...STEPS IN STAGE I STAGE I: STEP I - Brief Summary Founded in 1945 and based in Bentonville, Arkansas with 10,773 retail units under 69 banners in 27 countries, Wal-Mart Stores, Inc. is a department store chain of retail goods and services operating in various formats worldwide. The company’s operation is divided in three main segments: Wal-Mart U.S., Wal-Mart International, and Sam's Club. It operates retail stores, restaurants, discount stores, supermarkets, supercenters, hypermarkets, warehouse clubs, apparel stores, Sam’s Clubs, neighborhood markets, and other small formats, as well as walmart.com; and samsclub.com. The company’ s retail stores produce, deli, bakery, dairy, frozen foods also offers meat, alcoholic and nonalcoholic beverages, and floral and dry grocery; health and beauty aids, baby products, household chemicals, paper goods, and pet supplies; and electronics, toys, cameras and supplies, photo processing services, cellular phones, cellular service plan contracts and prepaid service, movies, music, video games, and books. Its stores also provide stationery, automotive accessories, hardware and paint, sporting goods, fabrics and crafts, and seasonal merchandise; pharmacy and optical services, and over-the-counter drugs; shoes, jewelry, accessories, and apparel for women, girls, men, boys, and infants; and home furnishings, housewares and small appliances, bedding, home décor, outdoor living, and horticulture products. In addition, the company’s stores offer...
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...Company (SHC) to come up with a business strategy that will address competition, culture, and synergy and create a distinct brand image and identity for the company, which will help them succeed in the long run. II. Subproblem For the two companies, Kmart Holding Corporation (“Kmart”) and Sears, Roebuck & Co. (“Sears”) to be able to act as one company and create value. III. Objectives 1. To create a brand image identity 2. To create a culture of success 3. To generate consumer loyalty 4. To appropriately position the company in the retailing business industry 5. To be able to address competition 6. To make SHC a profitable company in the long term 7. To build a broader customer base IV. Case Facts and Analysis The merger of Kmart and Sears in late 2004 occurred to gain competitive advantage over its competitors by combining strengths of Sears and Kmart for the long-term value for SHC. This merger will benefit both companies in an ever changing and competitive retail industry. SHC will be able to enter into new markets with its combined expertise of Kmart in discounter stores and Sears in department stores. This merger benefits both companies in different ways separately and to the new merged entity – SHC. Kmart will benefit from the planned cost sharing of several of Sears leading proprietary brands as well as present opportunities to capture significant revenue and cost synergies including merchandise and non-merchandise purchasing, distribution and other...
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...Wal-Mart Business Analysis Part 2 Dr. Kenneth Edick 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...
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...Environmental Scan Carlos Perez MGT/498 May 10, 2012 Jose Madera Abstract In business, there is paramount importance in measuring internal business with external business. This procedure provides an advantage for shaping the future of a business. Therefore, the process of developing strategies will benefit from performing environmental scans. Environmental Scan Creating and building on value is a necessary strategy when keeping a competitive edge. Among many strategies in business, an important one is to keep sight on necessary modifications and financial path record keeping. In addition, keeping an outlook on what external sources are doing is also necessary. When done ethically, there is applied importance in attaining information that delineates what other businesses are doing. Falling into unethical traps will cause business chaos. This is why long existing businesses last; by clearing possible liabilities better outcomes will be evident. Eventually, legacies become built and the company’s prominence exerts dominance and confidence. During environmental scanning of a company, there is a thorough assessment into a complete global analysis. This involves companies, markets, clients, industries, and businesses in the same market. For this study will consider the trends, technological events, successes, and expectations in business. Let us commence by a comparison of Costco’s values versus Sam’s Club values. Costco has developed a brand named Kirkland...
