Walmart Total

8/13/2019 Walmart Total

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CONTENTS

I- A.s*ra$*

II- /a"0Mar* E+1"o&!! S!"!$*on, Trann2, and D!!"o1+!n*

III- /a"0Mar* Hu+an R!sour$!s P"annn2

I3- /a"0Mar* P!rfor+an$! 4 Co+1!nsa*on Mana2!+!n*

3- /a"0Mar* 5 S*ra*!2& 4 S*ra*!2$ C%an2!s

3I- /a"0Mar*6 A S*ra*!2$ and Fnan$a" Su++ar&

3II- R!$o++!nda*ons

3III- Con$"uson

I7- R!f!r!n$!s


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I- A.s*ra$*

The primary objective of this paper is to examine the Human Resources Planning

and Strategic Change for Wal-art! the "orld#s largest retailer$ %n this context! the

authors analy&e the employee selection! training and development of the company as "ell

as studying the performance ' compensation management! strategy evolution and

financial status of the firm$ ( SW)T (nalysis is also included in the authors# "or* in

order to support their financial research of Wal-art$

This paper concludes "ith recommendations and conclusions and the article finds

that the business has a huge gro"th potential and entry to iddle-+ast mar*ets such as

%srael can be ta*en into consideration$ (ccording to the authors! Wal-art has the

ade,uate financial strength to ta*e ris*s on the international mar*ers arena$ (dditionally!

although the company is very "ell *no"n "ith its ac,uisitions strategy! joint ventures

and strategic partnerships are also recommended as alternative strategies for the firm by

the authors$ inally! despite some unethical issues and concerns about social

responsibility! Wal-art still seems to be a good buy for the investors "ho are interested

in the company#s stoc*s$


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II- /a"0Mar* E+1"o&!! S!"!$*on, Trann2, and D!!"o1+!n*

Wal-art has many *ey factors involved that ma*e it such a successful company$

Ho"ever! one element they have is one that every company has and this includes

employee selection! training! and development$ These three factors together create the

staff that ma*es the customers returning time and time again$ Without the selection! you

"ouldn#t have the training! thus! you "ouldn#t have the development so all these things

are needed to ma*e a competitive staff$

+mployee selection is an important factor to Wal-art "hen they are hiring their

staff$ .iversity is the *ey thing they thin* of in hiring someone and choosing someone to

join the multi-million dollar company$ /)ur commitment to diversity remains strong and

as part of our continuing efforts to become a leader in diversity "e "ill! continue to

ensure that our hiring represents the diversity of our communities! and gro" the

percentage of "omen and minorities in our management ran*s$0 1Wal-art$com2$ This is

an interesting fact because one of the main complaints "ith Wal-art today is ho" they

mistreat and underpay their staff$ Wal-art also prides itself not only in diversity! but

also in young employment$ %t seems as though they li*e young eager staff$ /We engage

in job fairs! college recruiting! and internships to increase the diversity of our candidate

pool for open positions throughout the company$ We have increased the company3s

diversity considerably through our external recruiting efforts$0 1Wal-art$com2$ That is a

great opportunity for young job hunters to get their feet "et and experience in the

business field$


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The next step in the employment process is the employee training and

development$ Training is a costly and a very time consuming process in a business$

Companies li*e Wal-art pay their employees to be trained! and they pay the person "ho

is training! this is li*e paying double the staff needed$ When the hiring process starts and

it comes time to pic*ing out candidates! Wal-art ma*es sure they have the right ones$

They do not "ant to "aste time and money Wal-art has just recently come up "ith a

"hole ne" training and development system that is supposed to be effective and much

more efficient then their old one$ /Wal-art gre" its training and development program

the "ay it gre" the corporation4 from store level up$0 1Spei&er! P$ 52 Wal-art is such a

large organi&ation that their training and development needs to be top notch and have

great influence on their staff$ (n author of Wal-art and a "or*er said! /Their training

and development is ma*ing a significant commitment and it "ill be a radar screen for all

other organi&ations$0 The company is using a combination of outside vendors and

systems it has created on its o"n in the overhaul of training and development$ 1Spei&er!

