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Is Wal-Mart Too Powerful?  

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BPS 6201 7/13/04 Is Wal-Mart Too Powerful? Wal-Mart has quickly become a business in which many people and groups depend, including stockholders, consumers, employees, and suppliers. The issue is whether or not Wal-Mart has created a dependency that is a crutch on society and the economy, or has Wal-Mart demonstrated a fine application of capitalistic principles in business. The issue can be explained by examining the impacts of Wal-Mart on its stakeholders. STAKEHOLDERS WAL-MART'S IMPACT REASON Stockholder Positive * Wal-Mart's profits have increased 13% from last year to $9.1 billion.1 Over the last 5 years, EPS has increased by 15.45% and dividends by 18.36%2 Consumers Positive Negative * By offering discount prices (at times 14% lower than the competitors), the consumer has more purchasing power. * Consumers have a product selection limited by Wal-Mart as other retailers go out of business Suppliers Positive Negative Negative (Potential) * Wal-Mart is the largest retailer/customer for consumer product manufacturers. * Product integrity/design is compromised by the Wal-Mart influence * Have...

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