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As a result, its suppliers become dependant on Wal-Mart. They constantly have to reduce prices for their products, as well as fulfill other requirements of Wal-Mart. In case the partnership with Wal-Mart is broken, the company is likely to become out of business. Rubbermaid Company experienced a similar situation. They used to have tight relationships, and for Rubbermaid no customer was more important than Wal-Mart. In 1994 Rubbermaid Company was highly estimated for the quality of produced goods (Muscling Manufacturers, 2004). For some time both companies were satisfied with their partnership. However, once Rubbermaid made an attempt to claim for price increase, Wal-Mart not only rejected, but dropped a number of Rubbermaid goods. It balked the supply of Rubbermaid products, which resulted in considerable financial losses. Such vindictive actions of Wal-Mart resulted in gradual decline of Rubbermaid business. Thousands of its employees lost their jobs, while Wal-Mart still maintains its brilliant reputation and incredible popularity with customers. Rubbermaid and Wal-Mart showed two absolutely different ways to organize US economy. This argument proves that in spite of visible benefits of Wal-Mart business, there is also a negative influence on the US income. Wal-Mart always tries to reduce prices, which naturally affects suppliers. And if the latter are no longer able to reduce prices, Wal-Mart looks for someone else, while supplying companies loose their clients and turn bankrupts.
6. Having covered all the above stated questions, it is important to answer the summarizing one. Is Wal-Mart good for America? The answer to this question can be argued about. On the one hand, it is a highly profitable business, and what is good for business, is good for national economy. For more than a decade, Wal-Mart has been the best friend of customers, selling everything from electronic devices and cloths to food products at incredibly low prices. The reverse side of it lies in low wages, dissatisfactory health insurance and a toilsome work oversees. Some researchers consider it a destructive business organization; others keep to the point that the main purpose of any business is satisfaction of customers’ needs. In this regard, Wal-Mart may be considered an ideal example of a successful business for others to follow. However, Wal-Mart greatly affects economy of the country. According to statistics, in 2001 Wal-Mart has decreased the level of inflation by 15%, which means a considerable sum of money (Edid, 2005). Despite the fact that many people have a negative attitude to Wal-Mart and complain about the store chain system, 97% of Americans visit Wal-Mart at least once a year. Many of them just can’t help it, as it gives a good opportunity to save a considerable sum of money.

Works Cited
Frontline: Is Wal-Mart Good for America? 16 Nov. 2006 25 Feb. 2008.
Edid, Maralyn. The Good, the Bad and Wal-Mart. Institute of Workplace Studies. 3 Apr.2005. 25 Feb. 2008
Lieberman, David. Weber: Rationalization of Modern Society: State, Economy and Law. University of California, 2006.
Ritzer, George. McDonaldization of Society. New Century Edition, 2003.
Semmens, John. Wal-Mart is Good for the Economy. The Freeman: Ideas on Liberty. 23 Aug.2006. 25 Feb. 2008.

 

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