Business
Strategic Management and Leadership
Name of Student
Course
Professor
University
June 4, 2015
Strategic Management and Leadership
1. INTRODUCTION:
Wal-Mart Corporation, also known as Wal-Mart Stores, Inc.is a renowned Company established in the United States domestic market and the international market, as a chain of discount department stores and warehouse stores. Founded by Sam Walton in 1962, the Company was incorporated in 1969. The headquarters of the largest retailer in the US grocery market is Bentonville, Arkansas (Walmart, 2014).
Mission and Vision:
Wal-Mart carries the same mission statement and uses the same as advertisement slogans, which reads as:
"We save people money so they can live better.”
The defined purpose of the Company is taken from the sayings of the Company founder, Sam Walton, which is:
“If we work together, we’ll lower the cost of living for everyone…we’ll give the world an opportunity to see what it’s like to save and have a better life.”
2. IS THE COMPANY SUCCESSFUL?
Financial Analysis: The financial analysis of Wal-Mart Company clearly indicates that the company is successful in terms of the good will it has created and the revenue it earns.
1 Liquidity Ratios: The liquidity ratios for Wal-Mart stand as 0.88 in 2012, 0.83 in 2013 and
0.88 in 2014. This shows that the Company is in a good liquidity position (Bloomberg, 2014.).
2 Leverage ratios: The leverage ratios for Wal-Mart stand as 0.66 in 2012, 0.54 in 2013 and
0.58 in 2014. The reports indicate that Wal-Mart’s leverage ratios (debt-to-capital ratio) improved from 2012 to 2013 but from 2013 to 2014, again somewhat deteriorated (Bloomberg, 2014.).
3. Activity ratios:
The inventory ratio of the Company has increased from 44 days to 45 days and then finally to 46 days, from 2012 to 2013 to 2014. On one hand, individually it may look deteriorating, but when compared to the industry, the results are quite well (Bloomberg, 2014.).
4. Profitability ratios:
The
Name of Student
Course
Professor
University
June 4, 2015
Strategic Management and Leadership
1. INTRODUCTION:
Wal-Mart Corporation, also known as Wal-Mart Stores, Inc.is a renowned Company established in the United States domestic market and the international market, as a chain of discount department stores and warehouse stores. Founded by Sam Walton in 1962, the Company was incorporated in 1969. The headquarters of the largest retailer in the US grocery market is Bentonville, Arkansas (Walmart, 2014).
Mission and Vision:
Wal-Mart carries the same mission statement and uses the same as advertisement slogans, which reads as:
"We save people money so they can live better.”
The defined purpose of the Company is taken from the sayings of the Company founder, Sam Walton, which is:
“If we work together, we’ll lower the cost of living for everyone…we’ll give the world an opportunity to see what it’s like to save and have a better life.”
2. IS THE COMPANY SUCCESSFUL?
Financial Analysis: The financial analysis of Wal-Mart Company clearly indicates that the company is successful in terms of the good will it has created and the revenue it earns.
1 Liquidity Ratios: The liquidity ratios for Wal-Mart stand as 0.88 in 2012, 0.83 in 2013 and
0.88 in 2014. This shows that the Company is in a good liquidity position (Bloomberg, 2014.).
2 Leverage ratios: The leverage ratios for Wal-Mart stand as 0.66 in 2012, 0.54 in 2013 and
0.58 in 2014. The reports indicate that Wal-Mart’s leverage ratios (debt-to-capital ratio) improved from 2012 to 2013 but from 2013 to 2014, again somewhat deteriorated (Bloomberg, 2014.).
3. Activity ratios:
The inventory ratio of the Company has increased from 44 days to 45 days and then finally to 46 days, from 2012 to 2013 to 2014. On one hand, individually it may look deteriorating, but when compared to the industry, the results are quite well (Bloomberg, 2014.).
4. Profitability ratios:
The
References: Business Model Evaluation: Quantifying Walmart’s Sources of Advantage. (2014) (1st ed.). CNBC (Television network), Films for the Humanities & Sciences (Firm), Films Media Group. (2009). The New Age of Walmart. New York, NY: Films Media Group. Corporate.walmart.com,. (2014). Walmart 's 10 Rules for Building a Business. Retrieved 21 November 2014, from http://corporate.walmart.com/our-story/history/10-rules-for-building-a-business Crain, D. W Crain, D., & Abraham, S. (2014). Using value-chain analysis to discover customers’ strategic needs(1st ed.). Fortune.com, (2014). Retrieved 19 November 2014, from http://Wal-Mart: Staying on Top of the Fortune 500 A Case Study on Wal-Mart Stores Inc. Joseph, L. (2013). An empirical mega-analysis of retail locations: Value platforms, real-estate maturity, and deployment decisions. Nyakreal, E. (2013). SWOT and PEST Analysis of Wal-Mart - Top Best updates. Top Best updates. Retrieved 21 November 2014, from http://kenyayote.com/swot-and-pest-analysis-of-wal-mart/ Roberts, B. R., & Berg, N Walmart, (2014). Retrieved 19 November 2014, from http://corporate.Wal-Mart.com/our-story/history/history-timeline Wang, S., Zhang, J., &Ao, Y Yang, F., &Linowes, P. (2014). Strategic Analysis of Wal-Mart (1st ed.).