Financial Outcomes Paper

Wal-Mart is an American company that was founded in the year 1962 by Sam Walton. The company operates in the retail industry. Notably, the company operates various chains of stores in the entire world which has made the venture a big success in the retail industry. The efficiency and the effectiveness of the company’s operations have seen it ranked the second largest public company in the world (Copeland & Labuski, 2013). The company has over two million workers which makes the leading private corporation employer in the world. Notably, despite the fact that the company is traded publicly, Wal-Mart is more of a family company since Walton’s family still controls over fifty percent of the company’s shares. The company has expanded its business through venturing into external markets such as China, the United Kingdom, North Korea, South Korea, North America, and so forth. However, these markets have produced mixed results in terms of the level of success and profitability. For instance, the German market and the South Korean markets have turned out to be less favorable for the company.

Many advise against the coming of a Wal-Mart to their town, arguing that it will only bring negative consequences to the economy, but most of their pleas to stop Wal-Mart are thoughtless. On the contrary, Wal-Mart is a positive force sweeping through the United States generating town growth, new jobs, customer traffic and increased tax revenues. Wal-Mart is great for the economy in that it brings competition to other competitors and it drives out the weak businesses that were only hindering the growth of their local economy. Wal-Mart is an effective catalyst for change. Its expansion leads other business competitors to retool their own operations and become more competitive, thus increasing and feeding the economy.

From a gallon of milk to a complete home makeover, Wal-Mart is the kind of store consumers (to include myself) go to buy all their home goods. What we don’t see are the management aspect of the operations, the issues stores, management, and executives go through on a daily basis. Wal-Mart has several challenges it goes through, from self-inflicting wounds to battling competitors for the lowest prices and consumer business. However its CEO’s both past and present have set the foundation and direction of where Wal-Mart is to be headed in the 21st century. With direction and orders in-hand, its top executives have developed

This pattern of growth, allowing it to build market share and secure volume advantages quickly, through large expenditures on warehouses, is also evident in the manner in which Wal-Mart built its stores. Wal-Mart stores were initially built of a smaller average size than its direct competitors and only if there was space in the location for future expansion; this increased Wal-Mart’s flexibility and it helped reduce unnecessary costs, as indicated by Wal-Marts lower proportion of rental expense and its significantly higher sales per square foot. Indeed, this is just one manner in which Wal-Mart, unusually for a service industry, was able to create a real competitive advantage. However, because this advantage is clearly imitable Wal-Mart has been aggressive in maintaining its technological lead.

A collection of data and research of the effects on American business and society by Wal-Mart is truly needed. On the surface it appears that the inexpensive products are a plus to the consumer, but the tactics that the retail giant is using appears to have enduring results for the economy and the society.

5. International Growth- The video pointed out that internationally Wal-Mart has just scratched the surface and has lots of room for growth. Expect to hear more from Wal-Mart about where we’re going in emerging markets like India and China (Gogoi, 2007). Wal-Mart is committed to being a global company and feels like expanding internationally will drive growth and hopes to add 500,000 jobs worldwide in within the next 5 years (Clifford & Rosenbloom, 2010). Brazil,

Like any business, Wal-Mart has to continually assess their strengths, weaknesses, opportunities, and threats in order to continue to be competitive. Awareness by the executives to what is happening locally and globally will further the expansion of Wal-Mart.

“Over the course of [a few years after Wal-Mart entered a community], retailers' sales of men’s' and boys' apparel dropped 44% on average, hardware sales fell by 31%, and lawn and garden sales fell by 26%. In towns without Wal-Marts that are close to towns with Wal-Marts, sales in general merchandise declined immediately after Wal-Mart stores opened. After ten years, sales declined by a cumulative 34%.”

Wal-Mart is the leading retail firm in the United States that is ranked the first in Fortune 500 index because of its sound business practices and huge profits. The company has

Another possible outcome for Wal-Mart is that the stock price may go up due to this program. According to the initiative, on February of 2009 Wal-Mart reactivated the repurchase of their shares. At that time, there was five billion dollars left in the initiative to repurchase stock. If the conditions are right, according to the book value the stock price should go up after the repurchase. After the repurchase of the stock, there will be less common shares outstanding and therefore the total assets minus the total liabilities divided by now a lower number of shares will result in a higher price per share.

Wal-Mart is arguably the most dynamic corporation in the last 50 years in the United States, if not the world. Arising from its beginnings in Bentonville, Arkansas, it has grown to over 4,400 discount stores, super centers and corner markets worldwide. Wal-Mart continues to expand despite public criticism of its labor practices as well as complaints about their treatment of competitors. The many strengths of Wal-Mart, like their low cost production and marketing practices, will aid Wal-Mart as it continues to grow in the retail

Ans:Wal-Mart,Inc runs a chain of large, discount department stores.it is the world’s largest public corporation by revenue. Walmart is the largest private employer and the largest grocery retailer in the United States. Walmart is one of the best known industries all over the world. Its concentration of a single business strategy is the basis of its success over the decades by this strategy without having to rely upon diversification to sustain its growth and competitive advantage. The leading marketing strategies of Wal-Mart are low prices, service and smile. However by adapting this strategy, it has risked itself by putting all of a company’s egg in one industry basket. While its global strategy worked elsewhere, the results were bad in Germany and Korea that Wal-Mart withdrew from those countries.

Wal-Mart’s mission to ‘save people money so they can live better’ has impacted more than 176 million consumers in thirteen countries. A global company, Wal-Mart has positioned itself as the unbeatable price leader in offering a variety of affordable products that range from health and beauty, to apparel and jewelry to electronics and food items. While expansion,

Operating profit/ Sales: Wal-Mart has shown high growth in operating profit/ sales ratio majorly owning to its innovative supply chain cutting down operating expenses.

Wal-Mart is a company which operates in the service sector, more specifically in the “Discount, Variety Stores/Retail” industry. The company’s superior performance is demonstrated through the fact that it was America’s largest company (in terms of revenue) in 2002, and the reputation of the company is reflected in the opinion of “Fortune” who have identified Wal-Mart as one of the world’s most admired companies. In 2004 Wal-Mart had been hiring 1.4 million employees – making it the largest corporation in the world. Wal-Mart’s share prices have also been stable at time of stock market volatility. There are