...TEAM CASE ANALYSIS OUTLINE ASSIGNMENT 1. Problem Statement and Objectives Implementation of Wal-Mart’s supply chain and success in India (in partnership with Bharati) What is the significance of the problem in terms of strategic marketing to the firm? * Cold chains [distribution chains for perishable items], warehousing and logistics infrastructure issues to be faced by Wal-Mart in India. * Competition by Indian small-scale retailers: Cultural differences in Indian retail way and the wall-mart way, while unorganized small-scale retailers in India build a long lasting relationship with their customer, Wall-Mart’s relationship is mainly transactional. * Lack of skilled employees, inadequate quality control and a variation in policy regimes across different states in India is a significant challenge Wal-mart would have to face. 2. Situation Analysis Core competence of Wal-Mart: Wal-Mart, due to its efficient logistic system and the ability to capitalize on every cost saving opportunity has provided them with a competitive edge over their competitors. The core competence of Wal-Mart is providing low priced products due to its excellent supply chain management including the following 3 sub points: * Procurement and distribution: Minimizing reducing purchasing cost through procuring directly from the manufacturers and eliminating the intermediaries. Further, with strategically located warehouses at different geographical locations...
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...I. The Theme Wal-Mart was built to save people money so they can live better. Hints to their slogan: “Save Money. Live Better.” Their mission has allowed the company to grow around the world. The culture and the values of their employees help strive for success of Wal-Mart while serving over 200 million customers and members each week(Wal-Mart Annual). We strongly believe that Wal-Mart is the best- positioned global retailer and that they will continue to progress. Cost leadership is the corner stone of how Wal-Mart goes to market. Doing our analysis of Wal-Mart Stores, Inc., we gathered our information and different figures from the Hoover’s online through the Willis library’s website, Reuters.com, and Morningstar.com databases which gave us insight to several financial aspects of the firm, including its stock, cash flows, risk, dividends, sales, earnings, debt, and overall performance. II. Business Analysis Profile of the company “If we work together, we’ll lower the cost of living for everyone…we’ll give the world an opportunity to see what it’s like to save and have a better life.” Wal-Mart founder, Sam Walton, summarized his vision back in 1962 for a new type of discount store that consumers would appreciate. As an owner of a much smaller discount store Walton had the experience, did the research, and then put up 95 percent of the startup costs for his new company in which he and his wife truly believed in. The first store opened in Rogers, Arkansas and was...
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...History Wal-Mart Stores, Inc. was founded by Sam Walton in Rogers, Arkansas. Sam Walton started his retail career as a Management trainee for J. C. Penny. In 1945, he leased a Ben Franklin Franchise dime store, which lead him to open his store called Walton Five & Dime. By 1962, he owned 15 Ben Franklin stores under the Walton Five & Dime name (Hoover’s). His business idea to sell products at low prices, high volume to benefit the consumers, is what led him to open his first Wal-Mart in 1962. Wal-Mart kept on growing and has become the world’s number one retailer company, with more than two million employees, over 4,000 stores in the US and 6,000 international locations in 26 countries. Type of business Wal-Mart is a retailing business, a multinational corporation that runs a chain of department stores and warehouse stores. The company has three divisions; Wal-Mart Stores US, Sam’s Club and Wal-Mart International. The biggest division is Wal-Mart US because it includes Wal-Mart discount stores, Neighborhood Market by Wal-Mart, Wal-Mart Supercenter, Marketside and Supermercado de Wal-Mart. The most important process for the company is the management of its supply chain. Wal-Mart has been successful with its operations due to the effectiveness of its logistic policies. The company has expanded throughout the world by efficiently using technology to manage and record the movement of their inventory. Business Strategies and Corporate Strategies Wal-Mart has been...
