Wal-Mart: Power, Influence & Values

Friday, January 27, 2006

Honors 1105 Library Presentation Notes

http://www.bemidjistate.edu/library/guides/HOPR1105/HOPR1105.html

Wal-Mart Survey

What is everyone thinking? Let’s find out!

Age: (Do we want categories or number?)
Occupation
Full-time student
BSU faculty
BSU staff
Bemidji resident, not employed at BSU

Individual annual income:
*$15,000 or less
*$15,000-30,000
*$31,000-50,000
*More than $50,000

How often do you shop at the Bemidji Wal-Mart?
*Always
*Frequently
*Infrequently
*Never

If you answered "infrequently" or "never," what is your reason or reasons? (You may check more than one -- please number them in order or importance)
*Don’t have the items I want
*Poor service, unpleasant atmosphere, etc.
*I disapprove of one or more of their practices
*Other_______________________

If you answered "always" or "frequently," what is your reason or reasons? (You may check more than one -- please number them in order or importance)
*Convenience
*Price
*Pleasant service, atmosphere, etc.
*I approve of one or more of their corporate practices
*Other____________________________

Do you have any negative knowledge about the following issues in relation to Wal-Mart? (You may check more than one -- please number them in order or importance)
*Employee wage and benefits, working conditions
*Sex discrimination in hiring and promotion
*Labor conditions of suppliers, especially in other countries
*Environmental concerns (including sprawl)
*Charitable giving
*Other

Do you have any positive knowledge about the following issues regarding Wal-Mart? (You may check more than one -- please number them in order or importance)
*Employee wage and benefits, working conditions
*Sex discrimination in hiring and promotion
*Labor conditions of suppliers, especially in other countries
*Environmental concerns (including sprawl)
*Charitable giving
*Other

From what sources have you gained most of your knowledge about Wal-Mart? (You may pick as many as you like -- number them in order of importance)
*I work there or have worked there
*From shopping there and observation
*Television news
*Newspapers
*Books
*Friends and acquaintances
*Movies
*Other __________________

What is your overall attitude toward Wal-Mart?
*Positive or mostly positive
*Negative or mostly negative
*Neutral

Do you think there is a gap between your knowledge and attitude toward Wal-Mart and your shopping behavior?
*Yes
*No

Explain your answer:

Saturday, January 21, 2006

Wal-Mart Week 2

Wal-Mart 1105 – January 18, 2006
Louise Mengelkoch – Introduction
*Corporation movie
*Price comparison
*Journal writing
*Information on corporations
*Symposium, community survey, guest list & task list

Quote of the Day
“CORPORATION, n. An ingenious device for obtaining individual profit without individual responsibility.”

Ambrose Bierce, American writer, “The Devil’s Dictionary”

1. Beatty/Samuelson PP Slides Legal Environment, 2nd Ed. Thomson/SW 2005

Financial Section of the Paper
1/12/06 NYSE – Wal-Mart - WMT

Wal-Mart Stores, Inc. – Stock Charting – Wall Street Journal – On-line 1/18/06
*Wal-Mart – company info on the Web
*Wal-Mart Stores, Inc. (WMT)
*http://moneycentral.msn.com/investor/research/newsnap.asp?Symbol=WMT

Terminology – stockholder v. stakeholder
*stockholder – definition - One who owns shares of stock in a corporation or mutual fund. For corporations, along with the ownership comes a right to declared dividends and the right to vote on certain company matters, including the board of directors. also called shareholder.
*http://www.investorwords.com/4735/stockholder.html

*stakeholder - definition - Any party that has an interest ("stake") in a firm.
*http://www.investorwords.com/4682/stakeholder.html

*constituents – broad

Stockholder vs. Stakeholder
*Stockholder is one of the stakeholders in a company
*What groups would be included as stakeholders of BSU?

For a company – the stakeholders include:

Terminology - companies
*Minnesota Statute - 302A.115 Corporate name.
*Subdivision 1. Requirements; prohibitions.
(b) Shall contain the word "corporation," "incorporated," or "limited," or shall contain an abbreviation of one or more of these words, or the word "company" or the abbreviation "Co." if that word or abbreviation is not immediately preceded by the word "and" or the character "&>";

Copyright 2005 by the Office of Revisor of Statutes, State of Minnesota.


Corporations: Types
*profit
*nonprofit
*domestic
*foreign
*government
*professional
*close
*subchapter S

Corporations :Governed by the Model or Revised Model Business Corporation Act - statute - state by state
Definition = fictitious entity that is created according to statutory requirements
characteristics include:
*unlimited duration
*ease of transfer of interest
*limited liability – generally, shareholders liable only to price paid for their *shares
*centralized management
*legal existence

Corporations: Formation
*most companies incorporate in Delaware
*must comply with state incorporation statute
*file with the secretary of state
*articles of incorporation
**Corporations must state a purpose – “to conduct lawful business”
*certificate of incorporation
*hierarchy of laws
1. State Statute
2. Articles of Incorporation
3. Bylaws

Corporations: Tax considerations
*corporation taxed & shareholders taxed on dividends
*double taxation
*Continuity of Existence & Transfer of Ownership
**unaffected by the death or withdrawal of shareholder
*Financing and Licensing
**debt (bonds) and equity (stock)
*Management by the board of directors who appoint the officers

2. West Publishing, Slide #111, Mann & Roberts, Smith & Roberson’s Business Law 11th Edition, 2000.

Management Structure of Corporations: The Statutory Model
*Officers: Run the day-to-day operations of the corporation
*Board of Directors:Declare dividends, Delegate authority to officers, Manage the business of the corporation; Select,remove, and determine compensation of officers
*Shareholders: Elect and remove directors; Approve fundamental changes

