of the most demanded properties in Cochin. This is because of the high residential potential and the emergence of Vytila as the second business centre of Cochin.There has been a drastic increase in the land prices at Vytila over years due to this factor. Infrastructural Growth With the advent of the Vytila mobility hub Vytila is also expecting a major infrastructural change. The Cochin metro is proposed to be passing through Vytila. Recent talks between policy makers indicate that the metro may have a metro stop at Vytila. With operations of Cochin Metro service more people will have direct access to the GYM, within minutes, thus increasing the trade area of the fitness centre. This aspect is also considered while selecting the current location. FINDINGSThe proposed site for 24 Hour Fitness in Cochin has advantages as well as disadvantages. Though the property costs are high, the site attracts the major target customers if located at the proposed site. The site between Elamkulam Bridge and Vytila Junction covers major residential areas covering middle and high class men and women at Vytila, Kaloor, Panampally Nagar, Kadavanthara etc. The site is centre to many apartments where target customers live in. The site directly gives competition to Gold Gym blocking their accessibility through the west road entering Vytila. There have been huge developments in infrastructure.The Cochin metro can bring in customers from far city within minutes to the site as the metro passes directly over the place. Strategy for 24 Hour Fitness The International Fitness brand can definitely enter the Cochin market with their fitness message. There has been an increase in the fitness concerns with the people in Cochin. The proximity to the fitness centre is a major concern for all the members of the brand. Taking this factor into account and to attract maximum number of target customers, 24 Hour Fitness can adopt following strategies. †¢High accessibility †¢Good parking facilities †¢Loyalty schemes Separate training hours for non-working women †¢Separate Training hours for working men and women There cannot be any spill over effect for 24 hour fitness with this site. This is because the place is void of any corporate offices from where employees may prefer to go to the fitness centre prior work. This move is based on the fact that this spill over will not account for a high attraction of customers. 24 Hour Fitness can even facilitate transport facilities to achieve high attraction. Sources and Reference †¢Goole Maps †¢ICICI PROPERTY REPORT †¢NEWSPAPER ARTICLE – TIMES PROPERTY †¢24 HOUR FITNESS OFFICIAL WEBSITE

The Russian Financial Crisis of 1998 - 2163 Words

Introduction A financial crisis can be characterized by the rapid decrease in the value of financial institutions or assets. It is also common for investors to panic and withdraw money from their savings or sell off investments in anticipation of the depreciation in their value. This can be clearly seen in the Russian Financial Crisis of 1998. In the midst of making the transition from communism to capitalism, the Russian economy experienced more trouble than it had anticipated. This became not only a fiscal issue but also became very social and political. The people of Russia experienced exceptional hardships. This paper will illustrate the major shocks to the Russian foreign exchange reserves. These shocks include the Asian Financial Crisis of 1997 and the decline in demand and price for Russia’s top exports. The role played by foreign investors in the crisis and what effects these players had on the devaluation of the ruble will be analyzed. The Russian Financial Crisis of 1998 caused the devaluation of the ruble and ultimately forced the Russian Central Bank to default on its own debt. The government’s attempts at saving the country from crisis were in vain and lead to the call for resignation of President Boris Yeltsin. Background After 1991, Russia decided to make the move from communism to capitalism. This was projected to bring prosperity in Russia, the likes of which had never been seen. This move by President Boris Yeltsin meant that he renounced his affiliationShow MoreRelatedRussian Financial Crisis (1998)4161 Words   |  17 PagesTopic 3: Russian financial crisis (1998) 1.0 Introduction Affected by the Southeast Asian financial crisis, Russia suffered from the financial crisis in May 1998 followed the crisis in October 1997. The crisis initially reflected on currency market and security market. As a result, foreign capital about one-third of the total amount of Russian national debts faced large-scale capital flight; exchange rate depreciated and stock market suffered a large setback; re-lending interest rate onceRead MoreThe Collapse Of The Soviet Union1649 Words   |  7 Pagesinstability and continued to weaken throughout the 1990s. The situation escalated until the point of financial collapse on August 17, 1998, resulting in a 90-day suspension on payment to foreign creditors, a default on domestic debt, the devaluation of the ruble and as a consequence, an increase in all debts denominated in foreign currencies. 