What is the strategy... Walmart has a reputation for using a variety of legal me

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What is the strategy...

Walmart has a reputation for using a variety of legal means to prevent unionization of its stores by frustrating union organizers (Lichtenstein, 2008). Why would it make sense for Walmart to spend more trying to deter unionization at a given store than it would save by preventing unionization at that one store? (Hint. Walmart has thousands of stores in the United States alone and thousands more in other countries. Would the theory of repeated games apply?) Walmart might spend more trying to deter unionization at a given store than it would save by preventing unionization at that one store because this strategy O A. is Walmart's dominant strategy for that particular store. O B. makes Walmart a first-mover in a sequential game. ° C. reveals Walmart's profit levels so rivals won't enter. 0 D. discourages unionization at other stores. ( E. makes unionization profitable at other stores.

Explanation / Answer

Ans-- As per the options from my point of view option A and D are correct the reason for support of my options are given below.

Unionization - In simple terms it is a group of Workers of a company into a labor union which will act as an intermediary between the employees and company management. Each and every country has it own law regarding labor uninons and they are legal organisations having their rights and other things.

Unions are bad for many companies as result many organisations try to aviod it, it has a very advese effect on the comapnies when the matters goes out of controls such as shut Down, cost, customer relationships, strikes etc. Many companies try to stop unionization by other method such as contract hiring, outsourcing etc, or by legal ways . some imp. points are mentioned below.

It function as labor cartels thus restricting into number of workers in a company or industry to drive up the remaining workers’ wages as a result, Companies pass on those higher wages to consumers through higher prices, and often they also earn lower profits. The average union member earns more than the average non-union worker.

Thus to avoid these problems the companies try to aviod unionization because it directly affects the cost and profits of the organisations and even some times it creates a lot of legal problems as well. Many economis belive  that unions decrease the number of jobs available in the economy. The vast majority of manufacturing jobs lost over the past three decades have been among union members–non-union manufacturing employment has risen. Studies typically find that unionized companies earn profits between 10 percent and 15 percent lower than those of comparable non-union firms.”

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