...Walmart in Japan I. Problem identification phase Introduction Walmart is an American international retail company that is headquartered in Bentonville, Arkansas. The company began operations in 1962 after being founded by Sam Walton and incorporated in 1969. The present brand name—Walmart—came about in 2008 and before that it was referred to as Wal-Mart. The company is famous for operating chains of large discount departmental stores and warehouse stores. Presently, the company is the 18th public corporation in terms of size and the biggest in terms of revenue, private employment, and retailer (Walmart 2011 Annual report). Furthermore, the largest shareholders are the Walton’s with 48% shares; hence they control the company. The company has approximately 9000 stores in over 15 countries all operating under different names. For instance, in Mexico it is called Walmex, in UK Asda, and in Japan Seiyu. This article analyses Walmart in Japan through three phases. The three phases are: problem identification, analysis, and solution phases. Background Walmart bought 6.2% of Seiyu in May 2002 (Holstein 73). The shares of the company increased over time and in 2005 December, Walmart was the majority shareholder of 50.9%. In 2008, Seiyu was entirely owned by Walmart whose headquarters are in Tokyo. The company has 419 retail units that are inclusive of: Seiyu Hypermarket, Seiyu Supermarket, Wakana, and Seiyu General Merchendise. Setting operations in Japan was not an easy feat...
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...Running head: Five Year Marketing Five Year Marketing Plan Walmart Sherry Smith Baker College Table of Contents I. Title Page 1 II. Table of Contents 2-3 III. Executive Summary 4 IV. Company Description 4-5 V. Strategic Focus and Plan 5 a) Mission Statement (Current) 5 b) New or Revised Mission Statement 5 i. Vision Statement (Current) 5 ii. New or Revised Vision Statement 5-6 c) Goals 6 1) Non-financial Goals 6 2) Financial Goals 6 d) Core Competency and Sustainable Competitive Advantage 6 VI. Situation Analysis 7 a) SWOT Analysis 7 b) Industry Analysis 7-8 c) Competitors 8 d) Company Analysis 8-9 e) Customer Analysis 9 VII. Market Product Focus 9 a) Marketing and Product Objectives 10-11 b) Target Markets 11 c) Points of Difference 11 d) Positioning 11-12 VIII. Marketing Program 12 a) Product Strategy 12 i. Product Line 12 ii. Unique Product Quality 12-13 iii. Packaging 13 b) Price Strategy 13 c) Promotion Strategy 13-14 d) Place (Distribution) Strategy 14 IX. Financial Data and Projections 14 a) Past Sales Revenues...
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...successful business. The modest beginnings and impressive 50-year growth of Walmart Stores, Inc. are an example of such practice. Walmart Stores, Inc. reflects decades of continued positive return for investors in its annual report and presents a five-tiered strategic plan. The Walmart Store, Inc. 2012 Annual Report lists these initiatives as ―1) Developing our people; 2) Driving the productivity loop; 3) Winning in Global ecommerce; 4) Reinvigorating our customer-focused culture; and 5) Leading on social and environmental issues (p. 3). This essay will focus on two initiatives driving the productivity loop and reinvigorating our customer-focused culture. These two initiatives are tied to short-term and long-term financial concerns, and expansion strategies. The following details the organization’s financial planning surrounding the initiatives, the risks involved in the ideas, and the effect on revenues and expenses. Driving the Productivity Loop With strategic planning the team determines where to spend money for expansion, cut costs to reduces expenses, and invest profit for sustainably. Supporting this framework is the short-term and long-term financial plans a successful business needs to operate. According to Titman, Keown, and Martin (2011), the primary objective of both short- and long-range financial planning is the estimation of the firm’s future financing needs (p. 564). In the case of Walmart, these financial goals and reviews are based on a positive record of providing...
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...Walmart’s Global Challenge, November 2014 Executive Summary Walmart Stores, Inc. is the world's largest retailer whose mission is “to help people around the world save money and live better -- anytime and anywhere -- in retail stores, online and through their mobile devices” (Corporate Walmart2, 2014, p.1). Samuel Walton founded Walmart in 1962 as a small chain of stores in rural towns and today Walmart is a multi-national retail corporation with “11,100 stores under 71 banners in 27 countries and e-commerce websites in 11 countries” (Corporate Walmart2, 2014, p.3). Walmart Stores topped Fortune Magazine’s “Fortune 500” list for 2014. “For fiscal year 2014, Walmart’s net sales totaled $473.1 billion, up 1.6% from the year-earlier period” (Fortune, 2014, p.1). Walmart is a publically traded company, with the second and third generation Walton family owning 51% of Walmart’s shares via a family holding company called Walton Enterprises LLC (Yahoo Finance, 2014, p.1). Walmart has enjoyed unprecedented growth in the span of 52 years, even in the face of negative publicity and threats from competitors like Family Dollar and Amazon. Walmart’s CEO, Doug McMillon, has laid out strategies to reduce their reliance on physical stores as they move towards expanding the e-commerce aspect of their company and on improving their overseas expansion plans. His four-part growth strategy provides the framework to enable a “company prepared to win on four key customer dimensions – price...
