Wednesday, December 3, 2008

I'm uncomfortable with the feeling of the government helping out the auto industry. It's almost like the CEO's of these big corporations are trying to play like they don't make millions of dollars and completely whine and cry about how they need the money or they'll go bankrupt. It seems to me they're more worried about their own pocketbooks instead of the consumer's that pay for their nice homes and big bonuses... Would you believe that the CEO of Ford company makes less than the CEO of the Toyota company? I didn't know this until my cousin pointed it out to me over Thanksgiving break. There is a major 20+ million difference in their salaries.
FORD'S CEO only makes like one or two million while Toyota's makes a whopping 33 million. And he's complaining about going bankrupt??? It's outrageous that these major heads are so obtuse enough to think they are struggling like the rest of us. If they would stop selling those big trucks and SUVs that guzzle gas like a fat baby and start going the way of smart cars and eco-friendly mini coopers then they wouldn't be broke. But they won't because there is a lucrative business in the big truck and automobile industry.
Actually, there is a deal between automakers and celebrities-preferably the rappers- that includes them endorsing the trucks and cars in their videos and songs. The auto industry makes money off of this yet and still they are begging for more. I learned about this as I was reading my monthly issue of Blender magazine. They were doing an appreciation of cars in Hip Hop through the ages.
This disturbs me that we are in a recession, two wars, and possibly the worst downturn of stocks in the past 50 years and we still have big businesses worried about themselves and not the people that made them who they are.

Wednesday, October 22, 2008

China's traditions and culture is somewhat put in danger by advancing technology and exposure to global ideas. However, there is also a huge oppurtunity to grow.
Wal-Mart is the godzilla of large, discounted-everything stores. According to Wikipedia (THE most relaible source, i'm sure), it is the world's largest public corporation by revenue and the fourth largest commercial employer. It has stores in Mexico, the UK, Japan, Argentina, and now has opened 3 more in these rural chinese communities. Of course, some local vendors may find the change detrimental, but how could the majority of the members of these communities not benefit?
Wal-mart's not looking for rocket scientists to point out which aisle paper towels are on-just hard-working people with friendly smiles. With the employment oppurtunity that the company offers, the average (insert typical Chinese name here) is exposed to a global corporation with expanding ideas. Sure, most will be looking to simply feed their families, but others could find themselves climbing the Wal-Mart ranks to become international businesspeople.
Don't get me wrong- i understand that the company is not all about making dreams come true (after all, that's Disney's job :)) and giving everyone a chance. If wal-mart truly wanted to benefit these communities, it would support local farmers like Nathan suggested. Unfortunately, it will most likely use the cheapest and most convenient goods. I guess we'll just have to see how it plays out...
So, like everyone said, there's a good and bad side to the company's arrival in these "small" Chinese communities. All I know is, it's gonna make for a killer presentation. Go team!

Tuesday, October 21, 2008

Wal-Mart moving into these rural areas will be good in some aspects such as consistent product quality and cheaper prices, but I'm worried that it might eradicate local customs and specialty items. We have seen Wal-Mart do this already here in the US, where local business people with markets and speciality foods or traditional products are forced out of business because they simply cannot compete on such a large scale. China has been in a sense sprinting towards modernization and new technologies, fashions, and lifestyles, while this is a good thing, it would be a huge shame if they completely lost their rich cultural heritage. I'm not saying Wal-Mart, by itself, is going to force this to happen, but it would be a huge contributing factor. 
I think that it would be extremely successful for both the locals and Wal-Mart if somehow a system could be worked out where Wal-Mart bought a majority of its products from local farmers etc. putting money into the local market and helping it to expand. In return people could do all of their shopping at Wal-Mart. Maybe they could help each other to both be more successful. Also, Wal-Mart will be able to expose the rural chinese population to a wide variety of consumer goods, which could potentially make there lives easier. 

The Benefits of Walmart

As everyone has said the small business owners will be effected, but I think this is a minor detail that in the long run will be worked out. What i am trying to say is that walmart could potentially hire these small business owners and many more, therefore, creating more job opportunities than before. I think this is definitely a good thing for these small Chinese cities. The benefits are endless: cheaper goods, availability, and hopefully an economy booster. Also, walmart will adapt to the people of the areas special needs (speciality foods, etc). And though at first it may be difficult and profits may be slow, walmart can afford a slight decrease in profits when its sure to increase in the next few years. For example walmart said its China sales rose 32.2 percent in the second quarter, while international sales overall were up 16.9 percent. This is a sign for success. But no matter the arguments on whether it is the right thing to do, we must all eventually get ready for this change because walmart is becoming the one and only competitor in its field. They have successfully taken over the industry but have also made it easier on all of us. We must think...What if we could not make that midnight walmart run? or tackle both food and clothes in the same store? Now with this new change more and more people will have the answers to these questions.
I think that establishing Wal Marts in China would be bad as far as for the people that sell goods on the street in markets because most will go out of business and could possibly slide further into poverty if they already are poor. I also think that it could be beneficial because it may instill within the people a better sense of understanding of how big businesses can help the country/cities economically. By building Wal Marts it creates a need for employees, better quality items as well as education by learning about economic matters.
As far as a desire to be a monopoly being Wal Mart's main motivation, I think they accomplished monopolization a few years ago, haha! But seriously, I'm not sure what motivates Wal Mart to invade these rural areas, however, regardless of their motivation, they always seem to be able to figure out what they need to sell in order to properly turn a profit in those areas. Sure, they will be taking some small business owner's jobs, that's inevitable when a multinational sets up shop in your backyard. However, it is not all bad. I know we've already talked about this but I'm just going to say again that I know I for one am glad that I can go to Wal Mart and pick up virtually anything that I would ever need, at a cheap price. The Chinese people will feel the same way. Really, it only hurst the small business owners. Adaptation is key, and for their sake I hope that they can adapt and keep some of their loyal customers.

Monday, October 20, 2008

Walmart's Fiasco

I believe that Walmart will probably be the downfall of those communities. It's a point-blank thought. The desire to be a monopoly is what's driving Walmart to try and survive in a community where many people don't even make minimum wage. Regardless of the fact that it's population is almost as large as Mississippi's, the GDP isn't sufficient enough to support it through the next decade. Plus, I'm pretty sure the global "recession'' definitely will jab a hole in the plan. But, alas, nothing can be done because Walmart is too internationally powerful and America is too hungry for more money.
Also, while we were talking about this in the meeting, I was trying to see if comparative advantage fit into all of this. There must be some point for Walmart increasing its monolithic hold on cheap consumption of goods. I couldn't see the tie. Nonetheless, I fear this is just the start of something that will probably hurt the economy and employement both here and in China instead of helping.

And thanks Brad, :-). I guess you posting the questions here is good enough.