Wal-Mart: Financial Statement Analysis
WAL-MAT FINANCIAL STATEMENT ANALYSIS

Company Description

Wal-Mart Stores Inc. (WMT) is a world largest grocery chain and retail stores. The company operates 8000 stores across three business segments which include apparel, groceries, electronics and small appliances. While the company operates globally, half of the company stores are located in the United States. To complete in the international markets, Wal-Mart also operates its business through subsidiaries in Canada, Argentina, China, Brazil, the United Kingdom and Japan. However, the company majority-owned subsidiaries are located in Chile, and Central & South America. Wal-Mart business strategy is to buy products at rock-bottom prices and pass savings on customers and Wal-Mart has been able to drive up its profitability by purchasing billion of dollars worth of low costs merchandise directly from China and the company has been able to win the trusts of customers by providing its products at low prices. The company uses…...

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References

Seeking Alpha (2012).Valuation Analysis: Wal-Mart Looks Fairly Priced. Seeking Alpha Magazine. USA.

Yahoo Finance, (2012). Wal-Mart Store Inc. (WMT). Yahoo Inc.

Wal-Mart (2012). Management's Discussion and Analysis of Financial Condition and Results of Operations. Wal-Mart Stores Inc.

Wal-Mart (2012) Annual Report Store Inc. 2012. USA.

Wal-Mart's SWOT Analysis and Generic Business-Level Strategy
Walmart's SWOT Analysis

Wal-Mart's SWOT Analysis and Generic Business-Level Strategy

Wal-Mart's SWOT Analysis and Generic Business-Level Strategy

Wal-Mart

Wal-Mart is the world's leading corporation in the retail industry. It operates in 27 countries of the world with 69 well-recognized brands. With this huge scale of operations and vast business network, Wal-Mart serves a large number of customers with numerous product categories in its retail stores, departmental stores, and discount stores. It is also considered as the fastest growing business corporation in the Global retail industry. It has a huge supply chain network with highly reliable suppliers, distributors, and promotional firms from all the corners of the world. Wal-Mart has always pursued growth strategies for its business operations in the Global market. At present, it is the largest employers in the world with a total workforce of more than 2.2 million employees. It is headquartered in Bentonville, United States…...

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References

Barley, F., Bragg, D., Dawson, M., Shah, H., Sillanpaa, B., & Sleeper, N. (2012). Wal-Mart Stores, Inc. U.S.: Arizona State University.

Hitt, M.A., Ireland, R.D. & Hokisson, R.E. (2011). Strategic management: Competitiveness & globalization concepts & cases, 10th Edition. Mason, OH: South-Western Cengage Learning.

Hill, C.W., & Jones, G.R. 2012, Strategic Management Theory, 10th Edition. Mason, OH: South-Western, Cengage Learning

Kurtz, D.L., MacKenzie, H.F., & Snow, K. 2010, Contemporary Marketing, 2nd Edition. Toronto: Nelson Education

Wal-Mart is the name that is well-known to all the households these days because it has established itself as the largest retailer the world over. The sales of Wal-Mart are growing with every passing day as the sales totaled up to more than $280 billion, according to the reports published in 2004. However, it should be noted Wal-Mart did not appear on the international with more than 4500 stores in 14 different countries and with a workforce of 1.5 million over a small period of time. From the very beginning, Wal-Mart worked day in and day out to make sure that it develops the right strategies that would help it to become a success; both at the national and the global level. It worked efficiently to establish itself as the best merchandiser that operated with the most effective systems that led to the increased buying of the customers and superior…...

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Similar problems are now being faced by Wal-Mart by China as well. However, to ease the tension, the Chinese government has stated that it would cut down the laws a notch to make it easier to open stores there. Seeing how the competition in China is fierce, Wal-Mart won't only do well by having discounts. The company must make its mark by the quality and the variety of products it has to offer. The people in China will not shy away from a non-Chinese retailer. This has been exampled by Metro doing very well. Better designs and better goofs will provide for the customers the new edge of style that they need.

Apart from China, Japan is also present with a lot of hopes for Wal-Mart. The company is slowly getting itself in form and in practice there. In 2003, the 400 unit chain lost a total of 65 million dollars there. However, the new strategies that Wal-Mart has, the company might make a u-turn when it comes to performance in Japan.