3. West Publishing, Slide #113, Mann & Roberts, Smith & Roberson’s Business Law 11th Edition, 2000.

Management Structure of Typical Publicly Held Corporation:
*Shareholders:Sign and return proxies; Sell Shares
*Board of Directors: Delegate authority to officers; Ratify actions of officers
*Officers: Control selection of directors; Run day-to-day business; Control proxy votes

Management Structure of Typical Closely Held Corporation: Shareholders=Directors=Officers

4. West Publishing, Slide #112, Mann & Roberts, Smith & Roberson’s Business Law 11th Edition, 2000.

Corporations – Officers & Directors
*Officers & directors owe a fiduciary duty (utmost loyalty & good faith) – to act in the best interests of the stockholders
*A legal defense is the business judgment rule – that courts won’t interfere with the business judgment of the officers & directors if:
1. they act in good faith; without a conflict of interest;
2. with the care that an ordinary prudent person would take
3. in the best interests of the corporation.

Beatty/ Samuelson, Introduction to Business Law 2nd Edition Thomson/West, 2007, pp. 503-504.


Managers vs. Shareholders: The Inherent Conflict
*Managers – want, first to keep their jobs and second, to build a strong company.
**Managers have a fiduciary duty to act in the best interests of the shareholders.
*Shareholders – want the price of stock to increase.
*Stakeholders – want the business to grow and continue to use the stakeholders’ services.

5. Beatty/Samuelson PP Slides Legal Environment, 2nd Ed. Thomson/SW 2005

Rights of Shareholders
*Shareholders have neither the right nor the obligation to manage the day-to-day business of the enterprise.
*Right to Information
*Right to Vote

6.Beatty/Samuelson PP Slides Legal Environment, 2nd Ed. Thomson/SW 2005

Annual Reports
Several years ago – the SEC Website said:

“We are the investor’s advocate.”
*William O. Douglas SEC Chairman, 1937-1939
*SEC Homepage - http://www.sec.gov/

*“Introduction – The SEC: Who We Are, What We Do
The primary mission of the U.S. Securities and Exchange Commission (SEC) is to protect investors and maintain the integrity of the securities markets. As more and more first-time investors turn to the markets to help secure their futures, pay for homes, and send children to college, these goals are more compelling than ever.”
*http://www.sec.gov/asec/wwwsec


Take an Annual Report & Rroxy
Companies required by the SEC – to give this information to the shareholders
What do you think?
*Annual Report
*Proxy

Annual Report & Proxy: Look at 3 things:

1. Board of Directors *What percentage are insiders? Outsiders?
*How many have industry experience?
*How many have close ties to the company CEO?
*How would you evaluate this board of directors?
*Can you tell what their actual compensation is?
7. Beatty/Samuelson, Instructor’s Manual, Business Law 3rd Ed. Thomson/SW, 2004.

2. Shareholder Proposals
*Proxy statements – look at the index for shareholder proposals.
*A shareholder who owns at least 1 % of the company or $2,000 of stock can require that one proposal be subject to vote at the annual shareholder meeting. 8. Beatty/Samuelson PP Slides Legal Environment, 2nd Ed. Thomson/SW 2005
*What shareholder proposals are before the stockholders?
*Make a laundry list and see if there are any consistent themes, proposers, etc.

3. Legal Issues & Environmental Issues
Look in your annual reports and list the legal & environmental issues that your company is dealing with. Is this information detailed enough for stockholders?

Simplistic – but a start
*Take your annual report & the Bottom Line article and see if you can find out about
*Inventories
*Total liabilities
*Deferred tax liability
*Retained earnings
*Cash flow from operations

WMT – then next week do the same for Wal-Mart -*SEC Website http://www.sec.gov/Archives/edgar/data/104169/000119312505066992/d10k.htm
*Wal-Mart Website - bottom left - go to Wal-Mart news, Shareholder Info, Annual Reports http://walmartstores.com/GlobalWMStoresWeb/navigate.do?catg=453&contId=5700
*Look at shareholder proposals, Board, legal & environmental issues, and check out the “financial soundness” of the company – and if you want to – compare others in the industry

WAL-MART: BIBLIOGRAPHY

Sources for your research. If you can’t find these on-line, we have folders with hard copies of each of these articles, filed by the following broad topics.

Business issues: The Corporation and How it Works, Economics

*No author (2005, June 29). Where People Go, The Malls Follow. Editorial. The Wall Street Journal, p. B4.

No author (2005, Dec. 3-4). Gauging the Wal-Mart Effect. The Wall Street Journal, A9.

*Achbar, Mark and Simpson, Bart ((2004). The Corporation, Big Picture Media corporation, 145 min.

*Adamy, Janet and Berman, Dennis K. (2005, Sept. 6). Albertsons Plan For Auction Shows Wal-Mart’s Reach. The Wall Street Journal, pp. A3, A14.

*Adamy, Janet (2005, Aug. 30). To Find Growth, No-Frills Grocer Goes Where Other Chains Won’t. The Wall Street Journal, pp. A1, A8.

*Adamy, Janet (2005, April 26). Retail Exchanges Plan Merger to Vie With Wal-Mart. The Wall Street Journal, p. B7.

*Ahearn, Patrick (2005). The Age of Wal-Mart. CNBC, 120 min.

Barbaro, Michael (2005, Nov. 14). Wal-Mart Forecasts Big Season: Upbeat Despite a Slack Quarter, New York Times, p. C1.

*Barbaro, Michael (2005, Oct. 15). Bankers Oppose Wal-Mart as Rival, New York Times, online.

*Bounds, Gwendolyn (2005, Sept. 19). The Long Road to Wal-Mart. The Wall Street Journal, pp. R1, R4.