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In 1998, the family had been planning to raise a $200-$400 million through equity and debt offering for the company on the NYSE (New York Stock Exchange), in aim to finance major investments because of the increasing competition from international beer companies in the Russian market. In August 1998, there was a massive devaluation of the rouble that led to a 90% decrease in the stock price ofRead MoreFinancial Crisis Across The World Since Currency Essay2225 Words   |  9 PagesThere has been financial crisis across the world since currency came about. It started with the barter system which allowed people to trade goods and services but this sometimes proved to be more difficult than beneficial. Then around 600 B.C., coins and currency came about. Since then currency went from being precious metals to paper money. With the development of currency, came international trade. â€Å"Banks and the ruling classes started buying currencies from other nations and created the firstRead MoreFinancial Crisis Across The World Since Currency Essay2229 Words   |  9 PagesThere has been a financial crisis across the world since currency came about. It started with the barter system which allowed people to trade goods and services, but this sometimes proved to be more dif ficult than beneficial. Then around 600 B.C., coins and currency came about. Since then currency went from being precious metals to paper money. With the development of currency, came international trade. â€Å"Banks and the ruling classes started buying currencies from other nations and created the firstRead MoreIntroduction. With Russia Being One Of The Largest Countries849 Words   |  4 Pageshas taken a big turn in evolving drastically over the years. In terms of the Russian Federation, they have a GDP of 2.097 trillion USD and a GNI of 3.328 PPP dollars. The currency in which Russia utilizes on a day-to-day basis is called the Russian ruble. One Russian ruble would be equivalent to 0.018 USD when converting currencies. With its former name being the Soviet ruble, it was changed in 1992 to adhere to the Russian Federation as the ending of the collapse of the Soviet Union occurred. SpeakingRead MoreRussian Federation and United Kingdom: Comparison of Economy1660 Words   |  7 Pagesï » ¿CONTENT INTRODUCTION The report gives information about main macroeconomic models which were applied to Russian Federation and United Kingdom. It consists of three parts. First part is dedicated to the identification of macroeconomic models for Russia and UK. The second part is about main macroeconomic changes between 2005 and 2012 in Russia and UK. Finally, effects of increase in interest rate by Bank of England to Russia and UK wereRead MoreRussian Crisis6897 Words   |  28 PagesA Case Study of a Currency Crisis: The Russian Default of 1998 Abbigail J. Chiodo and Michael T. Owyang currency crisis can be defined as a speculative attack on a country’s currency that can result in a forced devaluation and possible debt default. One example of a currency crisis occurred in Russia in 1998 and led to the devaluation of the ruble and the default on public and private debt.1 Currency crises such as Russia’s are often thought to emerge from a variety of economic conditions, suchRead More The Causes and Consequences of the Russian Crisis of 1998 Essay2215 Words   |  9 Pages The causes and consequences of the Russian crisis of 1998 The period 1995 to mid-1997 was boom time for Russia’s financial markets. The value of the Russian bonds and stocks soared, with the participation of foreigners in these asset markets increasing rapidly. International investors’ optimism about the country’s future was lifted by stabilization policy that followed the advice of Western institutions. Russian crisis of 1998 were caused due to a number of factors, the investor risk aversion

Jay Gatsby and the American Dream - 563 Words

Jay Gatsby and the American Dream The Great Gatsby is a very famous novel by F. Scott Fitzgerald that goes back to the 1920’s. The book is narrated by a man who actually witnessed the events and took part in these events, and his name is Nick Carraway. Through his narration, we learn about a man whose real man is James Gatz, but he goes by the name Jay Gatsby. He continuously calls people â€Å"old sport.