Big Business vs. Little Business Research Narrative William P.

Campbell University of North Carolina at Charlotte

Comment [W1]: Great work so far! The flow of your paper interwoven with your own experience and opinion worked really well. In revision for the final portfolio, I would like for you to work on the following areas: In your portfolio, annotate your second draft of assignment two by answering the following questions: If you were to write this paper again, what would you do differently? Think in specific terms, like planning, development of topic, collecting sources, etc. What could I (the teacher) have done differently to help you prepare this assignment? Think in terms of specific activities, exercises, or class work that I could do in order to help you understand the assignment more, address the assignment more appropriately, etc.

Fall 2013

ENGL-1102 10/16/13

Campbell, 2

Introduction: As I begin this essay, my mind begins the journey of trying to determine the exact place in time at which I began to play musical instruments. I have learned to play several instruments, or at least I should say, I have attempted to play several instruments, some of which include the guitar, drums, and bass guitar, but have not mastered all of them as of yet. I have always felt moved by music, especially music that centers around any type of guitar. It is through this love of guitars and the music that I found myself a frequent visitor of various music stores. I have become intrigued with the atmosphere at one store in particular Guitar Center. While I have visited other Guitar Center stores, I usually shop at the store located closest to UNCC where I am a student. Although this store is part of a large corporation, it feels like a hometown store to me. This provides a certain level of comfort to me while I shop there, whether it be that everyone is helpful, or it may be the fact that the employees like to let you o your business rather than push for a sale, and it is conveniently located to where I live. So I ask you which do you prefer, large or small business? Even though I have made numerous trips to the Guitar Center store, I made several deliberate, well-planned excursions to this particular store to gather data for this research paper. I have to admit that this a bit awkward for me in that I was observing the store and its people rather than solely on the merchandise itself. With that purpose in mind, I began to notice that the store is run like a well-oiled machine. The management staff has put together a very unique staff of employees that appears to be of different personality types as well as varying ages. As I sat back to observe each of them, I could see how each of them were chosen for the job they were placed in. The best place to begin would be at the top and that would be the manager of the store, Todd. Todd seems to be just what you would expect of a store manager all business and does

ENGL-1102 10/16/13

Campbell, 3

not participate in the antics of his fellow employees. He is courteous and professional, but seems to stay to himself or in his office and can be seen watching the employees from time to time as if to make sure they are doing their jobs. The most outgoing employee I was able to observe was the one behind the customer service desk. He is a young guy named Austin and has an outgoing personality very loud talking and talkative and tries to engage every customer in some sort of conversation, when approached, I usually noticed that customers felt more comfortable while inside the store. This constant chatting seems to be what keeps the store buzzing with activity. These are other employees that meander around the store helping customers with playing instruments, answering questions, and selling merchandise. The thing I noticed most about this group of employees is their laid back attitudes never pushy to sell, but more interested in making sure that the item being purchased is the right choice for that customer. This, more than anything else I observed from an employee standpoint, stood out the most to me. As a guitar player, I fully understand that buying a guitar is not always about the best deal, but about the right feel of the guitar. These employees truly love to play musical instruments and they love demonstrating their talents to customers as well. During one of my observation days, I recognized a man from one of my previous visits. After he had played several guitars and had left the store, I overheard an employee say that he comes in from time to time to play the expensive guitars, but never buys one. I thought about that statement for a few minutes and decided that this customer must feel as I do comfortable enough in the store to stop by often and never feel pressured to purchase anything that I do not really need or want.

ENGL-1102 10/16/13

Campbell, 4

Literature Review: Before I continue any further into my observations and thesis statements I would like to explain that I have always been a supporter of small business as well as large national business. In this case, I feel as though I am providing very little bias even though I have had problems in the past with local business. Terms: Economic Displacement- the shift of revenue from small business to large national business Tax Incentives- specific tax codes designed to boost a companys economic growth Small Business Administration- Small Business Administration, government association dedicated to helping small businesses grow Enter the Conversation: As part of my research for this essay paper, I made several trips to Guitar Center and varied the times of my observations. In part, this was to see if the store operated the same way, all day, every day and in part, it was to see if the store had a different personality each day depending on the staff at that time as well as the clientele that was shopping at those particular times. As I had expected, each day was a unique experience from the merchandise being sought to the amount of activity in the store to the camaraderie of employees and customers. As I have previous alluded to the fact that I have been a customer of Guitar Center well before writing this essay, and had always felt like each trip there was like a new and unique experience. There were

