Assignment 2

Wal-Mart Stores, Inc.

[Name of Instructor]

Assignment 2

Wal-Mart Stores, Inc.

Introduction

Wal-Mart stores (Wal-Mart) are the world's largest retailers. At the end of January 2008, when the company operated 971 discount stores, 2447 supercentres, 591 Sam's Clubs and 132 Neighborhood Markets in the United States. Wal-Mart also operates several international markets, but these are the United Kingdom, Canada, Japan, Mexico, Brazil, and China (http://www.walmartstores.com).

Products

The company sells a number of retail goods and services at low prices. This product range includes both national and private-brand manufacturers. These distribution centers primarily serve the operating segment called Wal-Mart Store. In addition, these centers are also the distribution of supplies from Sam Club perishable items, jewelry, tires, and the product returned.

Wal-Mart Management Philosophy

“Saving people money so they can have a better life” Wal-Mart's mission on which its business model based on. Wal-Mart's mission set to be the best retail store with a wide range of high quality and low prices both in the U.S, which has the largest number of branches, as in any of the nine countries where it operations. There values include high quality, honesty, innovation, continuous improvement, neutrality, pragmatism, professionalism, transparency, and Wal-Mart's business model.

Company's success based on its business model, which focused on satisfying its customer needs with low-price products. However, due to the environmental changes and some factors of the business model that can be easily imitated by its competitors, Wal-Mart has to modify continuously its competitive strategy and to develop its business model to maintain its competitive advantage in the global market (Parnell, 2008).

Financial Performance

At the end of financial year 31 January, 2012 the net sales of Wal-Mart increase by 5.9 percent and the increase was 3.4 percent in the previous year. However, in 2010 the net sales increase by only 1 percent and in the year 2009 the increase in net sales was 7.3 percent. The company observes 8.4 percent in the year 2008. The company issued dividend of $1.46 at the yearend January 2012, and $1.21 in the year 2011. The dividend declared by Wal-Mart in the year 2010, 2009 and 2008 were $1.09, $0.95 and $0.88 respectively (http://www.walmartstores.com).

With Wal-Mart the power shifted from manufacturers to distribution channels. Then the same pattern was seen in Home Depot and Toys "R" Us. A similar change could be to CarMax or Amazon.com in the near future. And like McDonald's, Toyota and others have become inefficient competitive advantage by repairing weak links in their value chain, Wal-Mart fixed the link forming a partnership with its largest supplier, "Procter & Gamble to align objectives coordinate and share information. No supplier could do business with those companies, unless they wanted to become a strong link, and for some competitors, represented an opportunity to fill the space. Firms that wanted to do business with Wal-Mart had to change their business models improvements in systems, electronic data interchange and just-in time.

From 1972 to 1990, the "stock" far exceeded the wildest dreams of those who bought it. Hundred shares, acquired in 1970 for $ 1650, were ...