† (Fitzgerald, 161) He lives in a mansion on West Egg near where Nick lives. He was raised on a farm with a poor family in North Dakota. This makes us wonder how he rose to having such fortune. Well he did do it illegally, as in this time period; it was one way people made money if they could not do it any other way. As his life progressed, he became interested in other women; we find out later that he really loved Daisy Buchanan for a while. Daisy is a sweet beautiful young lady that Tom married when Jay was looking to get an education. He would throw parties all the time to achieve one ultimate goal and that was to get Daisy to fall in love with him, and achieving his version of the American Dream with Daisy is a goal that Jay wanted to achieve but there were a couple of obstacles in the way. Gatsby’s small goal in order to achieve his ultimate goal was to become wealthy, and he did with bad intentions. When Tom had already been married to Daisy, it increased the determination of Jay to get her. It does not make a lot of sense, but this is what he wanted to do in order toShow MoreRelatedJay Gatsby s American Dream2866 Words   |  12 PagesLauren Sizemore ENGL 204-1 Dr. Peterman October 15, 2014 Research Paper Draft #3 Jay Gatsby’s American Dream Ever since its publication in April 1925, F. Scott Fitzgerald’s novel â€Å"The Great Gatsby† has become one of the most criticized, cited, and analytical pieces of fiction in American literature history. It is a great representation of an era known as the Jazz Age when anything and everything was possible, or at least that is what people thought. Fitzgerald provides the reader with an insightRead MoreEssay about Jay Gatsby and the American Dream882 Words   |  4 Pagesworld work countless hours of their lives to fulfill their dreams. In America, many people strive to make the money necessary for them to be able to buy, what they believe, will truly make them happy. In the majority of cases, this is known as the American Dream. In â€Å"The Great Gatsby† by F. Scott Fitzgerald, Jay Gatsby is a man that comes up from nothing and becomes involved in criminal activity to live out his version of the American Dream. Gatsby’s case is similar to Charlie Wales from â€Å"Babylon Revisited†Read MoreThe Failure Of Jay Gatsby s American Dream911 Words   |  4 PagesThe Failure of Jay Gatsby‘s American Dream During the 1920‘s, people believed in the idea of the American Dream. It was a dream that everyone was trying to accomplish. It was a dream of a wonderful life. Gatsby was one of the main characters who was parsuing that wonderful life. The one and only thing that was tearing him apart from inside, was not having a girl who once was his girlfriend, Daisy. F. Scott Fitzgerald, the author of The Great Gatsby highlights the meaning of the green color as aRead More Willy Loman, Jay Gatsby, and the Pursuit of the American Dream798 Words   |  4 PagesWilly Loman, Jay Gatsby, and the Pursuit of the American Dream Scott Fitzgerald, author of The Great Gatsby, and Arthur Miller, author of Death of a Salesman, both tell the stories of men in the costly pursuit of the American dream. As a result of several conflicts, both external and internal, both characters experience an extinction of the one thing that they have set their sights on.... The American Dream. Jay Gatsby, a mysterious, young and very wealthyRead MoreWilly Loman, Jay Gatsby, and the American Dream Essay736 Words   |  3 PagesGatsby and Loman My own life’s dream is to have a career in which I can surround myself in music. I will not let anything stand between my dream and I; however, I will never allow my dream to come between myself and my loved ones, or my reality. Many have already fallen victim to the pursuit of the American Dream – a fantastic projection of life that varies based upon its dreamer. However, the road to the American Dream, if followed blindly, can lead to nothing more than a dead end. In The GreatRead MoreThe American Dream as Shown Through Jay Gatsby Essay2729 Words   |  11 Pages Jay Gatsby becomes so enthralled in his American Dream and the immoral means that he would use to obtain it, however, that he could not see foreboding events around him. He acts in a manner of obliviousness when many of the people whom he associates with mock him, such as when and an unnamed woman in Gatsby’s house in Chapter VI gives an insincere invitation for Gatsby to come to dinner and, after Ga tsby naively accepts the invitation, Tom ridicules him by asking Nick, â€Å"Doesn’t he know she doesn’tRead MoreEssay about Jay Gatsby ´s American Dream in The Great Gatsby974 Words   |  4 PagesThe ideal American Dream can be portrayed in many different ways, though generally based upon the idea of opportunity for upward mobility within society. While people move to the top of society, they accumulate the perceived good things in life: the perfect partner, high social status and respect in the workplace to go along with the unlimited wealth and power. This idea is dated all the way back to the beginning of American literature. In the past, Americans started with the basic needs and onlyRead MoreGreat Gatsby1147 Words   |  5 PagesThroughout F. Scott Fitzgeralds novel The Great Gatsby , protagonist Jay Gatsby progresses as a hero through his dedication for love, his youthful dreams, and his Christ-like persona. His