Preview

Walmart strategic audit

Powerful Essays
Open Document
Open Document
5497 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Walmart strategic audit
Megan Campbell
BSAD 690
Walmart Strategic Audit
Abstract
Walmart is in an industry that is continuously growing and expanding. They are the industry leader; however, they still face many issues. By offering a wide variety of products at very low prices they are able to sustain a competitive advantage. The firm faces pressure from customers and the government for ethical concerns and issues with the law. Walmart should continue to expand in the global market while strictly enforcing ethical issues. They must also take into account the changing customer preferences, such as individuals eating more organic foods.
I. Current Situation
A. Current Performance
According to Walmart’s financial statements, the company had an increase in income of approximately $1,399,000. They had reported revenue of $466,114,000, which is an increase of $2,260,000 since 2012. Walmart reported earnings per share of $5.04, which increased from $4.54 last year. Earnings from continuing operations have also increased from $24,398,000 to $25,737,000. Walmart’s fourth quarter was the most profitable for them as holiday sales boosted. International sales also increased overall from 2012. Walmart’s CEO stated, “We continue to monitor economic conditions that can impact our sales, such as rising fuel prices, changes in inflation and the payroll tax increase." The company has showed strong profitability for 2013 as well. Return on sales Gross profit margin: 24.38% Net profit margin: 5.96% Return on investment Return on equity: 26.23% Return on assets: 9.0%
Gross profit margin assess a firm 's financial health by revealing the proportion of money left over from revenues after accounting for the cost of goods sold. This is the percentage of revenues available to cover operations and other costs. Net profit margin is how much after tax profit Walmart makes for every $1 it generates in sales. The return on equity of Walmart is the amount of net



References: Barboza, D. In Chinese Factories, Lost Fingers and Low Pay . The New York Times. Retrieved October 29, 2013, from http://www.nytimes.com/2008/01/05/business/worldbusiness/05sweatshop.html Goudreau, J. Walmart Faces The Largest Sex Discrimination Lawsuit In U.S. History. Forbes. Retrieved October 30, 2013, from http://blogs.forbes.com/work-in-progress/2010/04/27/wal-mart-faces-the-largest-sex-discrimination-lawsuit-in-u-s-history/ http://www.usanfranonline.com/wal-mart-successful-supply-chain-management/ "Information Systems - Useful Cases." Information Systems - Useful Cases. Prentice Hall, n.d. Web. 29 Oct. 2013. N. Wal-Mart, Hanes & Other U.S. & European Companies . Labor and Worklife. Retrieved October 28, 2013, from http://www.law.harvard.edu/programs/lwp/NLC_childlabor.html "Walmart Corporate - We save People Money so They Can Live Better." Walmart Corporate. Walmart Corporate, n.d. Web. 29 Oct. 2013. "Walmart Stores, Inc." Mergent Online. N.p., n.d. Web. 28 Oct. 2013. . Walmart 's Financial Report. walmart. Retrieved October 28, 2013, from http://cdn.walmartstores.com/sites/AnnualReport/2010/PDF/01_WMT%202010_Financials.pdf

You May Also Find These Documents Helpful

  • Good Essays

    Labouring the Walmart Way

    • 326 Words
    • 2 Pages

    2 One of the most frequent complaints about Walmart, which employs 1.4 million people worldwide, is its failure to pay workers a living wage. Store employees are paid 20-30 percent less than the industry average, making many of them eligible for social assistance. It is estimated that American taxpayers fork out $2.5 billion a year in welfare payments to Walmart employees (Head, 2004). Because the retailer hires hard-to-place workers, like recent immigrants, seniors, and single mothers, its employees are often afraid they will not find work elsewhere. The kind of work Walmart does offer is gruelling: stores are intentionally understaffed-the strategy behind the company's legendary productivity gains-so that existing employees will work harder (Head, 2004). It is alleged that systemic discrimination against women within the corporation has denied the majority of Walmart workers the chance at promotion, a charge that is now the subject of the largest civil-rights suit in U.S.…