*Covert, James (2005, Nov. 4). Cold Snap Buoys Retail Sales. The Wall Street Journal, p. B2.

*Friedman, Thomas (2005). The World is Flat: A Brief History of the Twenty-First Century; Farrar, Straus and Giraux; New York, pp. 128-141. ISBN: 0-374-29288-4 (“Flattener #7: Supply Chaining – Eating Sushi in Arkansas”)

*Guth, Robert A. and Zimmerman, Ann (2005, Aug. 5). Microsoft Picks A Wal-Mart Vet To Be Its No. 3. The Wall Street Journal, pp. B1, B2.

*Hudson, Kris (2005, Oct. 29). Wal-Mart Expands Warranty Business to Its Stores. The Wall Street Journal, p. A3.

*Hudson, Kris (2005, Oct. 25). Wal-Mart Investors Fret Over Costs. The Wall Street Journal, p. C3.

*Hudson, Kris (2005, Sept. 26). Wal-Mart’s Need for Speed. The Wall Street Journal, p. B4.

*Kang, Stephanie (2005, May 5). Nike to Stop Selling Brand at Sears. The Wall Street Journal¸ p. B8.

Kelly, Marjorie (2001). The Divine Right of Capital: Dethroning the Corporate Aristocracy, by Marjorie Kelly, Berrett-Koehler Publishers, Inc., San Francisco, 2001, pp. 127-143. ISBN: 1-57675-125-2 (Ch. 9: “Protecting the Common Welfare: The Principle of Public Good”)

*Lavelle, Marianne (2005, June 27). Wal-Mart’s Most Wanted. U.S. News & World Report, pp. 36-38.

*McWilliams, Gary and Wingfield, Nick (2005, May 20). Wal-Mart to End Movie Rentals Via the Internet. The Wall Street Journal, p. B2.

*Merrick, Amy (2005, Sept. 2). High Gas Prices Weigh on Retail Sales. The Wall Street Journal, pp. A2, A7.

Murray, Alan (2005, Sept. 7). The Profit Motive Has A Limit: Tragedy. The Wall Street Journal, p. A2.

Rohwedder, Cecilie (2005, Nov. 25). Attention Shoppers: Tesco May Be a Bargain. The Wall Street Journal, C1.

*Serres, Chris (2005, May 28). Wal-Mart Taps Ex-Target Merchandiser. Star Tribune, p. D1.

*Stone, Ken (1995). Competing with the Retail Giants: How to Survive in the New Retail Landscape (National Retail Federation Series), John Wiley & Sons Inc., pp. 42-90 and 193-202 (Ch. 3: Impacts of the Discount Mass Merchandisers and Ch. 9: “Implementing the Changes”)

*Warren, Susan (2005, Sept. 1). Employer Struggle to Pick Up Pieces. The Wall Street Journal, p. A6.

*White, Ben (2005, Sept. 28). Wal-Mart To Update Its Look? Washington Post, p. D2.

Zimmerman, Ann and Merrick, Amy (2005, May 13). Wal-Mart, Target Lift Profits, But Outlooks Reveal Two Tales. The Wall Street Journal, pp. A3, A5.

*Zimmerman, Ann (2005, Nov. 4). Wal-Mart Sets Seminar to Assess Economic Impact. The Wall Street Journal, p. B2.

*Zimmerman, Ann (2005, July 20). Wal-Mart Is Trying to Establish Bank Again, This Time in Utah. The Wall Street Journal, p. C4.

*Zimmerman, Ann (2005, May 13). Wal-Mart, Target Life Profits, But Outlooks Reveal Two Tales. Wall Street Journal, p. A3.

Ethical issues: The Good, The Bad and the Ugly

No author (2005, Sept. 1). Donations of Cash and Supplies Pour In to Help Hurricane Victims. The Wall Street Journal, p. D2.

No author (2005, Dec. 3). Is Wal-mart Good for America? The Wall Street Journal, p. A10.

No author (2005, July 9). Wal-Mart Woes (letters to editor). Christianity Today, p. 9. (?)

Bandler, James and Zimmerman, Ann (2005, April 8). A Wal-Mart Legend’s Trail of Deceit. The Wall Street Journal, pp. A1, A10.

Ghemawat, Pankaj and Mark, Ken A. (2005, August 4). Wal-Mart’s True Value: It Helps the Rural Poor, Star Tribune.com. Retrieved August 4, 2005, from http://www.startribune.com/dynamic/story.php?template=_z&story= 55541931.

Hopkins, Jim (2005, Oct. 27). Wal-Mart Critics Take Cause to Church. USA Today, p. 1A.

Jacob, Paul (2005, Nov. 20). The Freedom to Hate Wal-Mart. Townhall.com

Leonhardt, David (2005, Nov. 5). Our Love-Hate Relationship With Wal-Mart. The New York Times, B1.

Peled, Micha (200_). Store Wars: When Wal-Mart Comes to Town. PBS, 60 min.

Sellers, Jeff M. (2005, May). Deliver Us From Wal-Mart? Christianity Today, pp. 40-44??.

Tierney, John (2005, Nov. 29). The Good Goliath: Wal-Mart’s War on Poverty. The New York Times, A31.

Tierney, John (2005, Sept. 23). If Only FEMA Were Run More Like Wal-Mart. Star Tribune. (Reprinted from the New York Times.)

