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Politics : Formerly About Advanced Micro Devices -- Ignore unavailable to you. Want to Upgrade?

To: Tenchusatsu who wrote (263155)	12/3/2005 8:43:38 PM
From: tejek	Read Replies (3) \| Respond to of 1574706

Ted, The Wal mart concept goes against the notion that you can treat people decently and fairly, and still be successful in business. Personally, I think the secret to Wal-mart's success is a focus on expansionism. Why improve profitability through higher quality when you can just find another Main Street USA to open up a new store? They do it by margins. WMT has a GM of 23% while Target's is 32%, nearly a ten % difference. However, out of its 23% WMT is able to scatch out a Net PM of 3.6% whereas TGT's is 4.4%, a difference of less than 1%. Now TGT is an efficiently run company.....so you can't accuse them of sloppy margins. As far as I can tell, there are only a few ways that WMT can be doing nearly as well profit wise.......lower construction costs; better inventory management; lower maintenance costs; lower salaries and less employee benefits, etc. We know the last one is a definite while the others less likely because of the quality of TGT's management. Hence, I would say that WMT's expansion and profitability has been done on the backs of its employees. From what I understand, there are a number of employees who would agree.