Wal-Mart Financial Analysis
Wal-Mart, also famously known as “Wally-World”, is said to serve at a rate of about 200 million times per week at more than 9,029 retail units under 60 different banners in 15 countries. Wal-Mart currently employees an estimated 2.1 million associates worldwide and continues to grow. A leader in sustainability, corporate patronage and employment opportunity, Wal-Mart ranked in the top ten among retailers in Fortune Magazine’s 2010 Most Admired Companies survey. [ (About Us, 2010) ]
In 2010, Wal-Mart was named the largest public corporation by revenue. The company was founded by Sam Walton in 1962. Wal-Mart is headquartered in Bentonville, Arkansas, they are also known as the largest grocery retailer in the U. S. Internationally, Wal-Mart operates under different names. Mexico as Walmex, United Kingdom as Asda, Japan as Seiyu, and India as Best Price.
Wal-Mart has high-volume relationships with several companies whose success depends on its association with the retailer. For instance, twenty-eight percent of Dial Corporation’s business comes from its affiliation with Wal-Mart. Other large suppliers include Revlon, Proctor & Gamble, Kraft Foods, General Mills and Kellogg’s. These companies sell more than twelve percent of its product through Wal-Mart. [ (Adam, 2008) ]
Wal-Mart’s ultimately goal is to keep prices low and the customers satisfied, and it expects their suppliers to do the same. The push for low prices has caused affects on a global economic scale. In order to keep up with Wal-Mart’s demands, suppliers have had to explore many cost-saving initiatives, including finding cheaper labor and production costs. For some, this has meant moving operations to countries such as China. The loss of American jobs has caused much distain among community stakeholders toward the company. Furthermore, Wal-Mart accounts for ten percent