Wednesday, March 01, 2006

Wal-Mart and a Bank

Research Paper

In the United States, finding a Wal-Mart store is too easy. We see big blue signs of “Wal-Mart” in every town. Wal-Mart exists in every city, except major cities such as Chicago and New York City. The giant distributing company, Wal-Mart, wants to enter the banking business. According to the article, “Coming Soon: A Wal-Mart Bank?” ( Pasha, 2005), in July 2005, Wal-Mart applied to the Utah Department of Financial Institutions and the Federal Deposit Insurance Corporation (Federal Deposit Insurance Corporation) to enter the banking business. The Federal Deposit Insurance Corporation will make a decision on this issue before spring of 2006. Wal-Mart hopes to save 140 million dollars in bank processing fees per month. Actually, the project that Wal-Mart wants to start its own bank is not starting for the first time. According to Pasha, “In 2002, Wal-Mart attempted to purchase Franklin Bank of California, but this was also blocked by the California legislature.” (2005, par. 6), Wal-Mart is trying to save credit or debit card processing fees. According to the article, “Wal-Mart Wants To Own Processing Bank,” (Cards & Payments and SourceMedia, 2005). by operating its own processing bank, they are expecting to save about one billion dollars per year. The Wal-Mart application indicates two plans. One is they want to operate an Industrial Loan Corporation (ILC). Another plan is a credit card business. Wal-Mart bank will change the banking market in the United States, and threaten small regional and community banks. According to The Economic Times, “Wal-Mart’s interest has doubtless helped its partners, such as MoneyGram, in wire transfers” (2005, par. 5). As I mentioned earlier Wal-Mart bank may introduce a lot of negative side effects to the society. Usually, when a company applies for banking services, the Federal Deposit Insurance Corporation receives about one dozen letters, but according to Davis, in the Wal-Mart case, “the Federal Deposit Insurance Corporation had received 1,550 comment letters as of the end of October, 2005, many from bankers, and the majority of them were negative.” (2005, par.1). Most bankers do not want Wal-Mart to enter banking services, because Wal-Mart bank will threaten their profits and their survival. In 2005, Wal-Mart applied to enter their own processing bank, and the year changed to 2006, but the resistance groups are still opposed as they were last year. (Pasha, 2006, par. 1).

It is urgent that are consider why Wal-Mart wants to get its own processing bank and why we should not let Wal-Mart enter a banking service. If Wal-Mart succeeds entering its own processing bank, what benefits Wal-Mart would get? We have to recognize the government, the Federal Deposit Insurance Corporation in Utah, will allow Wal-Mart’s application or not. Also, we should research politicians’ position about Wal-Mart bank and we should research other companies or banks’ position about this Wal-Mart bank issue.

We should think why Wal-Mart wants to get its own processing bank. “Wal-Mart has loudly complained about the interchange fees that the card associations set for card acceptance” (Cards&Payments and SourceMedia, 2005, par. 11). Wal-Mart spends approximate 1 billion dollar per year for credit and debit card processing fees. Wal-Mart expects to save a lot of money by having its own processing bank. Nowadays, people prefer credit cards or debit cards to cash or check to pay because of their convenience. Wal-Mart accepts payments by credit or debit cards, but Wal-Mart does not want to pay processing fees. Wal-Mart wants to reduce those fees. Wal-Mart spokesman said, “The company has no plan to create branches or provide lending services to consumers” (Pasha, 2005, par. 3). He added that they would never see consumers in their Salt Lake City building. (Pasha, 2005, par. 3).

We should not let Wal-Mart enter a banking service for a lot of regional and community banks. Although a Wal-Mart spokesman said that they have no interest in branches, “Wal-Mart has the financial resources to do the same thing to community banks as community grocery stores – to drive them out of business” (The Economic Times, 2005, par. 5). As The Economic Times published, most regional and community banks’ survival are threatened by Wal-Mart banks. Although Wal-Mart will not create branches, regional and community banks are threaten by Wal-Mart bank’s exists. Many regional and community banks get a lot of profits from debit card processing fees and loan services. So, if Wal-Mart starts credit card and loan services, regional and community banks will have a lot of customers stolen by Wal-Mart Bank. Also, it will create employment problem by closed banks. Continuously, these problems will make other problems. We should not let Wal-Mart enter a banking service for the community.

If Wal-Mart succeeds in starting its own processing bank, what benefits will Wal-Mart get? Wal-Mart spends about 1 billion dollars for credit and debit card processing fees each year. If they enter the credit card services, they expect to save or to reduce the huge money that was spent for credit and debit card processing fees. “Wal-Mart received more than 140 million credit, debit and electronic cheque payments per month, and pays a small fee to process each transaction.” (Davis, 2005, par. 4). In addition, they will earn a lot of money from credit and debit services. Wal-Mart’s banking service plan included two services. Another service is a loan service for a small business or house plan. Wal-Mart has a lot of money from their distributing business. Therefore, they will advertise lower-rate loan service as their lower-price slogan promises. After they start that plan, many customers will move to Wal-Mart bank because of the lower loan service rate. Absolutely, they will earn a lot of money from loan services too. In conclusion, they can save a lot of money from credit and debit card processing fees, earn a lot of money from credit and debit card processing fees, and earn a lot of money from loan services.

