Group 6 final project


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Group 6 final project

  1. 1. Group 6 WALMART
  2. 2. Group 6 – Walmart  Joseph Vazquez - PowerPoint  Emmanuel Yunes - Introduction  Sasha Pelaez – Marketing  Giselle Pacheco – Financials  Ramise Succes - Conclusion  Destiney Burt – Corporate Structure
  3. 3. Walmart  This company has a great reputation for being loyal to its customers and shareholders.  Walmart has grown so much from when it started in November of 1962.  It has grown because it has corporate governance as well as the standard corporate structure.
  4. 4. Walmart Headquarters  Walmart’s headquarters is in Bentonville, Arkansas.  Sam Walton was the founder of Walmart and he founded it in Arkansas as well.  Walmart has over 2 million employees in around 11 thousand stores worldwide.
  5. 5. Walmart  Its main subsidiaries are Asda, Sam’s Club, Seiyu Group and Walmex.  These subsidiaries were not subsidiaries at first but after time the shares of the companies were bought out.
  6. 6. Walmart  Their corporate structure consists of the standard, presidents and CEO’s of different departments of the company.  Wal-Mart’s corporate structure also consists of a board of directors, which include, the chairmen, CEO’s, and business administrators.  The shareholders elect who the company brings in to put in the board of directors.
  7. 7. Walmart  Walmart has a new mission statement basically on how they should do their work.    To provide goods and services for our customers Providing these services at an everyday low price The advanced technology to strive to have merchandise ranging from food, clothes, music, etc… on hand 24 hours a day, 7 days a week.  This is what Walmart needs to do on a daily basis to maintain its name.
  8. 8. Integrity of Walmart  Sam Walton stated Walmart’s philosophy well.  “Personal and moral integrity is one of our basic fundamentals, and it has to start with each of us.”  For their employees they have a Statement of Ethics that they have to abide by in order to withhold the company’s standards.  The Statement of Ethics shows the kind of attitudes and conduct that makes such an honest workplace that Wal-Mart is today.
  9. 9. People Love Walmart  After Sam Walton died, the new CEO became H. Lee Scott.  He stated that, “While our history is rich with success, there’s no question that our best years are yet to come.”  This is the reason that Walmart has an incredible selling point.  Walmart serves about 138 million customers a week, this was conducted from a 2004 poll which means that those numbers must be significantly higher now due to the growth of Walmart.
  10. 10. Walmart  Throughout all of these years, Walmart had grown so much solely based on how they were running the company.  With an old mission statement being,  “To provide quality products at an everyday low price and with extended Customer…always.”  Walmart had to higher thousands of associates to help it sustain all the new stores but also keep its name.
  11. 11. Marketing strategy  Walmart has done so well marketing all of its products due to their everyday low prices guarantee.  Walmart being as broad as it is basically sells everything you might want to use on a daily basis no matter what the customer does.  Just with the integrity that they run their stores shows why they are loyal and have loyal customers.
  12. 12. Marketing Strategy  Another example of why Wal-Mart marketing has drastically changed to be the best is due to  The generosity they give to people, where they donate thousands of dollars a year to the less fortunate people to different organizations.  Also because Walmart can sell everything people are generally looking for which is foods, clothes, electronics devices, etc… at an affordable price, the marketing strategy comes rather easy.
  13. 13. Marketing Strategy  The expansion of Wal-Mart to other states by developing supermarkets and hypermarkets makes the business revenues increase highly.  For this reason, Walmart trains all of its employees to know about all of the products they sell in their stores.  The strategic plan to increase the market of WalMart to its competitors is to purchase products from other countries to offer customers variety of the merchandise.
  14. 14. Marketing  Walmart is at the top of the Fortune 500 companies because of its growth.  Walmart does not have a select number of people it sells to because it has all the products anybody could want.  It is located in so many states in all kinds of demographics, that there is no target market, it is for everyone.
  15. 15. Marketing  The company’s innovative marketing campaigns just state that they have great deals always.  They are fixed on having everyday low prices for their customers.  Walmart just needs to market and show their variety of things at low prices to get customers.
  16. 16. Financials  Walmart is a very profitable company.  On the table in the next page, you will see how it is profitable, how it has profited in the past five years, and what it is expected to profit in the year 2014.  It will appear in- (Amounts in millions per share data and unit count data)
  17. 17. Financials Table 2013 Total Revenues Net Sales Cost of Sales Operating, selling, general and administrative expenses Total Operating expenses Other Expenses (Tax) Net Income (Profit) Dividends declared per common share 2012 2011 2010 2009 2014 Projection $480,000 $469,16 2 $466,11 4 $352,48 8 $88,873 $446,95 0 $443,85 4 $335,12 7 $85,265 $421,84 9 $418,95 2 $314,94 6 $81,361 $408,08 5 $405,04 6 $304,65 7 $79,607 $404,25 2 $401,08 7 $304,05 6 $77,520 $441,36 1 $10,802 $420,39 2 $10,859 $396,30 7 $9,153 $384,26 4 $9,451 $381,57 6 $9,441 $455,000 $16,999 $15,699 $16,389 $14,370 $13,235 $18,000 1.59 1.46 1.21 1.09 0.95 (Amounts in millions per share data and unit count data)
  18. 18. Profits  The rankings on the Fortune 500 list are generated based on the total revenues during a specified fiscal year.  The profits are also based on profit after taxes.  Profits from companies such as real estate trusts, partnerships, and cooperatives cannot be compared to many companies because they are taxed at a completely different rate.
