By megan dow kristin belanger and ang le bourgoin
Download
1 / 54

- PowerPoint PPT Presentation


  • 210 Views
  • Uploaded on

By: Megan Dow, Kristin Belanger, and Angèle Bourgoin. Overview of WAL- Mart History Stocks Stock Information The Divisions BCG Their Mission and Vision Statement New Mission and Vision Statement External Opportunities and Threats CPM EFE Internal Strengths and Weaknesses IFE.

loader
I am the owner, or an agent authorized to act on behalf of the owner, of the copyrighted work described.
capcha
Download Presentation

PowerPoint Slideshow about '' - Jims


An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -
Presentation Transcript

Overview of wal mart presentation l.jpg

Overview of WAL-Mart

History

Stocks

Stock Information

The Divisions

BCG

Their Mission and Vision Statement

New Mission and Vision Statement

External Opportunities and Threats

CPM

EFE

Internal Strengths and Weaknesses

IFE

Analysis

SWOT Matrix

SPACE

IE Matrix

Grand Strategy Matrix

Key Ratios

Different Strategies

QSPM

Decisions

EPS/EBIT Analysis

Implementation

Evaluation

Update!

References

Questions?

Overview of WAL-MART Presentation


Overview of wal mart l.jpg
Overview of Wal-Mart

  • There are 4 different segments

  • Wal-Mart Stores- sales amounted to 64.3%

    • Discount Stores- 1,568 U.S

    • Supercenters- 1,258 U.S

    • Neighborhood Markets- 49 stores U.S

  • Sam’s Club- sales amounted to 13.0%

    • 525 stores U.S

    • Is a member only, cash and carry operations

  • International- sales amounted to 16.7%

    • Discount stores- 942 Sam’s Clubs- 71

    • Supercenters- 238 Neighborhood Market- 37

  • Other- amounted to 6.1%

    • McLane is the nation’s largest distributor of food and merchandise to convenience stores


History of wal mart l.jpg

In 1945 Sam Walton opened the first Ben Franklin franchise in Newport Arkansas and operated them with his wife, Helen and brother, Bud.

These were small chains that were very successful.

In November of 1962 Wal-Mart was opened.

Wasn’t until mid 1970’s that Wal-Mart began to grow.

1st IPO in 1970.

Then 100 shares were worth $1,650 dollars and now the same 100 shares are worth more than $6 million dollars.

In 1999 named #1 stock on the Dow.

History of Wal-Mart


History l.jpg

1987 in Newport Arkansas and operated them with his wife, Helen and brother, Bud.

2 new concept implemented

Hypermarkets, which sell everything including food

Supercenters which are scaled down supermarkets

Also David Glass named new CEO of Wal-Mart

In 1992 Sam Walton Died and in 1996 Bud Walton died.

In 1995 Wal-Mart’s Annual Report was dedicated to Bud.

New president and CEO H. Lee Scott states that “While our history is rich with success, there’s no question that our best years are yet to come.”

History


Wal mart l.jpg
WAL in Newport Arkansas and operated them with his wife, Helen and brother, Bud. -MART

Years since started


Important people l.jpg
Important People in Newport Arkansas and operated them with his wife, Helen and brother, Bud.

  • Co-founders, Sam and James “Bud” Walton started 1st Wal-Mart in Rogers, Arkansas, 1962

  • David Glass was named president 1984, in 1988 he became chief executive officer

  • S. Robson Walton named chairman of the board in 1992

  • President and CEO in 2000- H.Lee Scott

  • Vice President- Laura Philips


Important facts l.jpg
Important Facts in Newport Arkansas and operated them with his wife, Helen and brother, Bud.

  • In 2004, we conducted more than 15,000 factory inspections - that's an average of more than 40 a day.

  • We serve more than 138 million customers per week.

  • Wal-Mart employs 1.6 million associates worldwide in more than 3,700 stores in the US and more than 1,500 throughout the rest of the world.


Slide9 l.jpg
WMT in Newport Arkansas and operated them with his wife, Helen and brother, Bud.