passion for love reflects in his greatness; for he proves commitment, dedication, and a loving soul for others. Jay Gatsby lives the model of the American Dream in a youthful and undertaking way. Extravagance combined with dreams for success comes greatness. Gatsby also is considered a vision of Jesus Christ as theRead MoreGatsby American Dream Essay1363 Words   |  6 Pages The American Dream The great Gatsby is a classic novel in which money is centered around everything. All Jay Gatsby wants to do is live the American dream. Some say Gatsby did live the American dream. Though Gatsby made lots of money and threw tons of parties their was one thing he was missing. The thing Gatsby was missing was a peaceful state of mind and a lover. In this book written by Scott Fitzgerald called The Great Gatsby Jay Gatsby finds out the American Dream isn t attainableRead MoreThe Great Gatsby By F. Scott Fitzgerald1592 Words   |  7 PagesMcGowan English 11A, Period 4 9 January 2014 The Great Gatsby Individuals who approach life with an optimistic mindset generally have their goals established as their main priority. Driven by ambition, they are determined to fulfill their desires; without reluctance. These strong-minded individuals refuse to be influenced by negative reinforcements, and rely on hope in order to achieve their dreams. As a man of persistence, the wealthy Jay Gatsby continuously strives to reclaim the love of his life

Capitalism As A Social Problem - 1860 Words

Capitalism is a word that was essentially created by Karl Marx who founded Communism. This economic system includes a self-regulating market. Capitalism can be defined as â€Å"an economic and political system in which a country s trade and industry are controlled by private owners for profit, rather than by the state† (Oxford Dictionary). In a Capitalist society, the people own resources of main production, however, a lot of the people do not. For an individual to prosper in this type of economic system you either have to supply your own resources or sell an individual’s self to work for a salary. Some people can even get by with just receiving benefits from this system. This issue is defined as a â€Å"social problem† because it divides society†¦show more content†¦What is coupled with the two classes that are described is the main key to understanding capitalism. Capitalism is constructed on a process in which money is funded to result in more money. In the United States of America, Capitalism is the central and most important main factor that our economic system is based off of. Capitalism has been a problem in the United States sense the first ideas of it even arose. However, businesses prospers from day to day through this sense of a free enterprise economy. People in this type of society try to make as much money, get as much profit, and even try to be able to obtain the highest goals that they want before their job or occupation is officially over with. In the United States, we see this kind of action in our day to day lives every day. Individuals go to work, go to school, sell production and just repeat the same thing over and over again to try and achieve the highest status quo. Businesses are huge with banking on this free enterprise economy called Capitalism by selling their produces and giving service with little or even no government involvement. So the question is, is Capitalism a good thing or bad thing for America? Statistics show that time and time again the market collapses and the government has to step in with helping Capitalism stay within the United States, thus it ends up never actually being the perfect Capitalistic society it tries to portray. In another recent study it shows that â€Å"only 11% people

Wal-Mart Effects the Economy Free Essays

string(56) " the economy because of how Wal-Mart conducts business\." Jim Lee Eng 101: Reames December 2, 2010 Wal-Mart Greatly Impacts the U. S. Economy Is Wal-Mart ruining the local businesses in America? Most professional business men can agree that Wal-Mart affects the United States economy in many different ways. We will write a custom essay sample on Wal-Mart Effects the Economy or any similar topic only for you Order Now Wal-Mart is an American public corporation that runs a chain of large, discount department stores. It is the world’s largest public corporation by revenue according to the 2008 Fortune Global 500. However this corporation has contraverisal issues about how they do their sales and the long term affects they put in the economy. Professionals will agree that Wal-Mart has hurt many community businesses as Wal-Mart open in areas around them. There have been common statistics for when a Wal-Mart opens and the affect they have. This paper focuses on the affect Wal-Mart has in rural areas and the views of professionals intake on this topic. Also this paper will feature how Wal-Mart will affect our feature. The target audience for this paper