• Uncategorized

Business Plan for Wal-Mart organization

BusinessPlan for Wal-Mart organization


Wal-Martis an established retail Corporation in America which has beenpositioned number one by Fortune 500 Index. The organization has fourcomponents in its corporate strategy namely, dominance in the retailbusiness, expanding its operations in the America and globally, theestablishment of a positive brand, corporation recognition and lastlyexpanding into new regions of retail. The company`s public affairsapproach enables it to penetrate into foreign nations. In the lastten years, the organization has attained a healthy and constantincrease in both sales and net income hence maintaining its currentlevel of efficient performance in the retail industry which iscomprised of stiff competition from other corporations. According toPorter`s five forces, competition is the driving strength of theindustry whereby the prices are the essential factors (Gitman, &ampMcDaniel, 2012). The value chain assessment and resource-basedassessment indicate that Wal-Mart has been very effective inachieving the low-priced strategy by instilling cost effective in itsorganization’s culture, administration techniques, and functions.It has been in the lead for taking on a cutting-edge technology torestructure its supply chain as well as responding timely to clients`demand. However, it encounters threats from expanding into manyregions which make it vulnerable to losing power and destabilizedco-operation in various stores and areas. Wal-Mart should be vigilantin its growth strategy especially in the expansion of its globalpresence. This report will present the company`s descriptionelaborating more on its establishment history and progress along withdescribing the corporate objectives. Also, it gives a highlight ofproduct and services offered by the organization and a marketanalysis discussing strategies incorporated by the organization toachieve a competitive advantage, its target market, and marketsegmentation. Other aspects to be addressed include operating plan,management strategies and lastly the financial plan.


Executive summary 2

1.0 Introduction 4

2.0 Company Description 4

2.1 Wal-Mart’s objectives 6

3.0 Product Description 8

3.1 Service Description 10

4.0 Wal-Mart’s marketing strategy 11

4.1 Market Analysis 11

4.2 Wal-Mart’s target market 11

4.3 Wal-Mart’s market segmentation 13

4.4 Competitive Analysis 13

4.5 Wal-Mart’s competitive strategy 14

4.6 Marketing Plan 15

4.6.1 Business strategy 15

4.6.2 International Strategy 16

4.6.3 Promotional technique 16

5.0 Operational Plan 17

5.1 Inventory Management 18

6.0 Management 18

7.0 Financial Plan 19

7.1 Balance sheet 20

7.2 Income statement 21

8.0 Conclusion 21

9.0 Appendix 23

10.0 References 24


Wal-Martis a multinational retail organization which has its origin in theUnited States. It is the world`s largest mall that deals with onlineshopping, managing large chains of discount stores and silo stores.Wal-Mart stores have about 1.2 million staff qualifying to benation`s biggest single boss. In the United States, the retail giantowns over 1400 retails positioned in over 50 regions. Additionally,the corporation has distribution channels and grocery outlets whichmake it be among the largest top retailers in the United States.Other sales channels include Sam`s Club vendor’s kin America, andin about 60 nations, there are also average food and drug storeswhich offer a variety of general merchandise. Internationally,Wal-Mart manages discounts outlets in countries such as Canada andPuerto. Its Supercenters are located in South Korea, Mexico, China,and Germany alongside other nations. Other business chains of theWal-Mart organization include distribution outlets, VIPs cafes andsupermarkets in Super AMS and Bodegas. Additionally, the corporatehas individual control over Dias supermarkets which are situated inBrazil. The organization owns about 30 percent of the main Japanesefirms known as Seiyuu LTD (Wal-Mart,2014). Asignificant part of the Wal-Mart’s stores is situated outside theUnited States. In fact, global business functions account for over18% of the total revenues.

2.0Company Description

SamWalton in 1962 established Wal-Mart stores and developed it into acorporate company on 31stOctober in the year 1969. Wal-Mart began trading on the New YorkStock Exchange in the year 1972. It is a family owned Company underthe management of Walton family which possesses about 48% of theordinary shares. Its headquarters are situated in Bentonville inArkansas. According to Fortune Globe categorizing of 500 bestorganizations globally, Wal-Mart is positioned as the second biggestpublic company all over the world. In grading, it is recognized thatthe organization owns the largest grocery retail stores in America.To illustrate, Wal-Mart hit an incredible growth in its revenues toover 51% from its $259 billion sales from grocery projects solely in2009. Moreover, the firm owns Sam`s Club retail silos situated inNorth America. Attainment of this milestone could be linked with thebusiness strategy that the firm has put in place over the years sinceits origin.