    • 326 Words
    • 2 Pages
    Good Essays
  • Good Essays

    Walmart Impact On Society

    • 1218 Words
    • 5 Pages

    As the largest retailer in America, Walmart has been called “one of the most impactful organizations in the history of humanity” (Roberts 1); however, we must ask ourselves what type of impact Walmart is making. Because they are such a large corporation, Walmart has the power and ability to greatly influence our society either for the good or for the bad, and most people agree that their impression on our current society is a negative one. There is lots of controversy over the ethical and economic repercussions our country faces because of Walmart. It is evident to most people that Walmart negatively impacts communities, treats employees unfairly, and facilitates child labor in American and abroad.…

    • 1218 Words
    • 5 Pages
    Good Essays
  • Good Essays

    In “Up Against Wal-Mart” by Karen Olsson, she finds the truth about how Wal-Mart treats its customers and more importantly how the million dollar company treats its employees. In this essay, Olsson strongly believes that Wal-Mart keeps its stores understaffed and their employees overworked and underpaid, with minimal options for reasonable benefits.…

    • 603 Words
    • 3 Pages
    Good Essays
  • Good Essays

    Low Wage Work in America

    • 1031 Words
    • 5 Pages

    As well known to all Americans Wal-Mart pays low wages. They often hire people for 30 hours a week rather than 40 hours a week and provide minimal health care benefits. For the past few years, issues concerning the company have become important as well and have begun dominating the news. In particular, Wal-Mart treatment of its employees has raised many issues in public and business discussions. Wal-Mart refers to its employees as associates a term intended to bestow a more lofty status than the term employees. Many different employee-related issues with respect to Wal-Mart have been the focus of much news coverage, the company has been accused of hiring too man part-time workers; offering jobs that are actually dead-end jobs; paying low wages and poor benefits; forcing workers to work off the clock, that is to work overtime without overtime pay; and taking advantage of illegal immigrants. There are also issues with regards to gender discrimination against women, who occupy most jobs at the company. Coupled with these allegations of employee mistreatment, the company which currently is not unionised has fought unions and unionization everywhere it locates.…

    • 1031 Words
    • 5 Pages
    Good Essays
  • Powerful Essays

    Wal-Mart Code of Ethics

    • 10506 Words
    • 43 Pages

    Dear friends, Walmart started out with a single discount store in Northwest Arkansas and in less than 50 years grew to become the world’s largest retailer, with thousands of stores and clubs and millions of associates. Our culture of ethics and integrity has been a constant throughout that transformation. From the beginning, it has defined who we are as a company, and how we as associates treat each other, our suppliers and our customers. The values that set us apart from others -- respect for the individual, service to our customers and…

    • 10506 Words
    • 43 Pages
    Powerful Essays
  • Good Essays

    WalMart: Friend or Foe?

    • 1209 Words
    • 5 Pages

    Wal-Mart has branded stores in all 50 states and in over 27 countries. Wal-Mart started with humble roots in 1962 by Sam Walton in the small town of Bentonville, Arkansas. Within thirty years, the small local discount retailer grew to one of the largest retail companies in the United States of America. Now it stands as the largest retailer in the world. As the largest retailer, Wal-Mart has gained many detractors. In "The Case for Wal-Mart," Karen De Coster and Brad Edmonds recognize how people “like to attack bigness” (632). Many believe Wal-Mart offers low wage jobs with few employee benefits, discriminates against women, and among many other issues, doesn’t give back to the community (631). In contrast to the constant barrage negative attacks, Wal-Mart proves beneficial to the community. Wal-Mart prides itself on being an equal opportunity employer to such a degree it has the most diverse group of employees anyone can imagine. Most Wal-Mart stores are the anchor that provides a steady stream of consumers to other much small businesses in the area. Beyond providing quality jobs for the people in and around the store, Wal-Mart brings convenience, lower prices, and provides help to those in need.…

    • 1209 Words
    • 5 Pages
    Good Essays
  • Powerful Essays

    Wal-Mart Health Care Dilemma

    • 3563 Words
    • 15 Pages

    There have been some concerns about Wal-Mart’s treatment of its employees, suppliers, the environment, and the overall economic impact on communities. Wal-Mart has been criticized by some community groups, women’s rights groups, grassroots organizations, and labor unions, specifically for its extensive foreign product sourcing, low wages, low rates of employee health insurance enrollment, resistance to union representation, sexism, and management efforts to pressure employees to vote for specific parties during national elections. Wal-Mart, one of the world’s largest retailers, has the reputation of paying its employees poorly, along with providing inadequate and unaffordable healthcare plans. The Bentonville, Arkansas based retailer is the largest private employer, yet the employees are not treated as the number one priority.…

