Land of Hope and Walmart!

The global downturn has seen many large and small firms file for bankruptcy and cease trading. It has become a common scene to see streets that were once full and bustling to go into decline in both the number of consumers and number of stores in existence. The negative multiplier effect of these scenes are being witnessed in towns, cities and countries over the last number of months. Closing firms lead to unemployment and reduced disposable income.

A shining star has appeared in the USA with the announcement that Walmart is to create 22000 jobs in 2009. The firm announced that “we’re proud to be able to create quality jobs for thousands of Americans this year,” Eduardo Castro-Wright, vice chairman of Wal-Mart Stores, said in a statement. “At Wal-Mart, we offer competitive pay and benefits and real opportunities for our associates to advance and build careers. Job creation is just one way in which we’re working hard every day to help people across this country live better.”

It is a good time for the firm to show its commitment to American workers. Walmart has been plagued with negative media attention over the years from the way it treats its employees to its unethical business dealing with suppliers. It goes to show that the bad luck of some is the good luck of others….Walmart has seized the time to offer the American people hope for the future.

IB B&M students will study the impact of external influences on firms. This article is an interesting read from an external influences point of view and then to be considered in terms of price elasticity demand. The value of low cost high quality firms cannot be estimated in the current global slowdown. They seem to be in the minority of firms that are experiencing expansion.

Read the article here