Itis the wish of any organization or business to develop both in thelocal and global markets. Organizations take on a strategic structurethat works best to the wellness of the organization to attain suchobjectives. A business strategy is essential for any givenorganization and lack of it is suicidal. Prior the taking on theexecution of business strategies, a thorough environmental andorganizational assessment is necessary. For the organization totriumph among competitors and steer motivation for success, feasiblestrategies must be ensured.

Wal-Martstarted its global expansion strategies between the year 1991 and1995. The company decided to concentrate its markets in a variety ofnations in America, and other selected four nations namely Brazil,Canada, Argentina, and Mexico. It took advantage of entry pointsexisting in these countries (Haven, 2013).It selected Mexico as theinitial expansion plan because the country had the same businessatmosphere as the mother nation which provided easier entry.Strategically, the organization considered the entry barriers imposedby the European markets. Besides, Wal-Mart had an advantage since ithad a mature retail industry penetrating in the competitive markets.It was aware that any new access into the market would gain fromtaking market shares from the existing established business rival. Itignored Asia because the organization perceived the nation as lackingefficient domestic clients relationships thus would be a hard marketto deal with (Haven, 2103). Wal-Mart speedily established itself inMexico in the year 1991 obtaining success. Consequently, it bargainedfor joint venture agreement with Cifra resulting to the institutingof Sam`s Club in the nation`s city. Additionally, the corporategained majority holdings in the club and afterward renaming the clubto Wal-Mart de Mexico in 2001. The organization then opened other 93new stores in the year 2006 attaining 13.7% growth in the total netsales. It launched a Mexican bank account in the same year, and by2007, it had established close to 88 additional stores in Mexico.

Itis essential for any organization to take into consideration factorsthat are necessary for developing a high performance. Internal andexternal changes are at a time unavoidable by the organization, andthus they are better ensured through the integration of strategicplanning and execution. In the today`s world, the market is complexand competitive such that premeditated planning is vital for thesurvival and development of any business. The plan sufficientlydefines the corporation’s objectives and examination of theenvironmental locations for more workable strategies. Strategicplanning adequately and clearly defines organizational goals andobjectives as well as the assessment of environmentalsite for more workable strategies.

    1. Wal-Mart’s objectives

Organization’sgoals play a central role in developing the organizational policiesand establishing the allocation of the resources. Wal-Martconcentrates on creating the difference in the lives of their clientsby assisting them to save money and enhancing their life. Thecorporate strive to provide their clients with a seamless shoppingexperience in online platforms and stores. Besides, the organizationhas incorporated some environmental measures destined to increaseenergy and efficiency. Other objectives include, strengthen theirsegments by adopting a low pricing plan and providing value to thecustomers. The organization strives to attain a top position in theretail industry. In regards to the present conditions, theorganization has by now achieved the top retailer part of its vision.Its vision affirmation clarifies to the minds and hearts of theindividuals that are essential to the company such as employees andconsumers. Wal-Mart has practically modified the minds of its clientsand workers based on the financial gains. Workers acquire adequatesalaries while clients save money due the organization`s low prices.Nonetheless, the heart part of the vision declaration remains toorganization`s effective. Wal-Mart aims at increasing the number ofstores sales in various nations as well as enhancing theinternational returns and lessening expenses. Additionally, thecompany has always aimed at improving customers` experience,assortment, and access. In today`s world, consumers desire for moreproducts as well as for more assortment. The organization has overten millions of clients visiting their online platforms and mobileapps searching for information regarding product types and hence thecompany believes that by incorporating more product assortment itwill help to augment its revenue. The organization aims at developingmore seamless interactions with the clients to save their time andmoney to boost the experiences of its customers. Wal-Mart also aimsat incorporating digital and physical retail in their outlets toexceed their clients` expectation to succeed in the new ear of theretail (Barratt, Choi &amp Li, 2011). The company is built on thefirm foundation of traditional morals and integrity, and hence itvalues compliance and building of trust relationships with theclients.

