Wal-Mart Jerrod Lighthall Mr. Applin Accounting – 4 18 April 2012
Company History • Wal-Mart is a public company. Sam Walton built the company on his beliefs in excellence in the workplace, customer service, and having the lowest prices. • In 1962, Sam Walton built the first Wal-Mart in Rogers, Arkansas.
(Continued) • In 1970, Wal-Mart began trading over the stock counter. • In 1979, revenues pass $1 billion and becomes the fastest company to reach this milestone.
Statistics • In 1997,revenues pas $100 billon. • In 2003, revenues pass $244.52 billion making Wal-Mart the world’s largest corporation.
(Continued) • Bigger than Europe's Carrefour, Metro AG, and Tesco combined, it's the world's #1 retailer. • As of 2011, Wal-Mart employed more than 2.1 million employees. • In the US alone, Wal-Mart has 700 discount stores, 2,900 supercenters, 610 Sam’s Club Warehouses, and many other smaller format stores.
Headquarters • The world headquarters for the world's largest retail company is located on a generic commercial strip outside downtown Bentonville, Arkansas. • A Wal-Mart supercenter is located across the street from the corporate HQ. • The corporate offices are in Bentonville because the original Walton’s Five and Dime where Sam Walton started up is in the town square.
Sources of Income • Wal-Mart is the top seller of groceries, jewelry and photo processing. • The company is also moving into banking, used car sales, travel, and Internet access.
Services • •Family apparel • •Healthy and beauty aids • •Electronics • •Toys • •Lawn and garden items • •Jewelry • •Automotive products • •Home furnishings • •Hardware • •Sporting goods • •Pet supplies • •Housewares • •Vision center • •Tire & Lube Express • •Brand-name restaurants • •Portrait studio and • one-hour photo center • •Pharmacy • •Health clinic • •Employment Agency • •Hair salon • •Bank
Stock Prices • Current stock price: $62.45 • Historical high: $62.63 • Historical low: $16.50 in 1970 • Lowest dividend rate: $0.05 in 1970 • Annual dividend rate (2011): $1.59
Dividend My understanding of a dividend is that it is a sum of money that is a profit received by the shareholders of the company. A dividend can fluctuate significantly depending on how successful the company does during the annual year.
Strengths Wal-Mart is a powerful retail brand. It has a reputation for value for money, convenience and a wide range of products all in one store. A focused strategy is in place for human resource management and development. Wal-Mart has grown significantly over recent years and has experienced global expansion.
Weaknesses • The company is global, but has has a presence in relatively few countries Worldwide. • Since Wal-Mart sell products across many sectors, it may not have the flexibility of some of its more focused competitorsand not be at the top of its field for everything. • Control of Wal-Mart’s empire could be weak in some areas due to its large area of control.
Opportunities • Opportunities exist for Wal-Mart to continue with its current strategy of large, super centers. • Form strategic alliances with other global retailers • New locations and store types give Wal-Mart the chance to use market development to their full potential.
Threats • Being the best means that you are the target of competition, locally and internationally. • Exposure to political problems in the countries that Wal-Mart operates in • Price competition leading to price inflation in several areas.
Stock Opinion • In my opinion, I would not consider buying stock until the stock price was on the descent again. In its stock history, it shows the stock price gradually ascending and a steep drop soon after. I would recommend waiting until it is low again to buy low and sell high.
Works Cited • http://www.hoovers.com/company/Wal-Mart_Stores_Inc/rrjiff-1.html • http://www.fundinguniverse.com/company-histories/WalMart-Stores-Inc-Company-History.html • http://clui.org/ludb/site/wal-mart-headquarters • http://www.usatoday.com/money/industries/retail/2003-01-28-walmartnation_x.htm • http://finance.yahoo.com/q/ks?s=WMT • http://www.marketingteacher.com/swot/walmart-swot.html