Wal-Mar Global Expansion Strategy

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Wal-Mart Stores, Inc.

Wal-Mart: Global Expansion Strategy



Table of Contents

A. Introduction B. Wal-Mart Stores Inc. 1. The Adolescence of Wal-Mart 2. Channel of Distribution 3. The Financial Facts and Figures 4. Unique Expansion Strategy 5. Corporate and Management Culture C. The Competition in the United States D. Wal-Mart’s Global Strategy E. Expansion Target: France General Overview Retail Industry Overview Macro Environmental Analysis External Factors Micro Environmental Analysis Porter’s Five Forces Model SWOT Feasibility Study Recommendation F. Expansion Target: Israel General Overview Retail Industry Overview Macro Environmental Analysis External
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Approximately 83% of the company’s Discount Stores and Supercenters’ purchases were shipped from its 51 distribution centers and rests of them are shipped directly from suppliers to its stores. Each distribution center serves the distribution needs of approximately 80-100 stores, depending on the size of the center. The size of these distribution centers varies from 600,000 – 1,700,000 square feet. 3. The Financial Facts and Figures: (Amounts in millions except per share data) fiscal 1998 1997 1996 a) Net Sales $ 119,299 $ 106,178 $ 94,773 b) Net Income (NPAT) $ 3,526 $ 3,056 $ 2,740 c) Net income per share – Basic & Dilutive $1.56 $ 1.33 $ 1.19 According to [4], the revenue in 1998 was 139.6 billion up 17% from $119.3 billion. Net income $4.43 billion or $1.98 a diluted share, an increase of 26% from previous year, or $1.56 in fiscal 1998. I) Profitability Ratio i) Return on total assets = NPAT*100/Total Assets 8.5% ii) Return on Shareholders fund = NPAT * 100/ Shareholder’s Equity 19.06%

7.9% 17.83%

Return on total assets has increased substantially over the years, NPAT have also increased over the years. Return on shareholders funds has also shown a constant improvement over the years. After observing the profitability ratios we can say that

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Wal-Mart: Global Expansion

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