3.0Product Description

Wal-Martorganization has following brands

Sam’schoice Itwas introduced in the year 1991 as a retail brand in the category offood and some of the hard products. The brand is named after theoriginator of the Wal-Mart stores. Sam`s choice constitute the bestlayer of the organization’s double-layered essential companygrocery products structure that also comprise of the significantGreat Value products of discounted –priced staple products. Incomparison to the great value goods and other country variety, Sam’sChoice is placed as a finest retail brand, and it is provided at acost competitive with the average nationwide products. Othercommodities in this product category such as cookies, snacks, frozenfoodstuffs and grocery products are manufactured by a range ofagricultural and food makers.

Greatvalue: Thebrand was introduced in the year 1993 although the products weremanufactured earlier in 1992. The range of products provided underthe Great Value make is mostly alleged to be as superior asnationwide brand provisions but are on average sold at lesser pricesdue to lower marketing and advertising costs. All great valuecommodities are manufactured in the America. This brand includeshundreds of household consumable products such as frozen vegetables,canned food items, buttermilk, biscuits, pies, cinnamon pills, trashbags and alongside other items. These brands are also sold in Canada,Mexico, Argentina, Chile, Brazil, Costa Rica as well as othernations. Wal-Mart redesigned the great Value stickers to be primarilywhite.

Equatethisbrand is often utilized for consumable pharmacy, health and beautyproducts including the shaving ointment, pregnancy tests, skin lotionas well as the over-the –counter prescriptions. Equate brand is asample of the potential of the Wal-Mart private stickers storeproducts. Equate brand went through a logo redesign and packagingmodifications same to the Great value products (Wal-Mart, 2014).

Dr.Thunderit is the type of soft drink manufactured by Walmart stores. Itsinitial name was Southern Thunder although the name later changed toreplicate its resemblance to Dr. Pepper. Wrapping has also beenrevised to accommodate the logo of the Dr. Pepper. Walmart hasresourced their retail stores make sodas from numerous firms, havingformerly solely used Cott drinks as its producer.

Parent’sChoice thebrand includes baby items such as diapers, the formula as well asother accessories. It is outlook and packaging was reintroduced inthe year 2010. The brand is produced by Wyeth a pharmaceutical firm.

WhiteStagit entails women clothing, jewelry as well as footwear. It wasformerly instituted in the 1930s as a skin wear produced in Portlandin Oregon, the firm was later procured by the Warnaco Group in theyear 1966, after that, the company experienced bankruptcy. Hence thebrand was sold to Wal-Mart in the year 2003.

Georgethe brand includes formal clothing for men, kids as well as ladies.It also comprises of dress, belts, neckties as well as belts. It wasestablished by the British retailer in 1990, and it was afterwardsold to Wal-Mart organization in 1999. It has sustained andlengthened it to other markets such as America, Canada, and Japan.The brand acquired its name from George Davies who was the formerchief stylish. The brand is sold at low prices.

Pricefirst itwas the pioneer in later 2013. The brand consists of primary groceryproducts, paper products, and trash bags. It was introduced as anexperimental product focused to mainly budget- cognizant customers.The brand is among the lowly charged products of Wal-Mart and it isavailable in all stores. The grocery products consist of brownie mix,skillet meals, and canned fruits and alongside other items.Non-grocery products include toilet tissues, paper towels as well asfood storage bags.

    1. Services description

Wal-Martorganization presents a variety of retailer services ranging from,wireless and photo lab services as well as financial provisions asdescribed below:

Photoservices: Theorganization supplies photo lab services in their outlets and onlineplatforms. Clients can give out their photographs in the variousstores for developing. Also, they can upload their digital picturesthrough the organization website. The pictures are either mailed homeor obtained at the store location. The photo lab provides thealternative to building up the prints in an hour.

Financialservices: Wal-Martprovides financial services including debit cards, credit cards,money transfer check printing as well as bill processing. Clients canbuy money orders and gift cards, request printed checks and cashchecks at $3 fee.

