Post No. 145: What’s Going On Over There at Wal-Mart?

© 2010, the Institute for Applied Common Sense

The Logistician’s 89 yr old Father has an operational pearl of wisdom – if one wants to determine what is going on in the economy, one need simply check the newspapers' classified ads.

Being a New Age guy, the Logistician has modified this somewhat, and advises all to check out their local Wal-Mart…classified ads being one of the many sacrifices made to fuel the new economy.

Some years ago, all of the major California grocery store chains were up in arms following Wal-Mart’s announcement that it would start selling groceries (using non-union workers). (Based on the corporate response, one would have thought that an invasion of illegal aliens was to accompany that move.)

And then there was the effort by Wal-Mart a few years later to open a store in Inglewood (near LAX), which was opposed by those with money and jobs, and supported by those without. Despite being put before the citizens in an actual vote, the poor folks lost.

Neither the Logistician nor the Laughingman saw (or visited for that matter) a Wal-Mart in their 40 plus combined years in Southern California (since the cost of the real estate dictates much in life).

On the other hand, Wal-Marts abound in the southeastern region of our country. In fact, there are 4 of them in the immediate vicinity of the Institute, despite the city being home to only 230,000 citizens (while the metropolitan area has roughly 750,000).

Hints of changes in the economy first appeared last year when the 8 self-service automated checkout lines per store were shut down, and customers were forced to proceed to the 4 human checkout lines open (out of the 16 available).

Shortly after Thanksgiving, there was a marked decrease in parking lot traffic. And just days before Christmas, 2 of the local Wal-Marts announced that they would close at midnight.

When advised of these developments, many suggested that the store hours changes did not apply to “Super Centers.” But during an early morning visit to a Super Center in February of this year, patrons found not only that the Murray’s USA Gas was closed, but that the parking lot of the adjacent Wal-Mart was empty. The store was closed.

In April, the Logistician, being the cheapskate that he is and only having 50 cents to his name, proceeded to his trusty Sam’s Choice soda machine in the foyer of the largest Super Center in the area, to get Sam’s 40 cent version of Mountain Dew. Much to his surprise, he could not locate his machine. In fact, there were only Coca-Cola products, all costing $1.25 per can.

Not believing that Sam would abuse his customers in this manner, he turned to a clean-cut, neatly dressed, gregarious Wal-Mart greeter who was standing in the foyer, and blurted out, “I can’t believe that Wal-Mart no longer sells it own sodas and has replaced it with Coke products.”

This generated no response whatsoever on the part of the upbeat, smiling greeter (nor the CEO upon later contact). The Logistician again expressed his disbelief, and when it dawned on him that the greeter had no appreciation of the issue, he asked, “Do you understand what I’m talking about?”

The greeter very politely responded in broken English, “Excuse me, but I’m new here.” Suspecting that the greeter was of European descent, the Logistician tried to chat him up in French, Spanish, and then Portuguese, all to no avail.

The greeter then said that he was from Bulgaria and spoke a Slavic tongue.

After a lengthy discussion about the history of Bulgaria and whether it was a member of the former U.S.S.R, the conversation shifted.

“I ‘ve been in US for 6 weeks.” The Logistician then asked how long he had worked for Wal-Mart, to which the greeter replied, “I’ve been working for Wal-Mart for 6 weeks.”

Thinking that he was perhaps here on a tourist visa, the Logistician kept probing. Our Bulgarian friend had been “lucky,” as he termed it, to acquire a green card, because he had relatives in the area. This was the first and only city in which he had lived since his arrival.

The simple fact of the matter is that while Wal-Mart may be the low priced employer in any given market, it is far from the low priced goods supplier. Wal-Mart’s computer system is second only to that of the United States Census Bureau, and all of that computing power is not dedicated to finding the lowest prices possible, but the highest prices the chain can charge before customers begin to shop elsewhere…and the same goes for quality of service.

Three weeks later, we chatted our greeter up again, now with two whole months of US residence and employment under his belt, during another visit. (You’re going to love what he had to say about Americans and the quality of life here, to be flushed out in our next post.)

All in all, it looks like Dad was pretty spot on….

We also imagine that it’s a good thing that this Wal-Mart is not located in Arizona.

Post No. 143a: Re-Posting of Post No. 111: Been There; Done That

We first posted this piece in April of 2009. In light of the continuing debate about what should be done to restore the United States to its previous level of prominence, and extricate us from the current economic malaise, we are re-visiting some of our thoughts made at that time.

