Over the course of the last thirty years, Wal-Mart, the retail giant, has seen rapid expansion and huge profit increases. With saturation in every geographically relevant area in the United States, Wal-Mart is a familiar face to nearly every American. As a result of its cost-driven strategy, its performance continues to triumph over the competition. In recent years, the public forum has shifted to debate the ethicality of Wal-Mart’s corporate strategy. Perhaps the most widely discussed criticism of Wal-Mart revolves around their high employee turnover rates and the causes of employee dissatisfaction.
We still see new Walmart stores opening in many areas and employing thousands of people. I have become a Walmart fanatic since the opening of their “super stores”, you can do all your shopping in one stop and save a ton of money at the same time compare to the local supermarkets. I decided to do my student analysis on their financial statements to be able to understand how Walmart is not as heavily affected by the recent down-turn in the economy. 1. Company Description Walmart was founded in 1962 by Sam Walton in Roger, Arkansas.
In 1979, Family Dollar’s stock began trading on the New York Stock Exchange (NYSE). In the 1980s, Family Dollar’s pace of store expansion led them to become a major regional discount store chain. The pace was so dramatic during the 1980s that from the beginning of 1981 to the end of the decade, Family Dollar went from opening their 400th store to opening their 1,500th store. The 1990s yielded about the same growth as it was in the 80s as far as stores opening. At the point of 1992, they exceeded 1 billion dollars in annual sales.
Zappos Introduction Founded in 1999, Zappos.com has quickly grown, increasing from almost nothing in gross merchandise sales in 1999 to over $1 billion in 2008. This fast growth is due to their focus on providing the absolute best service and the absolute best shopping experience. The Zappos family currently staffs over 2,050 people. Their fulfillment center stocks more than 3 million shoes from over 1,136 brands, and it is complemented by a 24/7 customer service center located at the headquarters in Henderson, Nevada. Zappos offers free shipping on both orders and returns and a 365-day return policy.
Analysis of the Problem 1. Aggressive Growth: Once Krispy Kreme went public, there was enormous pressure for public companies to grow and sustain growth quarter after quarter. KKD was growing 20% year and went from 144 stores to 427 stores in 45 states and four foreign countries, from 2000-2004. Krispy Kreme focused on growing revenues and profits at the parent level, while it outlets struggled. This was evident in their business model/ revenue breakdown.
A review of Management Strategies used by Wal-Mart Stores, Inc. A review of Management Strategies used by Wal-Mart Stores, Inc. Large companies use many different management strategies to get the most out of their workers. These strategies can vary greatly from manager to manager and department to department. Many corporations spend millions of dollars each year on training for employees and managers to hone these management strategies. Each company is looking for that one method that can put them over the top. This review will look at Wal-Mart Stores, Inc. through the eyes of an individual that has 10 years of experience working in management level positions in various departments throughout the organization.
They even have matchmaker prices which means, if you find a store that has a lower price they will match it right there on the spot. How this store became a great name dates back to 1962 when Sam Walton built the first store in Roger, Arkansas. He ventured on a journey to see how retail stores operated. Today Wal-Mart has 8,500 stores in 15 countries, under 55 different names. The company operates under the Wal-Mart name in the United States, including the 50 states and Puerto Rico.
In 1980 there were 1,402 stores and 123 Sam’s clubs. Sales for Wal-Mart went from $1 billion to $26 billion. By the 21st century Wal-Mart had grown immensely to 9,230 stores and 2.1 million associates. The organization of Wal-Mart one of the largest department stores in the United States and assets worldwide which, include such as distribution sources, their inventory, the amount of stores and the millions of employees. How Wal-Mart’s managers use these resources depends on when and how the company grows and succeeds in the industry.
Final Term Project ACC 503 – Financial Reporting Table of Contents Company Overview ………………………………………………………………………………………………………………… 3 Industry Analysis …………………………….……………………………………………………………………………………… 3 Financial Analysis …………………………………………………………………………………………………………………... 4 Liquidity and Solvency Analysis ………………………………………………………………………………………………. 4 Efficiency Analysis ………………………………………………………………………………………………………………….. 6 Profitability Analysis ………………………………………………………………………………………………………………. 7 Market Value Analysis …………………………………………………………………………………………………………… 9 Recommendation …………………………………………………………………………………………………………………… 9 Appendix (Financial Statements from latest 10-k) n………………………………………………………………… 10 Bibliography ………………………………………………………………………………………………………………………….. 16 Company Overview Sam Walton, a visionary leader with goals of great value and customer service founded the first Wal-Mart in 1962 in Rogers, Arkansas. With their slogan of “saving people money so they can live better,” Wal-Mart is leading the world as the largest retailer employing over 2 million employees and is currently ranked #2 on Forbe’s Fortune 500 company list. Wal-Mart has 10,524 stores to date, broken up into three different business segments – Wal-Mart US stores (3,971 stores), Sam’s Clubs (620 stores), and Wal-Mart International (5,933 stores in 26 countries).
The Fulfillment Partner Business segment refers a 3rd party liaison between customers in search of low prices and retailers & manufacturers that are looking to liquidate. The company’s strengths includes: strong branding and excellent marketing via TV, radio, and print. The company’s weaknesses includes: 1) Poor global economic conditions have affected consumer demand for the kind of goods that Overstock.com sells. 2) Overstock.com spends large sums of money on search engine promotion since search engines such as Google have become the increasingly popular way of searching for merchandise versus an established platform such as Amazon. WalMart Inc. WalMart Inc. is the world’s largest retailer and grocery