Wireless:Wal-Martcollaborates with services providers such as T-mobile to providewireless phone services. An example of wireless services provided bythe company includes Family Talk which offers clients with a familypolicy for unlimited texts for voice calls. The service imposes nostandard annual contract and plan begin at $45

  1. Wal-Mart’s Marketing Strategy

Marketingis an essential concept for any organizations it results to thefulfillment of need and desires via an exchange process. Marketingrequires coordination as well as effective planning to ensureattainment organization`s strategies. Marketing objectives need to bemonitored and examined periodically. A marketing strategy is a waywhereby the goals are systematically followed and achieved. Thestrategy is a plan of action designed to guide a particular firmtowards the attainment of its both short-terms and long-terms goals.In this case, marketing strategy of Wal-Mart entails marketinganalysis as well as the marketing plan as described below:

4.1Marketing Analysis

Marketanalysis clarifies how the organization understands the market forits products and put measures to effectively deal with its rivals inline with attaining extra sales. Thus, market analysis assesses thesize of the market based on the volume and value, different clientsegments and purchasing patterns, the competition, economicenvironment as well as barriers to access the market and regulation.The section comprises of the following subsections

4.2Wal-Mart’s target market

Atarget market can be defined as a part of the client that anorganization set up a plan to sell its goods or services to. Theprimary objective of every organization funding is to generate profitby making sales to its target market. A business approach to anyorganization must start with a well-structured target market. Theperformance of any service or good in the market majorly depends onfour aspects of the marketing mix, that is, location, price, product,and promotion (Capon,James &amp Hulbert, 2011).A target market can be categorized in the five primary attributesincluding demographics, geography, client habits, customer attitudesand product. Since, initiation, the major marketing approach forWal-Mart has always been providing goods and services at low costwith a focus on attaining extra sales volume at a strong profitmargin. This method is very famous with customers since it emergedlike a crusade for the less wealthy individuals in the community.

Wal-Mart`starget market consists of a set of prospective clients that itintends to sell its products. For an organization to succeed in thecurrent competitive setting, it need predict its potential customersand strive towards attaining those needs. There is a vast distinctionbetween determining the needs of the target clients and integratingmeasures to ascertain those needs are achieved. Wal-Mart primarystrategy is to assist its clients to save money by charging theirproducts at low prices. The corporate has incorporated measures toaccess the fewer wealthy persons in the community who struggle toattain its daily needs. This classification of the market is biggestin the America as well as in other nations where it functions.Besides, the policy has helped to sell the organizationinternationally. The less wealthy and average individuals in thecommunity constitute a large component of the United Statespopulation, hence allowing the corporation to achieve logically welleven in regions where its rivals find it difficult to base theirbusiness. Lots of shoppers in the United States grade Wal-Mart as theretail channel with the lowest prices on any products. In this, theorganization has been able to win the loyalty and confidence ofseveral clients over time. For instance, Wal-Mart stock Aveeno bodyproducts for less than $5 whereas other firms the same product issold for more than $5.

4.3Wal-Mart’s Market Segmentation

Marketsegmentation is the way in which a particular organization split itsclients into some the homogeneous sets. This is primarily attainedthrough executing a detailed research focus on determining the trendsand preferences of various homogeneous groups of clients. In thiscase of Wal-mart, market segmentation is used to establish where toestablish a retail channel and the type of products to stock invarious stores. The corporate utilizes two major kinds of marketsegmentation. They include, Geographical segmentation, it entailsclassifying clients on their physical regions. For instance, Wal-Martdoes sell snow products in areas such as San Diego because rarelydoes snowfall occurs on those sides of the nation (Capon, Noel, &ampJames, 2011).Secondly, the corporate uses a segmentation based on theage of the clients in a particular area. In this kind ofsegmentation, the firm supplies its channels to satisfy the needs ofits customers on their ages.

4.4Competition Analysis

Wal-Martorganization faces increasing rivalry from local, regional,countrywide and global retailers. In the North America, the principalcompetitors of Wal-Mart are departmental outlets such as Targets,commercial Mexican from Mexico and the real Canadian superior store.Wal-Mart`s Sam`s store primary competitor includes the Costco.Additionally, some smaller and medium retailers, dollar stores nowhave the potential of discovering a small place market and contendtriumphantly against Wal-Mart organization for consumer sales.

TargetCompany is the direct rival of the Wal-Mart. Target is the secondbiggest retail stores following Wal-Mart. A strategy that is oftenused by the Target Company is delivering goods at a discount and athigher quality along with providing a variety to its clients incomparison to Wal-Mart. This approach draws high-income clients aswell as producing higher revenue. Its main customer base isapproximate of $50,000 annually compared to Wal-Mart which is about $34,000 yearly. Target also focuses on expanding internationally withits attainment of about 200 Canadian Zellers retailers.

