Wal-Mart

Wal-Mart

Jerrod LighthallMr. ApplinAccounting – 418 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

DividendMy 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 competitors and 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