P$ 52 Their ne" method of training "as brought to them by 6i*e$ The process goes

something li*e this! /+ach segment is three to seven minutes long and gives the

associates the basic *no"ledge they need about various products$ (s ne" products are

introduced each season! the training is updated and 6i*e customi&ed the program for each

retailer$ (ssociates are then ,ui&&ed at the end of the training and as*ed for feedbac*!

"hich gets sent bac* to managers and they are able to adjust things if needed$0 1ar,ue&!

P$ 52 This process is an outstanding format7 internet is the ne" "ay of communicating

and training$ This type of training is called e-training and is definitely sho"n to be

efficient$ )ther companies such as Cingular and 6i*e have ta*en part in this form of


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training as "ell$ )ften times "hen ne" associates learn ne" information they have to go

bac* and as* a lot of ,uestions and this ta*es a"ay from getting things done$ Wal-art

decided to eliminate a step and have this bro*en into the three segments in hopes of

learning "hile "or*ing$ Wal-art finds that if you learn one thing at a time and you

learn in correctly! you "on#t forget and you can learn at a faster rate in the end$

Wal-art has a reputation of not treating their employee#s right and not being as

up to date "ith technology as they could be$ Wal-art is sho"ing improvement "ith

their technology by using this e-training$ %t seems they are beginning to touch base "ith

their consumers as "ell as their employees$ ( lot of businesses have gone global7

schools have started having classes online! and much more$ 8y Wal-art having one of

the ne"est forms of training "ill definitely increase their *no"ledge and attract a lot of

other businesses and also stresses ho" they are staying in tact "ith the latest trends!

"hich is imperative in the businesses "orld$ This is a step in the right direction for Wal-

art and may ma*e them even bigger than they already are$

III- /a"0Mar* Hu+an R!sour$!s P"annn2

Than*s to an onslaught of class-action gender and "age-discrimination la"suits!

negative press and criticism from unions! Wal-art in 599: embar*ed on a major

"or*force management reorgani&ation$

Wal-art! instead of just having ;99 executives in its 8entonville head,uarters to

"atch over everything! developed a plan to hire more than


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/We had no more than ;99 field human resources managers "ho all "or*ed from

8entonville$ We "ere more centrali&ed in terms of HR support and "e did not have

enough HR support in the field$ We have created five divisional HR leaders! 5= regional

HR directors and


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)ne of the biggest criticisms of Wal-art is that they do not pay their employees

a fair "age$ ost of Wal-art#s critics say if the company paid better compensation and

benefits! they "ould have an easier job of attracting and retaining talent$

/We are doing a good job of addressing both compensation and benefits$ We "ant

to be an employer of choice! and to do that you need to be mar*et-competitive "ith

"ages! "hether the "or*ers are hourly or in management!0 says Sue )liver! senior vice

president of the Wal-art Stores .ivision$ /or our hourly associates "e have an annual

revie" process "here "e ta*e an outside vendor! li*e He"itt (ssociates or the Hay

Aroup or other compensation firms$ They help us analy&e by mar*et and by store "hether

or not our start rates are mar*et-competitive$0 1Wor*force$com2$

(fter much criticism that Wal-art is *no"n for its lo" "ages! Wal-art

announced in (ugust 599B they "ere raising starting pay at ;599 of its stores by an

average of B$ The increase "as instituted after conducting a "age survey that suggested

increases in "ages "ere needed to remain competitive as an employer$ /These start rate

changes! combined "ith our competitive benefits li*e affordable health care! :9;D and

profit sharing! and annual incentives for our hourly associates! ma*e us an even more

attractive employer! "hich is "hy people stand in line to apply for Wal-art jobs!0 said

Susan Chambers! executive vice-president of the Peoples .ivision for Wal-art Stores$

)ne of Wal-art3s major recruitment goals is to ensure a diverse "or*force by

attracting ,ualified candidates from differing$ Wal-art3s has developed a EPeople (ction

PlanE! "hich sets forth policies for associates! managers! and supervisors to base all

employment decisions on the principles of e,ual employment opportunity$ The plan

re,uires the recruitment! hiring! training and promotions of all positions in the company!