We have to recognize whether the government, Federal Deposit Insurance Corporation in Utah, will allow Wal-Mart’s application or not. Still in February 2006, the Federal Deposit Insurance Corporation does not published what their position is. “Members of Congress went on to ask Federal Deposit Insurance Corporation to hold public hearing on the application due to the unusually large response to the Wal-Mart Bank proposal from banks and consumers” (Pasha, 2006, par. 7). The Federal Deposit Insurance Corporation has already received 1,700 letters, which are against this issue. As voices, Federal Deposit Insurance Corporation has to consider this issue. The Federal Deposit Insurance Corporation cannot conclude easily because of the opposite voices.

We should research politicians’ position about Wal-Mart bank. In 1998, Wal-Mart tried to buy a bank, but it was halted by the Gramm-Leach-Bliley Act in 1999. Also, in 2002, the California legislature blocked Wal-Mart from buying a bank. “Federal Reserve Chairman Alan Greenspan is urging Congress to close a regulatory loophole that lets companies own a certain breed of banks, including a bank Wal-Mart Stores Inc. wants to operate in Utah” (Aversa, 2006, par. 1). Other companies such as General Motors, General Electric, Pitney Bowes and BMW have their own industrial loan companies bank and Wal-Mart applied for a bank service to the FDIC in Utah. In the United States, industrial loan companies have grown more than 3,500 percent in the last 17 years, from 3.8 billion dollars to 140 billion dollars, according to Federal Reserve Chairman Alan Greenspan said (Aversa, 2006, par. 4). In the United States, financial market seems to be overheating the economy. At this point, the giant company, Wal-Mart, comes to the financial market; it will encourage the overheated economy in the United States. As Greenspan’s speech, the financial market is very a attractable market. That’s why companies want to start to own processing bank. The financial market looks like a golden goose.

We should research other companies and banks’ position about Wal-Mart bank. Most financial companies do not want Wal-Mart to enter its own processing bank. As I wrote about before, regional and community banks will get damages from Wal-Mart banks. Even though, Wal-Mart spokesmen said, Wal-Mart has no plan to create branches, most bankers cannot trust that because they already lied about their business. The ICBA president and chief executive Camden Fine said, “Fifteen years ago, Wal-Mart said, it had no designs on the grocery business and 20 years ago, they said they had no designs on the hardware business but now they dominate both business.” (Pasha, 2006, par. 10). The banks, and other financial companies worried that Wal-Mart will change their voice as they did in the past.

The Wal-Mart bank story is a big issue in the financial market in the United States. Most bankers are not willing to accept Wal-Mart bank as easily as some politicians. The society already recognized what kind of problems Wal-Mart has produced so far. More social and economic problems are not welcome. Some customers may like the idea of Wal-Mart bank. Customers may be to reduce loan-charges. Also, it is true that people can avoid ATM processing fees because Wal-Mart stores are everywhere. We need to realize that creating a new large bank is not very necessary in the United States at this point. The Federal Deposit Insurance Corporation has to consider opening Wal-Mart banks. In my opinion, small businesses are never protected by big businesses. Almost always large companies put small businesses out of business easily. Wal-Mart will put those small regional and community banks out of business quickly if it jumps to the banking business. Closing down those small banks will create first, unemployment, and second, economic unbalance. Wal-Mart has to consider this issue on people and economic accounts not for their benefit only. Wal-Mart, as a big business, should be able to recognize its obligation to protect local businesses, as they have a right to develop their business, if they really care for economic harmony.

References

Aversa, J. (2005, Jan. 27). Greenspan urges congress to end banking exemption used by Wal-Mart, The Associated Press State & Local Wire. Retrieved Feb. 22, 2006 from Lexis-Nexis.

Cards & Payments and SourceMedia. (2005, Sep. 22). Wal-Mart Wants to Own Processing Bank, Cards&Payments and SourceMedia, Inc. Retrieved Jan. 22, 2006, from Lexis-Nexis.

Davis, C. (2005, Nov. 30). Record resistance to Wal-Mart’s banking bid, Retail Banker International, Retrieved Feb. 22, 2006 from Lexis-Nexis.

Irvin, D. (2005, Sep. 1). Bankers warily watch Wal-Mart, Montgomery Advertiser. Retrieved Feb. 22, 2006 from Lexis-Nexis.

Pasha, S. (2005, Oct. 27). Coming soon: A Wal-Mart bank? CNNMoney. Retrieved Jan. 24, 2006 from Lexis-Nexis.

Pasha, S. (2006, Jan. 4). Wal-Mart Bank faces tough opposition, CNNMoney. Retrieved Feb. 22, 2006 from Lexis-Nexis.

The Economic Times. (2005, Sep. 7). Supercentre Banking. The Economic Times. Retrieved Feb. 22, 2006 from Lexis-Nexis.

