8 of 9 people found the following review helpful:
4.0 out of 5 stars
Good, but not good enough, June 8, 2006
This review is from: The Bully of Bentonville (Hardcover)
Most of the Amazon reviews written of this book so far are irrelevant. In truth, Bianco mostly doesn't exhibit bias in his work. He points out that Wal-Mart is anti-union not because he is pro-union, but because Wal-Mart is anti-union. And I think his argument for the idea that that actually weakens Wal-Mart is a good one. But I don't necessarily agree with it, and it's not necessary to agree with his thoughts and conclusions for this to be a good book. Bianco is not an Ann Coulter or a Michael Moore, and this is not like one of those kinds of books which is an unabashed attack on a target. As other reviewers have said (and then ignore), he actually points out a lot that's good about Wal-Mart as well as the bad. Yeah, a lot of poor people have benefited from those low prices. It's just that they're the ones most hurt by the low wages and benefits as well.
But put all that aside. The reason to read this book is that it is one of the most concise histories of Wal-Mart in a book. It uncovered a fascinating history of Wal-Mart and its founder, Sam Walton, that otherwise I wouldn't have known. Others might say that you need to read Sam Walton's book because who would know Wal-Mart better? But the truth is that the most unbiased history comes from outsiders, and heck, Sam Walton does come off pretty good in this book. It's certainly not a personal attack, and Bianco is less critical of Walton and his choices than I personally am.
Overall, the book is well-written and informative, but the problem is really that he doesn't explore his themes deeply enough. I was left wanting more about the connection between a Wal-Mart and the depression of the local economy, and I really wanted a further exploration of the employee pay vs. profitability comparison that he made between Costco and Sam's. In a nutshell, that's what I wanted from the whole book. That's why it's 4 out of 5.
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40 of 60 people found the following review helpful:
3.0 out of 5 stars
Simplistic and Biased, But Somewhat Interesting, February 16, 2006
This review is from: The Bully of Bentonville (Hardcover)
"The Bully of Bentonville" tells how Wal-Mart has driven down retail wages (an estimated $4-7 billion according to a study done at Berkeley) throughout the U.S., creating 50-70% annual turnover (the latter in '99, the former about double Costo's rate) in the process. (Machiavellian minds might suggest that high turnover is desirable because it reduces those eligible for higher wage levels or to participate in union representation elections.) Bianco's other major point is that Wal-Mart's pricing policies have forced suppliers to move thousands of jobs overseas. In my opinion, however, Wal-Mart could plead "Not Guilty - by reason of competitive pressure" - even Wal-Mart DOES NOT have the power to succeed by providing what Americans do not want! Studies also have concluded that Wal-Mart saves American consumers up to $120 billion/year - clearly that is what consumers want and makes Wal-Mart successful.
Bianco reports that the typical Wal-Mart "associate" (sounds SO MUCH better than "employee" - who do they think they are kidding) was paid $9.68/hour ($17,600/year) in 2005, vs. $12.28 for "average" retail employees. Further, only 44% enrolled in Wal-Mart's medical plan - presumably because they can't afford it. (Bianco is clearly biased throughout the book - for example, what about those who don't need work-provided healthcare because they are already covered by a spouse's job or Medicare? Seniors are a major recruiting pool for Wal-Mart. On the other hand, the 6 month waiting period for full-time and 24-months for part-time employees IS a major impediment, especially given Wal-Mart's turnover.) Bianco also adds that 46% of Wal-Mart employees' children are either uninsured or on Medicaid, that it faced 40 class-action suits in '05 for forcing employees to work extra hours without pay, and shut down the only store that voted to go union. On the other hand, Bianco fails to ask "Why does Wal-Mart receive up to eighty applications/opening at new stores," or "Why are G.M., Ford, Delta Airlines, United Airlines etc. in so much trouble today?" Is Bianco suggesting that Wal-Mart not utilize people who are so desperate for work that $9.68 sounds good, even with meager benefits? Has he forgotten that arrogant unions have run many corporations into the ground? (NO, I do not defend trying to coerce people into working "off the clock," locking workers inside at night, or knowingly hiring illegals as cleaning crews!) The real villain in all this is America's political leaders who, for whatever reason, continue to claim that losing even high-paying, intellectually-demanding jobs to Asia is a good thing - and don't do anything about it! (What could they do? Mandate an expansion of "local content" laws that have preserved thousands of U.S. auto manufacturing jobs.)
