...Total Marks: 10 Read the following case study thoroughly and answer the questions given at the end. (Consult course syllabus for writing guidelines. Total length should not exceed five pages) C A S E 22 Submission Deadline: 16-02-2015 Wal-Mart: But We Do Give Them a 10 Percent Employee Discount "l I Tal-Mart began as a simple dream by its founder, Sam Walton: to provide low l' l' prices for customers every day. That philosophy has taken Wal-Mart in fortyfour years from one five-and-ten store in Bentonville, Arkansas, to the largest retailer in the world with estimated annual sales of close to $300 billion. In 2005 it was the largest company in the world based on revenue and slipped to number two in 2006 when Exxon/Mobil took over the number one position. Wal-Mart has more than 1.5 million employees worldwide, including 1.3 million in the United States, and generates more than 2 percent of the gross national product in the United States. On December 19, 2005, the results of a Pew Research survey showed that 81 percent of the 1,502 people who responded to the survey considered Wal-Mart a good place to shop. In addition, 69 percent of the respondents stated that they had a favorable opinion of Wal-Mart. However, 31 percent of the respondents stated that they had an unfavorable image of Wal-Mart. Furthermore, 68 percent of the respondents believed that having a Wal-Mart store in their area was good for the community, and 64 percent said that Wal-Mart was good...
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...presentation 10% of the coursework assessment. 3. Answer all of the following questions. Students are encouraged to refer to related journals/publications apart from the text books. 4. Any extract from others (various sources) without proper citation would be constitutes as PLAGIARISM. 5. Submission date: STUDENT NAME: _______________________ STUDENT ID NO: _______________________ Case 22: Wal-Mart: But We Do Give Them a 10 Percent Employee Discount Case Summary Wal-Mart stirs a lot of emotions from many people. People either love or hate the store and its influence has significantly impacted global retailing. Wal-Mart’s very simple strategy of Everyday Low Prices drives every single decision at Wal-Mart. As a result, payroll expenses are always monitored and evaluated, especially with close to 1.5 million employees worldwide. Therefore, there are huge financial benefits for Wal-Mart to cut every corner they can when it can reduce the cost structure of its business model. Examples such as “off the clock work” are not only present at Wal-Mart, but could also be considered an industry wide issue. In any setting in which a time clock records the number of hours worked by an employee, there is always the opportunity to abuse the system. While an innocent request such as “can you tidy up that shelf before you leave” may not have any cost impact, Wal-Mart appears at times to abuse the loyalty of its employees by asking them to work...
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...Price waterhouse cooper | Qualitative Analysis of Target and Wal-Mart | | | Sophia Feng | 12/2/2013 | | Contents Introduction 2 Background 2 Figure 1: Comparative Statistics 4 Figure 2: Wal-Mart’s Stock Price from Year to Date 4 Figure 3: Target’s Stock Price from Year to Date 5 Companies’ success stories 5 Comparative Advantages 6 Problems with internal control 6 Figure 4: Document about Hispanic Employees 8 Future Challenges 8 Conclusion 9 Work Cited 10 Introduction Every year the management of Price Waterhouse Cooper will choose from a list of ten successful companies to invest one-third of their company’s profit into the stock market. From these ten companies, a team of people will select two companies that are in the same industry that they believe would be worth investing in. From these two companies, Price Waterhouse will have a team of researchers to do an extensive research on the two companies’ qualitative aspects. This year Price Waterhouse would either invest their money in Target’s or Wal-Mart’s stocks. Both these two retail companies are very successful that still continues to grow each day because of their low and irresistible prices on their merchandises. Not only do they provide their consumers with these prices, but their offer a wide range of merchandises from garden supplies to toddlers’ clothing. The CEO of Price Waterhouse, Eliza Smith, have assigned the accounting department with the task of deciding which...
