Introduction Wal-Mart Stores, Inc. (branded as Walmart) is an American public corporation that runs a chain of large, discount department stores. It is the world's largest public corporation by revenue, according to the 2008 Fortune Global 500. The company was founded by Sam Walton in 1962, incorporated on October 31, 1969, and listed on the New York Stock Exchange in 1972. Wal-Mart is the largest private employer and the largest grocery retailer in the United States. It also owns and operates the Sam's Club retail warehouses in North America.
The key features of Wal-Mart's approach to implementing the strategy put together by Sam Walton emphasizes building solid working relationships with both suppliers and employees, being aware and taking notice of the most intricate details in store layouts and merchandising techniques, capitalizing on every cost saving opportunity, and creating a high performance spirit. This strategic formula is used to provide customers access to quality goods, to make these goods available when and where customers want them, to develop a cost structure that enables competitive pricing, and to build and maintain a reputation for absolute trustworthiness.
Main reason for choosing a Wal-Mart, for this project is, Wal-Mart is more than just the world's largest retailer. It is an economic force, a cultural phenomenon and a lightning rod for controversy. However, none of these have done much more than scrape the exterior of this gigantic operation. Through savvy, and sometimes unusual, business practices, Wal-Mart associates led the company forward for thirty years. Today, four years after Sam Walton death, the company is still growing steadily. Wal-Mart executives continue to rely on many of the traditional goals and philosophies that Sam's legacy left behind, while simultaneously keeping one step ahead of the ever-changing technology and methods of today's fast-paced business environment.
Over View Wal-Mart can be well classified from following criterion. a. State of Incorporation Wal-Mart was founded in 1962, with the opening of the first Wal-Mart discount store in Rogers, Arkansas. The company incorporated as Wal-Mart Stores, Inc., on Oct. 31, 1969. The company's shares began trading on OTC markets in 1970 and were listed on the New York Stock Exchange two years later. Unit count information as of August 31, 2008
United States: 4,227 total units * Wal-Mart discount stores (914) * Supercenters (2,576) * Sam's Clubs (594) * Neighborhood Markets (143) International: 3,210 total units * Argentina (24) * Brazil (320) * Canada (309) * China (Wal-Mart 108 ; Trust-Mart 100) * Costa Rica (156) * Guatemala (149) * Honduras (48) * Japan (392) * Mexico (1,081) * Nicaragua (47) * Puerto Rico (55) * El Salvador (74) * United Kingdom (347)
b. Number of Shareholders Number of shareholders= Shareholder Equity/Share outstanding = 393,920
c. Market Capitalization Market Capitalization = Share Outstanding × Share price = 3856,827,000 × 54.96 = $ 211,971,211,920
d. Ticker Symbol. Wal-Mart is a publicly traded corporation listed on the New York Stock Exchange and uses the stock symbol WMT. e. Products and Services. Wal-Mart Stores, Inc., like most large retail and grocery chains, offers store brands, commonly referred to as house brands or generic brands, which are low-priced alternatives to name brand products. Wal-Mart has numerous store brands, each catering to a different consumer need or desire. Almost all products offered under Wal-Mart brands are private label products, and can be found in almost every category at Wal-Mart.
f. NAICS or SIC category Wal-Mart is under both NAICS and SIC category. NAICS 452990 All other General Merchandise stores and SIC 5331 Variety Stores.
g. Geographical Markets Wal-Mart have competition with departmental stores like Kmart, Target, Shopho and Meijer domestically, where as internationally it have to compete with The Real Canadian super store, Giant Tiger, Commercial Mexicana etc.
h. Customers. Wal-Mart Stores serve customers and members more than 200 million times per week at more than 8,000 retail units under 53 different banners in 15 countries. With fiscal year 2009 sales of $401 billion, Wal-Mart employs more than 2.1 million associates worldwide. Wal-Mart ranked first among retailers in Fortune Magazine’s 2009 Most Admired Companies survey. i. Financial Condition
Wal-Mart is financially successful by a number of measures, experiencing varying rates of growth in international markets. This consistence growth, matched with an economic of scales enables Wal-Mart to have superb credit ratings with the financial and lending institutions, allowing them access to large amount of borrowed funds should the need arises.