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...Strategic Choices and Evaluation Christel McCrory STR/581 April 23, 2012 Professor Frank C. Bearden Strategic Choices and Evaluation Target Stores Strategic Choice and Evaluation The first Target Store was opened in 1962 by the Dayton Company. Though there were other discount chains in the US at that point of time, many of them do not exist today. Target was able to adapt itself to the changing environment and by 2002; it was the second largest discount retailer in the US (Target.com, 2012) http://www.icmrindia.org/casestudies/catalogue/Business%20Strategy/BSTR164.htm] In June 2002, Target Corporation (Target) had 1,330 retail stores in 47 states of the United States. Even though it only had a fifth of the sales and profits of Wal-Mart, it had a loyal customer base that was looking for a trendy, yet, affordable range of merchandise (Hays, 2002 pg. 2). Target's customers, whom it referred to as 'Guests', were younger and more affluent than that of its rival Wal-Mart | | An early strategic choice to build a brand around the Target name fostered the company's steady growth. From the very beginning, George Dayton's strategy was to position Target as an upscale discount chain at which the prices would be just above the lowest prices. To achieve this upscale image, it offered trendy and stylish goods in an environment that was bright and attractive, unlike other discount stores of the time (HBS Working Knowledge, 2004 para 2). Once a generic strategy is selected...
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...CASE STUDY III FAIRHOLME Ignore the crowd. Fairholme Ignore the crowd. This presentation uses Sears Holdings Corporation (“Sears” or the “Company”) as a case study to illustrate Fairholme Capital Management’s investment strategy for the Fairholme Fund. In the pages that follow, we show Fairholme Fund shareholders why we “Ignore the crowd” with regard to our portfolio positions that are currently out of favor in the market. However, nothing in this presentation should be taken as a recommendation to anyone to buy, hold, or sell certain securities or any other investment mentioned herein. Our opinion of a company’s prospects should not be considered a guarantee of future events. Investors are reminded that there can be no assurance that past performance will continue, and that a mutual fund’s current and future portfolio holdings always are subject to risk. As with all mutual funds, investing in the Fairholme Fund involves risk including potential loss of principal. Opinions expressed are those of the author and/or Fairholme Capital Management, L.L.C. and should not be considered a forecast of future events, a guarantee of future results, nor investment advice. The Fairholme Fund’s holdings and sector weightings are subject to change. As of May 31, 2012, Sears securities comprised 10% of the Fairholme Fund’s total net assets. The Fairholme Fund’s portfolio holdings are generally disclosed as required by law or regulation on a quarterly basis through reports to shareholders...
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...The key factors for success in this industry are: *Compared together, Wal-Mart, Target and Kmart are very close competitors. They are all retail-variety discount stores making their existence known throughout the world, except Target, which you cannot find globally. These three companies are constantly vying for the reputation as the lowest priced retailer. *In the competitive profile matrix, the most critical success factor would be advertising with this, Target was scored the highest with a rating of 4 while both Wal-Mart and Kmart are rated as a 3. This is because Target does a lot more advertising then Wal-Mart and Kmart. *The next most critical success factor is global expansion with Wal-Mart was found to be rated the highest with a 4 with Kmart was rated next with a 3, and finally Target rated as a 2 because Wal-Mart was the highest are found around world, than Kmart was next because they are only found in a few other countries. And finally Target, ranking last, does not have any global branches that insignificant weakness. *Price competitiveness and financial position with Wal-Mart, the highest in both cases with a 4, is above all competitors. This is because they price reasonably with lower prices then all the competitors and their financial position is great. Target is next with a rating of 3 in both price competitiveness and financial position because somewhat high prices and people tend to see that and want to go shopping elsewhere like Wal-Mart. Their financial...
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...Many experts believe that marketing is the most important function in a company. Discuss the reasons this is a true statement. Discuss the reasons this is not a true statement. Marketing is critical in that it is the clearest direct intentional connection between the culture built around a product, service, or firm and a potential customer. In a market-directed economy, where the dollar “vote” decides, marketing is the campaigning for those votes (FIT, 2012). Target Corporation has thrived on a very successful marketing strategy that has a keen understanding of their customers and an ability to reach them, delivering what they want (before they even know that they want it). Their annual report defines their customer profile as: • Median age of 40 • Median household income of approx. $64K • Approximately 43% have children at home • About 57% have completed college (investor.target.com) “Expect More. Pay Less” clearly sets the (marketing) stage. Target is well-known for market strategy that partners with current designers (like Jason Wu, Stella McCartney, Converse) and artists (like Taylor Swift, Michael Buble and Tony Bennett) to deliver limited-time offers that drive customer demand and interest and media buzz. Target recently partnered with Justin Timberlake to offer two exclusive recordings and appearances aligned with his recent album release. Even television viewers accustomed to ad-skipping have doubtless caught the latest Target commercial promoting Justin...