Wal-Mart History Timeline. (n.d.) Arkansas Public School Computer Network Retrieved Feb. 22, 2006 from Arkansas Public School Computer Network

Sunday, February 26, 2006

The Wal-Mart Bank

Argument Essay

In the U.S., finding a Wal-Mart store is very easy, because every city has a Wal-Mart store. A Wal-Mart exists in every city, except major cities such as Chicago and New York City. The giant distributing company, Wal-Mart, wants to enter the banking business. Since 1998, Wal-Mart has tried to get their own process bank by buying an existing bank, but it was stopped by governments. According to the article, “Coming Soon: A Wal-Mart Bank?” (Pasha, 2005), in July 2005, Wal-Mart applied to the Utah Department of Financial Institutions and the Federal Deposit Insurance Corporation (FDIC) to enter the banking business. The FDIC will decide to approve or to disapprove Wal-Mart’s application before spring of 2006. Wal-Mart hopes to save 140 million dollars in bank process fees per month. Actually, the project of creating a Wal-Mart bank did not just begin. According to Pasha (2005, par. 8), “In 2002, Wal-Mart attempted to purchase Franklin Bank of California, but this was also blocked by the California legislature.” Wal-Mart wants to process credit cards to save a credit or debit card fee. According to the article, “Wal-Mart Wants To Own Processing Bank,” (Cards & Payments and SourceMedia, 2005), if they start their own bank, they are expecting to save about 1 billion dollars per year. Wal-Mart’s application has two plans. One is they want to operate an Industrial Loan Corporation (ILC). Another plan is to enter the credit card business. The Wal-Mart bank will change the banking market in the U.S., and threaten small banks as regional and community banks. The third project is processing.

Every business is based on profit, so Wal-Mart wants to save credit and debit card fees from having its own process bank. Because a Wal-Mart bank will threaten regional and community banks, we should not let Wal-Mart go into banking services. If a Wal-Mart bank opens in every Wal-Mart store, we will get some social problems.

Every business is based on profit, so Wal-Mart wants to save credit and debit card fees for own process bank. Every company wants to save their operating fees. Wal-Mart is one of them, so Wal-Mart wants to reduce money for increasing profits. Wal-Mart spends about one billion dollars per year in credit and debit card fees. One billion dollars is an unavoidable amount for operating a company. Wal-Mart expects to save credit and debit card fees if Wal-Mart has its own process bank. Most regional and community banks argued that Wal-Mart’s goal is not only to reduce credit and debit card fees, but also to enter the banking business market. The financial market is a very higher value business, so Wal-Mart can’t ignore this inviting offer. Wal-Mart has enough money to enter the banking business.

Because a Wal-Mart bank will threaten regional and community banks, we should not let Wal-Mart go into banking services. Creating a new bank is a big issue in the financial market because Wal-Mart’s financial ability is incomputable. Creating a bank in every Wal-Mart store is terrible threat for regional and community banks. Wal-Mart will decrease many regional and community banks’ profits from credit and debit card fees. Wal-Mart’s application included loan service, too. If Wal-Mart starts loan service, regional and community banks may have to reduce their loan interest rates. People who want a loan service want a lower rate of loan service to reduce the charge. Wal-Mart will select a lower rate of loan service according to their lower-price policy; it will causes the movement of bank customers after Wal-Mart opens own its own process bank. A Wal-Mart bank will close some regional and community banks.

If a Wal-Mart bank opens in every Wal-Mart store, we will get some social problems. A Wal-Mart bank will cause bankruptcy of banks. First, if some regional and community banks close, this community will have a lot of unemployment. The people, laid off from their bank, have to find another bank to get a job. Will they move to a Wal-Mart bank? Maybe not. Second, Wal-Mart has financial power; this can cause a monophonically problem. After closing regional and community banks, Wal-Mart will increase their loan service interests. Then, people will have to borrow money with high interests.

Wal-Mart wants to get its own process bank because Wal-Mart wants to save credit and debit card fees. Wal-Mart has tried to get its own process bank since 1998. So they will not stop trying to get their own process bank even if they fail at this plan. Because of these problems, I wrote about before, government and we should not allow the creating of Wal-Mart’s bank.


Reference:
Cards & Payments and SourceMedia. (2005, September). Wal-Mart Wants to Own Processing Bank. Cards & Payments and SourceMedia, Inc. Retrieved on January 26, 2006, from Lexis-Nexis.

Pasha, S. (2005, Oct. 27). Coming soon: A Wal-Mart bank? CNNMoney. Retrieved on January 24, 2006 from Lexis-Nexis.

Wednesday, February 22, 2006

Wal-Mart Supercenter

Synthesis Exam.

In the U.S., Wal-Mart has about 5,000 stores, but expansion of Wal-Mart is progressing. Wal-Mart is very powerful in the U.S. Everywhere Wal-Mart goes, it influences regional market society with its effect. “Wal-Mart’s influence on the U.S. economy has reached levels not seen by a single company since the 19th-century rise of Standard Oil, economists and historians say” (USA TODAY, 2003, par. 1). Both Carbondale and Murphysboro have a Wal-Mart store, but Wal-Mart’s plan is still processing. The plan that Wal-Mart will build a supercenter in Carbondale-Murphysboro area will influence our regional distributing market. According to Jacobs, “Some Murphysboro and Carbondale residents are protesting a new Wal-Mart supercenter in Murphysboro because they fear it will destroy the town’s small businesses and the quality of life for some of its citizens” (2005, par. 1). We should find the reason that Wal-Mart has such a big influence.

Wal-Mart has special policy that is difference other stores. Lower-price is their basic policy. So lower-income people are impressed by this slogan. According to Locke, Wal-Mart is the most famous store among lower-income people (2004). Wal-Mart’s effect is not only distributing to the market, but also the community economy is influenced. Capitalism Magazine said, “In 2005, Wal-Mart created 125,000 U.S jobs, and is continuously adding thousand each month” (Hoenig, 2004, par. 16). As I wrote before, the effect of Wal-Mart is unavoidable in the U.S. Wal-Mart is good for the regional economy, because Wal-Mart “employs thousands of people and pay millions of taxes – over $61 million in the state of Illinois alone” (Hoenig, 2004, par. 17). Wal-Mart is the one of the most powerful and influential companies in the U.S.

