O Price Wal Mart Stores example essay topic

Background Information Wal-Mart Inc. Corporate Headquarters. 702 Southwest 8th street Bentonville, Ar 72716-8001 Top Executives. President and CEO: H. Lee Scott.

Chairman of the Board: S. Robson Walton. Chairman, Executive Committee of the Board: David D. Glass. Chief Financial officer & Executive Vice President: Thomas M. SchoeweIndustry. General Merchandise, SIC code: 5399 Divisions. Wal-mart stores. Sam's Club.

International Major Products. Hardware. House-wares. Auto Supplies.

Small Appliances. Domestics. Grocery. Candy. Tobacco. Pharmaceuticals.

Electronics. Health & Beauty Aids. Sporting Goods. Toys. Stationary. Jewelry.

Shoes. 1-hour Photo Major Competitors. Target. Sears Roebuck & Co...

Kmart. Costco Wholesale Most Successful Wal-mart Brands. Ol' Roy. Great Value'O. Equate " OF inancial AnalysisO Profitability Wal-mart experienced sales growth of 20% in the fiscal year of 2000. This impressive increase is a direct result of the companies expansion program.

Wal-mart has also acquired a few international stores, which are doing very well and adding to the companies' profit. As the table shows wal-mart is no stranger to climbing profits, in fact wal-mart has managed to increase sales by no less than 12% (typically more) each year for 11 consecutive years. In 2000 wal-marts liquidity dropped off drastically, this is on account of their expansion projects. They are willing to take some short-term risks, because they are very confident it will pay off down the road. A lot of wal-marts' money is being pumped into the super centers and also financing the over seas expansion. The company has plenty of assets to cover their overall debt.

Wal-mart continues to widen the gap between total assets and overall debt, the companies leverage has been increasing for 5 years running. By keeping their assets high and debt low wal-mart is assuring increased profits and happy shareholders for years to come. Wal-marts' inventory ratio has been on the rise for at least five years. As wal-mart grows and gains experience it creates a very strong base for it self. It is one of the few companies today that actually learns from and builds on its mistakes. Wal-marts' products cover the entire spectrum, their products include; Hard goods (hardware, house-wares, auto supplies, small appliances) soft goods / domestics, grocery, candy, tobacco, pharmaceuticals, electronics, health and beauty aids, jewelry, shoes, and 1-hour photo.

Wal-marts' top performers are hard goods and soft goods / domestics. The general merchandise industry has a very large target market on account of their cornucopia of products. Wal-mart prides itself on its friendly atmosphere. Every wal-mart store has an associate in the front of the store known as a greeter. This person's sole purpose is to say hello and smile to anyone entering the store. Wal-mart also has another rule that's been in place since the company opened; it's called the Sundown Rule.

The sundown rule is in place so every customer receives the best service possible. All associates are expected to handle any and all requests by the end of the day, this habit eliminates any procrastination that may take place. O Price Wal-Mart stores operate on an "Every day low price" philosophy. Wal-mart is able to maintain their low price structure through very careful expense control. Wal-mart also reduces cost by cutting back on advertising, circulars in particular.

Wal-marts' competitors run 50-100 circulars per year, wal-mart only produces 12-13 major circulars. O Distribution Wal-mart has over 1801 discount stores, 721 Super-Centers, and 463 Sam's Clubs, in the United States alone. Wal-mart has expanded to become an international company. Worldwide wal-mart has 2373 discount stores, 1104 Super-Centers, and 512 Sam's Clubs. Promotion and AdvertisingAnalysisManagement AnalysisO Structure Wal-mart Inc. is organized into three major divisions, International, Sam's Club, and Wal-mart. Tom Coughlin runs the wal-mart division, which is the largest and the oldest of the three.

Tom Grin n is in charge of the Sam's Club division, which takes second. Lastly John Me nzer oversees the international division. Over seeing all the divisions and all things that go on with Wal-mart Inc. is the President and CEO, H Lee. Scott, and Chairman of the board, S. Robson Walton. Lee Scott started off working for a trucking firm that serviced wal-mart, now he is the CEO. The company is structured in such a way that there is opportunity for all employees, especially those who show a hard work ethic and tremendous leadership just like Lee Scott.

O Training and Development Wal-mart is truly a master of their business. Any company that can increase profits over the preceding year by a large margin, and do it for 11 consecutive years must be doing something right. It all starts with the people, it is virtually impossible to run a successful business if your employees are not thoroughly trained. Wal-mart realizes this and that's why they invest so much time and money in their training program. Wal-mart holds a local and a regional training program twice a year. Top managers are required to attend.

The managers that attend these seminars are expected to take what they " ve learned and implement it in the individual stores. Wal-mart knows that complacency will eventually kill any organization, and that is why they are 100% committed to the continued training of their ever-important associates. "The idea we drive in the company is Continuous Improvement, these two words describe what the company is all about" (Glass, David former CEO) Teamwork and Innovation Chief Executives Wal-mart has a new CEO this year, and his name is H. Lee Scott. Scott who will be only the third CEO in the company's history is expected to take wal-mart to new heights. (Glass) David Glass recently stepped down as CEO after a very productive 12-year career. During Glass's 12 years the company grew from $16 billion to $165 billion.

(Wal-mart annual report 2000) David feels that in order for the company to reach the next level a new generation of management must evolve..