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along "ith all personnel decisions such as compensation! benefits! training! demotion and

termination! "ill be done "ithout regard to race! color! religion! gender! national origin!

age! or disability$ 1Wor*force$com2$

Fnderstanding that recruiting ne" talent is vital to meeting the demands of

continuous gro"th! Wal-art conducts job fairs! college recruiting! and internships to

increase the candidate pool for open positions throughout the company$

To help "ith recruiting for management positions! Wal-art directs t"o

internship programs designed for 8( students$ )ne is a ;5-"ee* internship for first-

year 8( students that assign the intern a specific project related to the needs of the

company$ The other is a six-month internship that is intended for second-year 8(

students$ The program consists of one-month rotations through various divisions that "ill

prepare student for management positions "ithin Wal-art stores$

Wal-art believes that promoting from "ithin is more effective because internal

candidates have higher success rates in their ne" positions due to familiarity "ith the

corporate culture$ 8ecause of this! Wal-art has ta*en up a promote from "ithin

philosophy! citing seventy-six percent of Wal-art store management team started at

Wal-art in hourly positions$ 1+sight$org2$

I3- /a"0Mar* P!rfor+an$! 4 Co+1!nsa*on Mana2!+!n*

Performance management and compensation management have been the center of

controversy for Wal-art associates and critics ali*e$ The issue seems to stem from the

large and diverse pool of associates themselves$ There are so many stores located


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throughout the country and so many employees 1an estimated ;$< million in-store2$ The

vast range of re,uirements for pay and benefits is inevitable$ Wal-art itself reali&es the

need for a comprehensive list of options for its employees$ Fnder the Career G 8enefits

section of its "ebsite! the company boasts having a /"ide range of choices in our benefits

pac*age0$ 1Wal-artstores$com2$ To more easily navigate through these choices! they

have divided the benefits into four categories4 y oney! y Career! y Home! and

y Health$

y oney! y Career! and y Home focus on pay! compensation! incentives!

living expenses! education and advancement opportunities "ithin the organi&ation as

managed through performance and compensation$ Historically! there has been some

dispute regarding the level of pay in "hich Wal-art starts off its ne" hires$ The range

starting pay is = to ;5 an hour for store associates! averaging around ;9 an hour$ The

company does ac*no"ledge the base pay may not be high! but it declares its incentive

programs can offset "ith financial compensation and recognition of high performance$

1Wal-artstores$com2$ There are incentive programs that recogni&e and pay for team

players based on the performance of the company$ They offer discount cards and free

membership to Sam#s Club$ The company even provides financial education to its

employees to help manage their money! debt! credit! and budgets$ (nother positive

compensation is vacation pay! "hich can accumulate for associates based on ho" long

they have been employed "ith Wal-art$ This is also an example of the company

promoting itself as a career opportunity! not just a temporary job$ The y Career

category describes advancement opportunities "ithin Wal-art and describes ho" they

promote development through training programs! internships! and even shareholders#


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meetings and company functions$ 1Wal-artstores$com2$ The latter t"o are "ays for

associates to learn more about the company and industry! something that goes beyond a

single store location! product! and pricing$ Self development is also important to the

company as they promote their employees continuing "ith their educations$ y Home

describes benefits as including scholarship programs! education reimbursement! and even

a program "hich partners Wal-art Stores! %nc "ith colleges and universities offering

on-line courses$ 1Wal-artstores$com2$ The company also offers programs to assist "ith

dealing "ith personal or "or* related issues for employees and their family members!

child care discounts! and a program for long-term service in "hich tenured associates