A Wal-Mart Bankis Comming!

In the U.S., finding a Wal-Mart store is very easy, because every city has a Wal-Mart store. A Wal-Mart exists in every city, except major cities such as Chicago and New York City. The giant distributing company, Wal-Mart, wants to enter the banking business. According to the article, “Coming Soon: A Wal-Mart Bank?” (Pasha, 2005), in July 2005, Wal-Mart applied to the Utah Department of Financial Institutions and the Federal Deposit Insurance Corporation (FDIC) to enter the banking business. The FDIC will decide to approve or disapprove Wal-Mart’s application before spring of 2006. Wal-Mart hopes to save 140 million dollars from these bank process fees per month. Actually, the project of creating a Wal-Mart bank did not just began. According to Pasha (2005, par. 8), “In 2002, Wal-Mart attempted to purchase Franklin Bank of California, but this was also blocked by the California legislature.” Wal-Mart wants to process credit cards to save a credit or debit card fee. According to the article, “Wal-Mart Wants To Own Processing Bank,” (Cards & Payments and SourceMedia, 2005), if they start their own bank, they are expecting to save about 1 billion dollars per year. Wal-Mart’s application has two plans. One is they want to operate an Industrial Loan Corporation (ILC). Another plan is to enter the credit card business. The Wal-Mart bank will change the banking market in the U.S., and threaten small banks as regional and community banks.

I am going to write about how many benefits Wal-Mart gets when it enters the banking service, what the problems of entering banking service business are, some reasons that threaten small banks, and what did Wal-Mart do for entering its own process of banking services

I found some reasons why Wal-Mart tries to enter the processing of a bank and what’s the major problem of opening a Wal-Mart bank on the Internet sources. Most companies are based on profits; the Wal-Mart bank expects to save a great deal of money from covering a credit and debit card fees.

Reference:

Cards & Payments and SourceMedia. (2005, September). Wal-Mart Wants to Own Processing Bank. Cards & Payments and SourceMedia, Inc. Retrieved on January 26, 2006, from Lexis-Nexis.

Pasha, S. (2005, Oct. 27). Coming soon: A Wal-Mart bank? CNNMoney. Retrieved on January 24, 2006 from Lexis-Nexis.

Thursday, February 09, 2006

Can Wal-Mart Start a Bank?

Summary Response #2

In the article, “Wal-Mart Wants to Own Processing Bank”, Wal-Mart Stores Inc. has begun to establish a bank that is based in Utah. Wal-Mart is the largest store chain in the world. The Wal-Mart has a credit and debit card problem, which is their banking process fees. They pay about 140 million dollars for these bank process fees per month. They want to save that money. Wal-Mart wants to process credit cards. If they start their own bank, they can save about 1 billion dollars per year. Wal-Mart had tried to buy a bank in California & Oklahoma, but their major plan was stopped by state politicians. Wal-Mart application has two plans. One is they want to operate an Industrial Loan Corporation (ILC). Second thing is credit card business. If the Federal Deposit Insurance Corp in Utah allowed Wal-Mart bank, Wal-Mart could start to operate bank after 3-4 months. This article quotes Doddas saying, “Wal-Mart’s bank identification number (BIN) sponsor is J.P. Morgan Chase & Co., its merchant acquirer is Chase Merchant Services and its processor is the First Data Merchant Service Division of First Data Corp.” Wal-Mart has complained to card associations about interchange fees.

We have to know that kind of bank Wal-Mart really wants to establish and what is the benefit to Wal-Mart from the banking business. Anyway a Wal-Mart bank will be realized situation, but other banks do not want a Wal-Mart bank. I thought about other banks’ risk from a Wal-Mart Bank. Last, A Wal-Mart bank will give a lot of profit to Wal-Mart Stores Inc. At this point, what do benefits they will get?

At first, we learned why Wal-Mart wants to establish a bank from this article, but that may not be their entire plan. According to Wal-Mart, they pay about 140 million dollars for a credit and debit card service fees. According to this article, Wal-Mart’s annual income is about 200 billion dollars; after calculating, they pay about 1.6 billion dollars for a credit and debit card service fee, and their annual income is approximately 200 billion dollars. At this time, we have to wonder that why they have attachment to less 0.5% of their annual income. Actually, if they succeed in establishing their own business, they can’t save all of their service fees because whole groups of people will not get a Wal-Mart credit card. In my guess, they may save 10% of their service fee. Business is based on profit, but they could cover their risk from other parts of their business. You and I do not know what is their inner thought. We just can guess they have another plan after establishing banks.

Second, after Wal-Mart bank starts their business, more risk faces to regional and community banks. According to Wal-Mart, regional and community banks will not get any risks, but those banks can’t believe what Wal-Mart says. Wal-Mart’s public plans are a credit and debit card business and loan business. Small banks, as regional banks and community banks, will lose their customers to Wal-Mart. Banking business’ demand is limited, but supply is increasing. According to the theory, the survival of the fittest, the giant bank of Wal-Mart will survive and the weak small banks will be dead. Because the Wal-Mart bank has a lot of money from their distributing business, they will start the lowest loan rate and the highest deposit rate as they did when they started Wal-Mart Supercenter.

