Business Analysis
Business Analysis Part Three In the past few years Wal-Mart has been influenced by economic trends that affect the business. The company has used different strategies that have helped them adapt to the changing markets around the world such as the recession. The company has also implemented different tactics to help them achieve their strategic goals. The human resource management has been able to help Wal-Mart achieve its business goals. As an investor I would want to invest in Wal-Mart.
Economic Trends Wal-Mart just like all other stores has been affected by today’s economy. Unfortunately, instead of Wal-Mart being affected negatively by the economy they have been affected by it in a positive way. What has helped Wal-Mart during this time is the guarantee they offer, of offering the lowest prices. Wal-Mart is so convinced they offer the lowest prices and if they are not they will price match the competition as long as the customer brings in the sales advertisement from the competitor. “Walmart announces more steps to re-establish its one-stop shopping convenience and deliver low prices every day, on everything. The retailer is reinvigorating its price leadership promise, bringing back products its customers have asked for and simplifying its ad match policy.” (http://news.walmart.com/news-archive/2011/04/11/walmart-reinforces-its-commitment-to-deliver-low-prices-every-day-on-everything) As the prices everywhere are going up, Wal-Mart is doing everything the company can to keep the lowest prices possible so that the customer can save money. If the customer gets to save money, then the customer will continue to shop at Wal-Mart making a profit for Wal-Mart. In a time when most companies are decreasing in sales or barely making a profit, Wal-Mart has been able to increase the net sales of the company by 5.9% to $443.9 billion and has been able to return $11.3 billion to the shareholders of the company through the dividends and share repurchases.
Strategies
Economic Trends Wal-Mart just like all other stores has been affected by today’s economy. Unfortunately, instead of Wal-Mart being affected negatively by the economy they have been affected by it in a positive way. What has helped Wal-Mart during this time is the guarantee they offer, of offering the lowest prices. Wal-Mart is so convinced they offer the lowest prices and if they are not they will price match the competition as long as the customer brings in the sales advertisement from the competitor. “Walmart announces more steps to re-establish its one-stop shopping convenience and deliver low prices every day, on everything. The retailer is reinvigorating its price leadership promise, bringing back products its customers have asked for and simplifying its ad match policy.” (http://news.walmart.com/news-archive/2011/04/11/walmart-reinforces-its-commitment-to-deliver-low-prices-every-day-on-everything) As the prices everywhere are going up, Wal-Mart is doing everything the company can to keep the lowest prices possible so that the customer can save money. If the customer gets to save money, then the customer will continue to shop at Wal-Mart making a profit for Wal-Mart. In a time when most companies are decreasing in sales or barely making a profit, Wal-Mart has been able to increase the net sales of the company by 5.9% to $443.9 billion and has been able to return $11.3 billion to the shareholders of the company through the dividends and share repurchases.
Strategies
References: 1) Momentum, Discipline and Investment are Driving Growth, Leverage and Returns. Mike Duke, Presidnet & CEO, Wal-Mart Stores, Inc. Opening Remark. Duke, Mike. October 10, 2012. Retrieved from: http://news.walmart.com/executive-viewpoints/momentum-discipline-investment-are-driving-growth-leverage-returns 2) http://news.walmart.com/news-archive/2011/04/11/walmart-reinforces-its-commitment-to-deliver-low-prices-every-day-on-everything 3) http://news.walmart.com/news-archive/2012/10/10/walmart-ceo-says-combination-of-momentum-discipline-investment-driving-growth-leverage-returns http://corporate.walmart.com/our-story/leadership/executive-management/mike-duke