"ho leave the company can still be eligible to continue receiving some benefits$

(ll in all! the company seems to reali&e the diverse needs of its associates! ne"

hires! and possible applicants$ %t outlines and promotes 1though! "ith little detail2 ho" it

recogni&es performance and provides financial compensation to those "ho are eligible

either by need or via an a"ard program$ Recently! one set of associates rallied against

increasingly strict penalties for individuals "ho did not follo" the scheduled shifts$

+mployees at a Wal-art Super Center in lorida protested outside of the store claiming

the establishment "as /cutting bac* on full-time hours! capping "ages and forcing them

to "or* increasingly irregular schedules0$ 1Wall Street >ournal2$ The policy itself

penali&es employees per number of unexcused absences and further re,uires individuals

to call a ;-I99 hotline if the absence is due to illness$ Critics believe this is another

attempt by the company to deter individuals "ith chronic health conditions from applying

or further push currently employed associates out of the company$ This situation

exemplifies a public impression of Wal-art#s performance management tactics$


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The final category listed under benefits is y Health$ This describes the common

array of health benefits such as medical! dental! life! (.'. 1(ccidental .eath and

.ismemberment2! and disability insurance$ %t also offers a fe" not-so-common benefits

such as business travel accident insurance! Starbridge! "hich is a medical plan available

to employees "ho are "aiting on their eligibility for coverage or "ho are temporary

employees! and (flac Cancer %nsurance$ 1Wal-artstores$com2 .espite "hat seems to be

a some"hat normal if not diverse collection of healthcare benefits! this category tends to

be at the center of the Wal-art compensation controversy$ The company is currently

under scrutiny for its ne" /Jalue Plan0 healthcare pac*age "hich promotes lo"er

premiums! but much higher deductibles$ 1Wall Street >ournal2$ (gain! critics of the

company feel this program is a "ay to cut health-care related expenses as "ell as repress

sic*ly individuals from applying$ Wal-art#s retort to this criticism is that it is an option

to benefit those associates "ith fe" medical needs by enabling them to save money

through lo"er premiums$

3- /a"0Mar* 5 S*ra*!2& 4 S*ra*!2$ C%an2!s

irst of all! "e have to mention in the beginning that Wal-art implements

several strategies to succeed in today#s competitive business "orld$ %n other "ords! Wal-

art has a "ide range of strategies "hich "ere analy&ed by us in detail$

)ne of them is that! Wal-art has established a strong retail brand and a

reputation for value of money as a component of its strategies$ oreover! it has

convenience and a "ide range of products all in one store$ 1ar*etingteacher$com2$


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Then! Wal-art implements the strategy of aggressive gro"th$ The company has

gro"n a lot in the recent years and has even experienced global expansion$ or instance!

if you can remember the Wal-art#s purchase of the Fnited Dingdom based retailer

(S.(! you "ill see that our argument is proved$

(fter that! Wal-art involves its use of information technology to support the

international logistics system$ This "ay! the firm can observe ho" individual products are

performing country-"ide! store-by-store at a glance$ 8y the "ay! %T is also advantageous

for Wal-art#s efficient procurement$

(dditionally! Wal-art implements a focused strategy for human resource

management and development$ The employees are really a *ey factor for Wal-art#s

business and the company invests time and money in training the "or*ers! as "ell as

retaining a development team$

ollo"ing that! Wal-art has a strategy of selling products across many sectors

such as clothing! food and stationary$ This strategy of Wal-art is also sometimes

critici&ed by stating that it decreases the flexibility of the company$

oreover! Wal-art has a strategy of *eeping the manufacturing costs lo" in

order to decrease the cost of producing many consumer products$ %n relation "ith this

strategy! Wal-art implements the outsourcing to lo" cost regions of the "orld$

urthermore! Wal-art implements the strategy of cutting "ages! cutting health

benefits and cutting pension benefits in order to remain competitive$ or example! it "as

stated in an article 1599@2 that Wal-art#s health insurance plans "ere only covering

