It is not that I don’t have a fear of sharks, it is that I have a respect for them, so that I know any more than if I were to go into the jungle, I would have a fear of tigers, that I would try to lower the odds.
– Peter Benchley (author of Jaws)
Sharks are fish, big fish that are apex predators; yet, people and smaller fish still swim in the sea. “As the most powerful type of nongovernmental organization in the United States today and as the most dynamic form of organization in the world, the large corporation has enormous potential to affect communities for better or for worse.” What does this mean for small communities when a large company comes to town? The common dialogue when a large company comes to a small town involves a cost benefit analysis regarding their presence. The introduction of a big superstore or big company headquarters implicates questions regarding: the impact of having the business as a community member (a neighbor, so to speak); the effect on local people (merchants, employees, children, etc.); the repercussions for local businesses, the changes to local law, rules, and regulations; the influence on the use of local resources (including environmental); managing allocation of funding; and the list continues. “Big box stores can be a blessing in that they often act as an anchor for further commercial development. However, some planners also criticize them for diminishing the unique feel of small towns.” These considerations are all important, and as meaningful aspects of local business governance decisions, this article addresses the issues.
One argument against large companies coming to town identifies the infiltration of that company into community living as problematic. “While some accept this state of affairs as simply the nature of modern society, others object to what they perceive as a process of corporate colonization that is occurring without their input or approval.” Further, large companies, particularly the large retailers, carry the label of driving out local competition in these small communities. Despite this perspective, local officials in some small communities may actually campaign to bring the large companies to town. Benefits include more jobs, better prices, and more purchasing options in the case of retailers. “It is important to note that the benefits of big box retailing, and the reasons they continue to be [developed], is that they offer low prices and ‘great conveniences for . . . an increasingly time-deprived society.’” So often local governments and private-sector decision makers do not factor in the benefits of establishing a development plan to respond to economic, social, and environmental concerns. Acting individually or as a united guild in this planning process improves outcomes. This article addresses the benefits of stakeholders making the governance decision to work together, and proactively recognizing the importance of the employees and consumers working in concert. Similarly, local government actors may have a narrowed vision, focusing only on concerns of appearance, aesthetics, and generating taxes. Both local governments and private-sector decision makers have ignored the benefit of developing a retail plan and specific proactive policies. When these types of development plans are analyzed, the analysis usually does not include reference to more than the power of the community at large or the individual local businesses.
This article will first briefly set forth the common characteristics of small communities and the aspects that draw business. Next, the article will provide information about big businesses and the impacts they have on small communities, with an emphasis on the Wal-Mart effect. This article provides recommendations for governance decisions from the perspective of the small business owner in the small community, which should be considered tools for the small business in its governance-decision tackle box. When a small business faces the potential (or already existing) entrance of a big fish into the small sea, this article offers considerations for the business’ management and board to consider when making decisions related to allocation of resources. This article emphasizes that for a more beneficial transition, particularly for local businesses, decision makers should focus efforts on collaborating their planning with other local businesses and the local government.
Moreover, this article emphasizes that one key tool that has been ignored, and should be an integral part of management’s and the board’s informed decision making, is the power of the employees who will work in the large company and the consumers who will shop there. To this end, this article will set forth the relevant details of the Market Basket Supermarket events from summer 2013, which most notably demonstrate the power flexed by the non-unionized employees and its customers. In light of the strength of the impact of the actions of the other stakeholders, including employees, customers, and the community, this article will conclude with an examination of the inter-related interests of these various stakeholder actions in a small community.