...The article that is going to be reviewed is titled: Walmart Slashed Tax Bill By Giving Top Execs Big Bonuses. This article was retrieved from the Business Insights: Global from Ottawa University online library. The article summary will provide an insight into why the top executives who made big bonuses. At the end of the article summary, I will give my own personal opinion on the big bonuses issue. Working at Walmart has paid off for some big time executors. On June 6, 2014, at the Bud Walton Arena on the University of Arkansas campus, Walmart had its annual shareholders meeting. At this meeting, it was released that the company was to pay out $500 million in bonuses to their hourly employees. Although that seemed great, the article also stated that half of the amount of that bonus was going to only eight executives. As part of the compensation plan, the hourly and executive pay does come with bonuses. By paying out this bonus, Walmart has also been part of the Americans for Tax Fairness (ATF), a tax reform coalition. ATF has allowed Walmart to save $104 million in federal tax. By paying the executives this bonus, Walmart has followed the corporate pay at section 162 (m) of the Tax Code. It states: In the case of any publicly held corporation, no deduction shall be allowed under this chapter for applicable employee remuneration with respect to any covered employee to the extent that the amount of such remuneration for the taxable year with respect to such...
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...debates in the global political, social and business world. In order to ensure an effective and a collaborative approach is taken to challenge these environments issues. In recent times, a consensus has emerged that environmental issues induced by industrial development should be addressed throughout the supply chain. This had led to the emergence of the concept suggested to as Green Supply Chain Management (GSCM). This research provided a concise background and challenges of green supply chain through applying qualitative analysis on potential implementation in existing literature. This research was use secondary data to analyze a single case study, which is a case study of Walmart GSCM. Data was collected through a quality source by process of evaluating the information sources. The research analysis have shown seven strategies that used at Walmart: Identifying goals, metrics, and new technologies, Providing network partner assistance to suppliers, Certifying environmentally sustainable products, Incentive for green products, Consolidating direct suppliers, Developing a sustainable standard, and Zero waste. In a conclusion, it was possible to understand that GSCM is one of the emerging approaches for retail industry. This approach had help the company differentiates from its competition and made its supply chain more efficient. This paper was useful in providing suggestions to the retail industry and other industries to either modify the GSCM strategy adopted within organization...
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... Student Marketing Plan for Walmart Supercenter A Marketing Plan Presented by: Mission Statement "We save people money so they can live better." Is the mission statement for Walmart supercenter stores internationally, as is their slogan of “Save Money. Live Better” generally supporting one another. Goals Financial: 1. Financially be stable in the first five years to continue growing. 2. Provide the city of Kerman with jobs. 3. Rise to the same level of success as all other Walmarts in the Central Valley. Nonfinancial: 1. Provide the community with savings and jobs. 2. When meeting financial goals give back to the community. 3. Provide necessary materials for schooling. 4. Within 5 years provide the Kerman athletics with state of the art athletic facilities. 5. Give the community of Kerman and others around recreational areas for growing kids. Competitive Advantage Walmart has a competitive advantage over all other stores in the world hands down. It has the lowest prices guaranteed, providing the community of 20,000 with a Walmart will be a great move for the town. Walmart Supercenter’s advantage is that there are no others around in a 40 mile radius. Kerman is indeed the “Gateway to the Westside” to go to other town or communities you must pass through Kerman, there is no other option. The closest Walmart Supercenter is 40+ miles away in the well known city of Clovis, Ca. Walmart Supercenter can provide far cheaper...
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...deals which caused the increase in demand of green cars. The manufacturing department was not aware of the promotion and believed that consumers had started to like green cars (Michael Bean, 2006) 3) The bullwhip effect can be reduced by keeping prices low and keeping demand steady. This reduces periodic high inventory levels and the need to discount products (Ivey, 2011). VMI (vendor-managed inventory) is a model in which an accord is reached between the customer and the retailer based on customer demand. The customer to an extent decides the prices of the products in this model. Large amount of inventory is hence not held by the retailer and the cost of holding the inventory hence reduces (Hernandez, 2010). Retail link is used by Walmart in order to reduce time lag or lead times in a supply chain while processing orders (Hernandez, 2010). With the help of a tool called Point of sale (POS), product details, pricing, rate of sale etc is transferred into a database. Walmart’s manufacturers...
