section will examine Wal-Mart ’s company strategy in several sections. Three elements of successful strategy formulation and a fourth element‚ which exemplifies the implementation process of company strategy‚ will be looked at. Followed by this‚ an analysis of key factors contributing to this strategy will be detailed. These include looking at Wal-Mart ’s competitive strategy‚ the CEO ’s leadership‚ and company strategy strengths and weakness assessment. The material used to analyze Wal-Mart strategy
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9-704-027 REV: J U L Y 2 0 ‚ 2 0 0 4 G U N N A R TRUMBULL LOUISA GAY Wal-Mart in Europe "Never resist change.. . We have to be able to place a store or club side-by-side with the competition and beat them every time. " -David Glass‚ Director and Chairman of the Board‚ Wal-Mart1 "In Germany‚ we know how retail is spelled." - Holger Wenzel‚ Director‚ German Retail Federation Introduction "What are the 10 worst things we can do to fail?"2 This was how Lee Scott‚ CEO of Wal-Mart
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The financial ratios are: Liquidity Ratio- The firms ability to satisfy the short term obligations. (Gitman‚ 2007) Activity ratio- That measure the speed with which various accounts are converted into sales or cash‚ inflows or outflows. (Gitman‚ 2007) Debt ratio- That measures the proportion of total assets financed by the firms creditors. (Gitman‚ 2007) Profitability ratio- measures enable the analyst to evaluate the firms profits with respect to a given level of sales a certain level of assets
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transactions in short term period may give significant impact in future if the responsible managers does not concern about it. Thus‚ it is actually has the same essential with financing or investing activities in longer term period. Working capital measures how much in liquid assets a company has available to build its business. The number can be positive or negative‚ depending on how much debt the company is carrying. In general‚ companies that have a lot of working capital will be more successful
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5.0 A comparative analysis of Airbus and Boeing 5.1 Airbus Group 1. ROCE = 100 Year 2012 | Year 2011 | = 15% | = 12.8% | Return on Capital Employed (ROCE) allows a firm to identify the percentage of profit derived from the capital that was used to run the business. Therefore‚ ROCE can be used to assess the profitability of the business in a given year. Studies of the Airbus Group’s annual report and financial statements therein‚ have revealed that the company has investments in associates
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Current Ratio Interpretation From the calculation of the current ratio it is evident that the company’s current ratio for the year 2010 is 1.30:1 ‚2011 is 1.80:1‚ 2012 is 1.54:1 and 2013 is a 1‚53:1‚ that is company’s current assets in year 2013 was Rs. 1.53 for every 1Re of current liability‚ while in the year 2012 the current asset was Rs 1.54 Re of its current liability‚ while in the year 2011 the current assets was Rs 1.80 Re of its current liability‚ and while in the year 2010 the
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443/66‚504 = 9.690% Net profit margin is an indicator ``of profitability‚ computed as net income divided by
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dividend by the number of common stock outstanding Dividends per share (DPS) – portion of the earnings per share paid to stockholders 3. Statement of Retained Earnings 4. Statement of Cash Flows 5. Notes to Financial Statements CASH FLOW ANALYSIS 1. Operating flows – cash inflows and outflows directly related to the production and sale of a firm’s products or services 2. Investment flows –
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SWOT Analysis: Wal-Mart Inc. A. Internal Environment Strength Weakness Remark I. Management Infrastructure + + + Wal-Mart has been able to install and maintain a management team that is performing superiorly over its entire existence. This is foremost a consequence of the remarkable leadership abilities of its founder Sam Walton. He is often described as having been a very charismatic figure. The challenge that lies ahead is to perpetuate this spirit and not to become an ordinary organization
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Interpretation of the Ratios 1) Current Ratio-It is a test of solvency or of short-term financial strength of a concern. It is an index of working capital and shows the ability of the concern to meet its obligations and also the capacity to carry on effective operations. Generally‚ if current assets are twice that of current liabilities‚ the concern’s working capital position is considered to be satisfactory. 2) Quick Ratio-It shows the amount of cash available to meet immediate payments. Stock-in
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