Credit Rating: Wal-Mart Stores Inc.

Topics: Wal-Mart, Kmart, Department store Pages: 17 (647 words) Published: April 14, 2015
Company Background
Name
Logo
Industries served
Geographic areas served
Headquarters
Current CEO
Revenue
Profit
Employees

Main Competitors

Wal-Mart Stores, Inc.
Retail (Discount department
stores and warehouse stores)
Worldwide (10,942 stores in
27 countries) [1]
Bentonville, Arkansas, U.S.
C. Douglas McMillon
$485.651 billion (2015) 2%
increase over $476.294
$16.182 billion (2015) 1.7%
increase over $15.918 billion
(2014) .
2.2 million (2014)
Costco Wholesale
Corporation, Dollar General
Corporation, Dollar Tree, Inc.,
Kohl's Corporation, Macy's
Inc, Sears Holdings
Corporation, Target
Corporation. and many other
retailers/wholesale
companies.

Executive summery
Wal-Mart, America's largest company and Ohio's sixth largest employer. with revenues last fiscal year of $485.651 billion (2015) 2% increase over $476.294 billion (2014) and profits of more $16.182 billion (2015) 1.7% increase over $15.918 billion (2014) .

Wal-Mart Store’s Mission Statement:
People, Saving Money, Living a Better
Live
The Mission Statement and Purpose of
Wal-Mart (WMT)

Wal-Mart's advertised mission statement and
its advertising slogan are the same:
"We save people money so they can live
better."
In addition to this mission statement, the
company looks to its founder, Sam Walton for
a company "purpose":
“If we work together, we’ll lower the cost
of living for everyone…we’ll give the world
an opportunity to see what it’s like to save
and have a better life.”

Walmarts Finincial structure


Walmart (WMT) has a mix of debt and
equity in its capital structure. The
retailer’s (XRT) total debt, both short and
long-term, is ~$56.6 billion. Its debt works
out to 69.6% and 27.7% as a percentage of
equity and total assets, respectively



Walmart is a blue-chip company.



Its debt is rated investment-grade.



The company’s long-term debt is rated AA by
Standard & Poor’s, or S&P, and Fitch. It’s
rated Aa2 by Moody’s..



Walmart’s free cash flow yield is at 4.9%. It’s
higher than other retail companies. Costco
(COST), Target (TGT), and Kroger (KR) have
free cash flow yields of 3.3%, 3.4%, and 3.7%,
respectively. Walmart’s yield is also higher
than the industry average of 4.4%—as
represented by the S&P 500 Food & Staples
Retail Index.

Current HR Policies
Emphasizing

associates,

on Full-time and part-time

Pay

raises in April to at least $9 an
hour. By next February 1, their pay will
go to at least $10 an hour.
More

control over their schedules

Investing

more in training to give
entry-level workers
The

wage scale and other improvement
in work conditions will cost the company
about $1 billion in this fiscal year.

Marketing Strategies
Low Prices
Incredibly low prices they offer their
products for.
Advertisement

about the low prices

Easily Accessible
Thousands of stores all around the
world
Internet
24\7

store

service

Some unique, policies,
principles, rules,
processes and
procedures:
 Open

Door Policy
 Sundown Rule
 Grass Roots Process
 3 Basic Beliefs & Values
 10-Foot Rule
 Servant Leadership
 Wal-Mart Cheer

Appeal to As Many
People as Possible
Walmart offers products of all
types, from beauty products,
home cleaning products, toys,
electronics, to even groceries.
Anyone could find something
they have a use for there,
which
gives
them a much
Social
Media
broader
appeal to all
Campaigns
personality types.
Video sharing via Youtube
(Pic)
Daily posts on Facebook
(Pic)
Blogging about products(Pic)

Walmart
SWOT
Strengths Factors

WalMart
Revenue $485.651
(USD)
billion
 

Scale

of operations.

Competence

in informationLocations 10,942

Wide

range of products.

Cost

leadership strategy.



International operations.

Weaknesses


Labor related Lawsuits



High employee turnover



Little...
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