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...does not count as a page. A deduction of 10% will apply if your assignment is more than 10 pages long. For additional advice on how to complete this assignment, refer to the Preparing Assignments page (a link is also provided in the Evaluation block on the course homepage). Read the case “Target: From ‘Expect More’ to ‘Pay Less’” on pages 103 to 105 of the textbook and prepare answers to the questions below. Do not answer the questions at the end of the case in the textbook. Question 1 (20 marks) Identify four actors in the microenvironment that have affected Target’s performance over the past few years. Over the past few years there have been many actors that have affected Targets Performance, the four major ones are, Competitors, Customers, Publics and The Companies Operations. The first major Actor in Target’s microenvironment is the Competitors. When the economic crisis hit in 2008 Target lost market share to its major competitor Walmart. The reason for this Loss was because Walmart positioned themselves in the marketplace as always having low prices on their products, whereas Target positioned themselves as having better brands than Walmart. In this case Walmart as the competitor is a major actor in Target’s microenvironment kick starting a change in philosophy to a more of a Pay less side of things. The second major actor is the customers. When the crisis hit it caused the customers to have a more “frugal” approach to their spending...
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...Valuing Walmart - 2010 Introduction This case requires the valuation of Walmart stock as of February 2010 based on company and market data up to 2010. Determination of the stock value will aid in the decision to recommend Walmart stock as an investment to clients. The valuation of stock is based on estimations of various parameters using various prediction models. Several models are available to aid in estimating stock prices and they are utilized herein. The dividend discount model, future dividends and a terminal value, the three-stage approach and use of P/E ratios are all utilized in this analysis to best determine a buy/hold/sell recommendation for clients. Dividends in Perpetuity The Dividend Discount Model (DDM) is one way to assess the worth of Walmart’s stock price. This model assumes that the current value of Walmart’s stock is the present value of future expected dividends, discounted by the investor’s expected rate of return. A perpetuity is an annuity that has no end, or in other words, a stream of cash payments that continue for an indefinite period of time as seen in Exhibit 1, Figure 1. The perpetuity relationship is stock price is equal to expected dividends divided by the investor’s required rate of return minus the perpetual dividend growth rate as illustrated in Exhibit 1, Equation 1. The input variables needed to calculate the current value of a firm’s stock price are dividend growth, expected dividend, and the investor’s required...
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...To begin with, Walmart (the American multinational retailer corporation that runs chains of large discount department stores), has earned its reputation as the largest retailing company in the world. The man behind who started everything and laid down the basic principles and philosophy to be emulated by Wal-Mart people is Sam Walton, who found the company in 1962. Last year, Wal-Mart's annual sales were $350 billion and it had more than 8,500 stores in 15 countries and with over two million employees. It was in the early eighties that, in order to follow their business model based on a low price strategy, Wal-Mart placed heavy emphasis on developing and implementing tight supply chain solutions which has catapulted them not only to the top of the retail channel but into the history books. The four core principles that engulfs the overwhelming success of Walmart are; the focus on the improvement of sales, constantly reducing costs such that they will be able to capitalize on cost saving opportunities to be passed on the customers, the adoption of efficient distribution and logistics management systems to ensure the constant flow of the goods and the use of highly advantageous innovative information technology (IT) tools that makes the operating processes even faster, efficient and up to date. The key for the phenomenal growth of Walmart rely on the emphasis being placed in the customer needs and the reduction of cost through efficient supply management practices as Walmart’s...
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...Johnson & Wales University Providence, Rhode Island College of Management Marketing Final Project Walmart MTKG 5500 Spring Term 2015 Professor Kim By: Andreas Ulrich, Chia-Yi Lin, Lauren Hahn and, Min Zhang May 13th, 2015 Abstract This document discusses how Walmart is one of the largest retailers in the world with how the mass production utilizes its resources to be cost effective in its selling price of all their products which makes the brand very well known in this aspect. Walmart has evolved since it first began the company and has changed their marketing strategy to better suit their customers’ interests and demographics. The company has become well known internationally for the brand image Walmart created for them and sets them aside from their competitors. Their excellent marketing strategy stems from the four P’s of price, product, distribution (place), and promotion. The pricing is low, but efficient from the cost control of the resources they obtain. The products walmart issue to the product range varies according to the needs of customers. The distribution is industrialized internationally and continues to expand. Walmart uses the differentiated strategy to target their customers. The organization utilizes product diversity, low- price strategy, e-commerce, long-term growth strategy, and technology innovation for future business. However, there are suggestions that were made for better expansion were product development, different approach...
