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Tracking an International Business

Wal-Mart Stores, Inc.
by

Tiffany Bondoc

on 13 January 2017

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Transcript of Tracking an International Business

Tracking an International Business
Wal-Mart Stores, Inc.
World's largest retailer
Provides retail and services at everyday low prices
Wal-mart Global Headquarters: 702 S.W. 8th St. Bentonville, AK
Canadian Wal-Mart Corporation:1940 Argentia Road, Mississauga, ON
Employs 2.3 million associates worldwide
Approximately 11,500 stores in 28 countries
Operates under three categories: Walmart U.S., Walmart International and Sam's Club
Introduction to the Business
Founder: Sam Walton
Foundation of company was "The Lowest Prices Anytime, Anywhere"
First Walmart made on July 2, 1962
Slowly grew in terms of profit and popularity, surpassing competitors
CEO: Carl Douglas "Doug" McMillon since 2014
Background Information
Balance Sheet
needs to introduce a new concept or define a vision for the future
Have fallen behind in the e-commerce race
traditional retail store sales declined
less Black Friday, more Cyber Monday
Closing 269 stores
doubling down on employees (need to show humanity towards workers)
sales decreased slightly from previous quarters-decline of $1.9 billion
stores look tired, affects shopping experience and reputation with consumers (lost flair)
new era of retail
major partnerships and investments in technology
scan and go system with barcode on new app
raised minimum wage from $9/hr of $10/hr
Partnership with Lyft and Uber
buy online and have option for delivery for an extra $7 to $10 or go to pick up kiosks
Developing a drone and smaller stores
Improved eatery
upgraded designs for a cleaner/sleeker look
world's largest physical store system to an online one (bring enthusiasm)
Future of Walmart
Products and Services Sold
Total Revenue: $482,130.00 USD or $640,495.24 CAD
Gross Profit: $121,146.00 USD or $160,938.83 CAD
Income Statement
Tiffany Bondoc
Mr. Lobo
09/01/2017