:I of their employees$ 1>oesschool$blogs$com2$ .efinitely! this implementation is

another Wal-art strategy "hich is "idely critici&ed$


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(nother Wal-art strategy "as moving to small to"ns and setting stores in these

lo" populated places$ This strategy "as implemented by establishing stores so that the

distribution centers or "arehouses could ta*e care of the customers$ This strategy "as

really very effective in reducing mar*eting and advertising costs$

%t#s also a good idea to mention the distribution strategy of Wal-art$ The

distribution systems of Wal-art did seriously provide one of the greatest competitive

advantages to the company$ lexibility of controlling the distribution is also an important

strategy here$ (lso! the large-scale of Wal-art#s distribution centers and the technology

implementations should also be mentioned here$

6ext! Wal-art also has a strategy of targeting the lo" and middle-income

consumers$ To reali&e this strategy! the prices of goods are al"ays tried to be *ept at

minimum and lo"er than the competitors$ %n other "ords! the Wal-art model "or*s

aggressively to have the lo"est cost product available to the customer$ 1Kando$net2$

%n addition! it#s a *no"n fact that Wal-art also uses non-(merican "or*ers in

order to minimi&e the costs$ .efinitely! this is considered to be very unethical and "rong

both "orld"ide and in the F$S$ since Wal-art is ta*ing advantage of foreign "or*ers in

s"eatshop conditions$ 1Wal-art"atch$com2$ (lthough this implementation is

prohibited! Wal-art "as detected to employ these employee in some investigations$

Plus! another strategy of Wal-art is that it doesn#t see* to create mar*ets by

introducing ne" products$ 1Plastic$com2$ %nstead of that! Wal-art is *no"n to be a

mar*et follo"er$ (ccording to some authorities! this is an intelligent strategy of Wal-

art since it minimi&es the ris* of failure$


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)ne other strategy of Wal-art is to never depend on a single supplier$ rom

Wal-art#s point of vie"! depending on a single supplier "ould be a very dangerous

strategy since it "ould limit the freedom and flexibility of the business$ or sure! this

action "ould also be dangerous because if that supplier becomes unsuccessful! it "ould

absolutely affect Wal-art$

8esides! it#s said that Wal-art successfully navigated changes in store formats!

product tastes and the ma*e-up of the "or*force! and it assembled management talent

over time in its shift to mass mar*et retailing$ 1Aeorgia State Fniversity! Robinson

College of 8usiness! The State of 8usiness aga&ine2$ Thus! "e can also emphasi&e

these actions as a part of Wal-art#s overall strategy$

To continue "ith our list of Wal-art strategies! "e should also stress that the

company has an effective use of logistics management as "ell as having an effective

inventory control$ (lso it has the bargaining po"er over suppliers$

Then! Wal-art focuses on operations and execution by providing an over-

average ,uality at a very lo"er price$ Here! the company gives importance to efficiency!

streamlining operations and supply-chain management$

(fter that! Wal-art also implements the strategy of analy&ing customers in great

detail$ The match the inventory of the store "ith the preferences of the clients by

analy&ing all sales and they loo* at sales volume! inventory turnover! pac*aging! price

points and many other variables by product or group of products in order to create a

profile of the buying habits of the customers at the storeGsite level$ 1ar*etingprofs$com2$

8y the "ay! Wal-art is careful about *eeping the employee turnover ratio at

very lo" levels$ (ccording to the company! a high employee turnover ratio "ould


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seriously harm efficiency so they try to *eep it in minimum as much as they can$ or

example! Wal-art#s driver turnover is only @ a year! compared "ith an industry

average of ;5@$ 1The +conomist 6e"spaper L +conomist$com2$

Aoing on "ith Wal-art#s strategies! the firm has a strategy based on having all

items in stoc* and providing a very good customer service$ or example! their regime of

customer service re,uires them to spea* to any customer "ho comes "ithin a defined

distance$1Auardian 6e"s L Auardian$co$u*2$

inally! in regards to Wal-art#s international strategy! the company usually

prefers ac,uisitions "hen going overseas$ or example! the ac,uisitions in +ngland and