Last but not the least, Wal-Mart's performance in Mexico is yet another prospect for the big giant. This operation was initiated with Cifera, a local retailer in the country. However, Wal-Mart had issue in copying the distribution patterns of Mexico. There were problems faced with the infrastructure there and the lack of dealings with the suppliers in the country.

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…...

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References:

Daris, M. (2012, March 26). Wal-Mart: Strong Upside Potential in 2012. Retrieved June 8,

2012, from  http://seekingalpha.com/article/457111-wal-mart-strong-upside-potential-in-2012 

"Walmart 2012 Annual Report." (2012). 50 Years of Helping Customers Save Money and Live

Better. Retrieved June 8, 2012, from  http://www.walmartstores.com/sites/annual-report/2012/WalMart_AR.pdf

al-Mart Porters
al-Mart Strategic Management

al-Mart mission is based on the model that by simply saving people money so they can live better. The philosophy and overall business strategy was developed based on a simple idea created by founder Sam alton: offer shoppers lower prices than they can get anywhere else. This strategy has been the basis of an incredible history and growth record for the company. This strategy still guides the company in nearly all aspects of the organization. The company delivers the consumer the lowest costs possible through many of the strategic decisions in their human resources, their suppliers, their information, distribution and logistical systems as well as many more business functions.

Strategy Discussion

The success of this strategy is clearly evident from al-Mart's single location in the Midwest to its global presence as the world's largest private retailer. The company's current holding include more than 8,500 departmental and warehouse stores in…...

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Works Cited

Cernansky, R. (2011, January 31). Are Walmart's Eco-Efforts Enough? Balancing Sustainability & Social Responsibility at America's Largest Retailer. Retrieved from Tree Hugger:  http://www.treehugger.com/corporate-responsibility/are-walmarts-eco-efforts-enough-balancing-sustainability-social-responsibility-at-americas-largest-retailer.html 

Gunther, M. (2011, December 5). Just How Sustainable Is Walmart? Retrieved from Green Biz:  http://www.greenbiz.com/blog/2011/12/05/just-how-sustainable-walmart 

Ken, A. (N.d.). Wal-Mart's Major International Strategy. Retrieved from Ezine Mark: http://public-company.ezinemark.com/wal-marts-major-international-strategy-7d35349720f4.html

Lewis, N. (2013, February 21). Though Income Can't Be Legislated, Obama's Minimum Wage Hike Is Not A Bad Idea. Retrieved from Forbes:  http://www.forbes.com/sites/nathanlewis/2013/02/21/though-income-cant-be-legislated-obamas-minimum-wage-hike-is-not-a-bad-idea/

Wal-Mart and Employee ights
Labor cost is always considered as the main issue, mostly in case of employees' unionization at Wal-Mart. This was noticed when Wal-Mart showed a remarkable earning at the rate of 44% per annum for its labor working on hourly basis. Another point which brought this issue ahead was when the sales clerk of Wal-Mart in 2001 earned wages below Federal Poverty Scale. According to an issue of Fortune released on 3rd March 2003, the approximate share of Wal-Mart in the Gross National Product (GNP) of U.S. market was about 2.3% in 2002. Thus, Wal-Mart was expected to show further boom by sharing the U.S. economy at the largest scale ever estimated in 2006, considering the phenomenal growth rate stated in Fortune. However, other companies like U.S. Steel Corporation shared the U.S. GNP by 2.8% in 1917 and also the highest GNP share of General Motors Corporation was…...

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References

Cramer, James J. "Wal-Mart, Fess Up to Weakness Within." Wake-Up Wal-Mart.com,

17 August 2005. 18 November 2005. Retrieved from .

Kalra, Ritu. "Wal-Mart Storm Swirling." The Hartford Courant. 2 November 2005. 3 November 2005. Retrieved from .