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...supercenter market are Target and Meijer, whereas Costco is a key competitor in the member warehouse-style market. Only Costco (Costco Annual Report, 2011) is currently competing in the international marketplace. Financial Health Wal-Mart Stores Incorporated (WMT), Target Corporation (TGT), and Costco Wholesale Corporation (COST) are public held companies with stock traded on the New York Stock Exchange (NYSE) and required to file an Annual Report on forms 10-K annually with the Security and Exchange Commission (SEC) (Stock Quotes, 2012). Meijer’s is a family-owned private company and not subject to SEC filings of their performance and is excluded from analysis because their financial data is not available (At 75, Meijer family still controls retailers destiny, 2009). Income Statement The latest income statements submitted by Wal-Mart, Target, and Costco to the Security and Exchange commission all reported millions in profit (Stock Quotes, 2012). Wal-Mart’s consolidated net income for its fiscal year ending January 31, 2012 is $15,699 million (Walmart Annual Report, 2012), which equates to a $4.54 net per share income, and resulted in $1.46 paid in dividends for each common share (Walmart Annual Report, 2012) ). By comparison, Costco latest annual report for fiscal year ending August 28, 2011 reported $1,462 million in profit with a net income per share of $3.35, and $.89 in per share dividends (Costco Annual Report, 2011). Target’s annual report for their fiscal...
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...Capital Working Strategies FIN/414 December 18, 2014 Richard Nashner Working Capital Strategies Walmart is on the path of expanding its brand; this paper highlights its finances by looking at its recent financial reports- balance sheets and statements of cash flow. By doing so, we can therefore make a projection or forecast Walmart’s revenue for 2015. Such projection comes with working capital recommendation, and the new lesson learned from previous financial reports of the company. Working Capital A review of Walmart’s financial statements shows that its net working capital had range from positive to negative and vice versa. Walmart current revised assets total $61,185 billion; an increase of two percent in 2014. The current liabilities in 2014 total $69,345 billion and $71,818 billion in 2013 (Walmart, 2015). This information indicates that Walmart working capital in was negative in 2014 with a balance of -$8,160 billion, which obviously reflects a long term liabilities. In 2013, its working capital was also in the negative of -$11,878 billion; this notwithstanding reflects a decrease of its working capital by over three million dollars. According to Walmart (2015), “ The decrease in our working capital deficit was primarily attributable to a decrease in long-term debt due within one year and an increase in our inventory levels due to lower than anticipated sales across the Company” (p. 27). Walmart as per its first quarter report in 2015 intend to decrease...
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...Competing in Foreign Markets Executive Summary Walmart has grown into one of the largest retail stores in the world and has proven their operation is successful and effective. However, Walmart is being faced with understanding the symptoms of their domestic problems before being able to compete globally and face additional foreign challenges. This report documents the overview of Walmart and its key strategies. Then, Walmart is analyzed and evaluated. Finally, recommendations regarding Walmart competing in foreign markets is provided. Overview Walmart is the number one retailer in the United States and is at the top of the Fortune 500 listing. Wal-Mart operates in many countries worldwide and is pursuing market share in new countries. As Walmart grows, so do the number of people who have a stake in Walmart. Each year, more claims are made against Walmart by the unions, disgruntled employees and other advocacy groups supporting various interests. Additionally, Walmart is often able to undercut many other local industries forcing more and more local businesses to shut down when Walmart moves into town. As a result of Walmart's ever growing size and dominance, their reputation is becoming more important than before. Also, as Walmart expands into different markets, they will need to be aware of specific country regulations and cultural expectations. These issues need to be addressed by Walmart in order to make it possible for Walmart to build a positive reputation...