exico are very good examples for this statement$ (t last! the firm#s appreciated "ebsite

is also used as an effective tool to gain advantage in the international arena$

Spea*ing for the strategic changes of Wal-art! "e can say that some strategic

changes for the company are observed both in the domestic F$S$ mar*et and in the

international mar*ets$

Concerning Wal-art#s strategic changes in the international arena! "e can say

that the company is trying to ma*e a more significant entry into the Chinese mar*etplace

through the ac,uisition of a Tai"anese-o"ned supermar*et chain called Trust-art$

1astcompany$com2$ or this ac,uisition! Wal-art "ill compete against the rench giant

Carrefour S($ .efinitely! there are some clear reasons for Wal-art#s mentioned

strategic change$ China#s economy is gro"ing more than ;9 percent a year! retail sales

surged ;5$M percent in 599@ over the year before! to B$= trillion yuan 1I:= billion2 and

by 5995! it#s predicted that the mar*et could expand to about 5$: trillion$

1Signonsandiego$com2$ (s you *no"! Wal-art has been successful in Canada! exico


17/26

and +ngland until this date$ Ho"ever! they did fail in Hong Dong! South Dorea! >apan!

%ndonesia and Aermany since they could not analy&e the culture of these countries as "ell

as the particular mar*et characteristics$ (ccording to some authorities! Wal-art#s this

strategic change of strictly going into the Chinese mar*et "ill bring success "hile it#s just

the reverse for some other authorities$

ollo"ing that! another strategic change by Wal-art is that the company

executives announced this year they "ould greatly increase the number of organic

products on their shelves$ 1Westernfarmers$com2$ The firm#s recent introduction of

private labeled organic mil* can be provided as an example here$

Then! as another strategic change of Wal-art! "e can say that the company has

announced environmentally friendly policies$ Critici&ed intensively for violating the

Clean Water (ct and causing air pollution! perhaps "e should thin* that this should not

be a surprise strategic change for Wal-art$ or example! selling clothing made from

organic cotton! cutting energy use at ne" stores! offering cheaper health insurances to its

employees and promising fuel efficiency "ere only some of the actions ta*en by the

company$ 1(lternet$org2$ +specially! "e must consider the healthcare terms for

employees as a significant strategic change$ These changes include reduction in the

"aiting period for firm health insurance from t"o years of employment to one year!

helping part-time employees "ith the ability to cover their children and offering

employees a discount on healthy foods sold at company stores$ 1%nsidervie"$com2$

(s a result! you can clearly reali&e that the strategic changes for Wal-art are

also numerous "hich can never be underestimated by the company#s competitors$


18/26

3I- /a"0Mar*6 A S*ra*!2$ and Fnan$a" Su++ar&

Wal-art "as founded "ith the opening of its first store in Rogers! (r*ansas! in

;MB5$ Wal-art ,uic*ly began to expand and had t"enty-four stores reaching ;5$B

million in sales in ;MB=$ %n the ;M=9s! Wal-art opened its first distribution center and

home office in 8entonville! (r*ansas$ This distribution center "ould be one of many that

"ould help ma*e Wal-art the retailing giant that it is today$ 8y ;M=@! Wal-art had

;=@ stores in operation$ %n ;MI

more than @=9 clubs in the FS and ;99 %nternational locations$

%n ;MMI! Wal-art reali&ed that the retailing environment "as becoming ever

competitive! and they "ould need to respond ,uic*ly$ They began opening Wal-art

Super Centers as "ell as Wal-art 6eighborhood ar*ets! both of these! "hich creates a

one stop shopping experience for customers! "hich they love$ .uring the ;MM9s! Wal-

art became the number one retailer in the "orld through its aggressive store opening

and pricing strategies$ +arly in ;MM@! Wal-art started its international division and

began opening stores internationally$ Wal-art dos not have a formal mission statement!