Last, if the project that establishes a Wal-Mart bank is be a success, which benefits will Wal-Mart get? The team that takes charge of Wal-Mart bank project already researched a feasibility study to create a bank, and they may get the conclusion that will make a lot of profits before they didn’t. First, the Wal-Mart bank can save their money for a credit card and debit card service. Second, the Wal-Mart bank can earn a lot of money from a loan services, at last their company recognition will be increasing.

In Conclusion, it’s the third time that Wal-Mart tried to get its own bank. They may not give up that project, because thier bank desire started almost a decade ago, for their unlimited expansion, never ending hope from benefits. The main issue would change from “Will Wal-Mart bank be established?” to “When will Wal-Mart bank first open?”

Reference:
Cards & Payments and SourceMedia. (2005, September). Wal-Mart Wants to Own Processing Bank. Cards & Payments and SourceMedia, Inc, Retrieved January 26, 2006, from Lexis-Nexis

Tuesday, January 31, 2006

A Wal-Mart Bank

Summary Response #1

A Wal-Mart Bank

In the article, “Coming Soon: A Wal-Mart Bank?” Wal-Mart is trying to enter the banking business. If Wal-Mart enters the banking business, small regional banks have some risks, so they don’t want Wal-Mart bank to open. They want Wal-Mart to start only a limited banking business. In July 2005, Wal-Mart applied to the Utah Department of Financial Institutions and the Federal Deposit Insurance Corporation (FDIC) to enter the banking business. Wal-Mart wanted to save their fee from Wal-Mart’s payments that are credit, debit, and electric check payments. But according to the Wal-Mart spokesman Marty Heires, they will not create branches. The FDIC will decide to approve or disapprove Wal-Mart’s application before spring of 2006. Opening afraid a Wal-Mart bank is an issue because that makes a lot of regional and community banks. Wal-Mart already has the experience of biting a lot of small stores with lower prices. Wal-Mart makes an issue about ATM money orders. From the time Wal-Mart opened its first store to now, if Wal-Mart open about 1,100 branches in their stores in the U.S. According to the article, “In 2002, Wal-Mart attempted to purchase Franklin Bank of California, but this was also blocked by the California legislature.” At that time, Wal-Mart hoped to buy a bank because it could help saving debit and credit card fees. According to Kevin Fitzsimmons, associate director at Sandler O’Neill, they are ready to move to opening banks.

Why is Wal-Mart trying to start banking service? According Wal-Mart, they just want to save their credit card and debit card fee. The Wal-Mart bank will give risks to small regional banks because they have a lot of stores in the U.S. People may not want a Wal-Mart bank or not.

Why is Wal-Mart trying to start a banking service? According to Wal-Mart, they just want to save their credit card and debit card fee. So they will start just a credit card and loan service. They spent a billion dollars each year for credit and debit card fees. They will save a billion dollars each year if they start a banking service. It also gives damages to other banks, because they will lose their profit from credit and debit card fees from Wal-Mart. According to this article, Wal-Mart tried to buy a bank, twice. In 1998, Wal-Mart tried to buy a bank, Oklahoma’s State Bank and Trust Co. and in 2002, Wal-Mart tried another one, the Franklin Bank of California, but both of those deals failed for some reasons. Wal-Mart bank is not a recent issue; that issue began about 10 years ago. They may succeed in opening a bank soon.

The Wal-Mart bank will give risks to small regional banks. Wal-Mart has about 1,100 stores in the U.S. Wal-Mart will start their banking business with their own huge capital. If Wal-Mart enters the banking services, they will have about 1,100 branches of bank in the U.S. The Wal-Mart’s spokesman said, they don’t want to create a branch, but that would be a lie. When they opened the first store in 1998, they did not sell groceries in their store, but they are in the top class of the grocery marketing now. Wal-Mart has a lot of money, but regional banks and community banks don’t have enough money for competition. Wal-Mart will start to eat regional or community banks step by step. After that time, the U.S. may have a few banking companies. The huge bank will threaten a lot of regional and community banks.

People may want the creation of a Wal-Mart bank. People who deposit their money in a regional bank would move their deposits to the Wal-Mart bank, because they don’t have to pay fee for withdrawing in other cities. Wal-Mart may try a banking service with the lowest loan rate and a lot of branches in their own stores. And other people who are anti-Wal-Mart don’t want the expansion of Wal-Mart any more. Every dinosaur company has a lot of anti people, for example, Microsoft, IBM, GM, Samsung, and more. That problem is their major unsolved problem. They may have to think about public opinion before open a bank.

The Wal-Mart bank is a big issue in the financial society of the world. They just want a loan service and credit card service. But the Wal-Mart bank will start from Utah, and they may not stop their expansion. The financial business has a great deal of margin. The Wal-Mart bank will threaten a lot of small banks and change society in the U.S. A lot of people will move to a Wal-Mart bank from a small bank because of lower loan interest and service fees and higher deposit interest. The government has to think a thousand times before allowing a Wal-Mart bank.