© 2009, the Institute for Applied Common Sense

We frequently suggest that in tackling problems, we examine history, starting with a minimum of 5,000 years, and as far back as 13,000.

However, we’ve come to the conclusion that history alone may not always be able to help us out of jams.

Alan Greenspan recently lamented that those principles he relied on for 40 years no longer apply.

An historian once noted that we should always proceed with caution when we think that the policies of the past can be reapplied, and will generate similar results.

We might do well to consult physics, and better understand the laws of static and dynamic forces. (These are older than humankind and history.)

In order to assess or address anything within a dynamic system, one must freeze or suspend all movement or change, of as many variables as possible, or otherwise isolate the component at issue.

We also know that slight tweaks (no, not tweets) of a variable can result in dramatically different results.

Logic dictates that the larger and more complex the system, the more difficult it is to manage or affect any part of it.

As comforting as it may be psychologically, to resort to playing marbles and pick-up-sticks, it is of questionable value to return to many practices of the past.

Imagine trying to reconstruct that romance which you had with that guy or gal back in school (altered state of consciousness or not), and hope that those old moves lead to the same results.

As a nation, we can never re-create the circumstances extant when prior practices and policies were implemented and applied.

The world may have changed every year back then, but it now changes every nanosecond. We need to recognize this, and conduct ourselves accordingly.

It’s actually lazy and simplistic to merely repeat the practices of the past, even if they were successful. It requires far more energy, commitment, focus, and innovation to craft appropriate approaches to new conditions, everyday.

Sitting on the sidelines and simply watching changes occur without responding also may not be the best tactic.

To suggest that our enemies or competitors have been sitting still, or that the conditions in our country have been in suspension, is just plain science fiction.

For years, Corporate America used large, 100 year old silk-stocking firms to perform its outside legal work. The Logistician and his partners sought that same work, somewhat successfully, by offering a lower rate. They were smaller, more nimble, had lower overheard, and more importantly, hungrier.

Yet, many corporations were reluctant to make such a change. If things went awry, someone would undoubtedly question why the referring counsel did something out of the ordinary, and did not stick with the tried and tested firms.

Hollywood’s like that. It’s far easier to explain why “Men in Black 12” did not generate record box office numbers, than a new concept.

But consider this.

If you‘re surprised about a development over a span of 30 years, like the demise of our educational and industrial systems here in the U.S., you probably were asleep at the switch, and not paying close attention to changes on an annual, much less a monthly, basis.

We all have a tendency to go through repetitive motions. They’re safe, familiar, less subject to scrutiny, and require less effort.

UPS had a marketing campaign which referred to “moving at the speed of business.” Hong Kong is a 24 hour business city. Imagine what happens to others when their business communities are asleep.

It’s the nature of competition, and the nature of change.

There’s been much noise about returning to the policies of Clinton, or Reagan, or Kennedy, or FDR. Quite frankly, returning to those dated tactics, no matter which side of the ideological line they may fall, may not be particularly helpful.

Those circumstances no longer exist, and will never exist again. And that doesn’t take into consideration the efforts to revise history.

We can’t duplicate the economic variables. We certainly can not re-create the psychological and social variables.

Going forward, we need to craft new procedures, new principles, new tactics. Ones that fit our current conditions, which have never existed before.

So to all of our politicians and policy makers out there, please detach yourselves from your ideological goals and preferences, and repeating that mantra about what you think worked in the past.

Try to figure out what’s most likely to work, TODAY, going forward, based on current conditions, and those we anticipate.

The world is far flatter than we once thought.

Post No. 116a: Article of Interest: U.S. Sends Emergency Aid to Pakistan

We just came across an article indicating that the United States is about to send emergency aid to Pakistan. Several questions:

1. Should the U.S. send aid to Pakistan during the current economic slowdown?

2. Should the U.S. have sent aid to Pakistan one year ago, before the economic slowdown became apparent?

3. Without performing the research to determine the answer, where do you believe the U.S. stands in rank (in terms of percentage of GDP) in providing foreign aid?

4. Do you believe that it is ever appropriate to provide foreign aid to other countries if there are hard working, law abiding, tax paying U.S. citizens giving it their all, who are having difficulty making financial ends meet?

5. Should the U.S. have anticipated the current unrest in Pakistan when the U.S. encouraged the former "President" and military leader to step down, and return control to civilians in order to allow democracy to work?