j. Management style Wal-Mart executives continue to rely on many of the traditional goals and philosophies that Sam's legacy left behind, while simultaneously keeping one step ahead of the ever-changing technology and methods of today's fast-paced business environment. The organization has faced, and is still facing, a significant amount of controversy over several different issues; however, none of these have done much more than scrape the exterior of this gigantic operation. The future also looks bright for Wal-Mart, especially if it is able to strike a comfortable balance between increasing its profits and recognizing its social and ethical responsibilities. k. key personnel
Doug McMillon, is the president and chief executive officer of Wal-Mart International, the company’s second largest operating segment. McMillon, currently president and CEO of Sam’s Club, will report to Mike Duke who was named to succeed Lee Scott as the company’s president and CEO.
Above graph is based upon S&P 500 that showing the daily closing price of Wal-Mart store from June 2009 to Nov 2009.
Summary Wal-Mart third quarter earnings per share exceeds guidance and first call consensus, as on Nov 12 on walmart.com reported diluted earnings per share from continuing operations for the third quarter of fiscal year 2010 of $0.84, exceeding the company's guidance of $0.78 to $0.82. Wal-Mart earned $0.77 per share from continuing operations in the third quarter last year.
Focused on growth, leverage and returns to drive greater shareholder value, CEO Mike Duke today provided the company's outlook for enhancing shareholder value at the company's 16th Annual Meeting for the Investment Community. He focused his remarks on executing three key priorities - continuing to have aggressive growth plans, leveraging global scale and expenses, and improving the returns of each operating segment - to further enhance shareholder value, as on October 21 in walmart.com.
As on BENTONVILLE, Ark., Sept. 10 /PRNewswire, Scott Price has been named executive vice president, president and CEO, Wal-Mart Asia. In this role, he will report directly to Doug McMillon, president and CEO, Wal-Mart International, and have responsibility for the company's current operations in Asia, including China, India and Japan as well as business development in the Asia region. As on Sep 15 to Nov 15, according to WalMart.com it has performed following social activities.
The Wal-Mart Foundation and the Wal-Mart Legal Department came together today to donate $100,000 to Legal Aid of Arkansas and the Arkansas Access to Justice Commission. The grant will help the organizations provide legal services to low-income Arkansans. The Wal-Mart Foundation and the Wal-Mart Legal Department came together today to donate $100,000 to Legal Aid of Arkansas and the Arkansas Access to Justice Commission.
The grant will help the organizations provide legal services to low-income Arkansans. In response to the growing financial need of students and aligning with the goal to support first-generation student success, the Thurgood Marshall College Fund (TMCF) is proud to partner with the Wal-Mart Foundation to establish the “Wal-Mart Foundation/TMCF First Generation Scholars Program.” Wal-Mart, Women Impacting Public Policy (WIPP), the National Women’s Business Council (NWBC) and the Center for Women’s Business Research (CfWBR), have unveiled a first-of-its-kind economic impact study detailing the total impact of women-owned small businesses in the United States.
Following is Example of investing $ 100,000 on Wal-Mart stock. Stock purchased on Sep 4, 2009 Purchase price per share= $51.02 Number of share purchased = 1900 Commission for purchased = $ 12.95 + ($ 0.015 × 900) = $ 26.45 Total Investment = $(1900×51.02) + $ 26.45 = $96964.45 Stock sold on Nov 13, 2009 Selling price per share= $51.66 Commission for sales = $ 12.95 + ($ 0.015 × 900) = $ 26.45 Net sales= $ (1900×51.66) – 26.45 = $ 98127.55 Earnings before Tax= Net sales – Total investment = $1163.1 Tax= 1163.1 × .25 = $ 290.775 Earning after Tax = 1163.1 – 290.775 = $ 872.325 Return on Investment = Net Profit / Investment = $ 872.325 / $ 96964.45 = 0.899 %
When Sam Walton opened the first Wal-Mart store in Rogers, Arkansas, no one could have ever predicted the enormous success this small-town merchant would have. Sam Walton's talent for discounts retailing not only made Wal-Mart the world's largest retailer, but also the world's number one retailer in sales. Indeed, Wal-Mart was named "Retailer of the Decade" by Discount Store News in 1989, and on several occasions has been included in Fortune's list of the "10 most admired corporations."