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...brothers decided break away and opened their own store in Rogers, Arkansas which was the start of the first Wal-Mart Discount City store. Their approach was to open stores in populations with 5000 to 25000 people. By the late 1960’s the Walton brothers has 18 discount stores and 15 Ben Franklin franchises which became incorporated in Wal-Mart Stores, Inc. (Tell me the history of Wal-Mart). During the 1970’s the Walton’s incorporated many changes to how they do business which laid the foundation to cut cost to gain more control. They implemented a warehouse distribution strategy of constructing their own warehouses so they can buy merchandise in great volume, and positioned its stores 200 square miles from each distribution point. By 1977, Forbes had Wal-Mart ranked #1 in return of equity, return on capital, sales growth, and earnings growth over all other discount and variety stores (Tell me the history of Wal-Mart). Wal-Mart’s continued expanding and in 1978, its stores included a pharmacy, auto service center, a shoe department, and a jewelry division. By 1979 Wal-Mart was in 11 states and sales had skyrocket from $44 million in 1970 to $1.25 Billion by 1979 which became the fastest company to reach to $1 Billion. In 1987 Sam expounded on an idea that he got from a French entrepreneur and referred to it as “Hypermart USA”, which later became known as Wal-Mart Supercenter”. Sam introduced a...
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...Wal-Mart: Strategic Plan [pic] Strategic Plan Saren Thompson BUS 413 TABLE OF CONTENTS Introduction Page 3 Mission Statement Page 4 Macro-Environmental Analysis Economics Page 5 Demographics Page 6 Socio-Culture Page 8 Political/ Regulatory Page 11 Technological Page 13 Micro-Environmental Analysis Industrial Page 14 Markets Page 16 Competition Page 18 Supplier Page 19 Resources Page 20 Preferences Page 22 Opportunities and Threats Strengths and Weaknesses Page 23 Opportunities and Threats Page 25 Opportunity Analysis Page 27 Alternative Strategies Formulation Page 28 Ranking Strategies Page 28 References Page 29 INTRODUCTION Wal-Mart is the top retail company in the United States and has grown from a small customer centered store in Arkansas to an International Retail Store. This company was founded in the 1962 by Sam Walton. Walton and wife Helen put up 95 percent of the money for the first Wal-Mart store in Rogers, Arkansas. He traveled abroad to study retail and believed it was the future. His company began a success and the Wal-Mart empire began when it was incorporated October 31, 1969. Wal-Mart stock was first traded over the counter as publicly-held company in 1970. Since Wal-Mart has had eleven 100 percent stock split as of March of 1999. The company has grown to new levels and I hope to introduce and inform throughout this paper. ...
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...Executive Summary When you think of the discount retail industry there is no bigger name than Wal-Mart. Wal-Mart has built them into the industry leader in a very competitive market, and they continue to set the bar for every company. But as of late Wal-Mart’s sales growth rate has been slipping, which is causing a major problem for them. For the past few years Wal-Mart has grown accustom to double digit sales growth rates, but recently they have been unable to match their previous success. Now Wal-Mart is faced with the challenge of regaining the success that they once had. In order to recapture these high growth rates it is important to understand what lead Wal-Mart to these high growth rates in the first place. When analyzing Wal-Mart externally you find that its 5 forces tend to have a positive effect on the company. The company has high barriers of entry, a moderate threat of rivalry with Target and Kmart due to its expansion of super centers, and it’s...... Business strategy Business Strategy Analysis of Wal-Mart Sam Walton, a leader with an innovative vision, started his own company and made it into the leader in discount retailing that it is today. Through his savvy, and sometimes unusual, business practices, he and his associates led the company forward for thirty years. Today, four years after his death, the company is still growing steadily. Wal-Mart executives continue to rely on many of the traditional goals and philosophies that Sam's legacy left behind...