Reference:
Pasha, S. (2005, Oct. 27). Coming soon: A Wal-Mart bank? CNNMoney. Retrieved on January 24, 2006 from Lexis-Nexis

Monday, January 23, 2006

The Supercenter, "Wal-Mart"

Summary Response

In the article “Some Cities Resisting Wal-Mart Expansion”, by E. Kaiser, Wal-Mart is the name of a distributive company. Wal-Mart sells foods, drugs, and antiques in a store. The Wal-Mart is expanding their store counts, but some people don’t like their expanding. If Wal-Mart opens in a city, it will make problems more than profits. Some small stores may have to close their store, because they may lose competition of prices with Wal-Mart. People want to buy a product where they can buy it cheaply. Wal-Mart will not build a market. It is able to change the regional structure of commerce and increase prices. Some small cities want to open Wal-Mart in their town because of their revenues. In 2003, Wal-Mart will open more than 200 stores in this country. Since 1998, Wal-Mart has had the idea that people go to discount store to buy living products twice per week and they might go to a grocery to buy breads and milk twice per week. People think if Wal-Mart opens, that city’s population will be increasing, but people live in some area not for shopping. Most major urban areas don’t have a Wal-Mart. Wal-Mart does not prefer to get money with a high margin from selling a product. Wal-Mart prefers to get money from selling a lot of products.

They try to expand their stores. They try to extend their business to major cities. Wal-Mart supercenter is a single story building.

Wal-Mart always tries to expand their stores more and more in the world. Wal-Mart is a major store in the world. We can easily find a Wal-Mart supercenter in most cities like McDonalds. According to this article, Wal-Mart will open more than 200 stores in this country in 2003. Small stores where Wal-Mart will open worried about their selling. Wal-Mart can sell a product cheaper than them. People want to buy any products that they can buy cheaper than others. When we run on the highway, we can see the Wal-Mart logo easily. Wal-Mart became a very famous store in most countries. Wal-Mart successfully opened stores in most countries.

Wal-Mart tries to extend their business to major cities. Wal-Mart established their stores not in major cities. As I wrote in the previous paragraph, we can find Wal-Mart easily in most cities. But it is hard to find Wal-Mart in major cities. Wal-Mart didn’t open stores in major cities. They began in small and medium cities. Another supercenter, named “K-Mart”, already settled in major cities. After Wal-Mart opened their store in major cities, K-Mart failed competition with Wal-Mart. In 2003, their next plan is how to open their store in major urban areas. According to this article, “They start to move more and more into urban areas,” said Michael Collins.

Usually, Wal-Mart supercenter is a single story store but Wal-Mart is trying to build multi-level stores. If Wal-Mart wants to open a store in major urban areas, they have to recognize the price of real estate. Wal-Mart is trying to build a multilevel store which is different from other stores. Wal-Mart wants to set the grocery corner on the top level because people don’t want to go up after they finish shopping for what they want to buy. If the grocery corner is on the first floor, people just go out after they shopped without seeing other products. But if the grocery is on the top level, they have to move up to the top level to buy foods and they have to move down to go back home. Although they go out of the store, they have to see other products. At that time, if they found something that they are interested, they may want to buy it. Wal-Mart may want people to buy as many products as possible.

Wal-Mart is the best model for learning marketing. They succeeded in opening stores in most countries in the world. They knew what people want and they used their knowledge. Wal-Mart is trying to expand their store counts. After they hold most small cities, they try to open in major cities. Wal-Mart’s next plan is how to hold major cities. They try to build a multilevel store in major cities because of real estate prices.

Reference:
Kaiser, E. (2003, July 12). Some cities resisting Wal-Mart expansion. Reuters, Common Dreams News Center. Retrieved on January 17, 2006 from Common Dreams News Center

Something About Wal-Mart

Dignostic Paragraph

I like to buy something at Wal-Mart in Carbondale because I can buy something that I want at Wal-Mart. Everything that I want to buy is there. I don’t have to move to another place to buy something that is a different kind of product. For example, another place which we call “Kroger” has just foods. Actually, they try to sell other products, but in my notion, Kroger has just foods.

When I came to Carbondale the first time, my sister brought me to Wal-Mart to buy something. At that time, I just thought it is just a mart. Products that Wal-Mart sells are cheaper than at other places, but some products are not the best. I thought they sell not very good products with the cheapest price in this country. When I went back to my home, I thought I saved time because I didn’t have to move to another place to buy something. I completed shopping at Wal-Mart.

In my habit, I am used to going to Wal-Mart when I buy some living products but I am used to going to BestBuy when I buy an electronic product, and I am used to going to U-mall when I buy clothes and a gift, because Wal-Mart’s products are not the best in my imagination. I think Wal-Mart is the best for buying a lot of little things.

I know Wal-Mart is existent in every city. We can find Wal-Mart easily in any city, because Wal-Mart has a lot of stores in the United States.

go to WAL-MART website

Thursday, December 08, 2005

Human and Animals

EAP2 Writing Work Shop

Since the earth was born in the galaxy and lives lived on the earth, humans and animals have lived together on this planet. So many years ago, humans were a group that lived on earth with other animals. After humans used their brain, humans have started to control the earth. After humans’ brain was more intelligent, they used most materials from the earth to create tools. Humans invented some new materials by mixing, burning, and melting. After human society became more industrial, they needed more resources. They hunted animals for their food problem after that; they used animals’ leather for clothes. Recently, some humans enjoyed hunting for their hobby. Humans have killed fierce animals that people think are dangerous animals. The animals disappeared near cities and some species are almost endangered. Humans only knew how to use resources and they just acted like consumers in the earth. They just used and gathered without any repairing or fixing. They didn’t recognize problems of the environments. After a few hundred years, the planet earth faced disaster, called “pollution,” because of their behaviors. New York City, and many major cities in the world where many people lived, has many critical environmental problems. Now, these problems are improved by global issues, but if many cars, buildings, and factories exist, then these cities will never recover any natural environmental area. Humans who live in major cities couldn’t breathe in fresh air and face risk of environmental problems. Animals lost their habitats, after humans made cities near their habitats. Humans made a zoo, and they confine animals to a dirty cement cages. These animals may have a lot of stresses.