Targetis the only company consuming the retail lead of the Wal-MartCorporation. Costo is also surpassing Sam`s club by nearly allmeasures. For instance, Costco expands to 26% in sales from 2008 to2012 this growth is more than twice of Sam`s retail stores. Besides,Costco is bigger in size than Sam`s stores, with over $90 billionrevenue last year against $53%, this means the firm is developingmore speedily than Sam`s retail stores (Hoium, 2013).Wal-Mart stillfaces stiff rivalry within the global markets in nations includingGerman and South Korea. The corporate accessed into Germany market inthe year 1997 and maintained the second player after Aldi with about18 percent market share. Nonetheless, Wal-Mart exited from theGermany market in 2006 by selling its stores to Germany firm Metro.

4.5Wal-Mart’s Competitive Strategy

Wal-Mart’scompetitive advantage is to take over every sector where it hasestablished business. It quantifies its success based on the salesand authority over its rivals. Its approach is to sell its productsat low prices to outsell its competitors and expand. Typically,Wal-Mart out all measures destined to triumph over its rivals. It hasintegrated business model which focuses on establishing more stores,enlarging the existing ones as well as going up into other segmentsof retail. The Corporation has three essential beliefs or heartphilosophies that build it. They include respect for the people,service to our clients and lastly, the struggle for excellence.Respecting people is the call for treating its staffs well andmotivating them to the achievement of the organization`s goals.Employees are the heart of any organization, hence Wal-Mart valuesthem and it has incorporated measures such as training programs,health policy, and good salaries and alongside other benefits toboost their job satisfaction (Barratt,Choi&ampLi, 2011). Otherstrategies include exceeding customer anticipations by installingdoor greeters to offer hospitality. Also, various outlets of theorganization feature patriotic exhibits and themes. Also, Wal-Martengages in community aspects such as donations by supportingorganizations such as United Way in the United States. Giving back tothe community is a critical aspect of every Company since it canshelps to generate extra sales since most individuals would beassociated with such organization (Walmartorganization, 2016).Wal-Marthas established a rule known as Sundown which dictates that all staffeither management or associates must respond to the client orsupplier request in a span of 24 hours.

4.6Marketing Plan

Amarketing plan explains the organization`s strategy for attainingsales projections. It is a comprehensive plan that summarizes anorganization`s advertising and marketing approaches. It outlines thebusiness activities implicated achieving a specific marketing goalwithin a particular time framework. Wal-Mart organization hasintegrated the following components in its marketing plan along withachieving the corporation`s objectives.

4.6.1Business strategy

Wal-Martutilizes both the cost leadership and product differentiation. Theyprovide an array of products and services with the same or bestquality at a lower price compared to what its rivals offer. Wal-Martcenters on getting the means to decrease their costs and incessantlyrestructuring on how to complete their principal and support actionsto decrease the costs still further while sustaining competitivelevels of differentiation (Ball,2011).The organization’s effective supply chain management is anessential tool for assisting them to employ the cost leadership. Theyhave integrated an efficient logistics in time inventory whichenables the corporate to reduce costs from outbound logistics byestablishing enhanced fuel efficiency in their truck. (Agrawal,&amp Smith, 2015). Wal-Martalso lessens costs by purchasing in bulk where the current technologyplays a critical role in their supply chain too by enabling thisretail giant to accurately predict demand, track and forecastinventory levels, establish efficient transport paths, monitoringcustomer interactions and service response. Wal-Mart’seffective cost leadership and differentiation results to high entrybarriers for rivals

4.6.2International Strategy

Wal-Martutilizes a multinational strategy to access into global markets. Thisapproach involves treating clients of different nations differentlyenhancing productivity and profitability. It is crucial for Wal-martto take care of every sector`s diversity based on productpreferences. Hence, they operate under the &quotdistinct Stores fordifferent individuals&quot philosophy.

4.6.3Promotional techniques

Wal-Marthas owned an in-store promotions action which comprises of salespromotions via product bundling and its pricing structures. Theonline store of the organization acquires primary revenues throughclients placing online gifts. The pricing structures take on by theWal-mart augment the sales turnover (Brown, Bessant, &amp Lamming,2013). Also, the online store utilizes strategies to attract clientsby appealing sayings such as &quotgrab it before it`s done,&quotand this makes consumers make purchase decisions instantly.