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...Security Analysis: WMT Group 2 Report Date | S & P Value | Last Price | Intrinsic Value | Economic Moat | Recommendation | 11/29/2010 | 1,187.76 | $53.85 | 60.93 | Wide | Hold | I. The Theme Wal-Mart was built to save people money so they can live better. Hints to their slogan: “Save Money. Live Better.” Their mission has allowed the company to grow around the world. The culture and the values of their employees help strive for success of Wal-Mart while serving over 200 million customers and members each week(Wal-Mart Annual). We strongly believe that Wal-Mart is the best- positioned global retailer and that they will continue to progress. Cost leadership is the corner stone of how Wal-Mart goes to market. Doing our analysis of Wal-Mart Stores, Inc., we gathered our information and different figures from the Hoover’s online through the Willis library’s website, Reuters.com, and Morningstar.com databases which gave us insight to several financial aspects of the firm, including its stock, cash flows, risk, dividends, sales, earnings, debt, and overall performance. II. Business Analysis Profile of the company “If we work together, we’ll lower the cost of living for everyone…we’ll give the world an opportunity to see what it’s like to save and have a better life.” Wal-Mart founder, Sam Walton, summarized his vision back in 1962 for a new type of discount store that consumers would appreciate. As an owner of a much smaller discount store Walton...
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...S.W.O.T Analysis of five fortune 500 companies 1. General Motors S- GM has a strong brand portfolio, meaning their name is well recognized and trusted. Second Gm has a growing business in the pacific and latin American region. Gm also has very large scale operations W- Gm has a declining market share, and they have had many recalls due to malfunctions in their vehicles. Gm also has a declining financial performance, meaning they are not selling a lot of cars. O- Gm has an increasing demand for their hybrid electric vehicles. There are many opportunities in merging markets, and GM is constantly making new models. T- There is a declining demand for light vehicles in the US. The prices of raw materials is constantly rising, and the emissions standards are continuously getting stricter 2. Ford motors S- Ford has strong engineering capability, a wide network of distributors and dealers, and their employees have a high productivity rate. W- Ford has a continued decline in market share, many product recalls, like the firestone tires which cost them billions, declining operating efficiency and weak returns O- Ford has many opportunities in India and China, ford launched new models of hybrid vehicles, and there is a increasing demand for dual fuel vehicles. T-Ford has a sluggish light vehicle production in developing markets, too many European Union vehicle regulations, and a big economic slowdown in the US 3. Target S- Targets revenue increases every...
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...1) The report provides a good picture about the symbolic meaning of Wal-Mart to the consumer and serves as a good measuring stick to certify that the Company’s core brand associations (low prices, rural America, patriotism, etc.) are still in place. Additionally, it does a good job in understanding the relationship between Wal-Mart and the three customer segments: from depicting the psychological profile of the customers (dreams, aspirations, concerns, shopping patterns, etc.) to explaining what role Wal-Mart plays in their lives. Despite providing a thorough analysis on the consumer segments and their interaction with Wal-Mart, it fails to provide a solid case on how should Wal-Mart address the challenges it faces in trying to address new customers and new categories in a congruent manner. In terms of methodology, the research is not exhaustive enough. 24 In-home Friends and Family Groups, 80 Workbooks and 20 In-home 1:1 Interviews and Store visits are not conclusive enough for a Company that has 138 million weekly customers. Having to resort to the same quote from a Price Sensitive Affluent for different purposes on pages 17 and 26 – “We all went to college and struggled […]” is very poor. Furthermore, the markets in which the research was conducted are not representative enough of the rural America that Wal-Mart serves. The absence of quantitative analysis (or even quotes) in the research to backup conclusions undermines the credibility of some statements, such as...