ENGL-1102 10/16/13

Campbell, 5

times that I witnessed a little drama from one employee when he thought he would have to handle the customer service area by himself, but when told that another employee would be there momentarily, he returned to his constant bantering with everyone in the store. This dynamic atmosphere is part of the draw for me to frequent this store and I assume as such for many of the customers that I saw there. As with all research for me, I am amazed at the amount of opinions there are in this world regarding most any topic you research. First of all, I would like to state my theory before giving the opinions of others just to point out that I am not swayed by their thoughts. I do not typically feel compelled to shop at a retail store because of its size or name associated with it. What I do like about shopping at Guitar Center is the amount and quality of merchandise they are able to carry in stock. If this were a small and locally owned business, I feel they would only carry a sample of several kinds of musical instruments, but would ultimately have to order the instrument when a purchase is made. The ability to walk into a store and actually play the instrument removes any doubt about not getting what you pay for. Several articles state that small businesses are declining because national chains, or big businesses, have advantages through governmental tax incentives and other opportunities as such. With the recent government shutdown, this theory may change for many corporations. One article indicated there is some cause for alarm for small businesses that are attempting to secure a government-backed loan through the Small Business Administration (also known as SBA). Getting funding without the government guarantee on a loan may prove extremely difficult for some small business owners. In addition to the difficulty involved in finding an alternative loan source, many small business owners may find their loans are tied to a higher, more expensive rate of interest than typically found on traditional business loans. Not only are higher interest rates an area of

ENGL-1102 10/16/13

Campbell, 6

concern for small business owners, but the shorter repayment terms that are associated with these non-traditional loans can make it difficult for some owners to repay the debt or even stay in business. Another Point of View: On the other side of the spectrum would be the theory that smaller, or locally owned, businesses have a different type of advantage than that of large corporations, pulled from the Small Business Administration. This theory is based on customer satisfaction and the ability to change its merchandise quickly because of the ever changing needs of its customer base. The supporters of smaller businesses go on to say that these owners tend to invest their life savings into starting and making the business successful which in turn builds a long-term investment in their community. Another advantage of smaller businesses is the personal relationship that management/owners have with their employees as well as with their customers. As far as addressing the relationship between owners and customers of small businesses, the need to please the customer in this situation is of upmost importance. In order to make sure that there is repeat or recurring business with customers, small business owners are almost required to make sure customer satisfaction if their number one concern. To further complicate the issue of big business vs. small business is the standpoint of economic development vs. economic displacement. As I began this research, it never occurred to me that local residents have been known to buy up mass quantities of land in order to prohibit large corporations, or national chains, from buying it for the purpose of placing a large retail store on the property. Some people feel threatened by big box retail stores, which in my opinion are because of the size and power of the corporation, while others welcome the opportunity for

ENGL-1102 10/16/13

Campbell, 7

employment with benefits through a national company. One article implies that bringing in a larger retail store does produce additional revenue in retail spending; it only shifts the spending from the smaller businesses to the larger one. This type of shifting is referred to as economic displacement. I feel that I need to add another dimension to this paper and that is to address the issue of the best deal for the consumer, which could mean several different things such as price and or quality depending on the person. This is an area that hits close to home for me being a college student, but also one where a lot of people find themselves because of the economy. There is one theory that speculates that the best deal can be obtained by a larger retail store because of their ability to purchase in large volumes and spread that inventory among their chain of stores. This is one way to control pricing without inundating any one location with too much inventory. There is the flip side of this theory in that many of the smaller stores do not carry the extensive inventories as do many of the big box retail stores. They can be selective about their inventory and can strategically make purchases when an opportunity arises on a deal. There is no red tape or bureaucracy with many smaller businesses, and owners are able to move quickly when needed to regarding purchases. This creates a perfect situation for small businesses from a cost standpoint, especially when carrying the financial burden of inventory is left to the owners. Conclusion: While all articles did not reflect the same opinions, most agreed that our society has become one of low cost hunting consumers and are being easily swayed by national advertising through television, newspaper, computer and social media. Advertising can be an expense that is very costly to the smaller business, while larger corporations are able to use the same means of