  • Traded on NYSE

  • Symbol WMT

  • Index Membership:

  • Dow Jones Composite

  • Dow Industrials

  • S&P 100

  • S&P 500

  • S&P 1500 Super Comp

  • Sector: Services

  • Industry: Discount Variety Stores


Wmt vs dow jones s p 500 l.jpg
WMT vs Dow Jones & S&P 500 in Newport Arkansas and operated them with his wife, Helen and brother, Bud.


Wmt vs industry l.jpg
WMT vs Industry in Newport Arkansas and operated them with his wife, Helen and brother, Bud.


Wmt 5 years l.jpg
WMT 5 years in Newport Arkansas and operated them with his wife, Helen and brother, Bud.


Wmt 30 years l.jpg
WMT 30 years in Newport Arkansas and operated them with his wife, Helen and brother, Bud.


Stock splits l.jpg
Stock Splits in Newport Arkansas and operated them with his wife, Helen and brother, Bud.


Stocks l.jpg
Stocks in Newport Arkansas and operated them with his wife, Helen and brother, Bud.


Their mission statement l.jpg
Their Mission Statement in Newport Arkansas and operated them with his wife, Helen and brother, Bud.

  • They don’t have a formal mission statement

  • They are most interested in the customers needs

  • The culture consists of

    • Respect for the individual

    • Service to our customers

    • Strive for excellence

  • If they did have a formal mission statement it would be,

    “To provide quality products at an everyday low price

    and with extended Customer service…always.”


Mission statement l.jpg
Mission Statement in Newport Arkansas and operated them with his wife, Helen and brother, Bud.


Their vision statement l.jpg
Their Vision Statement in Newport Arkansas and operated them with his wife, Helen and brother, Bud.

"The secret of successful retailing is to give your customers what they want. And really, if you think about it from your point of view as a customer, you want everything: a wide assortment of good-quality merchandise; the lowest possible prices; guaranteed satisfaction with what you buy; friendly, knowledgeable service; convenient hours; free parking; a pleasant shopping experience."

- Sam Walton (1918-1992)


New mission statement l.jpg
New Mission Statement in Newport Arkansas and operated them with his wife, Helen and brother, Bud.

  • Our mission is to provide goods and services for our customers at everyday low prices. With our innovative technology we strive to have merchandise ranging from food, clothes, music, etc. on hand 24 hours a day 7 days a week. We are committed to the growth of Wal-Mart and challenge ourselves to be better. We strive to have the best, be the best, and provide quality and assurance to our customers. Our employees are a huge asset to our company, and we would not be the company we are today without them. They have a huge impact on what our company was, what it is, and what it will be. We also feel it is important to give generously to those who are less fortunate than others, which is why Wal-Mart donates thousands of dollars a year to different organizations.


New vision statement l.jpg
New Vision Statement in Newport Arkansas and operated them with his wife, Helen and brother, Bud.

  • Our vision is to provide good quality and services to our customers while remaining the market leader and striving daily to be the most admired company.


Divisions of wal mart l.jpg
Divisions of WAL-MART in Newport Arkansas and operated them with his wife, Helen and brother, Bud.

  • McLane’s

  • Neighborhood Markets

  • International

  • Sam’s Club

  • Supercenters

  • Distribution Centers


Mclane s l.jpg
McLane’s in Newport Arkansas and operated them with his wife, Helen and brother, Bud.

  • Nations largest distributor of food and merchandise to convenience stores.

  • In 2003 was sold to Berkshire Hathaway, Inc. so Wal-Mart could focus on core retail business.


Neighborhood markets l.jpg
Neighborhood Markets in Newport Arkansas and operated them with his wife, Helen and brother, Bud.

  • Began in 1998

  • Located in market with Wal-Mart Supercenters

  • Offers customer groceries, pharmaceuticals & general merchandise.

  • Provides 28,000 items to customers.


International l.jpg
International in Newport Arkansas and operated them with his wife, Helen and brother, Bud.

