Sample Essay on:
Supply Chains: Wal-Mart and Costco

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Essay / Research Paper Abstract

5 page paper comparing management and logistics at these two retailers. Wal-Mart and Costco seek to sell products at low prices to as many customers as they can attract but beyond that, there is little similarity between the two companies. Known for its low wages that offer no benefits, Wal-Mart finds itself fending off attacks of negative publicity. Costco pays the highest average wages in US retail while also providing full health insurance and other benefits to its employees. Though their supply chains are very different, both companies carry attractive (and similar) profit margins. Bibliography lists 5 sources.

Page Count:

5 pages (~225 words per page)

File: CC6_KSwalmCostcoSup.rtf

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Unformatted sample text from the term paper:

Wal-Mart and Costco seek to sell products at low prices to as many customers as they can attract but beyond that, there is little similarity between the two companies. Known for its low wages that offer no benefits, Wal-Mart finds itself fending off attacks of negative publicity. Costco pays the highest average wages in US retail while also providing full health insurance and other benefits to its employees. Though their supply chains are very different, both companies carry attractive (and similar) profit margins. If one is to be categorized as being "better" than the other, the winner must be Costco, whose ethics gain no negative comments and where employees, vendors and customers alike are quite happy. Wal-Mart Wal-Mart has gained negative publicity about ethical issues for years. Until recently, most attention was trained on effects on small businesses and consumers, but the company also is known for its "peculiar charge-back policies that leave their suppliers confused and temporarily or permanently underpaid" (Jennings, 2000; p. 10). Recent attention has been focused on Wal-Marts treatment of employees in terms of low wages and no benefits. One vocal detractor, Bill Quinn (2000), published How Wal-Mart is Destroying America and the World to chronicle the predatory practices that Wal-Mart uses when entering a new market. Wal-Mart is famous - or infamous - for entering a new market; undercutting local merchants and putting them out of business; and then raising prices to pre-Wal-Mart levels (Quinn, 2000). By the time that happens, local consumers - and local retail workers - have few other choices available to them. From Wal-Marts perspective, this pattern only constitutes the sound business practice to which the company is ...

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