Lindeman, Teresa F. "Two Public Relations Campaigns pit Wal-Mart Against Critics." Pittsburgh Post-Gazette. 1 November 2005. 3 November 2005. Retrieved from .

al-Mart Financial Analysis
al-Mart Store Inc. is a multinational retailer corporation branded as al-Mart in 2008. Founded in 1962, al-Mart has now become one of the largest American corporations with chain of retail stores. al-Mart sells varieties of consumer goods such as consumer electronics, toys, automobiles, furniture, video games and several other consumers goods. Presently, al-Mart enjoys the patronages of 200 million customers per week making the company to record the sales of $419 billion at the end of the 2011 fiscal year. al-Mart operates in 27 countries and records $443 billion in sales in 2012. (al-Mart Annual Report).

The objective of this report is to provide the financial analysis of al-Mart. The report uses the last 5-year financial data to perform the company financial analysis.

: al-Mart Financial Analysis

The paper uses last 5 years financial summary to evaluate the al-Mart performances. The data from Table 1 reveals that al-Mart has recorded healthy…...

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Works Cited

Annual Report. Wal-Mart Annual Report. Wal-Mart Store Inc.2011

Stock Analysis. Wal-Mart Stores Inc. (WMT) | Statement of Cash Flows. Stock Analysis Net. 2011.

Yahoo Finance. Wal-Mart Stores, Inc. Common St. (WMT). Yahoo Inc.2012.

Zenith Management Consulting. Case Study: How to Exploit Wal-Mart's Weakness. Zenith Management Consulting White Paper. 2006.

Wal Mart
Over the last several years, Wal Mart has been a story that is focused on continuing successes and challenges. This is because the company was impacted by issues such as employee rights, costs and fierce competition. Yet, at the same time, they were able to experience continuing increases in their bottom line results. This is despite the fact that consumer spending has remained stagnant in the aftermath of the recession. ("50 Years of Helping Customers to Save Money and Live Better," 2012)

To fully understand what is happening requires examining Wal Mart's most recent financial information. This will be accomplished by analyzing the company, its financial condition, profitability trends, cash position, inventory chain, internal controls, the risks to outside events, potential vulnerabilities and predicting where the firm will be five years from now. Together, these factors will highlight the challenges and opportunities that are available.

Create an executive summary of Wal-Mart…...

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References

50 Years of Helping Customers to Save Money and Live Better. (2012). Wal Mart. Retrieved from:  http://www.walmartstores.com/sites/annual-report/2012/WalMart_AR.pdf 

Chan, A. (2011). Wal Mart in China. Ithaca, NY: ILR Press.

Holmes, T. (2011). The Diffusion of Wal Mart. Ecometria, 79 (1), 235 -- 302.

Hugos, M. (2011). Essentials of Supply Chain Management. Hoboken, NJ: Wiley.

al-Mart SOT
Internal Analysis & SOT

Currently one of al-Mart's biggest assets is it powerful retail brand name. The company has branded itself as the low cost leader in their industry and consumer perceive the brand as offering value for money, convenience and a wide range of products all in one store (Marketing Teacher, N.d.). al-Mart has been able to build this brand image over time by focusing on providing consumer the lowest cost possible in their industry. Over many years consumers have begun to associate the al-Mart brand with primarily value which offers the company many advantages.

hat are the two or three biggest strengths the company has that allow it to make the company's vision come to fruition?

A major strength that al-Mart has is that it sells many consumer necessities. This has allowed the company to avoid many of the negative aspects of the economic cycle as al-Mart's goods are bought…...

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Works Cited

Denning, S. (2012, March 7). Emulate Wal-Mart And Dare To Be Bad? Retrieved from Forbes:  http://www.forbes.com/sites/stevedenning/2012/03/07/emulate-wal-mart-and-dare-to-be-bad/ 

Guenette, R. (2012, November 5). Wal-Mart Stores: Strengths, Weaknesses, Opportunities, and Threats. Retrieved from The Motley Fool:  http://beta.fool.com/makinmoney2424/2012/11/05/wal-mart-stores-strengths-weaknesses-opportunities/15793/ 

Marketing Teacher. (N.d.). SWOT Analysis of Wal-Mart. Retrieved from Marketing Teacher:  http://marketingteacher.com/SWOT/walmart-SWOT.html# 

Romero, E. (2005). Leadership, Culture, and Competitive Advantage. Retrieved from Compete Outside the Box: http://competeoutsidethebox.com/wp-content/uploads/articles/Leadership,%20Culture%20and%20Competitive%20Advantage.pdf

