1. What Is The
Problem You Are Trying To Solve?
Whether or not Wal-mart
should open a new 130,000 square foot store on
2. Is
the solution obvious? Why or Why Not?
Not obvious because we will have different answers from consumers
and retailers like Superstore. Consumers are likely to say yes because they
think they will benefit from lower priced goods. Retailers are likely to say no
because Wal-mart is a strong competitor and will
affect their business. Residents in that area will also have different opinions
on this issue because having a new Wal-mart will
cause traffic and environmental problems.
3. What are some
possible solutions? Have any of these been attempted in the past?
a)To have Wal-mart
open in another location where
i) traffic is not as concentrated as
-solve the traffic and
environmental problem.
ii)similar
stores are less concentrated
-affect fewer retailers
b)To have government regulation that limit Wal-mart’s market share
c)Limit Wal-mart’s store size
4. For
each possible solution who would gain and who would lose? What controversies
are there? Are there some groups that would be very unhappy if they did not get
their way?
a)
Gain: -Business and residents near
Lose: -Wal-mart will have to spend more money on research for a new location where there is potential for earning big profits and allow them to open a store as big as the current one.
-If Wal-mart opens in another location, similar problems will be brought up as well.
b&c)
Gain: -Business around the area will not be affected as much when there is regulation that limit Wal-mart.
Lose: -Wal-mart will earn a smaller profit.
5. If double the
money were available, what would the solution be?
-If government funds are available, more roads can be build so that the traffic on
6. If No Government
funds are available, what would the best solution be?
If the government does not get involved, the people who are concerned about this problem will have to talk with Wal-mart and decide on the best solution for both sides.
7. What would happen
in 10 years if this problem were ignored?
-Retailers like Zellers in Oakridge is likely to shut down because of this competition.
-Current retailers’ profit will be decrease.
-Traffic on
-The increased competition will benefit consumers with lower priced goods.
-More jobs will be available.
8. What professionals
in addition to an economist would be required to solve this problem?
-Officials from the Competition Bureau
-Environmentalist
-members in transportation organization
-Anne Roberts, the chair of Building Better Neighborhoods.
9. What questions
would you need to ask Government Officials?
-Agree or Disagree, why?
-Will you help small business in the area? How are you going to do?
-Do they think the competition will stimulate the economy?
-What will you do about the traffic problem?
10. What questions
would you need to ask Business Owners?
-Agree or Disagree, why?
-Do you think there are enough competitions now?
-Do you think they will shut down if Wal-mart opens?
-What strategy do you have to compete with Wal-mart?
11. What questions
would you need to ask Residents of the area?
-Agree or Disagree, why?
-Will you shop at Wal-mart instead
of the other stores you are shopping at right now?
-If Wal-mart opens, will you go to
12. What questions
would you need to ask Non-Residents of the area?
-Agree or Disagree, why?
-Where do they live?
-If Wal-mart opens, will you go to
-Do you want to see Wal-mart open in your area? Why?
-Will they shop at Wal-mart? Drive or take bus?
13. If Unlimited data were available what you like? What data on
costs would you like to have?
-What is the profits that business owners are earning right now?
-How much each consumer is spending on each store?
-How much lower is Wal-mart’s price?
14. What past
research has been done on this subject?
Members of Building Better Neighborhoods
has done a research on the effect of Wal-mart
on the business in the neighborhood - Wal-Mart will cause 75 - 150 small business
to close down.
15. What current
special interest groups exist that are concerned about this problem?
-Environmentalists are concerned about this problem because
there will be increased traffic on
-Members of Building Better Neighborhoods – this group was set up after Wal-mart propose on opening the new store.
16. Who would be
happy to see your results and conclusions?
-Competition Bureau, Wal-mart owner, consumers, local business owners and residents in the area
17. What data is
currently available that is useful?
-Wal-mart entered the Canadian
market 8 years ago, but has already become
18.
What are the expected funds from Federal, Provincial, Local governments,
business, residents, and non-residents that could be used to solve the problem?
It is still unsure at this point because we still don’t know
how much the impact will be.
19. Is this a problem
that can be solved by the User-Pays principle or will government funds be
required?
Government funds will be required for the traffic problem.
20. Will any
government make money if the problem is solved?
If Wal-mart is not allowed to open their new store, the government will save money from not having to deal with the traffic and pollution problems that are caused by Wal-mart.
21. Is any politicians job at risk because of this problem?
No, not at this point, but this might also be one of the
topics in the next election.
22. How have other
communities solved similar problems?
-The traffic problem in other communities is not as big as
the one on
23. Can the private
sector solve this problem without any government help?
No,
a) this problem affects the public and it would be impossible for private sector to solve the problems like traffic congestion and pollution.
b) small business and residents in the area can’t stop Wal-mart from opening, only government can help to disallow them from opening.
24. Can the
government simply pass laws to solve the problem? Would that be a good
solution?
Government can decide whether Wal-mart
should or should not open, but they have to make very detail analysis in the
decision because it will affect many people.