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...WAL-MART'S SUPPLY CHAIN MANAGEMENT PRACTICES Do No tC op y OPER - 020 This case was written by P. Mohan Chandran, under the direction of Vivek Gupta, ICFAI Center for Management Research (ICMR). It is intended to be used as a basis for class discussion rather than to illustrate either effective or ineffective handling of a management situation. The case was compiled from published sources. 2003, ICFAI Center for Management Research. All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, used in a spreadsheet, or transmitted in any form or by any means – electronic or mechanical, without permission. To order copies, call 0091-40-2343-0462/63/64 or write to ICFAI Center for Management Research, Plot # 49, Nagarjuna Hills, Hyderabad 500 082, India or email icmr@icfai.org. Website: www.icmrindia.org OPER/020 WAL-MART'S SUPPLY CHAIN MANAGEMENT PRACTICES “When you start to collapse the supply chain, accuracy in execution becomes critical. Any lack of accurate information and processes creates costly bottlenecks in the flow of goods and materials.” -- Bruce Richmond, Global head, Andersen Consulting. y INTRODUCTION tC op The US-based Wal-Mart ranked first in the global Fortune 500 list in the financial year 2001-02 earning revenues of $219.81 billion (Refer Table I). Wal-Mart was the largest retailing company in the world. The company was much bigger than its competitors in the US –...
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...internationally benefit walmart? Wal-Mart needed international expansion critically to remain a successful company. The main reason Wal-Mart needed to go global was because they could no longer achieve the growth needed in the US. This market was saturated. The United States represents only four percent of the world’s population, which meant Wal-Mart was missing out on ninety-six percent of the world’s potential customers. (Govindarajan, par. 7) Also, Wal-Mart needed to continue to make their US employees satisfied. With Wal-Mart’s aggressive stock purchasing programs, this meant that employee satisfaction was directly correlated to their stock prices. Walmart also realized that there were many emerging markets with lower levels of disposable income, which offered a large potential for discount retailers. (Govindarajan, par. 7) Therefore, Wal-Mart’s only option to achieve the growth needed was to enter the global environment. After its beginning in 1962 Walmart ever since had constant growth rates and successfully gained market share in the merchandise and food retailing markets. “By 1990, however, Walmart realized that its opportunities for growth in the United States were becoming more limited”. To keep steady growth rates and profits the company decided to expand globally. The core competency of Walmart is the price. Selling merchandise and food for low prices made them earn market shares and continue the growth rates. Going global gives companies the opportunity of using...
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...Letter of Transmittal 10thJanuary, 2013 Mr. Tajuddin Ahmed Course Instructor, HRM-370, School of Business, North South University Subject:Case report on ‘Wal-Mart Stores Inc: Dominating Global Retailing’. Dear Sir, We are truly privileged to have you as our instructor in HRM-370: “Managerial Skills and Development” and we are pleased to inform you that, we have been able to meet the schedule to complete the case analysis on “Wal-Mart Stores Inc.: Dominating Global Retailing”. We have tried to employ our best knowledge to analyze the case as meticulously as possible and it sure had offered us the opportunity to enhance our knowledge in regards to HRM-370. Furthermore, if you have any queries about the case report, please feel free to ask any of the group members for further cooperation. Sincerely Yours, RonikaKarmaker | (ID#111 0750 030) | | TanjiaHaqueNirjhar | (ID#111 0137 030) | | Sunny Isnain Hassan | (ID#103 0692 530) | | Ankur Chandra Kuri | (ID#102 0831 030) | | SaifuddinZiku (ID#103 0157 030) ________________ Table of Contents Executive Summary 3 Background …………………………………………………………………………………..4-13 Needs Assessment …………………………………………………………………………..14 Main Issue ……………………………………………………………………………………….16 Internal/External Needs Assessment…...………………………………........18-29 Existing Arrangements.………………………………………………………………..24-36 T&D Plan …………………………………………………………………………………….37-42 Proposed...
