Wal-mart is the biggest chain of retailer and consumer, which provides a large number of quality products under one roof. These include grocery clothing, pharmacy, toys, hardware and various CDs, DVD Musical instruments, consumer electronics, books etc. etc. Moreover, every Wal-Mart possesses McDonalds where people can eat and have a break while shopping. It also contains a photo shop so people can do shopping while their photos get ready. Wal-Mart is basically an innovative creation of Sam Walton who opened the first Wal-Mart store during 1962. It is publicly traded under the New York stock exchange and recognize by the symbol WMT. The secret of the international economic aspect of Wal-Mart is hidden in the number of shareholders associated to it, which are from many economically developed countries of the globe. These shareholders till the end of this year are estimated to be around 333,604 as a common stock of Wal-Mart. So Wal-Mart basically works in economic collaboration with other states where consumers get a large range of discounted products that include mostly stocks and a small percentage of premium products. Another interesting aspect of Wal-Mart is the SAM’S Club, which requires a membership and provides products on further discounts. This is basically a warehouse club owned by Wal-Mart. Moreover, it also operates via various super-centers that include a variety of grocery markets. Not only a large variety of products under one roof with discounted price is the source of attraction of Wal-Mart but also its customer services attract the people. There customer service also includes exchange of their products even if a customer comes back after a month. The key to any successful business is meeting the demand of the very customers, maintaining the quality of products and a reasonable prize along other satisfactory demands of the valuable customers. All these together are a part of Wal-Mart. At the same time the new concept introduced by Wal-Mart, which is getting all kinds of consumer products under one roof is what attracts the customers the most. Therefore, Wal-Mart is at the same time most potential economic source of American economy as well as international economy but on the other hand, it is a threatening source for the small town businesses. The basic reason seems to be the quality products with economic prices and variety of products all together under one roof. So people when go for shopping they do not have to switch markets and shopping centers for different stuff.
The vision of Wal-mart is “To become the worldwide leader in retailing” and their mission is "To give ordinary folk the chance to buy the same thing as rich people."
Current status of the company
Currently Wal-mart has 1,900,000 employees
Employees growth 5.6%
Key numbers for fiscal year ending January, 2007:
One year growth: 10.5%
Net income: $11,284.0M
Income growth: 0.5%
$ millions% change from 2004
They get a hand on every thing just under one single roof. At the same time, these small town businesses do not have much capital and resources to mobilize and are no more a source of attraction for the local consumers. However, the interest rates that the American federal government has arose, is leaving immense repercussions to the small town business. When these rates go up, the small town business economies have to suffer a lot. (Small Biz Advisor - News and Views, Nov. 2004)
The current operating and financial position of Wal-Mart
Every year a report is calculated based on the percentage of sales and purchase per month in Wal-Mart stores. However, reports show that every year the company increases it sale from 9 % to 18 %. At the same time the income from the club segments also increases every year along the expansion activities of the company. On the other hand with the domestic...