The Wal-Mart Story: Sam Walton as American Hero with a dark edge

Beatty, Jeffrey F. and Samuelson, Susan S. (2004). Business Law and the Legal Environment, 3e, Thomson South-Western West, ISBN: 1-324-27410-6 (Ch. 2: “Business Ethics and Social Responsibility,” pp. 29-33)

Ortega, Bob (2000). In Sam We Trust: The Untold Story of Sam Walton and Wal-Mart, the World’s Most Powerful Retailer. Three Rivers Press, New York, pp. 188-208. ISBN: 0-8129-3297-8.

Reich, Robert B. (2005, Feb. 28). Don’t Blame Wal-Mart. New York Times, p. A25.

Soderquist, Don (2005). The Wal-Mart Way: The Inside Story of the Success of the World’s Largest Company. (excerpt)

*Walton, Sam, with Huey, John (1992). Sam Walton: Made in America, Bantam Books, New York, pp. 312-327. ISBN: 0-553-56283-5 (Ch. 17: “Running a Successful Company: Ten Rules That Worked For Me”)

Young, Rick (2004, Nov. 16). Is Wal-Mart Good for America? Frontline, PBS, 60 min.

Labor issues: The employees, unions, health care, employment conditions

No author (2005, Sept. 28). Union Group Lays Out Strategy for Organizing. The Wall Street Journal, p. B13.

No author. Minor Memos. (2005, August 26). The Wall Street Journal, p. A4.

*No author (2005, July 22). Wal-Mart Is Named In Defamation Suit By a Fired Executive. The Wall Street Journal, p. B2.

Aeppel, Timothy (2005, August 29). Not-So-Big Labor Enlists New Methods for Greater Leverage. The Wall Street Journal, p. A2.

*Anderson, David (2005, July 10). Wal-Mart Should Pay a Living Wage. Bemidji Pioneer, p. A4.

*Appleby, Julie (2005, Oct. 27). Wal-Mart Memo Sparks Criticism. USA Today, p. 3B.

Bandler, James and Zimmerman, Ann (2005, April 11). Union Seeks Wal-Mart Documents. The Wall Street Journal, p. A6.

Bobich, Fred (2005, July 1). Don’t Be Misled by ‘Wal-Mart Bill’ Health Debate. Bemidji Pioneer, p. A4.

Chambers, Susan (FY 06). Reviewing and Revising Wal-Mart’s Benefits Strategy: Memorandum to the Board of Directors of Wal-Mart.

*Ehrenreich, Barbara (2001). Nickel and Dimed: On (Not) Getting by in America. Henry Holt & Co., New York, pp. 121-192. ISBN: 0-8050-6389-7 (Ch. 3: “Selling in Minnesota”)

Featherstone, Liza (2004). Selling Women Short: The Landmark Battle for Workers’ Rights at Wal-Mart. Basic Books, New York, pp. 211-244. ISBN: 0-465-02315-0 (Ch. 7: “Attention, Shoppers”)

Fields, Gary (2005, July 22). Dissident Unions May Secede From AFL-CIO. The Wall Street Journal, pp. B1, B5.

Fields, Gary; Aeppel, Timothy; Maher, Kris; and Adamy, Janet (2005, July 25). Reinventing the Union. The Wall Street Journal, pp. B1, B4.

*Greenhouse, Steven (2005, Nov. 1). Labor Dept. is Rebuked Over Pact With Wal-Mart, New York Times, p. __.

Greenhouse, Steven (2005, May 4). Can’t a Retail Behemoth Pay More? The New York Times, pp. C1, C6.

Hsu, Caroline (2005, April 25). Warring Against Wal-Mart. U.S. News & World Report, EE13 on.

Hudson, Kris (2005, Dec. 3-4). Wal-Mart’s Low-cost Health Plan Lifts Enrollment. The Wall Street Journal, A3.

*Krauss, Clifford (2005, March 10). For Labor, A Wal-Mart Closing in Canada Is a Call to Arms. The New York Times, p. C5.

Maher, Kris (2005, August 23). Labor Leaders Say Multination Effort Targets Wal-Mart. The Wall Street Journal, p. B2.

Maher, Kris (2005, August 18). Wal-Mart Tops Global Agenda For Labor Leaders. The Wall Street Journal, p. A2.

Maher, Kris (2005, August 15). Unions’ New Foe: Consultants. The Wall Street Journal, pp. B1, B4.

Matthews, Robert Guy and Maher, Kris (2005, August 15). Labor’s PR Problem. The Wall Street Journal, pp. B1, B4.

Miller, George (2004, Feb. 16). Everyday Low Wages: The Hidden Price We All Pay For Wal-Mart. Democratic Staff of the Committee on Education and the Workforce, U.S. House of Representatives.

Murray, Alan (2005, August 10). Labor Tries Political Tack Against Wal-Mart. The Wall Street Journal, p. A2.

Salzman, Jason (2005, August 10). Where’s the Serious News About Unions? Bemidji Pioneer, p. A4.

Sellers, Jeff. M. (2005, April 22). Women Against Wal-Mart. Christianity Today. Retrieved May 2, 2005 from http://www.christianitytoday.com/global/printer.html?/ct/2005/116/53.0.html .

Sellers, Jeff. M. (2005, April 22). Benefits Blues. Christianity Today. Retrieved May 2, 2005 from http://www.christianitytoday.com/global/printer.html?/ct/2005/005/18.43.html.

*Serres, Chris (2005, June 2). Wal-Mart Fights Benefits Disclosure in Minnesota, Star Tribune. on-line.

Stringer, Kortney (2005, April 13). Union Files Claim vs. Wal-Mart. The Wall Street Journal, p. A6.

*Taylor, Betsy (2005, Sept. 28). Union Coalition Says Wal-Mart Is In Its Sights, Star Tribune, p. D3.

Willing, Richard (______). Lawsuits Follow Growth Curve of Wal-Mart. USA Today, p. A1.