  • Wal-Mart expanded so that customers everywhere would associate its name with low cost, best value, greatest selection of quality merchandise and highest standards of customer service.

  • Wal-Mart focused on Global Positioning.


Sam s club l.jpg
Sam’s Club in Newport Arkansas and operated them with his wife, Helen and brother, Bud.

  • Membership-only, cash-and-carry operations.

  • Financial service credit card program (Discover Card) available at all clubs.

  • Annual membership fee is $35; the Elite Membership is $100.

    • Elite membership has additional benefits like automotive service contracts, roadside assistance, home improvement, auto brokering and pharmacy discounts.

  • Bulk displays and name brand merchandise.


Worldly stores l.jpg
Worldly Stores in Newport Arkansas and operated them with his wife, Helen and brother, Bud.


Stores in us and world l.jpg
Stores in US and World in Newport Arkansas and operated them with his wife, Helen and brother, Bud.


Slide28 l.jpg
BCG in Newport Arkansas and operated them with his wife, Helen and brother, Bud.


External factors l.jpg
External Factors in Newport Arkansas and operated them with his wife, Helen and brother, Bud.


Key external factors l.jpg
Key External Factors in Newport Arkansas and operated them with his wife, Helen and brother, Bud.

  • Opportunities

    • Agreement with Berkshire Hathaway, Inc. acquired McLane Company, Inc.

    • Fortune’s number one Most Admired Company and largest company in nation

    • World’s largest private satellite communication systems

    • Ron Brown Corporate Leadership Award

  • Threats

    • “Buy American” policy

    • Target

    • A solution to the monopoly that Wal-Mart has created


Slide31 l.jpg
EFE in Newport Arkansas and operated them with his wife, Helen and brother, Bud.


Internal factors l.jpg
Internal Factors in Newport Arkansas and operated them with his wife, Helen and brother, Bud.


Key internal factors l.jpg
Key Internal Factors in Newport Arkansas and operated them with his wife, Helen and brother, Bud.

  • Strengths

    • Stores in all 50 states

    • New concepts:

      • Hypermarkets, supermarkets

    • Wide variety of merchandise

    • Nationally advertised merchandise

    • Limited lines of merchandise – made in USA

    • Point-of-sale bar code scanning

    • Great employee benefits

  • Weaknesses

    • No formal mission statement

    • Management resisted putting women on board of directors

    • Hiring illegal minorities to clean

    • Growth for employees only in division


Slide34 l.jpg
IFE in Newport Arkansas and operated them with his wife, Helen and brother, Bud.


Slide35 l.jpg
SWOT in Newport Arkansas and operated them with his wife, Helen and brother, Bud.


Slide36 l.jpg
CPM in Newport Arkansas and operated them with his wife, Helen and brother, Bud.


Space l.jpg
SPACE in Newport Arkansas and operated them with his wife, Helen and brother, Bud.


Ie matrix l.jpg
IE Matrix in Newport Arkansas and operated them with his wife, Helen and brother, Bud.


Grand strategy matrix l.jpg
Grand Strategy Matrix in Newport Arkansas and operated them with his wife, Helen and brother, Bud.


Key ratios l.jpg
Key Ratios in Newport Arkansas and operated them with his wife, Helen and brother, Bud.


Different strategies l.jpg
Different Strategies in Newport Arkansas and operated them with his wife, Helen and brother, Bud.

  • Add more hypermarkets and supermarkets to establish more growth

  • Buy products from other countries to have more of a variety of merchandise and better quality merchandise for customers


Slide42 l.jpg
QSPM in Newport Arkansas and operated them with his wife, Helen and brother, Bud.


Decisions l.jpg
Decisions in Newport Arkansas and operated them with his wife, Helen and brother, Bud.

  • We decided to add more hypermarkets based on the QSPM even though the numbers were close for both strategies


Eps ebit analysis l.jpg
EPS/EBIT Analysis in Newport Arkansas and operated them with his wife, Helen and brother, Bud.

