Have you ever been in love before or just started dating someone and everything is always fireworks and the other person can do no wrong? Then after a couple of weeks or months that original feeling you had starts to fade or fade away and you come back down to earth and evaluate your needs, wants and goals? To me, after reading "Wal-Mart's Mid-Life Crisis", it seems to me that Lee Scott, the current CEO of Wal-Mart, is trying to stay in business by starting a new relationship every day without working on his relationships current. I know the idea may seem a little silly, but stay with me for a minute. Since his hiring in 2000, Wal-Mart has (through no fault of his own) had major reputation problems, as well as increasing overhead and decreasing sales. But instead of addressing the existing problems with failing stores and how to increase sales and focus on each store as an individual, he would rather just open a new store every day for the next 3 years. Part of the backlash is that there are already too many stores. In May 2008, Starbucks announced it would close 500 stores. This was due to oversaturation and the growing reputation of high-priced coffee. What was once considered part of the scene and a cup of gourmet coffee, was now perceived only as an expensive bitter coffee. Too much of a good thing always comes with a backlash. There are so many Wal-Marts competing with themselves. In 2004-2005 major issues relating to the “cost of low prices” were brought to public attention. Many employees were not provided medical benefits and were encouraged to apply for Medicaid (a medical benefits program administered by states and subsidized by the federal government. Under this plan, various medical expenses will be paid to those who qualify) through the management of Wal-mart. There was evidence that female employees were discriminated against and opportunities were overlooked. Employees were encouraged to work overtime for fear of being replaced. In China, sweatshops were exposed to deplorable living conditions that effectively caused workers living in dormitories within the factory to work 7 days a week. Any employee organization was viewed by management as conspiring to unionize and so often employees were fired. One big problem was that instead of disputing these allegations, they decided to carry on as usual and these problems would eventually be resolved or disappear.
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