Wal-Mart

1786 Words Jun 3rd, 2014 8 Pages
BRIEF INTRODUCTION
Wal-Mart is a company based in North America but has become the largest retailer and is larger than any other retail chain in the world. It is clear that Wal-Mart is growing and gaining international power at an alarming rate. Wal-Mart journey from humble beginnings in the 1960s as a folksy discount retailer in the boondocks of Arkansas to a global retailing juggernaut in 2008 was unprecedented among the company of the world: Sales were expected to exceed $400 billion in fiscal 2009.
Wal-Mart provides general merchandise: family apparel, health & beauty aids, household needs, electronics, toys, fabrics, crafts, lawn & garden, jewelry and shoes. Also, the company runs a pharmacy department, Tire & Lube Express, and
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It sells products across many sectors such as clothing, food and other departments. Due to product diversity, Wal-Mart exist competitive weakness.

Wal-Mart has a bad image to consumer. Wal-Mart supports sustainable development, but it has more speak than action. On the other hand, awful employee benefit gives the world a bad image.

In local branch store, senior executives are accrediting, it’s contradictory strategy about localization development. The lack of local mangers can cause culture difference. It is short of interactive management between firm and employees.

From table two we can get a conclusion that Wal-Mart stores exist around the world. The big scale takes many problems and the big span in management will reduce controlling force.

The table one shows that the Current Ratio is lower than 1.0 since 2004. The Wal-Mart has low ability to pay current liabilities. The Return on Assets came down every year. It proved that company has bad effects on utilization of assets. The Return on Shareholders’ equity was also declined every year, owners’ equity can make a profit in a weak level. Based on current assets and current liabilities, it has negative data from 2000-2008, it means Wal-Mart has finance problem.

OPPORTUNITY
Openings to win market share from rivals. From example, Kmart, Target and Carrefour. Moreover, in the warehouse club segment the two largest competitors were Costco Wholesale and Sam’s Clubs.

Expanding into new geographic

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