Even with Walton's death (after a two-year battle with bone cancer) in 1992, Wal-Mart's sales continue to grow significantly. Wal-Mart is successful not only because it makes sound strategic management decisions, but also for its innovative implementation of those strategic decisions. 1. Customer value and service;
2. Partnership with its associates; 3. Community involvement (The Story of Wal-Mart, 1995). Wal-Mart's future will depend on how well the company manages its expansion plans. For the coming years, the company will need to justify its expansion plans with consistent growth in sales, in order to offset the increases in debt interest and operating expenses.
Following Table Shows the daily stock price of Wal-Mart, from Nov 20, 2009 to May 1, 2009 Date| Open| High| Low| Close| Volume| Nov 20, 2009| 53.35| 54.87| 52.81| 54.28| 78,855,696| Nov 13, 2009| 51.66| 53.74| 51.41| 53.20| 101,310,521| Nov 6, 2009| 49.81| 51.35| 49.52| 51.25| 74,825,613| Oct 30, 2009| 50.58| 50.61| 49.62| 49.68| 79,908,320| Oct 23, 2009| 51.35| 52.00| 49.98| 50.44| 90,275,759| Oct 16, 2009| 50.03| 51.41| 49.47| 51.22| 91,514,868| Oct 9, 2009| 49.00| 50.03| 48.85| 49.97| 74,772,956|
Oct 2, 2009| 49.60| 49.70| 48.73| 49.08| 91,553,281| Sep 25, 2009| 50.03| 51.30| 49.42| 49.47| 82,114,531| Sep 18, 2009| 50.37| 50.58| 49.75| 50.11| 111,774,325| Sep 11, 2009| 51.72| 51.80| 50.62| 50.72| 68,184,641| Sep 4, 2009| 51.02| 52.10| 50.64| 51.68| 76,869,260|
Aug 28, 2009| 51.52| 52.56| 50.61| 51.13| 74,510,704| Aug 21, 2009| 51.30| 52.10| 50.95| 51.36| 74,726,516| Aug 14, 2009| 49.38| 52.25| 49.01| 51.79| 80,745,422| Aug 7, 2009| 50.22| 50.28| 48.75| 49.29| 80,807,707|
Jul 31, 2009| 49.10| 50.43| 48.53| 49.88| 74,735,548| Jul 24, 2009| 48.66| 49.53| 48.22| 48.94| 89,096,850| Jul 17, 2009| 47.60| 48.71| 47.42| 48.49| 81,521,774| Jul 10, 2009| 47.74| 48.85| 47.35| 47.57| 85,333,881| Jul 2, 2009| 48.71| 49.08| 47.76| 47.79| 72,590,319|
Jun 26, 2009| 48.10| 49.45| 48.02| 48.63| 93,353,903| Jun 19, 2009| 49.10| 49.19| 48.05| 48.17| 102,289,285| Jun 12, 2009| 50.99| 51.16| 49.21| 49.84| 90,158,371| Jun 5, 2009| 50.18| 51.75| 49.58| 51.07| 97,755,167|
May 29, 2009| 49.25| 50.82| 48.92| 49.74| 63,063,435| May 22, 2009| 48.80| 50.30| 48.67| 49.25| 80,725,480| May 15, 2009| 49.97| 51.33| 48.12| 48.15| 100,774,410| May 8, 2009| 50.21| 51.38| 49.07| 50.14| 116,741,974| May 1, 2009| 47.76| 51.10| 47.64| 50.05| 120,908,228|
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