5.0Operating Plan

Thisis a plan that describes the location of the business, facilities,and types of employees, the inventory management as well as thesupplier. It also outlines the manufacturing or the operatingstructure being used by a particular organization. The primarybusiness program being utilized by Wal-Mart is the Supply ChainManagement. It is an IT scheme that supports activities bycomputerizing the pathway of stock and information among company`sprocedures. Wal-Mart ascertains that all merchants are utilizingElectronic Product Codes, those suppliers who are incapable, theyassist them to obtain packages that are affordable. This ensures theclients receive their orders in a timely way. It enables logistics,production, revenue and profit, satisfaction as well as cost andprice efficiency. Another inventiveness the corporation has launchedis the go green strategy, according to the Wal-Mart, two new kinds ofthe heavy-duty truck has two distinct options fueled heavy dutytrucks. The plan has become part of the organization`s efforts to putup on its progress in establishing a more manageable trucking fleet.As an entirely cost leadership corporation, their approach is that ofa bottom-line organization (Agrawal,&amp Smith, 2015).A bottom-lineplan optimizes industrialized processes, decreases, transportationcosts and cost of human capital as well as reducing errors inprocesses.

Wal-Martutilizes business intelligence structures to forecast the needs oftheir customers and when they will they make orders. It is recentlyusing ERP to integrate customer relationship Management scheme. TheOrganization is the process of establishing SAP to strengthen theirbusiness skills. Philosophical client`s matrix ensures associationacross the board to ascertain customers` wants are fulfilled.Wal-Mart has automated in-out flows that connect them with thesuppliers. Also, Wal-Mart has come into into a partnership with P&ampGfor sustaining the stock in its stores and establishes a computerizedre-ordering structure which connects all processors between P&amp Gindustrial unit via a protectorate communication entity.

5.1Inventory Management

Wal-Mart`sinventory management entails the vendor-controlled inventory scheme.In the vendor- control inventory plan, the merchants obtain thecorporation`s information systems to make decisions on when to bringsupplies on real-time figures on stock levels. In this manner,Wal-mart reduces stock outs. The timely cross-docking enables thecompany to lessen the magnitude of its stock, thereby maintaining theCompany`s cost-minimization plans (Ball, 2011). Such strategiesassist in maximizing the organization’s performance in areas ofoperations management.


Thesection describes the Corporation`s management team, directors,investors as well as their competencies and experience. In itsanalysis, it elaborates more on the organization`s plans for hiringand training employees. In this case, Wal-Mart foundation compositionconsists of an administration set of about five CEOs of differentWal-Mart sub-divisions. The CEOs manages some vice presidents incontrol of different business sections of the parent organization.Below the CEOs and the vice presidents are other several levels ofadministration, controllers, and hourly employees. Wal-Mart is theParent Corporation comprising of five minor subdivisions that eventhough are still the components of the organization they operate asseparate firms. These branches constitute Wal-Mart International,Wal-Mart Stores, worldwide e-commerce, Sam`s Club and Wal-Mart USA.Along with addition executive management team at the control of theWal-Mart, a board of directors of directors constitutes of 16individuals who are not the staff of the Wal-Mart, watch overWal-Mart`s compliance with different laws that manages businesspractices both nationally and globally. One of the icon leaders ofthe organization includes Doug McMillon, the president, and chiefexecutive officer. Doug controls a strong administration team thatis functioning to achieve the Corporation mission. Under hisleadership, the organization is amalgamating its stores, logisticsframework and digital commerce abilities in new manners to empowerclients to shop everywhere and whenever they desire.Wal-Mart humanresource department has incorporated measures that ensure the companyhires the right employees. For instance, it has instituted newtraining and development scheme that is hoped to be effective thanthe previous one. Wal-Mart is a large firm hence needs to ensuretheir needs are of the top notch and great influence on theiremployees (Walmartorganization, 2016).Thecorporation is utilizing a combination of outside vendors and systemsit has established in an overhaul of training and development.

7.0Financial plan.

Thesection outlines the financial needs as well as the anticipatedcommercial sources. The economic analysis is essential to externaland internal user for different reasons. Internal users includeemployees and administration. They make use of the report to analyzethe corporation`s performance and to make decisions for the wellnessof the organization. External users include creditors, investors,clients, and tax authorities.

