Wal-Mart's Strategic And Financial Planning:
Since its inception about 50 years ago, Wal-Mart has continued to remarkable growth as a firm that focuses on providing customers with a wide range of merchandise at great prices. In its initial years, the company only operated in one store that has contributed to changes in the way retail works. Currently, the firm operates over 10,000 retail units within 69 distinct banners in 27 countries across the globe. The organization consists of over 2 million hard-working employees and associates who serve approximately 200 million customers and members across the globe on a weekly basis. The success, growth, and profitability of the firm can be attributed to the various strategic plans it has adopted from time to time, which have had significant impacts on its financial planning.
Wal-Mart's Strategic Planning Initiative:
While Wal-Mart has experienced decline in earnings multiple because of decreasing earnings and revenues per share growth in the past decade, the firm has been capable of maintaining cash flow generating ability. However, the organization's cash flow from operations has increased by approximately 9% every year with a corresponding increase in free cash flow by 19.1% annually. The growth in the firm's cash flow can mainly be attributed to ability of enhancing efficiency with an increase in its return on equity to 25% in 2011 from 20% about 10 years ago.
As part of its efforts towards revitalizing the growth of its cash flow and profits, Wal-Mart is currently pursuing three strategic initiatives that have positive impacts on price-to-earnings. These three major strategic planning initiatives for Wal-Mart are its entrance into e-commerce sector, acquisition of critical mass in its global segment, and its capture of more domestic market share (Daris, 2012). While e-commerce is expected to provide the firm with better returns on investments, the critical mass in global segment is geared towards contributing to meaningful expansion of its profit margin and return on invested capital.
As...
Wal-Mart's Competitive Advantage 2003 Wal-Mart stores are the largest retailer of discounted products across the globe with numerous superstores primarily in small towns throughout the United States. It consists of discount stores, supercenters, and neighborhood markets. About 75% of its stores are in the U.S. And due to awakening of globalization; Wal-Mart is also expanding in global markets. (Wal- Mart annual report, 2003) Nature of competitive strategy According to Daniel MillSap,(2009), every business
The Price-Sensitive Affluents, Wal-Mart has learned (Wal-Mart Annual Reports) is more interested in finding an exceptionally good deal and not necessarily concerned about the shopping experience. This is particularly true as one of the strongest factors influencing the execution of their strategy, the emerging global recession during this timeframe, takes hold. Again as with the Price Value Shopper and the paradoxical purchasing patterns of the Brand Aspirational segment show,
Wal-Mart Inc.: Operations Strategy Matrix Operations Strategy Matrix: Wal-Mart Inc. Wal-Mart is the world's largest retailer. It commits itself to providing everyday low prices to consumers to enable them live better. Its decisions center largely around the provision of commodities at low prices when customers need them. This text examines Wal-Mart's operational strategy and proposes a number of decisions that it could take to improve its standing in the retail market. Wal-Mart Inc.:
Robson Walton - Chairman of the Board of Directors of Wal-Mart Stores, Inc. Stephen P. Whaley - Senior Vice President and Controller Eric S. Zorn - Executive Vice President and President, Wal-Mart Realty III. INTERNAL ENVIRONMENT: STRENGHTS and WEAKNESSES A. CORPORATE STRUCTURE Wal-Mart's retail division is formed from four major subsidiaries: Wal-Mart Discount Stores, Wal-Mart Supercenters, Wal-Mart Neighborhood Markets and Sam's Clubs. (Wal-Mart Facts, 2007) Wal-Mart Discount Stores more than 1,000 in U.S. alone average
16; Wilbert, 2006, p. 2) Strategic process, planning and decision making As confirmed by Lee Scot's words regarding the aggressive strategy followed by each Wal-Mart store (Mohideen, 2009, p. 9), even if general stream planning and decision making is still largely centralized, being undertaken at the Wal-Mart Headquarters in Arkansas (for elements such as type of products to be sold, stores to be opened or closed, financial results and objectives, etc.),
Financial Analysis of Wal Mart Financial Analysis of Wal-Mart Company Overview Wal-Mart Stores Inc. (WMT) is the largest global retail and chain stores operating in various formats. The company operates more than 8000 stores globally across its business segments, which include electronics, groceries, apparel, and small appliances. Although, Wal-Mart operates a global business, however, more than half of the company businesses are located in the United States. Wal-Mart also operates its global businesses
Our semester plans gives you unlimited, unrestricted access to our entire library of resources —writing tools, guides, example essays, tutorials, class notes, and more.
Get Started Now