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1. By: Megan Dow, Kristin Belanger, and Angèle Bourgoin

6. WAL-MART Years since started

10. WMT vs Dow Jones & S&P 500

11. WMT vs Industry

12. WMT 5 years

13. WMT 30 years

14. Stock Splits 4/19/1999 3/19/1999 $ 89.75 0.008057 204800 Mar-99 2/25/1993 2/2/1993 $ 63.63 0.016113 102400 Feb-93 7/6/1990 6/15/1990 $ 62.50 0.032227 51200 Jun-90 7/10/1987 6/19/1987 $ 66.63 0.064453 25600 Jun-87 10/4/1985 9/3/1985 $ 49.75 0.128906 12800 Sep-85 7/8/1983 6/20/1983 $ 81.63 0.257813 6400 Jun-83 7/9/1982 6/21/1982 $ 49.88 0.515625 3200 Jun-82 12/16/1980 11/25/1980 $ 50.00 1.03125 1600 Nov-80 8/22/1975 8/19/1975 $ 23.00 2.0625 800 Aug-75 4/5/1972 3/22/1975 $ 47.50 4.125 400 Mar-72 6/11/1971 5/19/1971 $ 47.00 8.25 200 May-71 Distributed Record Date Market Price on Split Date Cost Per Share Shares 2:1 Stock Splits

15. Stocks 0.51 0.85 N/A 0.46 0.61 P/S (ttm): 1.07 0.96 N/A 1.72 0.99 PEG (5 yr expected): 17.08 19.08 N/A 24.97 17.30 P/E (ttm): 1.16 2.708 N/A 2.215 2.682 EPS (ttm): 128.53M 2.41B 1.11B 1 1.08B 11.23B Net Income (ttm): 6.37% 8.22% N/A 2.79% 5.93% Oper Margins (ttm): 268.09M 5.73B N/A 2.06B 23.25B EBITDA (ttm): 28.72% 32.15% N/A 12.37% 23.06% Gross Margin (ttm): 3.63B 52.62B 19.70B 1 55.68B 312.43B Revenue (ttm): 9.60% 11.50% N/A 11.00% 8.60% Qtrly Rev Growth (yoy): 18.62K 338,000 133,000 1 60,500 1,800,000 Employ­ees: 1.84B 45.01B N/A 26.06B 193.36B Market Cap: Industry TGT Pvt1 COST WMT 1 = As of 2005 Industry = Discount, Variety Stores TGT = Target Corp. Pvt1 = Kmart Corporation (subsidiary or division) COST = Costco Wholesale Corp.

17. Mission Statement

26. Worldly Stores 37 71 238 942 International Totals 0 0 10 248 United Kingdom 33 9 1 9 Puerto Rico 0 50 75 472 Mexico 0 0 15 0 Korea 0 0 94 0 Germany 2 4 20 0 China 0 0 0 213 Canada 2 8 12 0 Brazil 0 0 11 0 Argentina NEIGHBORHOOD MARKETS SAM'S CLUBS SUPERCENTERS DISCOUNT STORES Country

27. Stores in US and World 86 596 1496 2510 Grand Totals 49 525 1258 1568 U.S. Totals

28. BCG

29. External Factors

31. EFE 3.5 1 Totals 0.8 4 0.2 A solution to breaking the monopoly Wal-Mart has created 0.42 3 0.14 Target 0.45 3 0.15 “ Buy American” policy Threats 0 0.33 3 0.11 Ron Brown Corporate Leadership Award 0.64 4 0.16 World’s largest private satellite communication systems 0.56 4 0.14 Fortune’s number one Most Admired Company and largest company in nation 0.3 3 0.1 Agreement with Berkshire Hathaway, Inc. acquired McLane Company, Inc. Opportunities 1 to 4 0.0 to 1.0 Weighted Score Rating Weights Key External Factors

32. Internal Factors

34. IFE 3.14 1 Totals 0 0.3 3 0.1 Growth for employees only in its division 0.16 2 0.08 Hiring illegal minorities 0.39 3 0.13 Management resisted putting women on board of directors 0.3 3 0.1 No formal mission statement Internal Weaknesses 0 0.27 3 0.09 Great Employee Benefits 0.52 4 0.13 Point-of-sale bar code scanning 0.24 3 0.08 Nationally advertised merchandise 0.3 3 0.1 Wide variety of merchandise 0.3 3 0.1 New Concepts - Hypermarkets, supermarkets 0.36 4 0.09 Stores in all 50 states Internal Strengths 1 to 4 0.0 to 1.0 Weighted Score Rating Weights Key Internal Factors