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...A Comparative Study of Walmart Operations in Canada & Mexico Table of Contents 1. Executive Summary…………………………...………………………………...…...2 2. Introduction………………………………………………………………………….3 3. Walmart and the Canadian Marketplace……………………………..…………3 A. Country Competitiveness B. Cultural Environment C. Political and Legal Environment D. Entry Strategies 4. Walmart and the Mexican Marketplace……………………………..………….10 A. Country Competitiveness B. Cultural Environment C. Political and Legal Environment D. Entry Strategies 5. Summary Comparison of Canadian and Mexican Markets…………………….18 6. Recommendation…………………………………………………………………….19 7. References…………………………………………………………………………...21 1. Executive Summary This report closely examines the operations of the world's largest retailer, Walmart, in Canada and Mexico. Assessments of market conditions in both countries have been conducted in terms of country competitiveness, cultural, political and legal environments and the strategies used by Walmart upon entry. Tying into these international business factors, specific aspects of international economic integration, monetary systems, social responsibility and corruption have also been reviewed. While being part of one continent and a common trade bloc (NAFTA, the North American Free Trade Agreement), considerable differences between Canada and Mexico are apparent. These differences are individually analyzed on the following pages. Inevitably, they...
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...HISTORY & BACKGROUND Founder of Walmart Sam Walton graduated from University of Missouri in 1940 with a degree in Economics. He wanted to capitalize on his work experience in retail. Sam had an idea to bring a different type of economical approach to the retail industry. Sam and his brother J.L. Walton owned nine Ben Franklin stores. They went to Ben Franklin store owners with the approach of reducing prices to increase sells and were turned away. In 1962, the brothers decided break away and opened their own store in Rogers, Arkansas which was the start of the first Wal-Mart Discount City store. Their approach was to open stores in populations with 5000 to 25000 people. By the late 1960’s the Walton brothers has 18 discount stores and 15 Ben Franklin franchises which became incorporated in Wal-Mart Stores, Inc. (Tell me the history of Wal-Mart). During the 1970’s the Walton’s incorporated many changes to how they do business which laid the foundation to cut cost to gain more control. They implemented a warehouse distribution strategy of constructing their own warehouses so they can buy merchandise in great volume, and positioned its stores 200 square miles from each distribution point. By 1977, Forbes had Wal-Mart ranked #1 in return of equity, return on capital, sales growth, and earnings growth over all other discount and variety stores (Tell me the history of Wal-Mart). Wal-Mart’s continued expanding and in 1978, its stores included a pharmacy, auto service center...
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...WALMART SUCCESS IN MEXICO, CANADA AND CHINA: GLOBAL EXPANSION, STRATEGIES, ENTRY MODES, THREATS AND OPPORTUNITIES Lee Yee Mun B1000922 Help College Of Arts and Technology Bachelor of Science in Collaboration with Southern New Hampshire University, USA lemon_0611@hotmail.com Rashad Yazdanifard Faculty of Management, Multimedia University, Cyberjaya, Malaysia. rashadyazdanifard@yahoo.com 1 ABSTRACT Global expansion has been gaining a lot of attention. There are many important factors to be considered in the decision-making process such as business strategies, entry modes, and threats and opportunities in the markets. Appropriate strategies will minimize the risk of failure in international markets. The right business strategies and entry modes employed will increase the firm’s chances of success and influence the future of the retailer. Key words: global expansion, business strategies, entry modes, threats, opportunities, Walmart 1. Introduction The internalization of the retail industry has been researched widely, and majority of these studies have described the motivations and scales for international expansion by retailers (Akehurst & Alexander, 1995; Williams, 1992). Many models of internalization explains the sequence of foreign expansion, showing that companies who go international will do better in foreign markets that are similar to their domestic markets. This was why Walmart chose to enter the markets of Canada and Mexico (Johanson...
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...Behaviour | Due Date: 20 Dec 2013 (Fri) 5:00 pm 1. Hand in one hardcopy to SCOPE Reception Counter at Academic Exchange Building (AEB)2. Upload a softcopy to Turnitin "205KM-Assign2"(no need to print the Turnitin report) | Assignment No. / TitleReport#2 | Extension & late submissions allowed: | Coursework cover sheet – be sure to keep a copy of all work submitted Coventry University Have you attached the cover page information on page 1 to 4 including the “Marking Scheme” together with this assignment? ___Yes ___No Section A – To be completed by the student – PLEASE PRINT CLEARLY & IN SINGLE PAGE Student Name | Module No.: 205KM(Submission date & SCOPE stamp) | Programme Title & Programme Code: : PROGRAMME - BSC (Hons) Business Information Technology | | SCOPE ID Numbers (from your SCOPE student card): | | | | Lecturer: | Tutorial group: | Module Code and Title:205KM Management & Organisational Behaviour | Due Date: 20 Dec 2013 (Fri) 5:00 pm 1. Hand in one hardcopy to SCOPE Reception Counter at Academic Exchange Building (AEB)2. Upload a softcopy to Turnitin "205KM-Assign2"(no need to print the Turnitin report) | Assignment No. / Title: Report#2 | Extension & late submissions allowed: | Estimated Time (hrs): | Assignment Type:Individual | % of Module Mark: | Hand-out date: | Late Submission Policy: Coursework submitted up to 1 week after the due date...
