Business Research Project Part 5 Learning Team D

Topics: Scientific method, Wal-Mart, Statistics Pages: 24 (2933 words) Published: January 25, 2015

Business Research Study of Wal-Mart’s Profitability
Francisco Arzola-Bula, LaToya James, Carla Thompson-Shealy, and Amanda White QNT/561
December 8, 2014
Professor Luis Mora

Table of Content
Problem BackgroundPage 4
Purpose of the StudyPage 4
Research Questions and HypothesesPage 4
Significance of the StudyPage 5
ConclusionPage 5
Wal-Mart Strategy ApproachPage 6
Geographic LocationPage 6
Alternative ViewpointsPage 7
ConclusionPage 7
IntroductionPage 8
Research DesignPage 8
Selection of SubjectsPage 8
InstrumentationPage 8
Methodological AssumptionsPage 9
ProceduresPage 9
Data Collection & AnalysisPage 9
ConclusionPage 10
IntroductionPage 11
InterpretationPage 12
ConclusionPage 12
IntroductionPage 13
FindingsPage 13
Recommendations/ObservationsPage 13
ConclusionPage 14

Problem Background
When first quarter results came in for Wal-Mart, the new CEO was not too happy and quickly recognized the challenges he would face as he strategized to increase sales. The results showed that profits decreased by 5% and that the future months were not looking good for the organization. Wal-Mart is the world’s largest retailer and has witnessed its fifth straight quarterly decline in U.S. sales (Finance Post News and Publication, 2013). The organization speaks on low-income American customers still struggling to make ends meet and the effect it can have on sales. Purpose of the Study

The organization has seen a steady decline in sales at particular locations and wants to determine how the geographic location of the stores correlates with the organization’s profitability. The CEO’s objective for the first quarter of 2015 is to get the organization’s profits back on track. The internal research team will complete a research study to determine if the geographic location is a factor in the consistent decrease of sales. Research Question

The research question is what is the correlation between the geographic location and profitability of the Walmart stores? Hypotheses
HO: There is no correlation between store geographic location (IV) and store profitability (DV). HA: There is a correlation between store geographic location (IV) and store profitability (DV).

Significance of the Study
This study is significant because it provides empirical evidence as to the relationship between store location and store profitability, as well as the most important location factor in that relationship. If the study’s hypotheses are shown to be true, the results can be used by similar companies to gauge their current profitability with respect to the store location. If necessary, they could implement similar improvements to increase the profit potential. In addition, this information could be used as a basis for investments as well as a way to increase the awareness of the importance of location to the Wal-Mart business worldwide. Conclusion

Over the next few weeks, the research team will gather statistical data, information from multiple sources, perform statistical calculations, and interpret the data gathered to present their findings to the CEO. CHAPTER TWO: REVIEW OF THE LITERATURE

The purpose of this research is to solve for the decline in sales and determine what the correlation is between the geographic location and the profitability of the organization. The organization can determine the value of each location that is causing the decline in sales and take the necessary measures to course correct its previous decisions (Bonanno & Goetz, 2012). Wal-Mart Strategy Approach

Wal-Mart has different strategies when deciding on new locations....

References: (2014). Walmart Locations Near Washington DC. Retrieved
Bonanno, A. & Goetz, S. (2012). Walmart and Local Economic Development: A Survey, SAGE
Journals, Vol 26
Finance Post News and Publications. (2014) Wal-Mart (NYSE:WMT) First Quarter
Profits Plunge 5%, Issues Weak Outlook
Nguyen, D. (2011). Geographic location, ownership and profitability of Washington log trucking companies. Retrieved from
PitneyBowes (n.d.) Retail Store Location Planning
Wal-Mart (2014) Retrieved from
Wheatley, M. (2013). Data-Driven Location Choices Drive Latest Starbucks Surge.
Retrieved from
Yellowpages. (2014). Richmond Walmart. Retrieved from
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