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...STRATEGIC MANAGEMENT MGMT E -5000 WALMART CASE ANALYSIS BY Indhu SEPTEMBER 19th, 2012 SWOT Analysis of Wal-Mart: (2008- 2010) EXTERNAL ANALYSIS: Significant findings on the PESTEL analysis were:(Refer Fig 1 ) * Socio Cultural factor: One of the most important concerns among consumers during that period was price. Since its establishment Walton focused on Everyday low prices (EDLP) and always geared towards the low- income groups of the society. This provided Walmart better opportunities and helped them gain a competitive advantage in the industry. * Demographic factor: Another opportunity facing the industry was that Consumers (working Mothers and other American workers) wanted ease of shopping (fast, efficient and one-stop shopping). Walmart provided its customers with what they want in the Walmart supercenters combined with its wholesale unit “Sam’s Club”. * Technological Factor: Heightening of Internet users (70% of the population) and more people were comfortable shopping online. This yielded both favorable (lower over head costs and convenience to the customers with wide choices of items and prices that were appealing) and unfavorable (Walmart has invested heavily on the infrastructure like the EDI links and POS systems) circumstances. * Economic Factor: Domestically the U.S market had a very slow growth. Although the economy was said to be in recession it favored the growth of the organization because it offered consumers commodities at a...
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...Introduction This case requires the valuation of Walmart stock as of February 2010 based on company and market data up to 2010. Determination of the stock value will aid in the decision to recommend Walmart stock as an investment to clients. The valuation of stock is based on estimations of various parameters using various prediction models. Several models are available to aid in estimating stock prices and they are utilized herein. The dividend discount model, future dividends and a terminal value, the three-stage approach and use of P/E ratios are all utilized in this analysis to best determine a buy/hold/sell recommendation for clients. Dividends in Perpetuity The Dividend Discount Model (DDM) is one way to assess the worth of Walmart’s stock price. This model assumes that the current value of Walmart’s stock is the present value of future expected dividends, discounted by the investor’s expected rate of return. A perpetuity is an annuity that has no end, or in other words, a stream of cash payments that continue for an indefinite period of time as seen in Exhibit 1, Figure 1. The perpetuity relationship is stock price is equal to expected dividends divided by the investor’s required rate of return minus the perpetual dividend growth rate as illustrated in Exhibit 1, Equation 1. The input variables needed to calculate the current value of a firm’s stock price are dividend growth, expected dividend, and the investor’s required rate of return. ...
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...Walmart - Information Technology Rachel Thorne Fundamentals of Supply Chain Management BUS 3022 Gordon Flanders Walmart Information Management System (IMS) Walmart is a retail giant. Just about everyone in America has purchased something from them. It is a one stop shop for anything that a person could ever need. Walmart stores can be found just about anywhere, in fact most people are less than an hour drive away from a Walmart store. Walmart’s success has put many companies out of business. The chains success is primarily from low prices and using an information technology system to meet customer demands giving them a competitive advantage. Walmart’s first major use of information technology came in 1975 when the company leased an IBM computer system to track inventory in warehouses and distribution centers. (Wailgum, 2007) Computers have come a very long way since this time and are used almost everywhere. But in 1975 this was cutting edge technology and gave Walmart the competitive advantage over other retailers. Another thing that Walmart used to be revolutionary in their supply chain was the use of scanning barcodes in 1983. (Wailgum, 2007) Before barcodes objects had to be read by a skilled cashier. With barcodes all that was needed was a quick scan and the computer would do all the work. This greatly sped up checkout time and made tracking inventory and data collection much faster and easier for both customers and the employees. Since this time it...
