...processes that wal-mart uses to comply with SEC regulations-Kunika. The Securities and Exchange Commission (SEC) will not allow Wal-Mart to exclude from consideration an NLPC-sponsored shareholder proposal asking for a report on the company’s lobbying priorities. The subject matter of meetings, conversations, discussions or other communications with Investment Community Members will be limited to explanations or clarifications of publicly available information concerning Wal-Mart, will not discriminate among recipients of information disclosed by Wal-Mart or its representatives based on a recipient’s prior research, opinions, recommendations, earnings estimates or conclusions relating to Wal-Mart. In addition, Wal-Mart will not restrict, deny or threaten to deny information or access to Wal-Mart representatives in an attempt to influence the research, recommendations or actions of any Investment Community Members. Wal-Mart will not review and provide comments on any securities analyst’s or research organization’s report on Wal-Mart or any other company before the report or rating analysis is published. Wal-Mart may review and provide comments (written or oral) to factual information that Investment Community Members provide Wal-Mart to confirm for factual accuracy of information regarding Wal-Mart. They will not hire or otherwise engage any securities analyst or research organization to produce any public research reports concerning Wal-Mart or compensate any Investment Community...
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...I. The Theme Wal-Mart was built to save people money so they can live better. Hints to their slogan: “Save Money. Live Better.” Their mission has allowed the company to grow around the world. The culture and the values of their employees help strive for success of Wal-Mart while serving over 200 million customers and members each week(Wal-Mart Annual). We strongly believe that Wal-Mart is the best- positioned global retailer and that they will continue to progress. Cost leadership is the corner stone of how Wal-Mart goes to market. Doing our analysis of Wal-Mart Stores, Inc., we gathered our information and different figures from the Hoover’s online through the Willis library’s website, Reuters.com, and Morningstar.com databases which gave us insight to several financial aspects of the firm, including its stock, cash flows, risk, dividends, sales, earnings, debt, and overall performance. II. Business Analysis Profile of the company “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.” Wal-Mart founder, Sam Walton, summarized his vision back in 1962 for a new type of discount store that consumers would appreciate. As an owner of a much smaller discount store Walton had the experience, did the research, and then put up 95 percent of the startup costs for his new company in which he and his wife truly believed in. The first store opened in Rogers, Arkansas and was...
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...organization strengths, weakness, mission, and vision can assist management to formulate a strategic plan to gain control that may have potentially significant affect. Successful organizations like The Home Depot and Wal-Mart are dependent upon the ability of leaders and employees to adapt to the rapidly transforming external environment (Wheeler & Hunter, 2010). The Home Depot is the world's largest home improvement specialty retailer with more than 2,200 stores in the United States, Puerto Rico, U.S. Virgin Islands, Guam, Canada, Mexico, and China (Annual Report, 2011, p. 7). The retailer sells approximately 40,000 products to consumers and its 321,000 associates are the key to the organization success who deeply believe in the values the organization. Instead of a mission statement, Home Depot has eight corporate values designed to guide the actions of all its employees. According to Home Depot, the corporate values are: “Taking care of our people, giving back to our communities, doing the right thing, excellent customer service, creating shareholders value, building strong relationships, entrepreneurial spirit, and respect for all people.” Home Depot long-term objectives are to maintain constant growth expansion, increase store modernization, increase investment in technology, and sustain control through the organization’s vertical growth strategy (Home Depot, 2011). The organization has taken the initiative in building relationships with do-it-yourself...
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...Ethics and Compliance This paper will access analyze data from Wal-Mart’s annual financial reports as well as Security and Exchange (SEC) filings for the past two years. This analysis will be used to evaluate the organization’s financial performance during the past two years using financial ratios. An assessment of the role of ethics, compliance and procedures currently in place to ensure organizational ethical behavior will also be addressed. An explanation of how financial markets operate within the United States will be discussed along with processes adopted by Wal-Mart which ensure SEC compliance. Role of Ethics and Compliance in Wal-Mart’s Financial Environment As the world’s largest retailer, Wal-Mart has openly accepted a global responsibility of captivating ethical sourcing far beyond that of workplace compliance. As of today, the company possesses more than 10,700 business locations spread across 27 separate countries. Coupled initiatives such as diversity and inclusion, hunger and nutrition, women’s economic empowerment, environmental sustainability, and ethical standards and resources are directly aligned with the company’s “Every Day Low Cost” approach (Wal-Mart, 2012). This organization’s ethics and compliance roles have enabled the organization to reach far beyond store barriers proceeding to global financial wealth. Additionally ethical compliance protects the company from potential financial loss, corporate crimes, negative imaging, and forfeiture of comparative...
