The Wal-Mart Effect: How the World's Most Powerful Company Really Works - and How It's Transforming the American Economy

Sam Walton is the founder of Wal-Mart. Fishman references Walton throughout The Wal-Mart Effect, but dedicates particular attention to Walton’s story in Chapter 1, “Who Knew Shopping Was So Important?” Walton was born in Arkansas, where he also opened the first Wal-Mart store “in a remote corner” of the state (8). He founded the company on a simple principle: Sell necessities to American consumers at a low price, and maintain that low price consistently. Walton’s founding philosophy, according to Fishman, is inspired by early American ideals and antiquated notions about money. Walton also prioritized hiring ordinary people who he could train according to his allegedly all-American philosophies. His “ability to find, recruit, and inspire” such people eventually became “the source of Wal-Mart’s discipline, its growth, [and] its innovation” (13).

Decades later, Fishman holds, these same principles stand. The corporation still has a “brilliant, obsessive focus on a single core value—delivering low prices”; and this focus began with Walton (14). Indeed, many of Fishman’s subjects support this notion, telling Fishman in their interviews that they aligned themselves with Walton’s ideas about hard work, consistency, determination, and sacrifice. However, Fishman avers, Walton’s founding ideals have not proved sustainable for the company as it has grown over time. Simply valuing hard work and low prices, per Walton’s founding mission, has in fact led to ethical concerns in the global supply chain, has diminished the quality of general merchandise, has distorted national and global economic statistics, and has led to unethical workplace and factory practices. Fishman portrays Walton as a simple, harmless character whose original vision did not evolve with the growth of his company. Fishman doesn’t hold Walton responsible for this lack of evolution. Instead, he suggests that the responsibility lies with the litany of Wal-Mart representatives who have guided the company since Walton’s death in 1992.

Leo Scott is one of Wal-Mart’s former CEOs. He ran the company from 2000 to 2005. Fishman features his interview with Scott in the book’s Introduction. Scott assumed control of Wal-Mart following David Glass’s tenure. Under Scott’s leadership, the corporation “nearly doubled its sales, and did double its profits” (ix). In spite of Scott’s positive impact on the company’s growth, Fishman states that he was “leading a company that was both singularly successful [...] and relentlessly vilified” (ix). Indeed, during this era, Wal-Mart received criticism unlike it had in the past. Scott was in turn regarded as a villain himself, and he was compelled to seek help from high-ranking officials and public figures including President Bill Clinton, Al Gore, E. O. Wilson, Jared Diamond, the Reverend Al Sharpton, and Thomas “Mack” McLarty. This panel of experts helped Scott to combat and address the complaints against Wal-Mart. Instead of dismissing their guidance, Scott relied on their advice to pursue wide-scale company change. In particular, Scott was responsible for implementing sustainability efforts across the corporation.

Fishman considers the changes Scott made as evidence that Wal-Mart is capable of acknowledging its power and pull in the retail market and global economy, and thus able to use its name for good. Fishman paints Scott as a harmless character who is eager to understand the impact of his name and his work with Wal-Mart. At the same time, Fishman’s allusions to Scott in later chapters complicate Scott’s character, raising questions about Scott’s true intentions, motivations, and values.

Jonathan Fleck is the inventor of Makin Bacon. Fishman features his story in Chapter 3. He describes Fleck as “energetic, restless, [and] entrepreneurial,” attributing these character traits to Fleck’s childhood and upbringing (54). Fleck was “the youngest of eleven children” and grew up in Minnesota (54). His parents never borrowed money and urged their children to be innovative and hard working. When Fleck was just 16 years old, he and his brother had started their own business, which Fleck retired from in order to finish college.

These facets of Fleck’s past inspired his work with Makin Bacon and Wal-Mart. He and his daughter Abbey developed the design for the bacon-cooking microwave dish in 1992. Fleck did everything in his power to finance and promote the invention, in spite of the obstacles he faced. Although he had to borrow money from his father to launch the company, he was confident that his idea would eventually catch on and yield profits. He worked with Armour in order to launch sales, and later cut a deal with Wal-Mart to supply the box store with Makin Bacon dishes. Meanwhile, Fleck refused to skimp on quality and developed a special mold for the dish, which he has used throughout the company’s existence. He took out several patents on the product and attacked anyone who tried to rip-off or replicate Makin Bacon. He has also never outsourced labor and upholds the value of having Makin Bacon produced in the United States.

Fishman uses Fleck’s story as an example of a positive supplier relationship with Wal-Mart. In Fleck’s experience, working with Wal-Mart has been a good experience for everyone involved. However, Fleck’s story is anomalous, as even Fleck admits in his interview with Fishman that he doesn’t understand why Wal-Mart hasn’t forced him to lower the cost of his product.

Jim Wier is the CEO of Snapper, a lawn equipment company now under the Simplicity umbrella. Fishman features Wier’s story in Chapter 5, “The Man Who Said No to Wal-Mart.” As with Fleck, Fishman uses Wier as an example of an outlier within the Wal-Mart economy and ecosystem. Unlike Wal-Mart’s other devoted suppliers, Wier broke his contract with the corporation when he realized that lowering the cost of his lawn equipment would harm the quality of his product. Therefore, although Wal-Mart was Wier’s largest account, he said no to Wal-Mart because he didn’t want to betray his company’s devotion to delivering highly effective and long-lasting lawn mowers and snowblowers to their customers. Wier didn’t back down when Wal-Mart challenged his decision, but the choice still impacted Wier’s work and company. For example, he had to produce the same amount of equipment in order to compete with Wal-Mart after breaking ties with the corporation.

Fishman paints Wier as an approachable, all-American man who is devoted to his product and to the people who work for him. At 62 years old, Fishman describes Wier as “a solidly built man who dresses casually” and is “comfortable with himself” (116). His affable appearance and demeanor authenticate Fishman’s surrounding conjectures about Wier’s business model and workplace relationships. Indeed, Wier isn’t simply devoted to producing high-functioning lawnmowers but to upholding company standards and a positive work environment. Fishman argues that these aspects of Wier’s business are the direct result of his decision not to work with Wal-Mart. However, Wier told Fishman in his interview that although he doesn’t regret his decision to end his contract with Wal-Mart he may someday reflect differently on this life-altering choice.