Zimmerman, Ann (2005, August 8). Wal-Mart Appeals Bias-Suit Ruling. The Wall Street Journal, p. B5.

*Zimmerman, Ann and Hudson, Kris (2005, July 28). Wal-Mart Sues Ex-Vice Chairman. The Wall Street Journal, p. B2.

Zimmerman, Ann and Bandler, James (2005, July 15). How Gift Cards Helped Trip Up Wal-Mart Aide. The Wall Street Journal, pp. B1, B2.

Zimmerman, Ann (2005, July 6). Wal-Mart’s Asda to Cut Jobs, Bring Back Former Executives. The Wall Street Journal, p. B3.

Zimmerman, Ann and Bandler, James (2005, May 24). Wal-Mart Ex-Worker Files Complaint. The Wall Street Journal, p. B5.

Zimmerman, Ann and Bandler, James (2005, April 18). Wal-Mart Cuts Coughlin Benefits. The Wall Street Journal, p. B4.

Global issues: Wal-Mart is everywhere and what it means

No author (2005, July 22). Companies See Little Impact From Costlier Yuan – For Now. The Wall Street Journal, pp. B1, B5.

Bellman, Eric (2005, August 30). As Indian Retail Sector Thrives, Investors Should Be Cautious. The Wall Street Journal, p. C14.

Browne, Andrew and Chen, Kathy (2005, Oct. 17). A Booming Coast Breathes New Life Into China’s Inland, Wall Street Journal, on-line.

Brummer, Alex (2005, April 13). Big is Not Always Beautiful. Daily Mail, p. 65.

Fackler, Martin and Bayot, Jennifer (2005, October 1). Wal-Mart Realigns to Expand Overseas. The New York Times. Retrieved October 1, 2005 from http://www.nytimes.com/2005/10/01/business/01walmart.html?ei=5003&en531546ffa96.

Gumbel, Andrew (2005, Nov. 2). Wal-Mart: Is This the Worst Company in the World? The Independent.

Hudson, Kris and Woods, Ginny Parker (2005, October 1-2). Wal-Mart Swaps Roles of Domestic, Overseas Chiefs. The Wall Street Journal, p. B6.

Krauss, Clifford (2005, Marach 10). For Labor, a Wal-Mart Closing in Canada is a Call to Arms. New York Times, p. C5.

Lichtenstein, Nelson, ed. (2006). Wal-Mart: A Field Guide to America’s Largest company and the World’s Largest Employer. (excerpt).

Poulter, Sean (2005, April 13). Britain Buys Third of All Groceries at L2Billion Tesco. Daily Mail, p. 18.

Slater, Robert (2003). The Wal-Mart Decade: How a new Generation of Leaders Turned Sam Walton’s Legacy into the World’s #1 Company, Penguin Group, New York, pp. 147-160. ISBN: 1-59184-006-6 (Ch. 10: “Live Snakes and Turtle Races: Wal-Mart in China”)

Solman, Paul (2005, Oct. 5) China Rising: China’s Vast Consumer Class. NewsHour, PBS.

Wallis, Stewart (2005, April 13). A Great Company, But Is Its Supremacy Too Much of a Good Thing? Daily Mail, p. 17.

Zimmerman, Ann (2005, Sept. 21). Wal-Mart Buys Stake in Retailer In Latin America. The Wall Street Journal, p. A16.

Social and Environmental issues: sustainability, urban sprawl, cultural diversity and other collateral damage

No author (2005, Aug. 16). State Environmental Claims Are Settled for $1.15 Million. The Wall Street Journal, p. B8.

Barbaro, Michael and Barringer, Felicity (2005, Oct. 25). Wal-Mart To Seek Savings In Engergy. The New York Times, C1.

Cleeland, Nancy and Goldman, Abigail (2003, Nov. 25). Grocery Unions Battle to Stop Invasion of the Giant Stores. Los Angeles Times. Retrieved 12/3/05 on-line at http://www.pulitzer.org/year/2004/national-reporting/works/walmart6.html

Cleeland, Nancy; Iritani, Evelyn; and Marshall, Tyler (2003, Nov. 24). Scouring the Globe to Give Shoppers an $8.63 Polo Shirt. Los Angeles Times. Retrieved 12/3/05 on-line at http://www.pulitzer.org/year/2004/national-reporting/works/walmart3.html

Cleeland, Nancy (2003, Nov. 24). Seams Start to Unravel. Los Angeles Times. Retrieved 12/3/05 on-line at http://www.pulitzer.org/year/2004/national-reporting/works/walmart4.html

Eitzen, Dirk (2000). Save Our Lands, Save Our Towns. Bullfrog Films, 54 min.

Finneman, Teri (2005, Aug. 7). When Wal-Mart Comes to Town, Mixed Feelings on Superstore Linger After Nearly Five Years and Wal-Mart Has Its Supports, Detractors. Fargo Forum, pp. A1, A8 and A9.

Goldman, Abigail and Cleeland, Nancy (2003, Nov. 23). An Empire Built on Bargains Remakes the Working World. Los Angeles Times. Retrieved on-line 12/3/05 at http://www.pulitzer.org/year/2004/national-reporting/works/walmart1.html

Goldman, Abigail (2003, Nov. 23). Proud to Be At the Top. Los Angeles Times. Retrieved 12/3/05 on-line at http://www.pulitzer.org/year/2004/national-reporting/works/walmart2.html

Hopfensperger, Jean (2005, Sept. 12). Wal-Mart Debate Gains Momentum Across Minnesota. Startribune.com. Retrieved from http://www.startribune.com/dynamic/story.php?template=print_a&story= 5608958.

