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The Walmart Effect
Chapter 4 and Chapter 5, pages 97 through 136
1. Who is Sherrie Ford and why was she hired by Welch’s juice and jellies factory in Lawton, Michigan?
2. On page 103 in the 3rd paragraph, Steve Dobbins says, “We are shopping ourselves out of jobs.” What does he mean?
3. In the second half of Chapter 4, Fishman discusses two negative effects of Wal-Mart’s low prices. Describe these effects and give one example for each of them.
4. Jim Weir, the CEO of Snapper Inc. says that many suppliers are “addicted” to Walmart volume. What does this mean?
5. The book describes the “flip side of the Walmart effect that Carolina Mills, Black & Decker and L.R. Nelson had. What is the “high cost of low prices”?
6. What problem do high end product manufacturers have when doing business with Wal-Mart?
7. Who is the man who said no to Wal-Mart? What does he “said no to Walmart” mean?
8. Describe in detail the “Snapper” products. Try to answer the following questions. What are they? How are they made? How much do they cost? What kind of quality are they? Where can you buy them?
9. At the end of Chapter 5, Jim Wier goes to Bentonville, Arkansas for a meeting with Walmart. Briefly describe what happens at that meeting.
10. What are the two ways retailers can compete with Wal-Mart?
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