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...1 March, 2013 The Fundamental Analysis: An Overview Sónia R. Bentes#, Raúl Navas* ISCAL, Av. Miguel Bombarda 20, 1069-035 Lisbon, Portugal smbentes@iscal.ipl.pt * COPORGEST, SA, Av. da Liberdade 245, 9º C 1250-143Lisbon, Portugal rdnavas@gmail.com Abstract - In this paper we discuss the fundamental analysis by covering a number of studies in this field of research. This constitutes a useful tool to evaluate the companies’ financial performance. Particularly, the discussion in this paper illustrates how this kind of approach can help in analyzing a companies’ stock price. Additionally, a debate on its potentialities is also provided. Keywords – Fundamental Analysis, Return on Equity, Return on Investment, Price Earnings Ratio, Price to Book Value # foreign competition in a particular sector in order to identify the best company of the sector. ii) Bottom-up approach: in this method, the analyst starts the searching analysis within a specific sector irrespective of its industry/region. The fundamental analysis is carried out with the aim of predicting company’s future performance. It is based on the belief that the market price of an asset tends to move towards its “real value” or its “intrinsic value”. Thus, if the intrinsic value of an asset is higher than its market value, there may be a situation where it is time to buy. Otherwise, investors should sell. In the next section, the theoretical framework of the fundamental analysis is reviewed. The paper ends with a...
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...of if they observed that the corporation buys goods from a vendor with immoral methods. Wal-Mart controls their personnel to a code of ethics. The ethics code is a declaration announcing that to every employee the viewpoints of the corporation. The yearly records and SEC finding for 2010 and 2011 will be analyzed in the next statements to get comprehension of Wal-Mart as a corporation and its operations in the time course. Role of Ethics and Compliance The finance and accounting industries must involve ethics as a framework on that every movement is performed. “Every movement that contradicts with the ethical contexts can result to a loss of assurance which have a bad and continual influence on this corporation” (Titman, Keown, & Martin, 2011, p. 312). A portion of this equation involves the essence of the corporation in which relies to the morality bestowed to protect viability of clients, adversaries, personnel and suppliers. The mentioned assertion does not contradict the truth that financial records of any corporation must signify a precise and factual view of the corporation’s financial status. Stockholders require this assurance or they will not invest in corporations that are publicly exchanged. As a result, financial markets will absolutely fail. Fortune Magazine absolutely mentions Wal-Mart with America’s most approved corporations. An analysis of Wal-Mart’s Code of Ethics makes the conclusion in this description very precise. Chief Executive...
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...|Wal-Mart Stores, Inc. (WMT) |February 25, 2006 | |Hold | |WMT: Competitive and Financial Analysis | |By: Ryan Hummer | Company Profile Wal-Mart Stores, Inc. (Wal-Mart) operates retail stores in various formats worldwide. The Company organizes its business into three principal segments: Wal-Mart Stores, SAM'S CLUB and International. The Wal-Mart Stores segment is the largest segment of Wal-Mart's business, accounting for 67.3% sales during the fiscal year ended January 31, 2005 (fiscal 2005). The segment consists of three different retail formats, all of which operate in the United States. The Company's SAM'S CLUB segment consists of membership warehouse clubs that operate in the United States, and accounts for 13% of fiscal 2005 sales. The international segment consists of retail operations in eight countries and Puerto Rico, and generated 19.7% of Wal-Mart's fiscal 2005 sales. In addition, the Company owns an unconsolidated...
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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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...When Sam Walton opened the first Wal-Mart in Rogers, Arkansas in 1962, he never expected his discount store to ever become the nation’s No. 1 retailer. In May of 1971, after being officially incorporated as Wal-Mart Stores Inc., Wal-Mart began selling shares as a publicly-held company and its stock experienced its first 100% split, at a market price of $47. By 1990, Wal-Mart had become the nation’s No. 1 retailer and by the end of the decade, the largest private employer in the world, with 1.14 million associates. Soon after, H. Lee Scott Jr. was appointed as the third CEO of Wal-Mart Stores Inc. In 2005, Scott introduced the company’s new commitment to bring environmental sustainability into its business and passed his success onto his replacement as president and CEO, Mike Duke, on February 1, 2009. Today, Wal-Mart has 7,800 stores and club locations in 14 different markets, employing more than 2 million associates, and serving more than 176 million customers a year. Wal-Mart is a public corporation that runs a chain of large department stores. Three business subsidiaries comprise Wal-Mart’s operations: Wal-Mart Stores, Sam’s Club, and Wal-Mart International. The nine retail formats of the company include “supercenters, food and drug stores, general merchandise stores, bodegas (small markets), cash and carry stores, membership warehouse clubs, apparel stores, soft discount stores and restaurants” (p. 17). Studies show that the customer base for discount retailers has been...