is people who are interested in the learning of the affects of large corporations vs small businesses. When analyzing the affects of Wal-Mart many researchers will agree with the fact that small businesses lose revenue when big corporation buy for low and sell also low to beat the competition. Stone (1997) states that â€Å"Studies in Iowa have shown that some small towns lose up to 47 percent of their retail trade after 10 years of Wal-Mart stores nearby† (Pg. 2). That is a big statistic to take in as the community will suffer from a high loss of the money for the community. Also the small business helps keep the economy in flow and when small businesses start to fail, people start losing jobs and people will move out of communities which hurts the communities. Stone (1997) comments that â€Å"It is believed that this decline in sales happened because Wal-Mart placed its own stores too close together, causing a predatory effect† (Pg. 6). This statement is true because Wal-Mart uses the predatory effect to drive competitors out of business. The predatory effect is the practice of selling products and services at a very low price intending to drive competitors out of business. That is how Wal-Mart has been dominant because of their ability to sell prices so low to attract consumers to continue to shop at Wal-Mart. Wal-Mart can do this because by attracting consumers to buy certain products at a lower price that other products are raised in value and consumers will shop throughout the store. The key is to get consumers to come to your business and Wal-Mart has almost perfected that. Overall Stone would agree with the idea of Wal-Mart is ruining the local businesses around America as Wal-Mart has become a fully national chain. Understanding this topic would be important because it can tell what we will see in the future of the economy. Many would agree with Stone like Goetz and Swaminathan with the fact Wal-Mart has effects in local communities. Goetz and Swaminathan (2004) states that â€Å"We offer three possible explanations for this finding, including that Wal-Mart stores destroy civic capacity in the communities in which they locate by driving out local entrepreneurs and community leaders† (Pg. 2). This statement connects with Stone as well as my point of view of this topic. Wal-Mart has downgrade the middle class economy with their style of retail sales and buying cheap products over seas. Goetz and Swaminathan (2004) quotes that â€Å"Local leaders and academic researchers are increasingly interested in the community-level effects of â€Å"big box† retailers and discount department stores† (Pg. 3). This has potential to have a positive outcome because America will realize that Wal-Mart has affected the United States so greatly that the government needs to step in and control how Wal-Mart conducts business. Wal-Mart has received considerable and mostly negative recent public media and Congressional attention, in addition to spawning a number of hostile web-sites as Goetz and Swaminathan (2004) reports (Pg. 3). It is good that people are realizing this and speaking out about this effect on our economy. This will get this phenomenon brought up to the government level and will be talked about to high levels of authority. Goetz and Swaminathan are professionals that agree with my idea of local businesses being destroyed by Wal-Mart. Common views of professionals will agree that our economy is partly affected by the Wal-Mart effect. Neumark, Zhang, and Ciccarella (2005) will agree with Stone, Goetz, and Swaminathan by saying that â€Å"We estimate the effects of Wal-Mart stores on county-level employment and earnings, accounting for endogeneity of the location and timing of Wal-Mart openings that most likely biases the evidence against finding adverse effects of Wal-Mart stores† (Pg. 1). This is another common aspect of all these professionals with the idea that there is a negative effect behind the openings of Wal-Mart. All of the effects found are common as they reduce local businesses around new Wal-Marts. Neumark, Zhang, and Ciccarella (2005) quotes â€Å" Yet two of the most commonly-heard criticisms are that Wal-Mart eliminates more jobs than it creates for a community and that Wal-Mart’s wage levels pull down standards for all workers—not simply creating low-wage jobs, but driving down wages† (Pg. 1). Not only is the Wal-Mart effect destroying the local businesses, Wal-Mart does not help create more jobs for the jobs it loses in the community. Also Wal-Mart does not pay its workers a good wage. That can greatly affect a community because the citizens within that community will not have money to buy products, keeping the flow of the economy going. Neumark, Zhang, and Ciccarella (2005) also agrees on my idea of the topic of Wal-Mart by stating â€Å"There is also an academic literature on the impact of Wal-Mart stores, focusing on the effects of Wal-Mart openings on local