Discount Store and Walmart

Only available on StudyMode
  • Download(s) : 128
  • Published : March 26, 2013
Open Document
Text Preview
Walmart
financial analysis project
CONTENTS
INTRODUCTION4
VISION STATEMENT5
MISSION and OBJECTIVES5
COMPANY SUMMARY6
OWNERSHIP6
ORGANIZATIONAL STRUCTURE7
HISTORY OF WAL-MART8
INDUSTRY ANALYSIS9
MARKETING ANALYSIS10
MARKET SEGMENT11
MARKET SHARE13
DOMESTIC COMPETITORS14
INTERNATIONAL COMPETITORS15
CURRENT PRODUCTS16
PRODUCTS16
BCG MATRIX17
STRATEGY AND IMPLEMENTATION SUMMARY19
COMPETITIVE EDGE20
MARKETING AND SALES STRATEGY21
COST STRATEGY21
CAPITAL STRUCTURE STRATEGY21
FINANCIAL ANALYSIS22
GENERAL OVERVIEW22
OPERATING EXPENSES AND NET SALES22
OPERATING INCOME23
FREE CASH FLOW23
ACCOUNTING ASSUMPTIONS AND METHODS23
INVENTORIES23
DEPRECIATION AND AMORTIZATION24
GENERAL STRENGHTS24
ACCOUNTING ASSUMPTION AND METHODS25
EVOLUTION AND CAUSE FOR THE CHANGES26
KEY FINANCIAL RATIOS27
LIQUIDITY RATIOS28
PROFITABILITY RATIOS28
DEBT RATIOS29
OPERATING PERFORMANCE RATIOS30
ANALYSYS OF RISK31
FX AND INTEREST RISK32
SOLVENCY RISK33
COMPETITORS ANALYSIS34
SWOT ANALYSIS37
RECOMMENDATIONS38
BIBLIOGRAPHY39
INTRODUCTION
Walmart Stores, Inc. (WMT) is an American public corporation that runs a chain of large discount department stores and a chain of warehouse stores. Walmart operates more than 8,692 retail units across three business segments of retail stores worldwide that offer a wide array of general merchandise including groceries, apparel, electronics, and small appliances. In addition, the company is the world's largest retailer and grocery chain by sales and just over half of the company's sales comes from grocery items. Over 54% of the company's stores are located in the United States, with the majority of international stores located in Central and South America and China. The company focuses on offering the lowest prices across its business segments, which together earned $408 billion in revenue in 2010, a 1% increase from sales in 2009. Walmart's largest business segment is its namesake Walmart stores. Because of its mammoth size and buying power, Walmart can buy its products at rock-bottom prices, exchanging high purchase volumes for low cost while passing the savings onto its customers. Many suppliers give in to Walmart's pressure because they depend on the discount retailer for a majority of their sales. Due to Walmart's low prices, consumers gravitate to Walmart stores during economic downturns. As a result, the company's comparable store sales increased by 3.5% during the worst toughest year. However, as the global economy emerges from recession, stands to lose a lot as consumers opt to buy higher quality and more expensive items. In 2010, the company's US comparable store sales fell by 0.8%. Vision statement

“Saving people money so they can live better”- this is a vision statement of the largest retailer in the world. Walmart always tries to suggest low prices and high quality products to its customers. It has slogan “always low prices-always”. The founder of Walmart stated this vision and still the company follows it. Walmart believes that main factor in customers’ decision making is low price; it mostly determines people’s choice. In a word their vision is to provide good quality products and service for reasonable price to the customers while remaining the market leader and striving daily to be the most admired company. * “The secret of successful retailing is to give your customers what they want, and really, if you think about it from your point of view as a customer, you want everything as: * A wide assortiment of good quality merchandise; the lowest possible prices * Guaranteed satisfaction with what you buy; friendly, knowledgeable service * Convenient hours; free parking; a pleasant shopping experience” -Sam Walton (1918-1992)

Our vision is to provide good quality and services to our customers while remaining the market leader and striving daily to be the most admired company Objectives and Missions
* They don’t...
tracking img