Humans just use resources from the earth without trying to repair it. Humans create a monster, named “pollution,” by justification of industrialization. The monster lived all of the worlds with humans. Humans have snatched many things from animals. Many animals have died and lost their habitats because of human activities. Humans made a zoo, like a park, and they made a small cement box. Animals in the zoo lived in these boxes. Some animals became a sight in zoos. Humans may have to protect the earth.

Since humans have stared living in the world, they only know how to use resources without knowing how to repair or fix. Of course, animals never repair environments. They just eat plants and other animals, but animals’ using capacity is not much. They just eat plants for their living foods. Only humans use many resources, because they have to use fossil fuels, coals, and other resources after the renaissance revolution. Humans cut down trees in forests, gathered mineral resources, and gathered non-mineral resources. Only humans use cars, airplanes, and other gasoline vehicles. Since the renaissance revolution, humans needed many resources because they had made many factories. Factories need many resources to produce something. They have made furniture with lumber, metal bowls with some mineral resources, and textures with chemical resources. Therefore humans have been using a lot of resources from the earth. Some resources are unable to be restored; those are non-renewable resources. I wonder, after these resources are exhausted, how they will live on this planet.

Several hundred years ago, humans only used renewable resources. They couldn’t use fossil fuel and coal because they hadn’t invented fossil fuel or coal yet. At that time, the environment didn’t have serious problems like recent days. Natural resources are less harmful than other chemical resources to the environment and earth. Burning fossil fuel produces much CO2. CO2 is the most important things to produce pollution and increase temperature in the world. Both urban-island and greenhouse effects are started with CO2. Air pollutions can change climates. The air pollution makes urban islands, and the greenhouse effect. Most pollution is harmful for human health. Air pollution can increase the rate of respiratory diseases. Water pollution can increase the rate of digestive diseases and skin diseases.

Human has built cities on many lands. After building, humans started clean out animals in humans’ living area or animals started escape from humans. Animals lost their basic habitats. After they lost their habitats, the area where humans built cities started to be polluted. After that time, humans tried to kill fierce animals because humans fear those animals. When humans killed an animal, they ate their meats, make a stuffed animal and used their skin for leather. The most terrible behavior is hunting. The hunter has no reason to kill animals, just hunters’ thrill and satisfaction. “We need to understand and assess the dangers associated with a research culture that is under attack.” Inhofe, J. (2005, par. 5). If humans don’t protect animals, we may face one species’ termination. Humans have snatched too many things from animals as their lives, habitats, and foods.

Since humans have started deforesting, animals lost their basic habitats, so they have to move from their habitats. The animals have to escape from humans because humans will hunt and kill them. Endangered species need help for surviving from humans because if they are exterminated, we can’t see them any more. The government has to make a law for endangered species. “The one requirement is to maintain as effective deterrent to those in business, industry and government who plunder the environments.” The Seattle Post-Intelligencer, (2005), If some species are terminated for business by humans, every species will be terminated by humans. For example, if the one species is terminated, the food chain will be broken. After that, the balance of the ecosystem will be broken. We can see too much number of one animal species. Those animals will eat other animals that are under their food chain level. This means another species will be terminated. This process will continue more and more. In the end of this process, only one species exist in the world. That one species may not be humans.

Humans and animals had a relationship for a long time; “Since the Renaissance, Europe’s most prominent and outspoken advocates for animals” Manning, (1994, par. 4). Humans already know they have to protect animals, but humans made many zoos in the world. Most major cities have one more zoos. Humans put animals in small cement boxes. These animals get a lot of stress from their cages. That cage doesn’t have a tree, a plant or a river. That is just one box. They almost can’t run, fly, or climb in their cages. The animals that are raised in zoos by humans can’t hunt food because animal handlers didn’t teach them to hunt to animals. When animal handlers set the animal free in wildlife areas, most animals will die because they don’t know how to get food. Animals’ satisfaction is great when they live in their natural habitats. After the zoo changes animals’ cages to almost natural habitats, animals’ state is better than before. Their fighting rates are reduced and reproducing rates are increased.

Animals and humans can live together. The Rosamond Gifford Zoo, in New York, succeeded to use animals’ wastes to produce electrical power. Before using animals wastes, they may have used fossil fuels or gasoline. After using animals wastes, they don’t have to spend a lot of money to produce electrical power. They also can save money for disposing animal wastes. Like this story, if animals and humans live together, both of them can help each other. Animals can give resources to humans. Humans can help animals live. Ranchers have to raise cattle. “Wildlife managers at the preserve learned from watching ranchers, where grazing and habitat were working together. “ Hacking, (2005, par. 5). Sometimes we can learn from our nature and animals.