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...Wal-Mart: Corporate Giant or Corporate Beast? Ever since Wal-Mart’s establishment, there has been an ongoing debate amongst shoppers of whether or not the company is a magnificent creation or a complete monster. On one side, costumers cannot deny that their everyday savings certainly do draw a smile on their faces; while on the other side, costumers feel that there must be some terrible reason for the prices of their products to be so low. This mystery that has stewed up this ongoing debate over the years about Wal-Mart needs to be discovered. In order to discover this mystery, research on the topic has to go all the way back to the beginning stages of the company. From the birth of the company to present day empire it has created, one question must be answered: corporate giant or corporate beast? Wal-Mart has a long history and they have been around much longer than what most people think. The founder of Wal-Mart was Sam Walton. Sam Walton was born into a farmer’s family in Kingfisher, Oklahoma on March 29, 1918. [31] He had one brother whose name was James Walton. Sam’s father was a farmer until he decided that farming was not producing enough revenue and decided to become a mortgage man. Sam grew up in the great depression where he learned many moral values like working hard. He had many odd jobs so he could help his family out with money. The family then moved to Florida, while there Sam became the youngest Eagle Scout in the state’s history. After graduating...
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...For the exclusive use of S. WANG 9-704-027 REV: JULY 20, 2004 GUNNAR TRUMBULL LOUISA GAY Wal-Mart in Europe “Never resist change… We have to be able to place a store or club side-by-side with the competition and beat them every time.” —!David Glass, Director and Chairman of the Board, Wal-Mart1 “In Germany, we know how retail is spelled.” —!Holger Wenzel, Director, German Retail Federation Introduction “What are the 10 worst things we can do to fail?”2 This was how Lee Scott, CEO of Wal-Mart, summarized Wal-Mart’s approach to working in Germany. Wal-Mart had entered the German retail market in 1997, with the acquisition of the failing German retail chain Wertkauf, and had quickly encountered problems. Wal-Mart’s EveryDay Low Price (EDLP) guarantee, inventory control, and efficient distribution strategy, so strong in the United States, had each been a source of headaches. Wal-Mart went through protracted struggles with labor unions, with suppliers, and with local zoning boards. It also weathered a major pricing scandal, had been fined for failing to return used bottles to producers, and, in a case that was on appeal at Germany’s constitutional court, faced a 330,000 euro fine for failing to release financial data for Wal-Mart Germany. This was not the first time that Wal-Mart International had run into problems with overseas expansion. It had quickly pulled out of Indonesia after a disappointing ‘test project’ in the early 1990s. Yet in most cases, time had worked...
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...Define Wal-Mart’s strategy Traditionally, Wal-Mart has essentially had a low-cost, high volume strategy. The strategy aims at customer satisfaction through low prices and relatively good customer service. Here are the basic details. • Low cost: Wal-Mart has lower operating expenses than the industry average. The primary cost advantage is Wal-Mart’s superior distribution capability (location of stores, inside-out growth patterns, cross-docking, superior information management). Quantitative details on cost advantage are set forth in Section 3 below. • High Volume: Industry analysts watch Wal-Mart’s growth of sales figure very closely. Wal-Mart’s prices are low by the industry standard, which, combined with its lower costs, indicates a strategy that aims at growth in volume through grabbing increased market share (cf. Dell). • Customer Satisfaction: Low prices, advanced data management and extremely motivated employees (“10 ft rule”, “sundown rule”) means a better customer experience than at other discount retailers, even though Wal-Mart remains a self-service retailer. In addition, the large size of the traditional Wal-Mart stores adds convenience by offering a one-stop solution by offering a wide range of products. In the words of Sam Walton, “Wal-Mart’s aims at creating a loyal customer base by lowering their cost of living through offering quality and other products at significantly lower prices, while surprising them on the convenience and service level side.” It’s...
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.........................................................................................5 COMPANY SUMMARY................................................................................................................................6 OWNERSHIP....................................................................................................................................................6 ORGANIZATIONAL STRUCTURE..........................................................................................................7 HISTORY OF WAL-MART..........................................................................................................................8 INDUSTRY ANALYSIS.................................................................................................................................9 MARKETING ANALYSIS...........................................................................................................................10 MARKET SEGMENT....................................................................................................................................11 MARKET SHARE.....................................................................................................................................13 DOMESTIC COMPETITORS 14 INTERNATIONAL COMPETITORS 15 CURRENT PRODUCTS...............................................................................................................................16...