Iritani, Evelyn and Cleeland, Nancy (2003, Nov. 24). Audit Stance Generates Controversy. Los Angeles Times. Retrieved 12/3/05 on-line at http://www.pulitzer.org/year/2004/national-reporting/works/walmart5.html

Levy, Paul (2005, July 25). Room for Wal-Mart and Main Street? Startribune.com. Retrieved July 25, 2005, from http://www.startribune.com/dynamic/story.php?template=print_a&story=5523568

Marshall, Tyler (2003, Nov. 25). Selling Eel and Chicken Feet – Plus M&Ms and Sony TVs. Los Angeles Times. Retrieved 12/3/05 on-line at http://www.pulitzer.org/year/2004/national-reporting/works/walmart7.html

Mengelkoch, Louise (2001, Sept. 23). Investing in a Vision for Small-Town Growth. The Pioneer, p. A5.

Normal, Al (1999). Slam-Dunking Wal-Mart: How You can Stop Superstore Sprawl in Your Hometown. Raphael Marketing, Atlantic City, pp. 150-175. ISBN: 0-9624808-6-X (Ch. 9: “Creating a No-Sprawl Zone”)

Quinn, Bill (1998). How Wal-Mart is Destroying America and the World and What You Can Do About It. Ten Speed Press, Berkeley, pp. 1-17. ISBN: 0-89815-973-3 (Ch. 1: “7 Things That Happen When Wal-Mart Comes to Town”)

Media issues: Advertising, image, PR and coverage

No author (2005, Oct. 28). Inside Wal-Mart, a larger debate. Editorial, New York Times, p. A24.

No author (2005, Oct. 7). Women’s Urban Fashion Line Aims to Broaden Offerings. The Wall Street Journal, p. B6.

Adamy, Janet (2005, July 20). Grocery Stores Cut Out the Weekly Special. The Wall Street Journal, pp. D1, D3.

Alsop, Ronald (2005, Dec. 6) Ranking Corporate Reputations. The Wall Street Journal, p. B1.

Ball, Deborah and Zimmerman, Ann (2005, Aug. 17). A Sober Wal-Mart Launches Drive Into Tricky Area: Liquor. The Wall Street Journal, p. A1.

Barbaro, Michael (2005, Nov. 14). Wal-Mart Forecasts Big Season: Upbeat Despite a Slack Quarter, New York Times, p. C1.

Barbaro, Michael (2005, Nov. 1). A New Weapon for Wal-Mart: A War Room. New York Times, p. 1A.

Bulkeley, William M. (2005, Sept. 27). Digital-Photo Prices Hit a New Low. The Wall Street Journal, pp. D1, D3.

Covert, James (2005, ___). Wal-Mart’s Chief Says Retailer Needs to Widen Customer Appeal. The Wall Street Journal, p. B10.

Featherstone, Liza (2005, August 2). Wal-Mart’s P.R. War. Salon.com. Retrieved August 4, 2005, from http://www.salon.com/news/feature/2005/08/02/walmart/print.html.

Hudson, Kris (2005, Nov. 30). Wal-Mart’s Discounts Exact a Price. The Wall Street Journal, C3.

Johnson, Kay (2005, May __). Selling to The Poor. Time Bonus Section, pp. A14-A15.

Maher, Kris and Zimmerman, Ann (2005, Dec. 1). Wal-Mart Activists Claim Headway. The Wall Street Journal, B8.

Merrick, Amy and Zimmerman, Ann (2005, Dec. 2). Wal-Mart Draws Bead on Target. The Wall Street Journal, B1.

Spencer, Jane (2005, Oct. 5). Getting Your Health Care at Wal-Mart. The Wall Street Journal, pp. D1, D5.

Zimmerman, Ann and Hudson, Kris (2005, Sept. 17-18). Looking Upscale, Wal-Mart Begins a Makeover. The Wall Street Journal, pp. A1, A10.

Zimmerman, Ann (2005, Aug. 25). Wal-Mart Sets Out to Prove It’s in Vogue. The Wall Street Journal, pp. B1, B8.

Zimmerman, Ann (2005, May 31). Wal-Mart’s Hispanic Outreach. The Wall Street Journal, p. B9.

Zimmerman, Ann (2005, Nov. 28). How Wal-Mart Got Ready Early For Solid Start. The Wall Street Journal, B1.

****************************

Dicker, John (2005). The United States of Wal-Mart, (excerpt).

Lim, Kevin and Prystay, Cris (2005, ____). Coly Capital Buys All Hotel Of Raffles in $859 Million Deal. The Wall Street Journal, p. B2.

Zimmerman, Ann and Bauerlein, Valerie (2005, Sept. 12). At Wal-Mart, Emergency Plan Has Big Payoff. The Wall Street Journal, pp. B1, B3.

Carr, David (_______). Continental Thrift: How Wal-Mart Conquered America, book review. New York Times, p. ____.

Halbfinger, David M. (2005, June 1). Taking On a Giant. New York Times, on-line.

Power of Walmart

How Does Wal-Mart Influence You?
HOPR 1105: Spring 2005
The Power, Influence and Values of Wal-Mart

*It has given me a place to go in the wee hours of the morning, and something to do when I’m bored. It made me become a “bargain” shopper -- looking for the best deal in town.

*I buy cedar woodshavings there because they have the lowest price, even though I don’t like shopping there. It makes me want to shop at other stores, because Wal-Mart associates are almost always crabby.

*I go to Wal-Mart because I know that stuff there is cheap, even though you hear all the reports about the bad side of the huge corporation.

*It makes me shop at more locally owned retailers, i.e., Luekens.

*Bringing Wal-Mart to Bemidji has expanded our town; it provides many jobs for people in the community, and I find myself shopping there often. The way the store is set up, and the lower prices make me want to shop there, but I buy more things than I intend to when I go there.