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...S.W.O.T ANALYSIS Principles of Management 303 September 23, 2012 S.W.O.T ANALYSIS Target was not always called by that name; the company originally was founded in Minneapolis, Minnesota. It used to be known as Dayton Dry Good Company which was formed in 1902. “Target was once just a small piece of the much larger Dayton Hudson Corporation, a retailer with roots in the late nineteenth century. In 2000, Dayton Hudson (DH) officials renamed the company, the Target Corporation” (Target Reference). Since May of 2010, every state in the United States, besides Vermont has a Target or Super Target. Target is the 2nd largest Retailer in the United States besides Wal-Mart and it is ranked 30th on the Fortune 500 companies. “Our mission is to make Target the preferred shopping destination for our guests by delivering outstanding value, continuous innovation and an exceptional guest experience by consistently fulfilling our Expect More. Pay Less”. Target.com. (2011). “One of the strongest features about Target is that the consumer enjoys being there. There store is always clean and the way it is set up is so aesthetically pleasing it's as if each shelf were specifically shelved just for you. Even the setup of the store is maneuverable and the bright colors draw you into the store. What makes the experience even better is that there are great deals here. Jasmine Watts”. (July 22, 2009). Target is well known for its cheap prices and variety of items for sale. You can shop...
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...Below is a free essay on "Website Critique" from Anti Essays, your source for free research papers, essays, and term paper examples. The website I decided to critique is the Wal-mart.com. Wal-Mart was founded in 1962, with the opening of the first Wal-Mart discount store in Rogers, Ark. 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. The company grew to 276 stores in 11 states by the end of the decade. In 1983, the company opened its first Sam’s Club membership warehouse and in 1988 opened the first supercenter -- now the company’s dominant format -- featuring a complete grocery in addition to general merchandise. Wal-Mart became an international company in 1991 when it opened its first Sam's Club near Mexico City. The Wal-Mart incorporators then made a website called Walmart.com where they sell products online to people that prefers to shop that way. Walmart.com feature selections of high-quality merchandise like clothing for children, teens, women and men, electronics, jewelry, shoes, household products, and much more. They also sell class rings via internet to those that want to buy it online. They have ways to ship their products but they first have customers choose a payment method. Their first option is by using a credit card. They have their customers put all their information at first and verify if they accept their card or...
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...Wal-Mart’s winning strategy in the U.S. was based on selling branded products at low cost. In its early years, Wal-Mart’s strategy was to build large discount stores in small rural towns. By contrast, competitors such as Kmart focused on large towns with populations greater than 50,000. Wal-Mart’s marketing strategy was to guarantee “everyday low prices” as a way to pull in customers. Traditional discount retailers relied on advertised “sales.” To analyze the specific activities through which firms can create a competitive advantage, it is useful to model the firm as a chain of value-creating activities. The goal of these activities is to create value that exceeds the cost of providing the product or service, thus generating a profit margin. The value chain also is useful in outsourcing decisions. Understanding the linkages between activities can lead to more optimal make-or-buy decisions that can result in either a cost advantage or a differentiation advantage. By using the SWOT (strengths, weaknesses, opportunities, threats) analysis for Wal-mart, we will be able to assess the needs of the corporation. First, a quick look at the strengths. Wal-Mart is the giant in retail industry having high purchasing power of goods from supplier in bulk quantity at lower prices. The good thing about Wal-mart that its shifts the low cost advantage to customer and available the products at lower prices. Customers feel very convenient to find most of the products under on roof...
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...------------------------------------------------- Four Arenas of Competition Cost/Quality Target achieved its differentiation in the marketplace by positioning its products and store experience as higher quality than its main discount competitors Wal-Mart, with lower prices than department stores. Target’s main focus is QUALITY product and at a LOW PRICE. It all began with the idea of, “fashionable, smart design…delivered at a competitive discount prices.” Target strives to deliver to customers a unique shopping experience. Target grabs customer’s attention by their big red bulls eye and customers keep going to target. But at the same time Target need to make sure that their shelves are stocked, they gave good customer service, and checkout is fast because if customers aren’t happy they could buy their products from Target’s competitors, Wal-Mart. Timing and Know-How Target has always been a company that has been a step above its game. They have always known when things need to changed in their product, service, image, etc. In 2004, Target sold off Mervyn’s and Marshall Field’s chain and focused solely on Target stores. Target did that because they knew what they were focusing on and that was quality products at a low price. In 2005, to launch their fashion line, they held a fashion show in New York on a vertical runway on the side of Rockefeller Center Building. The company hired gymnasts and acrobats to showcase the Target fashion and core customers were...