Pressuring suppliers is a Wal-Mart strength, one of its competitive advantages. Left to themselves, suppliers, often in implicit collusion with workers, are wont to grow increasingly fat, and then 'make up for it' by raising prices. Bianco correctly reports Wal-Mart's "Plus One" policy (suppliers must either improve quality or reduce price on every item, every year) that counteracts this, but fails to recognize the positive incentive thereby provided. Ruthlessly adhering to this policy has led to some mistakes - eg. forcing Rubbermaid and Vlassic into undeserved bankruptcy - however, it has also created enormous pressure to innovate where formerly there was little or none. Bianco, however, is correct in concluding that it can (and likely increasingly is) overdone - eg. forcing Chinese factories to repeatedly close and move further inland in search of lower wage levels.
Wal-Mart suspended purchases from 1,200 overseas contractors for at least 90 days in '04 because of worker abuses, and over 100 others were terminated, primarily for child-labor violations - and this was despite prior inspection announcement 90% of the time! Did Wal-Mart do this out of altruism - probably not - more likely it was to avoid public relations problems. Regardless, avoiding these abuses requires that other nations' build their own economies and worker protections, as well as the U.S. taking back many of these jobs. Regardless, Bianco also "credits" Wal-Mart with now appealing to environmentalists by pledging to improve truck fuel efficiency 25% (not likely), reduce solid waste within its stores 25%, and energy usage 25% in new stores - realizing that this is part of a new P.R. blitz in response to negative publicity.
Near the end of "The Bully of Bentonville" Bianco tries to show another possible path - happier employees creating happier customers, etc. If only it were so simple - formerly high-paying American Airlines, Delta, Ford, and G.M. would be drowning in money! Reality is that significant, sustainable competitive advantages are what allow business to pay employees well; and those businesses that focus on efficiency cannot even do so then. Thus, his example of large independent grocery store that successfully focuses on entertainment - while NOT YET UNDER COMPETITIVE ATTACK BY WAL-MART - proves nothing! Nor does referencing Costco and its much better-paid employees - Costco appeals to a more affluent market; the "bad news" for Costco lovers is that Wal-Mart is slowly working its way up to more stylish clothing, and soon the two will be competing head-to-head! (Remember Toyota - it used to make only tiny cars - G.M. didn't care; now its Lexus luxury cars, SUVS, and titanic pickups as well, and G.M. is on the rocks!)
Clearly Wal-Mart has stumbled in route to becoming the nation's largest retailer. However, it didn't get there by stumbling all the way - important innovations in distribution center operations, motivating suppliers, use of bar-codes, computer and satellite communications system, and staffing levels have been major contributions. In the '80's I used to occupy time while accompanying my wife shopping by performing random observations of worker productivity - the results were terrible, and we all paid the price. Thanks to Wal-Mart, those days are no more. Further, critics need to also look at the origin of products sold in eg. much higher-cost department stores - they too heavily use China et al as their supply chain. Wal-Mart is only a symptom, NOT the problem.
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4.0 out of 5 stars
A company that's hard not to hate and prices that are hard not to love., May 1, 2010
This review is from: The Bully of Bentonville (Hardcover)
It's easy to pick out Wal-Mart as the bad guy. As the top-positioned retailer in the U.S. their sins stand out easily within the public spotlight. Understanding the exact impact of Wal-Mart and separating savvy business decisions from irreprehensible ethical missteps remains a difficult process. Is Wal-Mart evil or does it simply appear to be evil by the nature of its position?
While I have previously reviewed "The Wal-Mart Revolution", I found that the insight and perspective that "The Bully of Bentonville" offered paints and entirely different picture. "The Bully of Bentonville" is somewhat the antithesis of the The Wal-Mart Revolution as it focuses heavily on Wal-Mart's wrong-doings and strong arm tactics rather than highlighting the logic of their business model. It's difficult to read "The Bully of Bentonville" and not be repulsed.
Author Anthony Bianca provides an overview of Wal-Mart providing insight into the overall corporate culture and history that steers the company today. Rather than sticking to an outsiders view of Wal-Mart, Bianca ties in hard hitting facts about the major players within Wal-Mart and how their personal touch has affected the company. The book shows how the company has transitioned and where it has outright refused to change.
"The Bully of Bentonville" picks apart the centralized, almost militaristic structure of Wal-Mart and highlights how this structure prevents associates from stepping too far away from the fold. Bianca also documents stores that are trying to compete against Wal-Mart's stronghold on retail sales and the successes and failures of those efforts. He also takes time to show what happens to Wal-Mart's defectors and those that attempt to battle the regime.
Bianca writes in a very accessible format and manages to keep the reader entertained. It's not a book to pick up if you want a quick synopsis of Wal-Mart, but if you are looking for a more detailed account how the retailer operates and how it impacts retail in the U.S. it's a great read. "The Bully of Bentonville" didn't delve into the international side of Wal-Mart's business as heavily as it could (specifically how the stores operate within cultural limitations). Overall it's an excellent read and it provides a portrait that points out the problems with Wal-Mart's operation without outright bashing the company.
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