employment, retail prices and sales, poverty rates, and the concentration of the retailing industry, as well as the impact on existing businesses† (Pg. ). They are basically stating that Wal-Mart impacts many aspects of the economy because of how Wal-Mart conducts business. You read "Wal-Mart Effects the Economy" in category "Essay examples" Also that the impacts are not in positive ways in which they should be when new competition arises. The fact that Wal-Mart beats out its competitors really easy is a scary weapon that Wal-Mart can abuse. In which they have abuse their power to buy bulk supplies by demanding the prices of whom they buy from instead of negoicating. Neumark, Zhang, and Ciccarella can all agree that Wal-Mart is ruining the local businesses in America. Furthermore into this topic, most professionals will all conform that Wal-Mart affects the economy in more negative ways then positive. Arindraji, William, and Barry (2007) states that â€Å"estimates that exploit the spatial diffusion of Wal-Mart stores find that a single Wal-Mart store opening reduces the average retail earnings in a county by 0. 5 – 0. 9 percent† (Pg. 4). This is not good for any economy that when a new business is open that the average retail earning is lowered instead of increased. This just means that when Wal-Mart opens it loses more of its competitor retailers then what Wal-Mart gains. Ten new Wal-Mart stores in a state are found to reduce the average hourly wage of retail workers by around 2 percent as purpose by Arindraji, William, and Barry (Pg. 4). Wal-Mart should be able to pay their workers better if they are finacnically doing well as they are ranked number one in the Fortune 500 list. They are the number one ranked corporation and they do not pay their employers above the average. Wal-Mart has been making money other then the products and services they provide. As Wal-Mart can see that they can pay their workers the minimum wage and get away with it, while making billions of dollars world wide. Arindraji, William, and Barry will confirm that Wal-Mart has been greatly impacting the economies in the where abouts they consult business. Wal-Mart has been overly competitive with the prices they put on the products and drive competition out of business. In the Lansing State Journal, Domsic reports that â€Å"The recent closings of three locally owned grocery stores reflect a traditional grocery sector struggling to compete with big-box stores and the growing number of pharmacies, convenience stores and other shops that have added more food to their lineups. The big box stores they are talking about are Wal-Mart, Meijers, and Kroger. Those stores have been competing with each other to cut prices really low, beating out the other local businesses. Competition is good but what happens when there is no competition? Then those who have beat out the other competition will have a garentee chance to always survive in the economy and basically take all the consumers in the area. Domsic a lso comments â€Å"bigger players have beefed up their food lines or cut prices as they vie for Lansing-area shoppers. The bigger players are the Wal-Mart, Meijer, and Kroger and they are competing fiercely for consumers. Even though competition is good, it is bad when some of the competition disappears from the market. Although there are many cons of Wal-Mart, Wal-Mart has many benefits as they provide low costs of products they sell. Irwin (2007) reports that â€Å"Wal-Mart’s food prices are estimated to be 8% to 27% lower than large supermarket chains for an identical market basket across different U. S. metro areas† (Pg. 1). This is a benefit for the lower and middle class to try and save money in these rough times in the United States. That is why consumers are attracted to shop at Wal-Mart because you can save money and be able to buy other things. Irwin expresses this benefit as â€Å"This has generated tremendous savings for Wal-Mart consumers by offering lower priced goods in the community, and generating competition among retailers† (Pg. 1). Wal-Mart creates unbelievable savings for its consumers therefore keeps the competition alive for Wal-Mart’s competitors. Also that competition is very good for the economy in the United States. Those are some ways that Wal-Mart impacts the business industry in positive ways. Those are not just the ways that Wal-Mart has benefited America. Wal-Mart has helped personal income and employment. Riper (2008) quotes â€Å"The study shows that between 1985 and 2003, personal income, overall employment and retail employment grew faster in counties with a Wal-Mart than in those without one. † This means that the more Wal-Mart is built around the United States and other countries that it will benefit income of people and help raise employment in the area. That is a good because then people would have more money to help keep that economic flow in communities going. Also the rise in employment