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...every day practices. This paper will evaluate the role that ethics and compliance plays in Wal-Mart’s financial environment, explain Wal-Mart’s procedures to follow ethical behavior. It will also identify the processes that uphold SEC regulations as well as evaluate and calculate the company’s financial performance for the last two years discussing how that describes Wal-Mart’s financial health. Wal-Mart’s Ethics and Compliance in its Financial Environment Ethics and compliance plays an essential role in ensuring Wal-Mart’s continued success. Wal-Mart delineates expectations clearly and in an open manner on its company website. All employees adhere to the Wal-Mart’s statement of ethics. According to Wal-Mart Stores (2008), “All financial books, records, and accounts must accurately reflect financial transactions and events. They must conform to generally accepted accounting principles, and to Wal-Mart’s system of internal controls. No Wal-Mart document or record may be falsified for any reason” (Financial Integrity, para. 1). By outlining responsibilities and going above what the law requires in terms of financial disclosures and records, Wal-Mart distinguishes itself from competitors. Companies, such as Wal-Mart, provide a sense of clearness and a high level of ethics by encouraging behavior that upholds the law. Procedures in place to ensure ethical behavior Wal-Mart incorporates several procedures to protect customers by enforcing a privacy policy that explains...
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...WMT Group 2 Report Date | S & P Value | Last Price | Intrinsic Value | Economic Moat | Recommendation | 11/29/2010 | 1,187.76 | $53.85 | 60.93 | Wide | Hold | I. The Theme Wal-Mart was built to save people money so they can live better. Hints to their slogan: “Save Money. Live Better.” Their mission has allowed the company to grow around the world. The culture and the values of their employees help strive for success of Wal-Mart while serving over 200 million customers and members each week(Wal-Mart Annual). We strongly believe that Wal-Mart is the best- positioned global retailer and that they will continue to progress. Cost leadership is the corner stone of how Wal-Mart goes to market. Doing our analysis of Wal-Mart Stores, Inc., we gathered our information and different figures from the Hoover’s online through the Willis library’s website, Reuters.com, and Morningstar.com databases which gave us insight to several financial aspects of the firm, including its stock, cash flows, risk, dividends, sales, earnings, debt, and overall performance. II. Business Analysis Profile of the company “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.” Wal-Mart founder, Sam Walton, summarized his vision back in 1962 for a new type of discount store that consumers would appreciate. As an owner of a much smaller discount store Walton had the experience...
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...such as managers, lenders, businesses, firms, investors, and borrowers allocate money over a specified period. This paper lists the definitions and roles of financial and accounting terms provided in the course design. The terminology that follows explains and interprets the concepts and elements relevant to the first week’s objectives and topics in Finance 370. Emphasis is placed on types of securities, markets, finance, equity, liability, ratios, and assets. Finance is the study of how people and businesses evaluate investments and raise capital to fund them. The key role of finance is the management of cash flow in deciding on investments, how to fund them, how to allocate money for day-to-day operations over time, and the interpretation of financial concepts, which is the central focus of finance. Efficient Market is a market price unbiased of the investments true mean value. The fact that the mean true value will deviate from the true mean randomly infers that there is an equal likelihood that prices may be over or under valued at different points in time. Because price is associated with the principle that market price reflects information, investors could drop, trade, or sell shares stocks, for example with Nike when any perceived risk from information that is available...
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...2011 The Business Mission and Vision of the Wal-Mart Company Q 1 A) Find and list the names of the Board of Directors for the Wal-Mart Company. Members of the Board of Directors of the Wal-Mart are: Aida M. Alvarez (joined Wal-Mart in 2006) - a director for UnionBanCal Corporation; James W. Breyer (joined Wal-Mart in 2001) - a director of RealNetworks, Inc., Marvel Entertainment, Inc., and several private companies; M. Michele Burns (joined Wal-Mart in 2003) – a director for Cisco Systems, Inc. James I. Cash, Jr. (joined Wal-Mart in 2006) - a director of The Chubb Corporation, General Electric Company and other private companies, and former director of Microsoft Corporation. Roger C. Corbett (joined Wal-Mart in 2006) - a director of The Reserve Bank of Australia, Fairfax Media Limited, and Chairman of the board of directors ALH Group Pty Limited. Douglas N. Daft (joined Wal-Mart in 2005) - a director of The McGraw-Hill Companies, Inc. Michael T. Duke (joined Wal-Mart in 2008) - Chairman of the Global Compensation Committee Marissa A. Mayer (joined Wal-Mart in 2012) - Vice President of Local and Maps for Google Inc. Gregory B. Penner (joined Wal-Mart in 2008) - Former general partner at Peninsula Capital, an early stage venture capital fund Steven S Reinemund (joined Wal-Mart in 2010) - A director of Exxon Mobil Corporation, American Express Company, and Marriott International, Inc. H. Lee Scott, Jr. (joined Wal-Mart in 2009) - Member of the Strategic Planning and...