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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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...Analysis of Business Issues, Writing In the Disciplines (WID) BADM 2003W (95440): BADM_2003W.SEC.12 Tuesday Combined Class: SEMESTER: Spring 2014 LOCATION & TIME: Duques 353, Tuesday 11:10 AM-12:25 PM PROFESSOR: Dr. Bret Crane Department of Management Office: Funger Suite 315N Email: bretdcrane@gwu.edu Office Hours: Tuesdays 1:00-2 PM or by appointment TEACHING ASSISTANTS: |Erin Vander Wall | | |Leigha McReynolds | | |Mark De Cicco | | |Tess Strumwasser | | |Daniel Berkhout | | |Sam Yates | | |Vicki Brown | | | ...
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...Analysis of Purchase of Rival Company Analysis of Purchase of Rival Company 08 Fall 08 Fall I. “Good Business” Analysis of Rival Criterion | Rival | Market position | Major competitor | Market growth | Around 1% | Market share | Holding share | Business cycle risk | Average cyclical risk | Flow cash flow generation | Positive cash flow in most years | Return on capital | ROCE above 15% | Market Stability | Stable | * Market position: Three firms (Hamilton Beach/Proctor Silex, Black & Decker/Windmere, and Sunbeam) dominated the kitchen market, capturing approximately 60% market shares. So Rivals is just a one of major competitors in this market. * Market growth: The kitchen product sector totaled $2.3 billion in sales in 1997 and was expected to grow 1% annually. * Market share: Rival didn’t perform well in the recent years is related to the depreciation of Asian currencies following the Asian Financial Crisis in 1997. So after this crisis, their performance would recover and hold the market share. * Business cycle: Sales of Rivals were dominated by The Crock Pot, the best-selling slow cooker in the U.S, which accounted for 24% of the company’s revenue and 47% of its EBIT. Slow cooker and its other products are influenced by the income of its customers. In addition, Rival outsourcing only 30% of its production in Asia, while competitors used Asian manufacturing for a greater share of their production. So as...
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... CASE: A-186A DATE: 06/19/03 CosTco WHOLESALE CORPORATION FINANCIAL STATEMENT ANALYSIS (A) INTRODUCTION Margarita Torres first purchased shares in Costco Wholesale Corporation in 1997 as part of her personal investment portfolio. Between 1997 and 2002, she added slightly to her holdings from time to time when the company sold stock for what she felt was a reasonable valuation, and up to that time she did not sell any of her shares. Having watched Costco grow from 265 warehouses to 365 worldwide, and from sales revenue of $21.8 billion to $34.1 billion, she wondered what factors led to such successful growth. She also wanted to determine whether those factors would hold consistent going forward. At this point, Costco was one of a special breed of retailers called wholesale clubs. Unlike other retailers, wholesale clubs required that customers purchase annual memberships in order to shop at their stores. Costco operated a chain of warehouses that sold food and general merchandise at large discounts to member customers. The company was able to maintain low margins by selling items in bulk, keeping operating expenses to a minimum, and turning inventory over rapidly. Costco’s closest competitors were SAM’S Club (a division of Wal-Mart) and BJ’s Wholesale, which both operated as wholesale clubs. Other competitors included general discounters (such as Wal-Mart), general retailers (such as Sears), grocery store chains (such as Safeway), and specialty discounters...
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