*It’s the cheapest place to go. Also, Wal-Mart tends to have more obscure or ethnic items, I.e., sesame butter or tahini. I do know I found it to be a grave mistake for Wal-Mart to have put a store within view of the pyramid of the sun in Teotihuccan. I am interested in learning more about Wal-Mart because of the effect it can have on the global market.

*I dislike Wal-Mart. I do not like the landscape of the building/parking lot. I do not like what I label as “gluttony,” which is what I see Wal-Mart shoppers engaging in loaded carts of unnecesssaries. I shop at Target because of the bad image I have in my mind regarding Wal-Mart.

*Having a variety of products in one location saves time. It’s a good place to see people. Prices are often competitive.

*I do most of my shopping there, because it’s always open, even at 2 a.m. (craving time). I wouldn’t want to work there, but it’s the only 24-hour grocery store in town. What’s up with that? Also. . .it’s the cheapest.

*It allows me to buy what I want to buy because I can afford it.

*I do not shop there because of my understanding of its methods.

*I always avoid shopping there because I don’t like the store or its practices.

*Wal-Mart does not control me -- I control Wal-Mart.

*It controls my purchasing because of its low prices.

*I shop there some, but I work at Target.

*Being a poor college student, Wal-Mart provides cheap food, usually in bulk and other life necessities. Regardless of whether or not I like Wal-Mart or its values, it’s the best financial choice for me. Its prices tend to make me buy what’s cheapest instead of for health or other reasons.

*Wal-Mart does not influence me at all. I would never want to work there, and I don’t know anyone who does. I really just ignore its existence most of the time.

*I do most of my shopping there. It is the best place (most convenient for me) to get everything done at once.

*I think it might be the cheapest place to get groceries in Bemidji. That’s where I usually go to buy random odds and ends that I need. It’s quick and easy.

*In Bemidji it’s the cheapest grocery store. I’m not a big fan of Wal-Mart. There was major controversy when Brainerd got a Super Wal-Mart. It’s taking away from small, family-type businesses.

*I hate Wal-Mart.

*Because it is such a large corporation and sometimes moves in on small, local businesses, I have negative feelings associated with Wal-Mart. However they are not strong enough to keep me from shopping there.

*I worked at Wal-Mart this summer and was not a fan of management or the company’s policies, yet I continue to shop there. I am influenced by their prices, or at least their claims of good prices.

*I am persuaded to buy what I don’t need, due to sheer quantity.

*Wal-Mart has supported many of my academic ventures. They are kind and willing to help.

*My mom works at Kmart and Wal-Mart is really affecting the success of Kmart and putting her job at risk.

*I suppose it makes me look at values vs. capitalism. Wal-Mart may be swelling out other businesses, but it also offers cheaper rates to the community. Is this really wrong? Every store is different. There are lots of grants and scholarships.

Values

#1 Value
Being open to new things
Volunteering
Integrity*******
Reliability/integrity
Kindness
Equality
Courage
Honesty******
Consideration*
Team playing

Respect*
Family*
Trustworthiness
Politeness
Faith***
Honor
Responsibility

Integrity
1. Steadfast adherence to a strict moral or ethical code.
2. The state of being unimpaired; soundness.
3. The quality of condition of being whole or undivided; completeness.

Thursday, January 12, 2006

SYLLABUS: Honors 1105 (Spring 2006)

Wal-Mart: Its Power, Influence and Values in a Globalized World

Carol Nielsen, Prof. of Business Administration Phone: 755-2757
CNielsen@bemidjistate.edu Office: DH 120
Office hours: M 1-5

Louise Mengelkoch, Assoc. Prof. of Journalism Phone: 755-3358
LMengelkoch@bemidjistate.edu Office: Bg 214
Office hours: 1-3 MWF

Course Blog: www.HOPR1105.blogspot.com

Wal-Mart may be the most studied corporation in history – and for good reason. It may also be the world’s most successful capitalistic enterprise and its most controversial. A Google search on Wal-Mart yields 7.4 million hits. An Iowa economics professor has spent 20 years studying its influence and even visited Bemidji before the arrival of our Wal-Mart Superstore in 2002. A University of California campus held an educational symposium on Wal-Mart, as shown in the MSNBC documentary “The Age of Wal-Mart.” In her best-selling book Nickel and Dimed, investigative journalist Barbara Ehrenreich devoted a chapter to the experience of working at a Twin Cities Wal-Mart store. This course will go beyond the question of whether Wal-Mart is good for America. The following questions will be considered:

*What is Wal-Mart?
*How did it become the largest, most powerful employer in the world? *What are the values underlying its operation?
*What is its influence over our personal lives, and our society and politics in a global economy?
*Why do so many people hate Wal-Mart?
*What kind of power and influence do we, as citizens and consumers, have in relation to Wal-Mart?
*What do we, as citizens and consumers, value most and how can our actions in relation to Wal-Mart reflect those values?

Textbooks and other readings:

1. Nickel and Dimed: On (Not) Getting by in America, by Barbara Ehrenreich, Henry Holt & Co., New York, 2001, pp. 121-192. (Ch. 3: “Selling in Minnesota”)
2. Selling Women Short: The Landmark Battle for Workers’ Rights at Wal-Mart, by Liza Featherstone, Basic Books, New York, 2004, pp. 211-244. (Ch. 7: “Attention, Shoppers”)
3. In Sam We Trust: The Untold Story of Sam Walton and Wal-Mart, the World’s Most Powerful Retailer, by Bob Ortega, Three Rivers Press, New York, 2000, pp. 188-208 and one other chapter of your choice. (You will need to order this on your own. It may have a different publisher and subtitle, since it was also published in Great Britain, but it can be ordered on-line.)
4. The World is Flat, by Thomas Friedman, pp. 128-141 (Ch. 2: Flattener #7) and Ch. 4
5. Competing with the Retail Giants: How to Survive in the New Retail Landscape (National Retail Federation Series), by Ken Stone (1995), Ch. 3 and 9.
6. Los Angeles Times series on Wal-Mart, Nov. 2003
http://www.pulitzer.org/year/2004/national-reporting/works/
7. Sam Walton: Made in America, by Sam Walton (1992) (excerpt)
8. The Divine Right of Capital, by Marjorie Kelly (2003), Ch. 9.