  • Amount needed = $1 Billion

  • Stock Price = $45.54

  • EBIT Range = 435,950 - 635,950

  • Tax Rate = 26%

  • Interest rate = 5%

  • # Shares Outstanding = 4,453,000


Eps ebit l.jpg
EPS/EBIT in Newport Arkansas and operated them with his wife, Helen and brother, Bud.


Implementation l.jpg
Implementation in Newport Arkansas and operated them with his wife, Helen and brother, Bud.

  • Begin adding more hypermarkets to towns with populations large enough to support them.

  • Increase the amount of hypermarkets by one in every state (50 stores)

  • Increase revenue by Debt Financing per EPS/EBIT analysis


Evaluation l.jpg
Evaluation in Newport Arkansas and operated them with his wife, Helen and brother, Bud.

  • Quarterly Reports

  • Yearly Reports

  • Store growth report

  • Annual Sales report

  • Key Ratios

  • Stock prices in comparison to competitors


In the news l.jpg
In the News… in Newport Arkansas and operated them with his wife, Helen and brother, Bud.

  • In 2003 managed to get action lawsuit against Wal-Mart based on so few women being among its managers given that a majority of its workforce is female and also for equal pay. Ended up settling case because didn’t want to lose a case for discrimination because would hurt Wal-Mart’s bottom line. But as the judge rightly ruled, companies that do business on as large a scale as Wal-Mart have to be prepared to answer for their actions on an equally large scale. Case settled in June 2004 and began in September of 2003.


In the news49 l.jpg
In the News… in Newport Arkansas and operated them with his wife, Helen and brother, Bud.

  • In June 2005 Oklahoma grocer Super H filed lawsuit against Wal-Mart Stores for using a scanner to collect barcode data from the products on the Super H’s Shelves. Wal-Mart allegedly sent workers into Super H to check prices close to the time a Supercenter was opening in August. Super H wants the scanner back, not because of the price information but to make sure that there is not inventory and wholesale prices in the scanner. The real question in this case was not the price scanning but can the scanner capture other information from the scanning tag then just the price. The suit was dismissed per news reports.


In the news50 l.jpg
In the News… in Newport Arkansas and operated them with his wife, Helen and brother, Bud.

  • In April 2006 a suit was filed against a Wal-Mart in Maryland to ensure that larger employers pay up to a percentage toward health care for employees. ERISA is there to establish a uniform national framework for sponsoring, administering, protecting, and regulating employee benefit plans, including pension plans, and health and welfare plans. ERISA has a broad clause that pre-empts states and municipalities from enacting laws that relate to employee benefits plans. In this case it is not sure if the Maryland law or bills in other states violates the ERISA previsions. In February Wal-Mart announced plans to upgrade its health care benefits. This was decided in the middle of the uproar in this Maryland case.

  • Here are a few cases about Wal-Mart. There were 52 pages of cases if you would like to see more go to Business & Company Resource Center, News/Magazines.


In the news51 l.jpg
In the News… in Newport Arkansas and operated them with his wife, Helen and brother, Bud.

  • Military Families Outreach ProjectPartnership with Sesame Workshop to support children of military families.

  • Children's Miracle NetworkBuy a balloon, save a child's life.


Update l.jpg
Update! in Newport Arkansas and operated them with his wife, Helen and brother, Bud.

  • International Division

    • 2005 was a busy year for Wal-Mart International. In December alone, the company acquired 545 new stores and gained more than 50,000 new associates in Japan and South America, capping a year of robust growth.

  • Now have 13 divisions within the company


References l.jpg
References in Newport Arkansas and operated them with his wife, Helen and brother, Bud.

  • http://www.walmart.com

  • http://finance.yahoo.com

  • Strategic Management Concepts and Cases

  • http://galenet.galegroup.com.prxy6.ursus.maine.edu/servlet/BCRC?locID=maine_fortkent

  • Tony Gauvin’s presentation on Kroger’s

  • http://www.target.com


Questions l.jpg
Questions? in Newport Arkansas and operated them with his wife, Helen and brother, Bud.

Thank you for shopping at WAL-MART