but their philosophy is! /to provide everyday lo" prices "ith exceptional customer

service0 1Wal-art! 599B2$

Currently the company is doing extremely "ell in comparison to the retail

industry as a "hole$ Today Wal-art has ;!;99 discount stores! ;!M99 Super Centers M@

6eighborhood ar*ets! and @@9 Sam#s Club locations$ Wal-art is continuing its

strategy of opening many ne" stores! "hich allo"s it to remain extremely competitive$

%n )ctober 599B alone! Wal-art has one Super Center scheduled to open as "ell as


19/26

three Sam#s Clubs$ The follo"ing "ill give the reader a brief financial analysis of Wal-

art for fiscal year 599B 1ebruary anuary ;! 599B2$

S/OT Ana"&ss

( SW)T analysis is a very po"erful tool that can help a company uncover

strengths! "ea*nesses! opportunities! and threats that may not be obvious until the

analysis is completed$ The follo"ing is the SW)T (nalysis for Wal-art$

S*r!n2*%s

;$ Wal-art is a po"erful retail brand$ %t has a very good reputation for the lo"

prices it offers! convenience and the "ide variety of products in offers in its

stores$

5$ The company has gro"n at a fast pace over the past fe" years in the Fnited States

"hile expanding globally as "ell$

ust in Time delivery system to "or* so "ell for Wal-art$

/!a8n!ss!s

;$ Wal-art is the World#s largest grocery retailer! "hich could cause it to become

"ea* in some areas due to the huge span of control$

5$ Since Wal-art sells a huge variety of products across many sectors! it may not

have the flexibility that some of its more focused competitors have$


20/26

O11or*un*!s

;$ Wal-art could merge or form strategic alliances "ith other global retailers$ This

"ould allo" them to penetrate other countries$

5$ 6e" locations and store types offer Wal-art the opportunity for further mar*et

penetration$ They could develop mall sites or mom and pop li*e operations


21/26

Wal-art#s beta is lo"er than the industry average$ This means that there is less

ris* in investing in this company than the industry$ The beta is a measure of a stoc*#s

price volatility in relation to the rest of the mar*et$ %n other "ords! ho" does the stoc*#s

price move relative to the overall mar*etN The closer the beta value is greater to one! the

greater the ris*$ The Return on +,uity 1R)+2 has a high return on e,uity$ This means it

is capable of generating cash internally$ The higher a company#s return on e,uity

compared to its industry! the better! "hich is the case "ith Wal-art$ The Return on

(ssets 1R)(2 tells an investor ho" much profit a company generated for each ; in

assets$ %n Wal-art#s case! they are generating I$M: in profit for every ; invested in

assets$ While the industry is only generating B$I: in assets for every ; invested in

assets$ Their Price to +arnings Ratio gives an investor an idea of ho" much the mar*et is

"illing to pay for a stoc* depending on its earnings$ The higher the PG+ the more the

mar*et is "illing to pay for the company#s earnings$ The lo"er the PG+ the less the

mar*et is "illing to pay for the company#s earnings$ %n Wal-art#s case! for every

;=$


22/26

business most of its inventory could easily be sold and converted to cash$ The Revenue

per employees is lo"er than industry average and the net employee income is lo"er "hen

compared to the industry average$ The inventory turnover is above industry average!

"hich means Wal-art is turning there inventory over I$9< times "hile the industry is

turning theirs over only at B$5= times in the same time period$

3II- R!$o++!nda*ons

Wal-art has a big future in terms of gro"th potential$ They could extend their

global presence by entering the iddle +ast$ %n its earlier expansion into international

mar*ets! Wal-art follo"ed the strategy of ac,uiring a chain in the particular country or

setting up a joint venture$ This strategy is "or*ing very "ell for them! and they should

continue to pursue it$ Wal-art#s concept of purchasing an existing chain has proved

very successful$ %n 599B! Wal-art#s international operations had retail sales of B5!=;M

an ;;$


23/26

3III- Con$"uson

Wal-art is a huge presence globally$ With their current international September

599B month end reporting gro"th of


24/26

I7- REFERENCES

Ceniceros! R$ 1599:2$ /8ias suit against Wal-art gets class action status0$ 8usiness%nsurance! Jol$ ournal! +astern +dition! 6e" Oor*! 6O$