Balancesheet: It presents a picture of the company`s financial health at aparticular point of the time. A balance sheet assists in evaluatingthe financial performance of the organization. Wal-Mart`s balancesheet is presented below. Liquidity ratios of the Wal-Mart storeshave increased from 2013 to 2016. The quick ratio decreased from 2013to 2014 and improved from 2014 to 2016. This means the organizationis in a position to pay its both short-term and long-termobligations.

7.1Balance sheet






Cash &amp Short-term Investments Growth





Cash and ST investment/ Total Assets






Account Receivables Growth





Accounts Receivable Turnover






Assets Growth





Accounts Payable Growth





Total liabilities






Total Shareholders’ Equity







IncomeStatement: Itassesses the corporation’s financial dealings over a specifiedduration. It utilizes profitability ratios which show changes insales over the past fiscal years. Return on assets show efficientlythe firm is using its assets to produce profits (Quote&ampWal-Mart Stores, 2016).Fromthe below income ratio, the net income decreased by 9.2% from 2015 to2016. The company experienced a rise in the interest income during2015 by 5.96%. The EPS growth has also declined from 2015 to 2016.

7.2Income Statement






Sales Growth





COGS growth





Gross Income growth





SGA growth





Interest Expenditure Growth





Pretax Income Growth





Net Income Growth





EPS (basic ) Growth





EPS(Diluted Growth






Insummary, Wal-Mart is the retail giant operating in more than 27nations globally. The primary strength point of the corporation isthat, due to the size of the operations, the firm has the potentialof benefiting from economies of scale. Tremendous investments ininformation and technology have made the corporation to save costs ata level that place it as the cheapest alternative in the market. Costleadership has been among the best strategies for attainingcompetitive advantage in the retailer market for an extended period.The Corporation has incorporated IT resources in various stores totrack its client`s purchasing behaviors and customize the productsprovided into the specific need of that segment of the market.

Wal-Marthas been putting strategies that help it to expand as a retailer,venturing into other industries such as gas stations, electronics,groceries as well as auto maintenance. Every year, Wal-Mart findsinnovative ways to grow and attract new clients and other businesses.The corporate has adequate resources and finances that aids inincreasing its presence globally. In this case, the organizationneeds to penetrate Israel by obtaining the Blue Square which has abusiness culture same as Wal-Mart. It needs to establish jointventures or obtaining the retail firms in other nations which havedeveloped.



Agrawal,N., &amp Smith, S. A. (Eds.). (2015).&nbspRetailSupply Chain Management: Quantitative

Modelsand Empirical Studies(Vol. 223). Springer. Routledge.

Ball,D. R. (2011). Integrating Multiple Sustainability Criteria inTechnology, Innovation, and

OperationsManagement Strategic Decisions.&nbspProceedingsof the Northeast Business &amp Economics Association,27-33.

Barratt,M., Choi, T. Y., &amp Li, M. (2011). Qualitative case studies inoperations management:

Trends,research outcomes, and future research implications. Journalof Operations Management,&nbsp29(4),329-342.

Brown,S., Bessant, J. R., &amp Lamming, R. (2013).&nbspStrategicoperations management

Capon,Noel &amp James M. Hulbert (2011). Marketing Management in the21st Century. Upper

SaddleRiver, New Jersey: Prentice-Hall.

Gitman,L. J., &amp McDaniel, C. D. (2012). The future of business: Theessentials. Mason, OH:

SouthwesternCengage Learning.

Hoium,T. &nbsp(2013, October 10). &nbspIs Wal‐Mart Heading forDisaster?

Retrievedfrom The Motley Fool:&nbsp http://www.fool.com/investing/general/2013/10/10/is-&shy‐wal-&shy‐mart-&shy‐heading-&shy‐for-‐disaster.aspx

Quote,W. &amp Wal-Mart Stores, I. (2016). WalmartBalance Sheet 2016, 2015 by Amigobulls.

Amigobulls.com.Retrieved 20 November 2016, fromhttp://amigobulls.com/stocks/WMT/balance-sheet/annual

Wal-Mart(2014). “Standards for Suppliers, Dividends, and Stock splits&quotWal-Mart


Walmartorganization. (2016). WalmartFoundation.Giving.walmart.com.Retrieved 20

November2016, from http://giving.walmart.com/foundation