Wal-Mart - Strategic Audit I. Current Situation A. Current Performance In the past year Wal-Mart’s performances in market share, profitability, and return on investment have had significant changes compared to past years performance. * Return on investment now compared to previous years: they are paying out $63.079 billion to their shareholders compared to last years $58.763 billion and an average of $3.09 earnings per share of the 4.068 billion shares out. * Market share today: Out of 2,000 big companies Wal-Mart is at 17 with 201.36 billion in market value and in its industry of retail, Wal-Mart is ranked #1 with Home Depot and Target behind.
In 1995, it exceeded expectations with revenues of US $ 5.8B by year end. Observers believe that such growth with only a few acquisitions was considered remarkable. By 1996, Acer has become the seventh-largest PC manufacturer worldwide, the second-largest monitor maker, and the fourth-largest keyboard maker. The
Background Compass Records is owned and operated by Alison Brown and her husband, Garry West. Alison Brown, a former investment banker, is a world-renowned bluegrass artist, and along with her husband, started Compass Records in 1995. Based in Nashville, it has been in business for 10 years. Compass is a small business compared to the rest of the global music business, but has been able to remain competitive by turning a profit on 80% of its titles compared to the industry average of 10%. Compass has a portfolio consisting of nearly 50 artists and averages 20 releases per year.
Before working for Microsoft in 1980, he worked for two years as an assistant product manager at Procter & Gamble. He has being working for a little more than 30 years for Microsoft, while the average holding time of a CEO is about 5 years. During his more than 10 years as a CEO he has tripled revenue and double net income. He has guide Microsoft into two growing markets, console gaming and search. Bill Gates had been CEO before Steve Ballmer and now holds a position as Chairman.
After the founder, Antonio Calveta retired in year 2007 after he gave himself to the company for 35 years; he named his eldest son, Frank Calveta to be the president of the company. Frank is requested by his father to double the company’s revenues within five years’ time. ISSUES / PROBLEMS Being the president and chief executive officer of Calveta Dining Services, Frank is endeavoring to accomplish his father’s desire, which is to double the company’s revenues within five years. He is confronting with lots of challenges such as the company’s reputation for quality food service. The main issue in this case study is to decide whether Frank Calveta should take over Great Southwest Dining Service (GSD) or not.
Brendan Sookraj FINC 6290 Prof. Mohamed Siraj 06/03/2014 Background Set in 2005, the case study outlines that Berkshire Hathaway’s subsidiary, MidAmerican Holdings Company, is avidly pursuing full acquisition of PacifiCorp one of the largest Utilities Company in the Continental United States. Already a high net worth individual, Buffet at this point in time has a net worth of $44 billion. The sheer brilliance in this move lies in Buffet’s investment strategy: diversification. Berkshire Hathaway for years has witnessed compounded annual growth of 24% between 1965 to 2004, due to the fact that Berkshire Hathaway does not specialize in a particular sector, but rather is dominant a majority of sectors. Illustrative of this would be: Geico, Fruit of the Loom, and MiTek which dominant the Insurance, Apparel and Building sectors respectively.
Clarkson Lumber Company Clarkson Lumber Company is in retail distribution of lumber products. It was founded by Mr. Clarkson and his brother-in-law, Henry Holtz in 1981. In 1994, Mr. Clarkson bought out Mr. Holtz’s interest for $200,000, payable in 4 semi-annual instalments from June 30, 1995 with interest @11% p.a. Firm has achieved good growth in sales and profits during recent years, but is facing shortage of cash. It expects sales of $5.5 million during CY 1996 and would need additional loan over and above existing loan of $399,000 as on March 31, 1995.
Under the direction of Barry Minkow, the ambitious sixteen-year-old who founded the company and initially operated it out of his parents’ garage, ZZZZ Best experienced explosive growth in both revenues and profits during the first several years of its existence. In the three-year period from 1984 to 1987, the company’s net income surged from less than $200,000 to more than $5 million on revenues of $50 million. When ZZZZ Best went public in 1986, Minkow and several of his close associates became multimillionaires overnight. By the late spring of 1987, Minkow’s stock in the company had a market value exceeding $100 million, and the total market value of ZZZZ Best surpassed $200 million. The youngest chief executive officer in the nation enjoyed the “good life,” which included an elaborate home in an exclusive suburb of Los Angeles and a fire-engine red Ferrari.
Today, PPG operates in more than seventy countries around the world. (About PPG, 2013) As of the third quarter 2013, PPG reported their net sales of $4 billion, which was up 17% from the previous year (2112). Their adjusted earnings per share were record breaking at $2.44 per share, up 31% over last year with the recent recovery in the economy. Cash and short-term investments were $2.2 billion at the end of the third quarter. PPG anticipated its full-year share repurchases to be at the high end of what they had originally projected.
In fact, one in 10 grandparents has been the primary support of a grandchild at some time in their lives” (Doucette-Dudman, 2000). Today with challenges in our economy over the past five years, including the housing and foreclosure crisis, and the loss of jobs, 4.9 million children (7 percent) under age 18 live in grandparent-headed households. According to the 2010 United States Census Bureau, “Fifty one percent of grandparents who have grandkids living with them are white (up from 46 percent in 2000); 24 percent are Black/African American (down from 28 percent in 2000); and 19 percent are Hispanic/Latino (down slightly from 20 percent in 2000). For grandparents reporting responsibility for grandchildren 67 percent