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...This article is published in a peer-reviewed section of the Utrecht Law Review Four Case Studies on Corporate Social Responsibility: Do Conflicts Affect a Company’s Corporate Social Responsibility Policy? Cristina A. Cedillo Torres, Mercedes Garcia-French, Rosemarie Hordijk, Kim Nguyen, Lana Olup* 1. Introduction 1.1. Background and objectives This article will discuss the different Corporate Social Responsibility (CSR) issues that emerged within four multinationals (Apple, Canon, Coca-Cola and Walmart). There is no clear definition of CSR. In Corporate Social Responsibility, Legal and semi-legal frameworks supporting CSR Lambooy gives an r o verview of several definitions of CSR.1 The European Commission defines CSR as ‘the esponsibility of enterprises for their impacts on society’.2 This is the definition which is the most suitable for the c ontext of the article’s research question. As this article will focus on companies from the US and Japan, the authors also provide an overview of the focus on CSR from the US and Japanese perspective. In the US there is no governmental regulation regarding CSR or business best practices. Instead, according to findings from Bennett American, companies have a marked tendency to use codes of conduct.3 The American CSR perspective could be described as following a principles-based approach, with codes of conduct that prescribe values and principles which company members as a whole should aspire to follow. ...
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...FINAL EXAMINATION: DESC 634.11 NAME… ……………………………………….. ANSWER ANY 3 OUT OF FIVE QUESTIONS 1. The in-house and production capabilities enabled Zara to offer fresh designs at stores twice a week throughout the year. Zara produced about 11,000 styles each year, 5 times as many as a comparable retailer. a. Analyze in detail the problems faced in the supply chain due to their excessively frequent new\? product introductions. b. What strategies were adopted to achieve such a high rate of new product introductions? 2. The entertainment industry of Hollywood has undergone four major transformations in the last 40 years, from “Films shown in theatres” to “Video Rental of VHS Cassettes” to “Sell Through DVDs” to “Digital Delivery of Content”. Analyze how the factors of Product Pricing, Channel of Distribution, Inventory Management and Customer Service have changed in the supply chain though the four generations driven by technology. The film industry is the only industry that we can say has gone through so many changes as far as supply chain. Everything has changed! Channels of distribution, customer service, inventory, revenue sharing options, production, marketing and pricing. We will call these stages or eras of changes generation 1,2,3,4. In the next paragraphs I will accommodate the different stages of the industry approximately in each generation: ...
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...This article is published in a peer-reviewed section of the Utrecht Law Review Four Case Studies on Corporate Social Responsibility: Do Conflicts Affect a Company’s Corporate Social Responsibility Policy? Cristina A. Cedillo Torres, Mercedes Garcia-French, Rosemarie Hordijk, Kim Nguyen, Lana Olup* 1. Introduction 1.1. Background and objectives This article will discuss the different Corporate Social Responsibility (CSR) issues that emerged within four multinationals (Apple, Canon, Coca-Cola and Walmart). There is no clear definition of CSR. In Corporate Social Responsibility, Legal and semi-legal frameworks supporting CSR Lambooy gives an r o verview of several definitions of CSR.1 The European Commission defines CSR as ‘the esponsibility of enterprises for their impacts on society’.2 This is the definition which is the most suitable for the c ontext of the article’s research question. As this article will focus on companies from the US and Japan, the authors also provide an overview of the focus on CSR from the US and Japanese perspective. In the US there is no governmental regulation regarding CSR or business best practices. Instead, according to findings from Bennett American, companies have a marked tendency to use codes of conduct.3 The American CSR perspective could be described as following a principles-based approach, with codes of conduct that prescribe values and principles which company members as a whole should aspire to follow. ...
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...How Walmart Uses E-commerce in Its Supply Chain In 2011, Walmart’s sales amounted to $419 billion and were ranked first in Fortune 500’s list of world’s largest companies by revenue. (Walmart 2011). What contributed to Walmart’s success? With heavy investment into their supply chain management system it has enable them to reduce overall costs, minimize inventory levels, and optimize logistics and distribution thus making them more successful. Analysis will be made as to why Walmart is concentrating on supply chain projects, why some suppliers are not in compliance with mandatory RFID tags, and how e-commerce improves transaction processing. Why Walmart is Concentrating on Supply Chain Projects Walmart is investing heavily in projects to constantly improve their supply chain which will allow them to lower overall costs and increases profit margin. An illustration of this is that prior to the efforts on supply chain management in 2002, on sales of $218B, they generated a return of 3%. In 2011, their profit margin increased to 6.1% while doubling revenue. By constantly upgrading the management of product through the various distribution channels and the process in which consumers receive products, time and money can be saved by Walmart which in turn benefits the consumer. In order for Walmart to remain successful on a global level, being competitive is the key. To be competitive in the “front of the house”, they must remain competitive in the “back of the house”. ...
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