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...a few are Kenmore, Craftsman, and Diehard. They also have various clothing brands two of the best known are Lands’ End, and Joe Boxer. Sears and Kmart also offer the Country Living Collection. Among the companies’ many other attributes they were named the Energy Star Retail partner of the year for 2011. The corporation has several subsidiaries through which it operates; these are Sears, Roebuck and Company and Kmart Corporation. Sears merged with Kmart in 2005 after the shareholders of both companies voted to do so (Sears Holdings Corporation, 2011). Kmart and Sears felt that by merging they could be more demographically accessible. Both companies shared a “customer-focused” culture and this would help them to improve revenue. Maintaining the two brands allowed the corporation to focus on different demographics without making anyone feel left out. Now the company is ran by a board of directors which includes members from both companies. Shareholders from the Kmart Corporation were given stock in the new company. Shares of Sears Corporation were separated into a percentage of stock and a percentage of cash and the shareholders could choose one or the other. According to press releases and other news about the take over led the public to believe this was a smooth merger; when in fact it was quite the opposite. Kmart had run into financial problems and filed bankruptcy, and had sold some of its stores to Sears. When...
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...Wal-mart A global organization that has been unsuccessful in transferring their successful products or ideas from their home country to foreign markets is Wal-mart. Wal-mart has failed to do this in many countries. For example, in Brazil and Germany, Wal-mart did not understand the local culture, and failed to transfer their products into these countries. In Brazil, there were many other discount stores in which food was available at cheaper prices. Wal-mart’s business model of selling low prices, having obsessive inventory control, and a having a large variety of merchandise failed in this market because Brazil already had their own discount chain stores which were successful there. As we have established, there are some companies that experience "issues" when deciding to move their products or services to a changing consumer market. Although these companies have shown success in domestic locations, it is evident that without consideration of the changing consumer, and the ability to adapt product and services, companies, as large as they may be in some locations, have an increased failure rate internationally. “US based Wal-Mart, the world's largest retailer, entered Brazil in 1995 by forming a 60:40 joint venture with one of the country's leading business conglomerates, Grupo Garantia (icmrindia.org).” The entry mode would be in association with Lojas Americanas, which is controlled by Grupo Garantia. Wal-Mart’s intention was to achieve the number one retailer position...
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...A Once-Touted Kmart In Discount-Store Race --- When Antonini Took Over, His Chain Was in Front; Walton's On-Line Bet --- Shabby to Chic -- and Back By Christina Duff and Bob Ortega Staff Reporters of The Wall Street Journal 03/24/1995 The Wall Street Journal A1 (Copyright (c) 1995, Dow Jones & Co., Inc.) Was Sam simply smarter? The forced resignation Tuesday of Joseph Antonini represents an official verdict. For seven years, he led a discount store to battle against what appeared to be its twin. The two chains looked alike, sold the same products, sought each other's customers. They even dated back to the same year -- 1962 -- and bore similar names: Kmart and Wal-Mart. The competition, however, is over: Sam Walton's Wal-Mart Stores Inc. won. So bleak are the prospects for Kmart Corp. that in February an advertising agency bidding for its business, N.W. Ayer & Partners, recommended that it stop competing against Wal-Mart and transform itself into a big convenience chain where customers could go for milk and cigarettes. "It seems that the only way for [Kmart] to survive is to find a different niche," says one person familiar with the presentation. Kmart rejected the idea. Though a savvy new leader could spark high hopes for ringing cash registers, Kmart still has "major operational and managerial issues to deal with," says Marilyn Weinstein of the College Retirement Equities Fund, a Kmart shareholder. While an air of inevitable defeat had recently settled over Kmart, a short look...
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