35. SWOT Find a solution to the monopoly that has been created and come up with a new concept to beat the problem. (S2, T3) Offer more merchandise that is not apart of the "Buy American" policy to attract more customers (S3, T1) Use point-of-sale bar code scanning as leverage over competitors like Target (S5, T2) Increase minority sales through buying minority products and selling them in discount stores (T1, W3) Use the Buy American policy to advertise nationally how American Wal-Mart is (S3, T1) Use the Most Admired Company award as leverage to advertise the wide variety of merchandise (S3, O2) Create mission statements for all of the acquired companies and the different divisions of Wal-Mart (O1, W1) Increase the amount of hypermarkets, supermarkets in 50 states as well as connect to the private satellite systems(S2, SO)

36. CPM 2.14 2.41 3.21 1 Totals 0.15 3 0.1 2 0.15 3 0.05 Management Experience 0.8 2 0.8 2 1.2 3 0.4 Price Competition 0.15 3 0.15 3 0.15 3 0.05 Customer Service 0.5 2 0.75 3 1 4 0.25 Advertising 0.02 2 0.02 2 0.03 3 0.01 Production Capacity 0.04 2 0.06 3 0.06 3 0.02 Organization Structure 0.06 2 0.06 2 0.09 3 0.03 Global Expansion 0.04 2 0.06 3 0.06 3 0.02 Sales Distribution 0.06 2 0.06 2 0.09 3 0.03 Consumer Loyalty 0.1 2 0.15 3 0.15 3 0.05 Product Quality 0.12 3 0.08 2 0.08 2 0.04 Financial Position 0.04 2 0.06 3 0.06 3 0.02 Inventory System 0.06 2 0.06 2 0.09 3 0.03 Market Share 1 to 4 1 to 4 1 to 4 0.0 to 1.0 Weighted Score Rating Weighted Score Rating Weighted Score Rating Weights Critical Success factors Kmart Target Wal-Mart

37. SPACE

38. IE Matrix

39. Grand Strategy Matrix

40. Key Ratios 0.67 (1.50%) Div & Yield: 2.68 EPS (ttm) : 16.98 P/E (ttm) : 189.78B Market Cap: 11,944,400 Avg Vol (3m) : 12,143,600 Volume: 42.31 - 50.87 52wk Range: 45.40 - 45.74 Day's Range: 56.47 1y Target Est: N/A Ask: N/A Bid: 45.62 Open: 45.82 Prev Close: 0.28 (0.61%) Change: 4:00PM ET Trade Time: 45.54 Last Trade: 0.67 (1.50%) Div & Yield: 2.68 EPS (ttm) : 16.98 P/E (ttm) : 189.78B Market Cap: 11,944,400 Avg Vol (3m) : 12,143,600 Volume: 42.31 - 50.87 52wk Range: 45.40 - 45.74 Day's Range:

42. QSPM 5.26 6 6.78 1 total should be 1.0 0.3 3 0.3 3 0.3 3 0.1 Growth for employees only in its division 0.16 2 0.16 2 0.16 2 0.08 Hiring illegal minorities 0.39 3 0.39 3 0.39 3 0.13 Management resisted putting women on board of directors 0.3 3 0.3 3 0.3 3 0.1 No formal mission statement 0.18 2 0.27 3 0.27 3 0.09 Great Employee Benefits 0.39 3 0.52 4 0.52 4 0.13 Point-of-sale bar code scanning 0.24 3 0.32 4 0.24 3 0.08 Nationally advertised merchandise 0.3 3 0.4 4 0.3 3 0.1 Wide variety of merchandise 0.3 3 0.4 4 0.3 3 0.1 New Concepts - hypermarkets and supermarkets 0.36 4 0.36 4 0.36 4 0.09 Stores in all 50 states 1 to 4 1 to 4 1 to 4 Internal 1 total should be 1.0 0 N/A 0 N/A 0.8 4 0.2 A solution to breaking the monopoly that Wal-Mart has created 0.42 3 0.56 4 0.56 4 0.14 Target 0.6 4 0.45 3 0.45 3 0.15 "Buy American" policy 0.22 2 0.33 3 0.33 3 0.11 Ron Brown Corporate Leadership Award 0.48 3 0.48 3 0.64 4 0.16 World largest private satellight communication systems 0.42 3 0.56 4 0.56 4 0.14 Fortune's number one Most Admired Company and largest company in nation 0.2 2 0.2 2 0.3 3 0.1 Agreement with Berkshire Hathaway, Inc. acquired McLane's Company, Inc. 1 to 4 1 to 4 1 to 4 External TAS AS TAS AS TAS AS Weight Key factors Buy American More hypermarkets/ supermarket Wal-Mart

45. EPS/EBIT 3.65 3.65 5.64 5.68 EPS 13,964,000 13,964,000 4,453,000 4,453,000 # Shares Outstanding 300,806 438,806 525,553 773,553 EAT 113,347 165,347 113,347 165,347 Taxes 26% 414,153 604,153 638,900 938,900 EBT 21,798 31,798 0 0 Interest 5% 435,950 635,950 435,950 635,950 EBIT (12,719,000 in 2003) Low High Low High Debt Financing Common Stock Financing In $Millions