Natural environment is like a jungle and under the seas. Approximately a million years ago, people had lived in natural environments. They didn’t build any architecture. So they may not have any stress from pollution. People who lived in natural environments are in the best states in the world. Their sight range is the longest. Also their life satisfaction is the best in the world. Green color is the best for eyes’ physical fatigue, so people who always see green color from plants, their sight range is better than that of other people. People who live in natural area have the best satisfaction of their lives. People should put plants in their living area because plants can dilute air pollution. According to Eipperle (2005), some company tried to change their working environments. The company might plant more trees in their working areas. After changing, workers efficiencies were better than before changing. Both humans and animals got stresses from manmade structures. Recently, the government has been protecting and restoring nature; Yellowstone Park is a good example of protected and restored nature. “The real threat to wildlife in the Rockies is posed not by hunters, but by coal bed methane developers who rip up the land and degrade water quality, and developers who plunk pricey homes into animals’ migration routes.” Connelly, J. (2005, par. 2). The government has to make more national parks for animals like wildlife reservation areas not for humans’ recreation area.

In the last few centuries, humans invaded animals’ natural habitats to live there, and they wanted to get larger lands and resources. Humans constructed cities anywhere. For this reason, animals lost their habitats because of humans. The destructed environments by humans became got many diseases is their environments. The earth appeared unseasonable weather, global warming, and many hurricanes and typhoons. The ecosystem was broken by deforestation and hunting. The broken ecosystem made many natural tragedies. It also started from human activities. Food chain was broken by a broken ecosystem. At result, the number of insects are increased. The insects cause many diseases. After this time, humans have to know what they did in this planet. Humans must fix and repair environments that they destroyed.

Bibliography

Connelly, J. (2005, Nov. 16). West Is A Moving Target On Wildlife Protection, Seattle Post-Intelligencer. Retrieved Nov. 30, 2005 from Lexis-Nexis.
Eipperle, K. (2005, June 9). Lessons Learned in Zoos Can Help Us All; Importance of Creating Healthier Places and Spaces – For Animals and Our Communities – is Clear. Telegraph Herald, Dubuque, IA. Retrieved Oct. 31, 2005, from Lexis-Nexis.
Hacking, H. (2005, Nov. 9). Farm Tour: Learning Of Ag, Animals, Environment. Chico Enterprise-Record. Retrieved Nov. 30, 2005 from Lexis-Nexis.
Inhofe, J. (2005, Oct. 9). Animal And Environmental Rights, Congressional Quarterly, Inc. Retrieved Nov. 30, 2005 from Lexis-Nexis.
Kates, W. (2005, Apr. 29). Zoo May Use Animal Waste as Energy Source. Associated Press Online. Retrieved Oct. 26, 2005 from Lexis-Nexis.
Manning, A. and Serpell, J. (1994). Animals And Humans Society. New York: Routledge.
Seattle Post-Intelligencer, (2005, Sep. 11). Endangered Species: A Law That Works. Retrieved Nov. 30, 2005 from Lexis-Nexis.

What is truth?

About fifty years ago, the U.S. military tested nuclear bomber in Nevada. According to Evenson (2004), they had tested nuclear about 1,030 times during the last 50 years. The tests seemed safe for people but some people are asserting they are experiencing some diseases from nuclear tests. According to Gubler (2004, p.1), “St. George resident Bill Endsley, who grew up in Cedar City and endured hundreds of nuclear blasts, said the radiation from the testing gave him skin cancers and melanomas.” As he said, governments said as the nuclear radiation we tested was safe, but they are lying.

The government said, nuclear tests were safe and most people believed that. So is it safe? If it is true, why did Mr. Endsley say he is a victim of nuclear tests? Who is really truth? And where is truth?

We know nuclear bomber is really terrible. In Aug. 1945, the U.S. military dropped nuclear bombs in Hiroshima and Nagasaki. Since that time, many people have experienced effects of nuclear exposure. They have many cancers, and genetic illness. Many their offspring are deformed children from changing genes. After 50 years, their grandchildren have same symptoms even if their children don’t have genetic problems. According to Soloman (2001, p. 1), “During over a decade, mushroom clouds often rose toward the sky.” They may not know what danger is at that time. According to Soloman (2001, p.1), “In Utah, Nevada and northern Arizona, Children and others living in downwind area were beginning to development of cancer and thyroid ills.” According to Libertarian Party Press (1997, par. 3), “The National Cancer Institute admitted that exposed people had gotten lethal thyroid cancer.”

The United States doesn’t need nuclear test anymore, because they had enough times of nuclear tests, Evenson said (2004). The governments or militaries may not test any more, but the people who don’t have any sin, crime, guilt, blame, or fault are already sick and have higher risks than other area people. According to Salt Lake Tribune, “President Bush’s promise that he was no plans to test sounds too much like assurances made 50 years ago that tests were safe”. But until fifty years after, the tragedy is not finished. According to some facts, those tests were unsafe, and are unsafe now too.

Thus, though they didn’t find any harm during the test after a few decades, nowadays, people who live in Utah, Nevada, and northern Arizona have more cancer than in other areas. This result is that was unsafe or that illness is from other causes.

Reference:
Evenson, B., Salt Lake Tribune, Apr. 18, 2004, par. 3
Gubler, H., The Spectrum, Mar. 24, 2004, par. 1
Salt Lake Tribune, Mar. 30, 2004, par. 7.
Leberitarian Party Press Release, Aug. 8, 1997, par. 3
Soloman, N., Pravda. RU, Jan. 27, 2001, p.1