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...financial analysis project CONTENTS INTRODUCTION4 VISION STATEMENT5 MISSION and OBJECTIVES5 COMPANY SUMMARY6 OWNERSHIP6 ORGANIZATIONAL STRUCTURE7 HISTORY OF WAL-MART8 INDUSTRY ANALYSIS9 MARKETING ANALYSIS10 MARKET SEGMENT11 MARKET SHARE13 DOMESTIC COMPETITORS14 INTERNATIONAL COMPETITORS15 CURRENT PRODUCTS16 PRODUCTS16 BCG MATRIX17 STRATEGY AND IMPLEMENTATION SUMMARY19 COMPETITIVE EDGE20 MARKETING AND SALES STRATEGY21 COST STRATEGY21 CAPITAL STRUCTURE STRATEGY21 FINANCIAL ANALYSIS22 GENERAL OVERVIEW22 OPERATING EXPENSES AND NET SALES22 OPERATING INCOME23 FREE CASH FLOW23 ACCOUNTING ASSUMPTIONS AND METHODS23 INVENTORIES23 DEPRECIATION AND AMORTIZATION24 GENERAL STRENGHTS24 ACCOUNTING ASSUMPTION AND METHODS25 EVOLUTION AND CAUSE FOR THE CHANGES26 KEY FINANCIAL RATIOS27 LIQUIDITY RATIOS28 PROFITABILITY RATIOS28 DEBT RATIOS29 OPERATING PERFORMANCE RATIOS30 ANALYSYS OF RISK31 FX AND INTEREST RISK32 SOLVENCY RISK33 COMPETITORS ANALYSIS34 SWOT ANALYSIS37 RECOMMENDATIONS38 BIBLIOGRAPHY39 INTRODUCTION Walmart Stores, Inc. (WMT) is an American public corporation that runs a chain of large discount department stores and a chain of warehouse stores. Walmart operates more than 8,692 retail units across three business segments of retail stores worldwide that offer a wide array of general merchandise including groceries, apparel, electronics, and small appliances. In addition, the company is the world's largest retailer and grocery chain...
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...Wal-Mart Stores, Inc. | | Type | Public | Traded as | NYSE: WMT Dow Jones Industrial Average Component S&P 500 Component | Industry | Retail | Founded | 1962, Rogers, Arkansas, U.S. | Founder(s) | Sam Walton | Headquarters | Bentonville, Arkansas, U.S. | Number of locations | 11,088 (April 2014) | Area served | Worldwide | Key people | S. Robson Walton (Chairman) Doug McMillon (President & CEO) | Products | Apparel/footwear specialty, cash & carry/warehouse club, discount store,hypermarket/supercenter/superstore,supermarket, eCommerce | Revenue | * * US$ 476.294 billion (2014) * US$ 468.651 billion (2013) | Operating income | * US$ 26.872 billion (2014) * US$ 27.725 billion (2013) | Net income | * US$ 16.022 billion (2014) * US$ 16.999 billion (2013) | Total assets | * US$ 204.751 billion (2014) * US$ 203.105 billion (2013) | Total equity | * US$ 81.339 billion (2014) * US$ 81.738 billion (2013) | Owner(s) | Walton family | Employees | 2.2 million (2013) | Divisions | Walmart Canada | Subsidiaries | Asda, Sam's Club, Seiyu Group,Walmex, @WalmartLabs, Walmart eCommerce | Website | Corporate.Walmart.com Walmart.com | Executive Summary: Wal-Mart has shown continued success in their use of information technology with e-commerce, a system that allows managers to view point-of-sale information, and the possible use of RFID chips in the near future. After reviewing...
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