We will seek answers to these questions through the following activities:
*Reading, reflecting on, researching and discussing written material about Wal-Mart
*Viewing several documentary films
*Replicating surveys about Wal-Mart and its influence
*Reporting and observation at our local Wal-Mart store
*Arranging for guest speakers with divergent viewpoints about Wal-Mart,
including Wal-Mart representatives and workers, local activists, etc.
*Organizing a campus symposium on Wal-Mart as a capstone experience

NOTE: The following schedule is subject to change, although we will never require assignments to be due BEFORE they are scheduled here. We may have guest speakers or other activities or presentations with short notice, so stay tuned!

Schedule of activities and assignments:

A word about your journal: This assignment is worth 40 points. It will be graded on thoroughness, professionalism and thoughtful reflection on the readings, activities, videos, lectures and discussions. It should also provide convincing proof that you actually did the reading, viewed the videos, etc. In other words, you must summarize content in a succinct and accurate manner. This journal will also be of great benefit to you when you write your research paper for the symposium. We expect that you will write at least 500 words per week. The journal should be organized in a reader-friendly manner, e.g., section headings indicating what, exactly, you are writing about, etc. It is not a diary or a stream-of-consciousness document; however, neither is it a polished essay.

Week 1 (Jan. 11) Discussion Topic: General information

Ice-Breaker (Wal-Mart Bingo)
Survey of class
*What power does Wal-Mart have over your life?
*How does Wal-Mart influence you?
*What are your values? (values exercise)
View: Part of The Corporation in class
*Assignments due Week 2
Activity: Visit Wal-Mart, one other big-box retailer and one locally owned store to compare prices on assigned item. Make sure the item is THE SAME at all three stores. Bring results next week.
Read: Readings #4, 5, 8
View: The Corporation (on reserve in library)
Write: Summaries and responses in your course journal. This journal must be typed. You will be writing responses to readings, class discussions and videos throughout the semester. It will be handed in for grading EACH WEEK beginning week 2. Week 2’s journal entries should include one on The Corporation.

Week 2 (Jan. 18) Discussion Topic: Business and economic issues -- The corporation and how it works, competition, external costs, supply and demand, wealth

Begin discussion of capstone experience: Symposium
Create community survey (Who? What? Why?)
Create guest speaker list (Who? Why?)
Create task list (What needs to be done? Who will do what?)

Assignment:
Choose 3 possible research topics for your symposium paper
Bring with you week 3 for our library visit and document in your journal

Week 3 (Jan. 25): Library visit: How do we research Wal-Mart?

Assignments:
Read: Handouts
Plan for symposium
View Is Wal-Mart Good for America? (on reserve in library)

Week 4 (Feb. 1) Discussion Topic: Media issues -- Advertising, image, PR and coverage

Assignments:
Read: Readings # 3 & 7
View The Age of Wal-Mart (on reserve in library)
Prepare survey

Week 5 (Feb. 8) : Guest Speaker – Prof. Robert Ley on Capitalism
Discuss and finalize community survey

Week 6 (Feb. 15) Discussion Topic: The Wal-Mart Story -- Sam Walton as American Hero and Success Story with a dark edge
Continue work on preparing for symposium, community survey

Assignments:
Read: Readings #1 and #2
View Wal-Mart: The High Cost of Low Price (on reserve in library)
Administer survey
Finish abstract for symposium paper

Week 7 (Feb. 22) Labor issues: The employees and how they work, unions, health care, employment conditions

Assignments:
Read: Reading #6, handouts
View: Store Wars and Save Our Land, Save Our Towns (on reserve in library)
Finish up survey

Week 8 (March 1) Discussion Topic: Social and Environmental issues: sustainability, urban sprawl, cultural diversity and other collateral damage

Assignments:
Read: Handouts
View NewsHour segment about Wal-Mart in China

Week 9 (March 8) Discussion Topic: Global issues – Wal-Mart is everywhere

Assignment: TBA

Week 10 (March 22) Discussion Topic: TBA

Assignment: TBA

Week 11 (March 29) : TBA

Assignment: Finalize paper for symposium

Week 12 (April 5) Discussion Topic: Symposium

Week 13 (April 12): Symposium
Post-mortem: how did it go? What did we learn?
Write thank-you and follow-up letters
Week 15 (April 26) Discussion Topic: Ethical issues – The good, the bad and the ugly

Assignment: Turn in symposium paper for grading
Length: 1500-2000 words, APA style
All papers (and presentations) will be posted to the course blog

Grading: Journal 40%
Symposium Paper 25%
Attendance 15% (attendance will be taken – 1 pt. per week)
Participation 20% (self-reported in journal and verified)

Final exam: 8-10 a.m., Monday, May 8
Bring a 500-700 word personal essay about what you learned and how it will affect your future attitudes and behavior. Try to answer the big questions of the course in a personal way. We will share our essays over breakfast. This final meeting is not worth any points, but if you don’t come, you lose 10 points. If you come, but do not have your paper ready, you lose 5 points.