All Departments
Walmart has a total of 13 departments catering to a limitless demographic
Products range from electronics to clothing to pharmaceuticals
From several brands like Samsung, Gerber, Kellogg's, Dove, Disney, KitchenAid, etc.
Financials
S.W.O.T Analysis
Strengths
Powerful in being the largest retailer
Huge quantity of operations and efficiency of supply chain with technology
Strong market power (value for less and convenience in having multitude of products in one store)
International presence with stores in 28 countries, expanding income sources and experience (i.e. purchasing of ASDA in the United Kingdom or having Walmex in Mexico)
Weaknesses
Since the Walmart business is so large, the company is left with spots of weak areas considering the expansive span of control (lack of detail)
Due to the selling of a wide range of products, the products may not be as accommodating as more focused competitors
Walmart is global, but has not extended to all that many countries (Is 28 countries enough?)
According to the everyday low prices mentality, there are slim profit margins, making them focus on selling volumes of products
Idea can easily be replicated
Opportunities
Work with, take over or adopt relationships with other retailers around the world, preferably in European countries
Expanding into more developing countries in order to improve their economy
Making more locations in a variety of sites to be more accessible (i.e. large supercentres and malls)
Improvement in quality as the large amount of products sold at a low price raises concerns
Threats
Being such a large company comes with competition locally and globally
With similar companies like Costco Wholesale Corporation, Dollar Tree Inc., Sears Holdings Corporation, and Target Corporation
Due to Walmart being international, the corporation is subject to global political problems
Since the cost of manufacturing products have decreased in recent years because of technology and/or the use lower paid workers around the world, competition arises in regards to prices
Conclusion
Current Assets
Properties
Cash and Cash Equivalents
Receivables, Net
Inventories
Prepaid Expenses and Other
Current Assets of Discontinued Operations
Property and equipment, excluding property under capital lease and financing obligations, net
Property under capital lease and financing obligations, net
Non-Current Assets
Goodwill
Other assets and deferred charges
Electronics & Office
Movies, Music & Books
Home, Furniture & Appliances
Home Improvement & Patio
Clothing, Shoes & Jewelry
Baby & Toddler
Toys & Video Games
Food, Household & Pets
Pharmacy, Health & Beauty
Sports, Fitness & Outdoors
Auto & Tires
Photo, Gifts & Personalized Shop
Party Supplies & Sewing
Services
Other services besides retail include: photo and wireless service, as well as financial, clinical and health insurance aid
Photo Services
Pharmacy
Financial Service
Wireless Service
offers photo lab services inside stores and online
Develops photos
store kiosk
online to pick up or deliver
service in under an hour
$4 prescription program introduced in 2006
offers monthly prescriptions for pickup in-store or mail order services
list of over 300 generic medications available
$4 in-store or $10 for a 90-day supply
result in customer savings of a total $3 billion
credit cards, debit cards, bill payment, money transfers, check cashing and check printing
debit cards available in-store or online
money transfer programs through Moneygram for $4.75
purchase money orders and gift cards, send bill payments, order printed checks and cash checks for everyday low prices
Partnered with T-mobile
wireless phone service
family plan for unlimited text and voice calls
offers no contract at $45
Share Price:
5 Year Share Price Chart
Stock Exchange:
New York Stock Exchange (NYSE)
WMT shares are exchanged on the NYSE
Share price in Jan. 2012: $59.00
Current share price: $69.06
Percentage of increase: 17.05%
Significant News Moments
1970
Walmart became a publicly traded company. The first stock was sold at $16.50 per share.
1972
Walmart was listed on the New York Stock Exchange (WMT) with 51 stores and sales of $78 million.
1980's
The first Sam's Club opened, serving small businesses and individuals, and the first Walmart Supercenter opened. Walmart reached $1 billion in annual sales, faster than any other company at that time.
1990
Walmart became the U.S's #1 retailer. Walmart Supercenter redefined one-stop shopping, while going international.
1992
Sam Walton received the Medal of Freedom stating the company’s mission of saving people money so they can live better. He passes away at 74.
2005
Contributed $18 million and sent 2,450 truckloads of supplies to victims of hurricanes Katrina and Rita.
2015
Made a $2.7 billion investment for 2 years in its U.S. workforce, raising minimum wage to $9/hr, providing new training programs and flexibility in worker schedules. Notable peak in share price $89.35.
Total Assets: $199,581.00 USD or $265,137.37 CAD
Total Liabilities: $119,035.00 USD or $158,134.43 CAD
Total Equity (Assets-Liabilities): $80,546.00 USD or $107,002.94 CAD
Therefore, I recommend that one would hold stocks in Walmart
Walmart is the biggest retailer in the world, and its competition is far behind, so there is not much concern of another competitor taking its place. Walmart is a household name and people aren't going to stop going there anytime soon
The stock price has been on a growing trend since Walmart's entry into the market, with the only notable drop being on November 13, 2015. However, that is due to Walmart increasing employee wage and training, so that the customer service will improve in the future
Despite the drop in stock price in November 2015, Walmart has currently bounced back and has increased the price back up to about $69
Walmart had also announced their drop in prices for their goods and services in order to accommodate for the drop in stock price. This has led to their stocks of competitors like Target and Amazon to decrease, showing that Walmart wasn't the only retailer to drop
Walmart's expansion into other countries, along with possibly looking into acquiring other types of businesses and services, could potentially indicate a boom in stock price in the near future
Sources
Forbes
Business Insider
The Street
http://www.forbes.com/sites/adamhartung/2016/02/24/the-10-telltale-signs-that-the-future-looks-bad-for-walmart/#6c5864373f1d
http://www.businessinsider.com/walmart-reimagines-the-future-of-retail-2016-6
https://www.thestreet.com/story/13595236/1/walmart-goes-to-war-with-target-to-create-superstore-of-the-future.html
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