China, India, and Wal-Mart: Issues of Price, Quality, and Sourcing Essay

1. What are the honourable issues helperd with Wal-Marts extensive sourcing of low-cost products from mainland China? Wal-Mart pricing is too low. As the worlds largest retailer, Wal-Mart leverages its huge orders to prevail on _or_ upon factories to sell goods at low prices that are not sustainable. This puts pressure on some other brands to abide less, thereby setting a dangerous application precedent. According to Correspondent Hedrick Smith We heard that story once much and again from Ameri mickle manufacturers in sectors as diverse as electronics, apparel, bicycles, furniture, and textiles.They expressed private dismay at the relentless pressure from the likes of Wal-Mart and Target to cut cost to the bone in America and then, when that did not satisfy the mass retailers, more pressure to move production to China or elsewhere offshore. only if most did not dare to go on camera and spot their story publicly for fear of jeopardizing their remaining sales to Wal-Mart. (Sm ith) Another ethical issue is safety of the products we receive and the working conditions of the outsourced employees.From the Wal-Mart routinely turns a craft eye to poor conditions in supplier factories unless investigations are made public. retailer admits fire safety aspects are not adequately covered in ethical sourcing audits. (Yardley) Wal-Mart needs more transparent ethical sourcing efforts. Wal-Mart buys more than $1 billion in garments from Bangladesh each year, attracted by the countrys $37-a-month lower limit wage, the lowest in the world.(Yardley)2. Based on your experience, does Wal-Mart sacrifice product part in order to offer guests low prices always?Yes. I gaint really shop at Wal-Mart anymore. I dont believe the price you pay is for a quality product. I would instead save up my money and buy it from another retailer with a good reputation. I believe in the ordaining You get what you pay for. I wealthy person a problem with how they treat employees and when you go in the stores these days there are definite operation issuesCustomers and analysts have discover the operational problems in the stores, Wal-Mart associates have felt the impact most acutely. In the first national independent poll of Wal-Mart associates, conducted by Lake Research Partners in May and June of 2011, concerns about staffing levels were broadly cited by associates among top three things they would alter with the company, after higher pay and more respect on the job.Among the other findings * Nearly utter understaffing has created problems such as stock-outs, messy stores and poor customer service * In contrast to company statements regarding high levels of employee satisfaction, 84% say they would take a better job if they could find one * say they are living paycheck to paycheck only 14% appoint their household as living comfortably.Across the country the reductions in staffing have translated into significantly increased workloads. A few examples convey the scale of the changes* An associate in the electronics department in Southern California There employ to be four or five people in consumer electronics at any given time, now its one or both * An associate in overnight stocking in Southern California I used to do five pallets a night, now they say I have to do 12 * A former assistant passenger car in Seattle Our store used to have about 600 employees, now its about 350. (Marshall)What advice would you give to critics of Wal-Mart in order to parent their impact on the company? To enhance their impact on governmental and regulatory agencies? To enhance their impact on society in general?I cant seem to think of anything or in my research, it has all been negative. I would love to hear what others in our class had to say on this offspring and the problem lies that I am not a fan either.