Further, under this segment are a number of financial products ranging from bill payments to wire transfers and money orders. On the other hand, the company's international segment has in its fold online retail as well as a number of discount and retail store formats. The company's Sam's Club segment has in place private-label items as well as other merchandise categorized as either soft goods or hard goods. Further, it can also be noted that this segment currently operates 4,263 stores and has a workforce of more than 600,000 workers spread over 15 nations outside the U.S. At the moment, al-Mart which happens to be Mexico's and America's largest employer has a total of 2.1 million associates (employees) across the world. In some cases, al-Mart's foreign expansion has been marked by the acquisition of retail chains already in operation. For instance, the company's expansion to Canada was preceded by…...

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Works Cited

Grant, Robert, M. & Kent, E. Neupert. Cases in Contemporary Strategic Analysis. Wiley-Blackwell. 2003. Print.

Hicks, Michael, J. The Local Economic Impact of Wal-Mart. Cambridge Press. 2007. Print

Mallaby, Sebastian. "Progressive Wal-Mart. Really." Washington Post. 28th November 2005. Web. 18th November 2011. <  http://www.washingtonpost.com/wp-dyn/content/article/2005/11/27/AR2005112700687.html 

Wal-Mart. Wal-Mart Corporate: History Timeline. Wal-Mart Stores, N.d. Web. 16th November 2011. <   >http://walmartstores.com/aboutus/7603.aspx 

al-Mart
Operations

al-Mart's has grown to be one of the most powerful organizations in the world and its biggest assets is it powerful retail brand name. The company has branded itself as the low cost leader in their industry and consumer perceive the brand as offering value for money, convenience and a wide range of products all in one store (Marketing Teacher, N.d.). Although al-Mart does not produce many goods internally, it offers a retail service that connects suppliers from all over the world with consumers via its network of retail outlets. al-Mart is known for its dedication to providing retail goods the lowest prices possible to consumers in their industry. al-Mart has some of the most sophisticated supply chains and distribution networks available and the company creates value through quantities of supply.

Supply and Demand

There are many factors that influence al-Mart's ability to achieve equilibrium in supply and demand. Some of the…...

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Works Cited

Hsu, T. (2013, February 21). Wal-Mart: Tax refund delay, high gas prices to flatten sales. Retrieved from LA Times:  http://www.latimes.com/business/money/la-fi-mo-walmart-profit-flat-sales-20130221,0,5846500.story 

Marketing Teacher. (N.d.). SWOT Analysis of Wal-Mart. Retrieved from Marketing Teacher:  http://marketingteacher.com/SWOT/walmart-SWOT.html# 

Raza, P. (2013, January 13). Walmart in supply chain crackdown after Bangladesh factory fire. Retrieved from The Telegraph:  http://www.telegraph.co.uk/finance/newsbysector/retailandconsumer/9821366/Walmart-in-supply-chain-crackdown-after-Bangladesh-factory-fire.html

However (on the plus side toward Wal-Mart's capacity for increased successful globalization) there remains Wal-Mart's sophisticated supply technology, the best in the retail world, a tool that makes it possible for the retailing giant to meet individual store and customer needs everywhere, almost instantaneously. Ernsberger (2002) points out that:

one reason the company is so productive is that it knows how to use technology... Wal-Mart was the first major retailer to use satellite communications to link stores to suppliers, so suppliers can track sales second by second, and deliver new stock as fast as old stock disappears from the shelves... [s]ays Dan Binder, a senior vice president of Morgan Stanley in New York "They do a lot of little things right."

In perusing the United States Wal-Mart.com website (Wal-Mart.com, August 7, 2005), one finds that enormous attention is paid to local needs and markets, for example, a link to a "store finder"…...

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References

Books. (August 7, 2005) Wal-Mart.com. Retrieved August 7, 2005, from:  http://www.walmart.com/books?path=0%3A3920.html .

Ernsberger, R., Jr. (May 20, 2002) Wal-Mart world. Newsweek international. 50.