%nsiderJie"$ 1599:2$ /Wal-art changes its healthcare terms for employees$0The Website of %nsiderJie"$http4GG"""$insidervie"$comGvie"G"almartQemployeeQhealthcare$html

>ohnson! ?$.$ 1599B2$ /Wal-art#s China +xpansion Strategy0$The Website of astCompany$http4GGblog$fastcompany$comGarchivesG599BG;9G;=G"almartsQchinaQexpansionQstrategy$htmlNpartnerrss

?a"s!$$ 1599B2$ /Wal-art Sustainability Strategy .ra"ing ore Crossfire0$The Website of Western arm Press$http4GG"esternfarmpress$comGne"sG;99@9B-"almart-strategyG

ar*etingProfs ??C$ 1599:2$ /Wal-art ar*eting Strategy Through Time$0The Website of ar*etingProfs ??C$http4GG"""$mar*etingprofs$comGeaG,stQ,uestion$aspN,stid;:M=

ar*eting Teacher ?td$ 1599B2$ /SW)T (nalysis Wal-art$0The Website of ar*eting Teacher ?td$http4GG"""$mar*etingteacher$comGSW)TG"almartQs"ot$htm

ar,ue&! >essica$ 1599B2$ /Critics Remain Wary of Wal-art3s Plans0$The Website of Wor*force anagement

http4GG"""$"or*force$comGsectionG9MGfeatureG5:G:=G=9Gindex$html

ar,ue&! >$ 1599B2$ /aced "ith high turnover! retailers boot up e-learning programs for,uic* training$0http4GG"eb$ebscohost$com
http://www.robinson.gsu.edu/magazine/summer2002/agility.htmlmailto:[email protected]:[email protected]://www.robinson.gsu.edu/magazine/summer2002/agility.html


25/26

ar,ue&! >$ 1599B2$ /ore HR in Store at Wal-art4 ( K'( With Sue )liver0$The Website of Wor*force anagementhttp4GG"""$"or*force$comGsectionG9MGfeatureG5:G:=GB@Gindex$html

ar,ue&! >$ 1599@2$ /Wal-art Thro"s ?ifeline to anagers0$The Website of Wor*force anagementhttp4GG"""$"or*force$comGsectionG99GarticleG5:G99GM:$html

)lson! T$ 1599@2$ /What#s good for Wal-art is good for Wall Street$0 )lson )nline$http4GGjoesschool$blogs$comGolsononlineG599@G9=Gindex$html

Plastic$ 1599@2$ /The Worries of Wal-art0$ The "ebsite of Plastic! plastic$com$http4GG"""$plastic$comGcomments$html7sid9:G;5G9


26/26

Wal-art Stores$ 1599B2$ /8enefits! y Career$0 The Website of Wal-art Stores$http4GG"almartstores$comGAlobalWStoresWebGnavigate$doNcatgB9M

Wal-art Stores$ 1599B2$ /8enefits! y Health0 The Website of Wal-art Stores$

http4GG"almartstores$comGAlobalWStoresWebGnavigate$doNcatgB9B

Wal-art Stores$ 1599B2$ /8enefits! y Home$0 The Website of Wal-art Stores$http4GG"almartstores$comGAlobalWStoresWebGnavigate$doNcatgB9I

Wal-art Stores$ 1599B2$ /8enefits! y oney$0 The Website of Wal-art Stores$http4GG"almartstores$comGAlobalWStoresWebGnavigate$doNcatgB9=

Wal-art Stores$ 1599B2$ /eSight .irectory of .isability-friendly Companies0$ TheWebsite of eSight Careers 6et"or*$http4GG"""$esight$orgG)vervie"8yType$cfmN

roomn'id9$9'ovid;

Documents

Walmart Total