    • 3563 Words
    • 15 Pages
    Powerful Essays
  • Better Essays

    Duke, M., Schoewe, T. (2009). Wal-Mart. Wal-Mart 2009 Annual Report. Retrieved on August 23, 2009 from online resource: http://classroom.phoenix.edu/afm212/secure/view-attachment.jspa?ID=10222696&messageID=50765946&name=FIN%20370%202009%20Annual%20Report.pdf&view=inline…

    • 2059 Words
    • 9 Pages
    Better Essays
  • Better Essays

    Walmart is the largest retailer in the universe and has the most jobs in the private sector currently. They presently have more than 2.2 million people employed worldwide. With a large amount of money, stores, and influence, they have been part of thousands of legal issues. Over the past 10 years, Walmart has put out of business a number of individuals by having the same products at a lower price. They have not only shut down a number of businesses due to the undercutting of competitor prices but they also made a great deal of people lose higher paying jobs during their expansion to pay their employees very low wages with marginal benefits (Logan 2014). Walmart has seen a great deal of external social pressures however we will focus on the external social pressures they have encountered due to their direct effect on the economy. Since Walmart is a big factor in regards to the economy a number of people look to them for assistance in acquiring a job. Nonetheless, Walmart has impacted the economy by not offering well-paying jobs to employees and having very…

    • 977 Words
    • 4 Pages
    Better Essays
  • Better Essays

    Ethical Perspectives

    • 1302 Words
    • 6 Pages

    Pun, N., & Yu, X. (2002). When Wal-Mart and Chinese dormitory labour regime meet: a study of 3 toy factories in China. China Journal of Social Work, 1(2), 39.…

    • 1302 Words
    • 6 Pages
    Better Essays
  • Better Essays

    Wal-Mart is the world’s largest retailer. They are the leading private employer with over 2 million employees. Currently, there are 8,500 stores, across 15 countries. Wal-Mart has a massive economic impact in the U.S and other countries of operation. I will argue that Wal-Mart’s disregard for moral business practices through the lack of their social responsibility has had a negative consequence. Their only interest seems to be in making a significant profit at the cost of sacrificing good ethical moral business practices. I will provide evidence for this belief by showing how “everyday low-prices” are effecting employees, customers, taxpayers, and other countries. I will show the reason for the need for change in their business. Wal-Mart has a powerful impact on the countries that they operate in.…

    • 2491 Words
    • 10 Pages
    Better Essays
  • Good Essays

    Harley-Davidson, Inc. (Harley-Davidson) is one of the leading manufacturers of heavyweight motorcycles in the world. Harley-Davidson is the parent company of the group of companies including Harley-Davidson Motor Company (HDMC) and Harley-Davidson Financial Services (HDFS). The company offers more than 30 models of touring and custom Harleys through a worldwide network of more than 1,600…

    • 1002 Words
    • 5 Pages
    Good Essays
  • Powerful Essays

    Walmart is sued approximately every two hours and is currently involved in litigation consisting of 1.6 million employees in the largest discrimination class action law suit with the potential cost to walmart over $11 billion.…

    • 3137 Words
    • 13 Pages
    Powerful Essays
  • Good Essays

    Walmart is an U.S. multinational retail corporation that operates discount outlets, supercenters, and warehouse clubs. Walmart has been long known for women’s discrimination, however, in 2011, a class action lawsuit, Walmart Stores, Inc. v. Dukes, exposed its company-wide discriminatory practices and policies. Although the Supreme Court ruled in favor of Walmart, Walmart still invested heavily on improving its image with women then showcased these improvements in its annual report to counter the bad publicity and appeal to its female investors. In its annual report, Walmart uses pictures of mother and child to show understanding of motherhood, uses pictures and texts of women in its new Global Women’s Economic Empowerment Initiative program to show its involvement in empowering women, and uses pictures and texts of female employees to projecting an image of a female-friendly workplace.…

    • 870 Words
    • 4 Pages
    Good Essays
  • Powerful Essays

    Since its establishment in 1962, Wal-Mart has grown to be one of the biggest conglomerates in the world. Inevitably, with the expansion of the company, the weight and number of social and ethical issues facing the company has increased.…

    • 2735 Words
    • 11 Pages
    Powerful Essays

Related Topics