ENGL-1102 10/16/13

Campbell, 8

advertising for all, or at least most, of its locations. Advertising is one area where businesses usually do not have a choice in whether to take part or not. The computer as well as social media has presented many more opportunities for all businesses, large or small, with being able to spread the word to the masses with incurring little or no costs for the business. The computer has provided more flexibility in determining the advertisement that best fits their target group and can be changed quickly without the cost of reprinting if it had to be changed in the newspaper for instance. While using the computer creates an easier method of advertising, it also gives the opportunity for the deal of the day that can be seen and utilized by a large group of people and then easily changed each day as needed or desired. One thing I gathered from my research would be that it is not the intent of large corporations to please all of the people all of the time, but rather their goal is to please the largest group of people as often as possible. After researching the material necessary in writing this narrative, I am convinced that some of the theories I have mentioned in this paper will continue to be a source of constant change for small and large business owners. From the economy to customer service to inventory to convenience, both sides of this fence will feel many changes in the way their businesses are run in the future. With the ever growing online sales opportunities from companies such as Amazon, the competition for both large and small businesses will become more intense going forward. This theory presents another opportunity for further research on how amazon might be changing people with ability to shop for just about anything from home.. In conclusion, while I have and will always be a fan and faithful customer of the Guitar Center store, I hope to never lose the ability to be surprised each time I enter the store. From the animated atmosphere to the extensive inventory of musical instruments and supplies, there are very few dull moments at this location. I challenge everyone to visit the Guitar Center at least

ENGL-1102 10/16/13

Campbell, 9

once, if not to make a purchase, then to just enjoy time spent there. It will be well worth your time and effort, and who knows, you may even decide to take up playing a musical instrument or at least try your hand at one. With a staff of employees ready to help you play an instrument, or to play one for you, what do you have to lose? Knowing that I have such a strong attachment to guitars, especially the bass guitar right now, and knowing that I will always have a need for new strings and picks, and knowing that I will always want to upgrade my guitar repertoire, it is safe to say that I will continue to make many journeys to the Guitar Center for a long time to come.

ENGL-1102 10/16/13

Campbell, 10

Works Cited Belsky, Scott. "David vs Goliath: Why Smaller Businesses Exceed Expectations." 99U by Bhance. 99u.com/articles/6957/david-vs-goliath-why-small-businesses-exceedexpectations (accessed October 1, 2013). Geewax, Marilyn. "Small Businesses: Big Concerns And High Hopes : NPR." NPR : National Public Radio : News & Analysis, World, US, Music & Arts : NPR. http://www.npr.org/2013/09/24/224418052/small-businesses-big-concerns-and-high-hopes (accessed October 6, 2013). Mitchell, Stacy. "The Impact of Chain Stores on Community | Institute for Local Self-Reliance." Institute for Local Self-Reliance. http://www.ilsr.org/impact-chain-stores-community/ (accessed October 2, 2013). Kunz, Marnie. "The Advantages of a Small Business Over a Big Chain | Chron.com." Small Business - Chron.com. http://smallbusiness.chron.com/advantages-small-business-overbig-chain-18695.html (accessed October 2, 2013). Milchen, Jeff. "Local Business | Underappreciated Benefits." Reclaim Democracy! Restoring Citizen Authority over Corporations. http://reclaimdemocracy.org/local_business_benefits/ (accessed October 2, 2013). Campbell, William. Assignment One at Guitar Center. University of North Carolina at Charlotte. https://moodle2.uncc.edu/mod/assignment/view.php?id=123015 (accessed October 2, 2013). Ridley and Associates, Inc.. "Are Chain Stores Bad." Cape Cod Commission. www.capecodcommission.org/resources/economicdevelopment/Are_Chain_Stores_Bad.pd f (accessed October 2, 2013). LaFaive, Michael D.. "Giant Chain Stores vs. Mom and Pop Stores [Mackinac Center]." Mackinac Center: Advancing Liberty and Opportunity. http://www.mackinac.org/677 (accessed October 2, 2013). Averwater, Chip. "Small Retailers Have Big Advantages Over Chain Stores: Opinion." Stock Market News, Business News, Financial, Earnings, World Markets - CNBC. http://www.cnbc.com/id/46632191 (accessed October 2, 2013). Simon, Ruth, and Angus Loten. "Loan Spigot Runs Dry for Small Businesses - WSJ.com." The Wall Street Journal - Breaking News, Business, Financial and Economic News, World News & Video - Wall Street Journal - Wsj.com. http://online.wsj.com/article/SB10001424052702303492504579115750692362512.html?K EYWORDS=small+business (accessed October 9, 2013).