Group 6 analyzed Walmart as a potential investment. Walmart has grown tremendously since starting in 1962, becoming the largest retailer and private employer worldwide. It maintains its success through an everyday low price model and expanding into new markets through subsidiaries. Financially, Walmart is very profitable with increasing revenues, profits, and dividends in recent years. While it faces some criticism, Walmart overall presents a promising long-term investment opportunity for sustained growth.

1. Group 6
WALMART

2. Group 6 – Walmart
 Joseph Vazquez - PowerPoint
 Emmanuel Yunes - Introduction
 Sasha Pelaez – Marketing
 Giselle Pacheco – Financials
 Ramise Succes - Conclusion
 Destiney Burt – Corporate Structure

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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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.