Business Analysis
Business Analysis Part II
Rafael Troncoso
MGT/521
February 14, 2012
Dr. Armando Salas-Amaro
Business Analysis Part II
This business analysis will compare the financial strength and wellness of Wal-Mart, Target, and Sears. The income statements, balance sheets, and cash flow reports for Wal-Mart, Target, and Sears have been researched to complete this analysis. The analysis will cover the period from 2008 to 2011. Some reports were unavailable because the final quarter of the year for Target ended January 31, 2012.
Wal-Mart, Target, and Sears have long been icons in the retail industry. These stores have outlasted other stores such as Burdines’s, Mervyns’, and Zayer’s. Granted Sears has been around more than 100 hundred years, but one does not have longevity without knowledge to operate a successful business. Some lessons were learned after the completion of this analysis.
One lesson learned from this analysis was that the Wal-Mart (2012) website shows that Wal-Mart out sells and out pays Target by almost seven to one. Sears Holdings Company was chosen for this analysis because of the turmoil going on with the Kmart stores going through bankruptcy. After reviewing the financial statements of Wal-Mart, Target, and Sears another lesson was learned. The lesson learned is that a company under capable direction and management can be successful beyond belief. For example, Kmart has been around since 1899 (Sears Holdings Corp, 2012) and Wal-Mart was launched in 1962 (Frank, 2011). Kmart has been around 63 years before Wal-Mart was established and Kmart is closing stores and terminating employment of their staff. Even though Kmart went through a chapter 11 bankruptcy, The Company still managed to emerge from the Chapter 11 reorganization process 15 months after they filed for Chapter 11 in the United States Bankruptcy Court for the Northern District of Illinois on January 22, 2002 (Sears Holdings Corp, 2012). While Wal-Mart continues to open new stores all
Rafael Troncoso
MGT/521
February 14, 2012
Dr. Armando Salas-Amaro
Business Analysis Part II
This business analysis will compare the financial strength and wellness of Wal-Mart, Target, and Sears. The income statements, balance sheets, and cash flow reports for Wal-Mart, Target, and Sears have been researched to complete this analysis. The analysis will cover the period from 2008 to 2011. Some reports were unavailable because the final quarter of the year for Target ended January 31, 2012.
Wal-Mart, Target, and Sears have long been icons in the retail industry. These stores have outlasted other stores such as Burdines’s, Mervyns’, and Zayer’s. Granted Sears has been around more than 100 hundred years, but one does not have longevity without knowledge to operate a successful business. Some lessons were learned after the completion of this analysis.
One lesson learned from this analysis was that the Wal-Mart (2012) website shows that Wal-Mart out sells and out pays Target by almost seven to one. Sears Holdings Company was chosen for this analysis because of the turmoil going on with the Kmart stores going through bankruptcy. After reviewing the financial statements of Wal-Mart, Target, and Sears another lesson was learned. The lesson learned is that a company under capable direction and management can be successful beyond belief. For example, Kmart has been around since 1899 (Sears Holdings Corp, 2012) and Wal-Mart was launched in 1962 (Frank, 2011). Kmart has been around 63 years before Wal-Mart was established and Kmart is closing stores and terminating employment of their staff. Even though Kmart went through a chapter 11 bankruptcy, The Company still managed to emerge from the Chapter 11 reorganization process 15 months after they filed for Chapter 11 in the United States Bankruptcy Court for the Northern District of Illinois on January 22, 2002 (Sears Holdings Corp, 2012). While Wal-Mart continues to open new stores all
References: Frank, T.A. (2011). ReclaimDemocracy.org. Retrieved from http://reclaimdemocracy.org/walmart/2006/history.php Sears Holdings Corp. (2012). A RETAILING LEGEND IS BORN. Retrieved from http://www.kmartcorp.com/about/kmart/history.htm Sears Holdings Corp. (2012). Corporate History. Retrieved from http://www.kmartcorp.com/about/kmart/history.htm Target Brands inc. (2012). A Differentiated Approach. Retrieved from http://sites.target.com/site/en/company/page.jsp?contentId=WCMP04-031761 Wal-mart. (2012). 2011 Financial Review. Retrieved from http://walmartstores.com/sites/annualreport/2011/financials.aspx