will improve the surrounding unemployment of the location Wal-Mart is around. Nearly 90% of the U. S. population lives within 15 miles of a Wal-Mart store, and two-thirds of all retailers are located within five miles of one as Riper reports. That means a vast majority of America is surrounded by a Wal-Mart close by. This is good for Wal-Mart as they can be easily located and can be accessible to almost anyone. Wal-Mart is everywhere and that is a huge benefit Wal-Mart has over its competitors. Wal-Mart has brought up some good positive impacts as there are aproximatly 3,600 Wal-Marts in the United States. One of the impacts is the amount of jobs each Wal-Mart creates as Wal-Mart’s site cites â€Å"Approximately 350 new positions will be needed at the store (a majority of those positions will be full time). An additional 100 construction jobs will be created. † That means there are 1. 26 million jobs in America that are in the Wal-Mart industry. Also that 360,000 construction jobs was created for the building of Wal-Mart. As long as Wal-Mart is doing well with profits, they will continue to expand new Wal-Marts. This will mean more jobs in America. Another good impact Wal-Mart has is how they provide savings to consumers as the Wal-Mart site reports â€Å"Studies have shown that Walmart stores save the average household $3,406. 00 a year. Customers can purchase over 300 generic pharmaceutical drugs for just $4. 00 or less. † The amount you save at Wal-Mart builds up as you can see. That helps citizens save money if there income is sufficiently low or on certain budgets. Not only do Wal-Mart provide savings for its consumers and employment, Wal-Mart has been involved in the environment by stating that â€Å"Wal-mart is leading a global sustainability effort to reduce energy consumption through a variety of initiatives that will also be used at this store. The store will purchase a number of grocery and garden products locally to save energy costs and support the local economy. † That helps Wal-Mart with its community respect to be involve and not just a average corporation that does not care about the itself. Also this tells that Wal-Mart cares about the environment and not just making profits. Overall, Wal-Mart is a benefit to the American economy. Wal-Mart has not been selfish at all in communities like Landover Hills. Wal-Mart has started up a program to help local businesses. Mui reports that â€Å"Wal-Mart said it would offer free advertising to local stores and seminars on how to do business and even compete with Wal-Mart. † This is something that is rarely done in the business world. A competitor helping another competitor out. This would help competition around the area and benefit the local stores into competing with Wal-Mart. Many people think having Wal-Mart around is a benefit. Mui quotes â€Å"Other store owners credit Wal-Mart for boosting their sales, through both its proximity and community outreach programs. † Local businessmen are claiming that having a Wal-Mart around is a benefit. Somehow Wal-Mart has continue to benefit some people while some others do not believe so. Wal-Mart has brought up many views on how they affect the competition and how the employment is affect in several different ways. My opinion on Wal-Mart is that Wal-Mart is destroying the American middle class slowly every year. Wal-Mart closes individual business owners and reduces competition in which an economy like America, competition keeps the economy in steady flow. Also that they are like a monopoly to me. Wal-Mart is not just a discount retail store. They provide all sorts of different services like eye examinations, haircuts, predacures, and they can provide and activate cell phones on the Wal-Mart plan. Wal-Mart is exploring all markets and providing them into their own stores. That is not a good impact because Wal-Mart already dominates in the retail store and driving other retail stores and local businesses out of work, so providing these services just keeps Wal-Mart in benefits from those services. I believe that the government needs to take a bigger stand on what Wal-Mart can do because Wal-Mart has been changing so rapidly and dominating any corporation out there, that the government should regulate how they buy supplies. Wal-Mart buys most of their products for their shelves from China for low prices. Thus, making a lot of job losses in America. How can an American corporation do this to America? Wal-Mart also does not have health benefits for its workers and Wal-Mart pays low wages for its workers. That does not help out the working class of the United States. Our economy is not doing so well right now as we are in debt from war. Wal-Mart should help stable the economy since they done some damage to the United States in ways the Founder of Wal-Mart should have knowledge about and try to find new ways to conduct business. How to cite Wal-Mart Effects the Economy, Essay examples