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...Shareholder Perspective 1) Why have Wal-Mart shares outperformed the market during the recent crisis recession? a. Investors expect that more people will shop at Walmart and therefore buy more shares b. Compared to the market (when many other areas are down) c. They have a business that performs well when other businesses are down d. Increased unemployment, more people buying groceries at Walmart e. Article on performance compared to Costco in the recession i. http://www.theophania.net/acct5331.tp1.pdf 2) What are the key drivers of Walmart shareholder value going forward? Walmart faces significant headwinds as the #1 retailer in the world. At revenues of 460B annually they’ve operated on very small margins and massive scale while continuing to grow. Their continued growth of net income will be essential to driving shareholder value. This becomes more challenging using the same approach they have in the past. If they fail to maintain their net income they’ll struggle to continue increasing their dividends and share buybacks which have provided a significant amount of value back to shareholders (over 100b). Going forward, Walmart will have to leverage their strengths in new areas. An effective Ecommerce strategy that connects online with their strengths in offline could be a significant sources of additional revenue and income. A successful strategy would need to leverage their existing infrasture to create both a competitive...
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...Company Motivational Profile – Walmart Company Motivational Profile – Walmart To achieve success, organizations must have a clearly defined plan. Sam Walton, founder of Walmart, began his retail career as a management trainee at JC Penny. Walton opened a five and dime store in 1951 and his first Walmart opened in 1962. Walton’s concept of discounting prices included a large variety of low priced items, buying large quantity goods at the lowest price, and passing the savings on to his customers. Today’s retail organizations must have a plan to achieve success. Walton’s vision allowed Walmart to grow into a multi-billion dollar international retail giant. This paper discusses Walmart’s motivational profile including the background and history of Walmart, their corporate culture and management, the strengths and weaknesses of their motivational strategies, and finally, an analysis of Walmart’s motivational strengths and recommendations for future improvements. Background Information Before opening Walmart, Sam Walton traveled around the world studying everything he could about discount retailing. Walton became eager to bring the United States a different type of store. He had an idea that Americans wanted something out of the box. Walton put in most of his own personal money to open his first store in Rogers, AR. Walmart extended with more stores in later years. He always believed that if a business gave their customers what they wanted, they will continue to...
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...Control Mechanisms of Walmart Corporation Companies all across the world use control mechanisms to achieve and monitor the success of the organization. If a company has planned poorly the goals, objectives, or a disagreeing management, the likelihood of the company surviving for any length of time becomes slim and considered an out-of-control company. Managers today must control their people, inventories, quality, and costs, to mention just a few of their responsibilities (Bateman & Snell, 2009). The three broad strategies for achieving organizational controls consist of bureaucratic control, market control, and clan control (Bateman & Snell, 2009). When planning for these controls managers follow four steps for each: setting performance standards, measuring performance, comparing performance against the standards, and determining deviations, along with taking actions to correct problems and reinforce success. The paper will focus on the control mechanisms of Walmart Corporation and how the mechanisms compare and contrast from others, their effectiveness, positive and negative reactions, and how each affect the four functions of management. Walmart Corporation Walmart serves more than 200 million customers and members throughout their 8,650 retail units between the companies 55 operating banners in 15 countries on a weekly basis (Walmart, 2010). With sales in 2010 of over $405 billion, employing more than Two million associates worldwide, and receiving the title of 2010s...
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...Since San Walton opened his first store in 1962, Walmart has grown into a global retailer with more than 4,000 store in the United States and more than 6,000 internationally. Walmart is comprised of three business segments, Walmart US, Walmart International and Sam’s Club. Walmart Global eCommerce works across all three segments. Walmart’s mission statement “We save people money so they can live better”, is not indicative of where its strategic focus areas are, but it does sound good for the average customer who has a limited budget. This mission statement leads directly into Walmart Global eCommerce goals which include combining online, social innovations with physical stores to give consumers “anywhere, anytime shopping experience” in addition to its organizational sustainability goal of creating zero waste, using only sustainable energy and selling products that sustain the environment which is important to all of Walmart’s segments including eCommerce. Walmart’s overall objective is to deliver shareholder value by increasing earnings per share, returns and maintaining strong stable returns on investment. According to Walmart CEO, Mike Duke, Walmart’s strategic focus areas are: •Making sure the company has the best retail talent at every level of the organization by recruiting, developing and retaining the best associates; •Delivering on the productivity loop that enables Walmart to operate for less so the company can drive prices even lower for its customers ...
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