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...and Capabilities of Wal-Mart Wal-Mart had enough financial resources to make capital investments to improve its operations and labor productivity. Most important investments were technological investments such as the UPC (Uniform Product Code) infrastructure, the computerized system within stores and the satellite network that enabled almost real-time communication among the stores, the distribution centers and vendors. These technological resources can also be classified as equipment related resources. As a result of these resources, Wal-Mart had strengthened capabilities in financial management, purchasing, administration, inventory management, labor productivity and store management. The computerized system within the stores enabled Wal-Mart to wire the merchandise requests of the stores directly to the central computer at the related headquarter, which functioned as a distribution center. In case the stock levels were lower than the critical levels, the merchandise could be reordered directly from the related vendors thanks to this computerized system. This system not only enabled to track inventory, sales and accounting functions but also strengthened the bargaining power in purchasing of Wal-Mart. Each vendor could supply no more than 2.8% of total purchase of Wal-Mart. With the $20 million worth of satellite network investment, Wal-Mart could ease the real-time communication among the stores, the distribution centers and vendors. This investment also enabled to save...
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...International Business Strategy | Wal-Mart Case Study | | Aneesha Radia | | 09466782 | 1/28/2013 | | Contents 1. How attractive was the discount retailing industry in the USA when Wal-Mart first began operations in the 1950s? 3 THE THREAT OF ENTRY 3 THE DEGREE OF RIVALRY 3 THE THREAT OF SUBSTITUES 3 BARGAINING POWER OF BUYERS 4 SUPPLIER POWER 4 2. With reference to the key components of its Business Model, describe the sources of Wal-Mart’s competitive advantage in the USA 4 FIRM INFASTRUCTURE 4 HUMAN RESOURCES 5 INFORMATION TECHNOLOGY 5 PROCUREMENT 5 INBOUND LOGISTICS 5 OPERATIONS 5 MARKETING AND SALES 6 3. How sustainable is Wal-Mart’s competitive advantage in discount retailing in the USA? 6 IMITATION 6 SUSTITUTION 6 SLACK 7 HOLD-UP 7 4. With reference to Dunning’s Eclectic Paradigm of foreign direct Investment (FDI), compare and contrast Wal-Mart’s entry into the German market in 1997 with it’s subsequent entry into the UK market in 1999. Why was Wal-Mart unsuccessful in Germany, withdrawing in 2006, and relatively successful in the UK? 7 FIRM SPECIFIC ADVANTAGES 7 LOCATION SPECIFIC ADVANTAGES 8 INTERNALIZATION 9 APPENDICIES 10 APPENDIX 1 10 SOURCE: GOOGLE IMAGES 10 APPENDIX 2 10 SOURCE: GOOGLE IMAGES 10 APPENDIX 3 11 SOURCE: GOOGLE IMAGES APPENDIX 4 11 SOURCE: GOOGLE IMAGES 11 REFERENCES 12 1. How attractive was the discount retailing industry in the USA when Wal-Mart first began operations in...
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...Wal-Mart: To Gain or Lose Geneva Moore MGT/521 October 28, 2012 Professor Phillip Norris Wal-Mart: To Gain or Lose I, as a Mutual Fund Manager, have decided to evaluate whether to invest in Wal-Mart. A SWOT analysis should prove helpful in identifying if it is feasible to take the investment risk with Wal-Mart. Several companies would be good investments but Wal-Mart has been a strong pillar in many communities for years therefore being the most logical choice. This paper will extend some background for the company and attempt to show the likelihood of profit by investing in Wal-Mart. Wal-Mart has been in business since 1962 in Rogers Arkansas. By 1967 Sam Walton, visionary of Wal-Mart, had 24 stores operating with millions of dollars in sales. ”Before the 1970’s Wal-Mart became incorporated and after the 1970’s Wal-Mart began to take the world by storm expanding globally” (http://corporate.walmart.com). In the 1970’s, “Wal-Mart became a publicly traded company and the first stock sold at sixteen dollars and fifty cents per share” (http://corporate.walmart.com). In 1972, ‘Wal-Mart was listed on the New York stock exchange” (http://corporate.walmart.com). “Wal-Mart’s first distribution and home office opened in Bentonville, Arkansas in 1971” (http://corporate.walmart.com). After the 1970’s, Wal-Mart started to make a rapid sprint towards becoming a leader in its industry. Such steps as “reaching one billion in annual sales in 1980, replacing cash registers with...