  19. 19. Profits  From the points stated in the previous slide, the high numbers on the financial statements supports WalMart’s powerful stance at the top of this Fortune 500 list.  In the Five-Year Financial Summary section of the 2013 Annual Report, Wal-Mart declares total revenues to be $469,162 million. This includes net sales of $466,114 million and membership and other income of $3,048 million.  This shows why Walmart is always growing.
  20. 20. Walmart  . Wal-Mart is made up of three different segments: Wal-Mart U.S., Wal-Mart International, and Sam’s Club.  All three segments have increased from the 2012 fiscal year to the 2013 fiscal year. The following information represents Wal-Mart as one business unit.  Walmart’s profit for the 2013 fiscal year was around $16,999 million.
  21. 21. Walmart  Walmart has increased its annual cash dividend every year since first declaring a $0.05 per share annual dividend in March 1974.  It is around $1.59 per common share as declared in 2013.  This also shows how Walmart has grown over the years.
  22. 22. Walmart  During the 2012 fiscal year, dividends were declared at 1.46 per common share. In 2011 dividends were declared at 1.21, in 2010 dividends were declared at 1.09, and in 2009 dividends were declared at 0.95.  There has been a steady increase in dividends declared from 2009 to 2013.  This also shows that it is very likely that the year 2014 will also have an increase in dividends.
  23. 23. Walmart  Despite a minor setback in the 2012 fiscal year, profits have continued to increase.  Walmart actually dropped to number two on the Fortune 500 companies list.  Walmart has grown again and has been able to regain it’s number one spot back.  They did so by not trying to steer away from their everyday low prices, which is what happened in 2012.
  24. 24. Walmart  Net income is higher then it has been in the last five years.  Wal-Mart has increased its total revenue from $408,085 million in 2010 to $421,849 million in 2011. Wal-Mart’s total revenue jumped from $446,950 million in 2012 to $469,162 million in 2013.
  25. 25. Walmart  Wal-Mart has continued to increase its revenues and keep expenses below the revenue received.  After analyzing this data, it can be assumed that future profit for the next fiscal year will increase as well.  Walmart is not about to drop to second again any time soon.
  26. 26. Walmart  Walmart was just an idea until 1962 and since then, it has become the second world’s largest public corporation.  It also is the biggest private employer in the world with over 2.2 million employees and the largest retailer in the world.  And in bad times such as these this means a lot.
  27. 27. Walmart  Wal-Mart specializes on distributing consumer goods at a lower price.  The company sells basically everything through their supermarkets, supercenters and warehouse club.  The company is still privately owned since the Walton’s own over 50% of the company.  Wal-Mart is present in more than 15 countries and is a company that is always looking to expand into more markets.
  28. 28. Walmart  With it’s many subsidiaries, it is always willing to expand.  Asda its their subsidiary in the United Kingdom, Walmex its their subsidiary in Mexico, Seiyu Group its their subsidiary in Japan and Sam’s Club its their chain of warehouse clubs.  All have everyday low prices.
  29. 29. Pros and Cons  Investing in a Fortune 500 company might not always be smart, but for Walmart it is.  Walmart has shown that it is growing and has continued to grown even through these tough times.  Walmart has a lot of promise in maintaining its number one spot on the fortune 500 companies list because of its growth yearly.
  30. 30. Pros and Cons  Walmart is not done expanding and even though you might not see a lot of growth right after investing I think that over the years you will be seeing a lot of growth.  Its only main con is that it needs to not lose track of who they are and not lose customers by jacking up the prices of their products.  Walmart should be a great investment over time.
  31. 31. Problems?  Financially they don’t have any big problems except for the fact that it did not grow in profit after the 2012 fiscal year but since then it has grown even more.  Labor problems don’t really exist because it has more employees than any other company in the entire world.
  32. 32. Problems?  Walmart does not have any image problems which is a great reason why it has continued to grow so much from when it started.  This may have a lot to do with that it is still privately and family owned.  It does have many other owners but the majority of it, still above 50% is family owned.
  33. 33. Problems?  Supply and Demand problems Walmart does not seem to have either.  It has continued to be one of the greatest suppliers of goods, whether it be in its many stores or warehouses.  It has also continued to keep its everyday low prices which is also a good sign that it has no problems in it’s supply and demand.
  34. 34. Problems?  Walmart and political problems have transpired over time this is due to criticism it receives for every little wrong thing it may do.  These problems have gone away mostly and have gotten a lot better now that Walmart also donates a lot of things to less fortunate people and organizations.
  35. 35. Investing  After all is said and done I think it is a smart idea that this group does invest in Walmart.  Walmart has been one of the most important companies in the world and has been a huge reason we are doing a little bit better in this recession.
  36. 36. Walmart  Wal-Mart is known all over the world for having lower prices than all their competitors and their main focus is too help their customers save money on every purchase they make.  This philosophy has allowed Wal-Mart to have more than 200 million customers worldwide and it is why they keep growing every year regardless of the economic situation.  These reasons make it all a good investment.