E- library. Retrieved August 7, 2005, from: / libweb/elib/do/document?set=pbsissue&groupid=1&requestid=issue_docs & resultedhttp://europa.ccsn.nevada.edu:2263

24&edition=&ts=C0E005574F3A1EB4DC9C77177F4EAD40_1123448077234 urn=urn%3Abigchalk%3AUS%3BBCLib%3Bdocument%3B53060287.html.

Wal Mart is a global leader in retail supply chain management, logistics, operations, fulfillment and transportation services. The efficiency and profitability of the WalMart supply chain operations globally have set a new standard in their industry and often been used as the basis of comparing performance of supply chains in related industries as well (Stevenson, 2009). What has contributed to the rapid growth of WalMart however has been the acquired expertise in planning, launching and support supercenters in remote geographic regions in the U.S., while also being able to tailor their unique retailing strategy to foreign markets as well. WalMart has learned how to integrate customer and buyer demographics into their retail planning and execution systems to ensure every store format, from the very large and complex Supercenters to the small storefronts in China, all operate to an optimal level of sales and profitability performance (Courtemanche, Carden, 2011). By basing…...

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References

Courtemanche, C., & Carden, A. (2011). Supersizing supercenters? The impact of Walmart supercenters on body mass index and obesity. Journal of Urban Economics, 69(2), 165-181.

Edwards, B. (2011, Mar 20). Controversy over new A.V. WalMart continues. McClatchy - Tribune Business News, pp. n/a.

LaRose, G. (2011). Real estate pros expect walmart to trigger more retail activity in eastern new Orleans. New Orleans CityBusiness, (02794527)

Stevenson, W.J. (2009). Operations management (10th ed). New York: McGraw Hill/Irwin

Robson Walton - Chairman of the oard 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 surface per store of 107,000 square feet; 225 associates and 120,000 items sold

Wal-Mart Supercenters are generally open 24 hours a day and sell wide array of products, including grocery, clothing and any other general merchandise more than 2,300 stores, internationally spread average surface of 187,000 square feet; 350 or more associates and 42,000 different products

Wal-Mart Neighborhood Markets grocery, pharmaceuticals and general merchandise more than 120 neighborhood markets, generally present on markets with supercenters average surface of 42,000 square feet; 95…...

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Bibliography

Wal-Mart Annual Report for 2006, Retrieved at   on November 21, 2007http://www.walmartstores.com/Files/2006_annual_report.pdf ,

Parmelee, N., February 20, 2007, Wal-Mart's Powerful Performance: Fool by Numbers, the Motley Fool,   last accessed on November 21, 2007http://www.fool.com/investing/value/2007/02/20/wal-marts-powerful-performance-fool-by-numbers.aspx ,

1994-2007, Center for Business Planning, Mission Statement, last accessed on November 21, 2007http://www.businessplans.org/Mission.html,

2007, Website of Wal-Mart Stores,   accessed on November 21, 2007http://www.walmartstores.com/GlobalWMStoresWeb/navigate.do?catg=316,last 

Wal-Mart Nation
The dream of Sam Walton was a simple one: "Give people high value, low prices and a warm welcome" (Walton, 2003). At an early age, he was working hard delivering what the customer needed and wanted at a reasonable price - newspapers and selling milk from the cow (Huey, 1998). The development of Wal-Mart, KMart, and Target has brought about a retail business that is highly competitive within the communities of America. Through the years, a trend has developed that encompasses each corporation. This paper will discuss the phenomenon of Kmart, Wal-Mart, and Target and how large corporations have affected today's economy, communities, and lifestyles.

On July 2, 1962, at the age of 44, Sam Walton opened his first Wal-Mart store, in ogers, Arkansas S.S. Kresge launched K. Mart that same year, and Dayton Hudson began its Target chain. Discounting had hit America in a big way, and the world…...

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References

Bureau of Labor Statistics. Consumer Expenditure Survey, 1999. Washington, DC., 2000.

Craig, T. (2002). "World's largest, and growing." DSN Retailing Today. 24 April 2004 www.findarticles.com.

Collins, James, and Jerry Porras. Built to Last: Successful Habits of Visionary Companies. New York: Harper Collins Publishers, 2002.

Greenhouse, Steven. "Wal-Mart, a Nation Unto Itself." New York Times 17 April. 2004, late ed.:B7+.