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...Wal-Mart Business Analysis Part 2 This paper compares Wal-Mart’s financial health to its competitors such as Target and K-Mart, which are also designed in retail multi-shopping department stores. Further review will detail how Wal-Mart’s rates in comparison of profitability through its income statement, balance sheet, and cash flow in relationship to Target and K-Mart. Upon examination, this information will illustrate the future perspective success of Wal-Mart and determine areas of improvement such as sales, operating income, return on investments, liabilities, and cash flow. Further information will identify the processes that Wal-Mart has designated to comply with the Security Exchange Commission (SEC) regulations. Detailed evaluations will specify Wal-Mart’s financial performance and the principal tools of benchmarking analyses that differentiates Wal-Mart’s position in best practices, operational processes and procedures in the domestic and global markets as well as the technology advantages in relationship to Target and K-Mart (University of Phoenix, 2011). Financial Statements Wal-Mart implemented a new financial system, which reflects the retail method of accounting for inventory. This procedure affects the operating income and the consolidated net income for all comparable periods. Wal-Mart reclassified expense and revenue items within these statements of income for the purpose of reporting. However, the reclassifications did not affect consolidated operating income...
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...Bharti, Wal-Mart end joint venture Bharti Enterprises and Wal-Mart Stores have finally downed the shutters on one of the most ambitious joint ventures in the country. TNN | Oct 10, 2013, 05.26AM IST NEW DELHI: Bharti Enterprises and Wal-Mart Stores have finally downed the shutters on one of the most ambitious joint ventures in the country. The two companies announced that they are breaking off their seven-year-old alliance to pursue their retail dreams independently. The two had a 50:50 partnership to run the wholesale cash-and-carry business that sells to hotels, canteens and kirana stores. Besides, they collaborated on real estate consulting work through Cedar Support Services to identify store locations. Bharti separately ran a multi-brand retail chain, named Easy Day, that now has over 200 stores. Wal-Mart blamed the government's foreign investment regimefor the change in strategy. "Bharti and Wal-Mart's mutual decision to independently own and operate separate business formats in India is based on external and internal factors, including the new FDI policy. Under the requirements contained in the new FDI policy Wal-Mart could not invest in multi-brand retail through the existing Bharti retail business," a spokesperson said in response to a TOI questionnaire. Government officials said that the retailer was not comfortable with the requirement of sourcing 30% of the goods from domestic companies. Besides, it had thought of using its wholesale business network while...
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...Analyzing Wal-Mart's annual report provides a positive outlook on Wal-Mart's financial health. Given the specific ratios and its comparison to other companies in the same industry, Wal-Mart is dominating the retail industry. Wal-Mart Stores, Inc. operates retail stores in various formats around the world and is committed quality merchandise and saving people money with everyday low prices (EDLP) for better living. EDLP is a pricing philosophy under which Wal-Mart price items at a low price every day so that their customers trust that prices will not change under frequent promotional activity (Wal-mart 2010 financial review, 2010). Wal-Mart also encourages a culture that rewards and embraces mutual respect, integrity and diversity. The review of the current ratio, quick ratio, inventory turnover ratio, debt ratio, net profit margin ratio, ROI, ROE, and P/E ratio all indicate an upbeat future for the company. The current ratio, which is defined as current assets divided by current liabilities, is a measure of how much liabilities a company has compared to its assets (Ross, Westerfield, & Jordan, 2008). Wal-Mart in the year of 2009 had a current ratio of .90, and as of January 2010 it had a current ratio of .87 (Wal-mart 2010 financial review, 2010). The quick ratio, which is defined as current assets minus inventory divided by current liabilities, is a measure of a company's ability pay short term obligations (Ross, Westerfield, & Jordan, 2008). Wal-Mart in the year of...
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...retailing: the case of Wal-Mart’s failure in Germany Susan Christophersonà Abstract Wal-Mart’s exit from the German market in 2006 after 10 years of attempting to achieve sustainable competitive advantage contributes an interesting case to the small but expanding literature on ‘failure’ in international investment. The work on the disinvest decision in all its forms has been critical to a re-conceptualization of the international investment process as dynamic rather than static, linear and inexorable. An important segment of the work on investment and disinvestment as dynamic processes focuses on the environment in which investment and disinvestment decisions evolve. While the environment of the host country market has begun to be examined, the market environment of the country in which the retail transnational corporation (TNC) originates also affects the international disinvestment process. To explore this ‘home country effect’, I examine the resources Wal-Mart brought into the German market and their ability to use those resources in the German context. WalMart’s resources were shaped by the market governance regime in which the firm evolved, and not insignificantly, over which it had and has influence. Within this theoretical frame, Wal-Mart’s reliance on the resources of network dominance and autonomous action that made for its success in the USA contributed to unsuccessful strategies in the German retailing market. Keywords: lean retailing, Wal-Mart, Germany, corporate...
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