Wal Mart & Stockholder Analysis 1

Exercise- No 22

Presenter: John ant

08/01/09

Course: Global Strategy

Wal-Mart & Stockholder Analysis

We save people money so they can

live better

WALMART Mission around the world

Mission

The Timeline of Wal-MartWal Mart Go Global Organization Structure The Financial ReportWhat are we sellingThe TechnologyThe Costumer of Wal-Mart The Stakeholder Analysis Bibliography

Table of contents

WALMART History of growth1962 – Wal Mart opened the first store.1972 – Sam walton (1918-1992) took the company

public NYSE (WMT) & raised 3.3M$.1985 – Wal Mart has 882 stores with sales over

8.4B$ and 104,000 associates.1990- Wal Mart becomes No.1 retailer in the

USA.1995 – Wal Mart enters its 50th state.2001 – The largest private employer in the world.2005 – Wal Mart commit to environmental

sustainability

History

http://walmartstores.com/AboutUs/7603.aspx Slide 5 out of 22

WALMART Go InternationalArgentina – 13Brazil – 299Canada – 289Central America – 413Chain – 73Japan – 392Mexico – 889Puerto Rico – 54United Kingdom – 335

Total : 2,757

Slide 6 out of 22http://upload.wikimedia.org/wikipedia/commons/6/6f/Starbucks.png

Brands Around The World

http://www.docstoc.com/docs/394127/Wal-Mart-Stores-2007-Annual-Report

Wal-Mart Organization Structure

organization structure

President & CEO Wal-Mart Inc

Lee Scott

Directors Chairman of the Board

Walton Rob

Executive Vice President

President & Chief Executive officer


People Division


People Wal Mart stores Division


Corporate Affairs & Governments relation


Food, Wal Mat stores Division


Risk Management & Sustainability


Logistic & Supply Chain

Vice Chairman

Responsible for International


Chief Merchandising Officer


Chief Information Officer


Finance & Treasure


Corporate secretary


Operation’s Sam Clubs


General Counsel


Chief Administrative Officer


Chief Marketing Officer


Chief Executive Officer


Chief Operation’s Officer


Apparel & Product Development


Merchandising & Replenishment

Senior Vice President

Controller


President, Wal mart Realty

Slide 7 out of 22http://www.docstoc.com/docs/394127/Wal-Mart-Stores-2007-Annual-Report

WALMART Financial Report

Slide 8 out of 22

Financial Report


Net Sales & Profit

0

50

100

150

200

250

300

350

400

20072006200520042003

Year

Sale

s

0

2

4

6

8

10

12

14

Pro

fit

sales

income

What We Are selling Discount & cheap house

wares Plastic goods Clothing Sporting goods Toys Stationary & office

supplies Hardware Home improvement Paint supplies Arts & Crafts Cosmetics & Toiletries Shoes

Books & MagazinesConfectioneryHome electronicsAutomotive suppliesPharmaceuticals JewelryPhoto finishingTravel planningHome gardeningGreeting cardsGasoline Grocery

Our products

Slide 9 out of 22http://www.asaresearch.com/ecommerce/supplychain.htm

Innovation Leads our Organization Real Estate: Pioneering Sustainability

Technology Information Systems: Driving Value for

Customer Associated, and Shareholders. Merchandising: Developing Brands &

Products Logistic: The Supply Chain, Mixing it Up Global Procurement Establishing Category

Specialists

Technology

Slide 10 out of 22http://www.asaresearch.com/ecommerce/supplychain.htm

The typical customer

The Clients

Slide 11 out of 22

http://www.baltimoresun.com/media/photo/2008-08/41367879.jpg http://www.npdinsights.com/archives/april2005/images/currentIssue/walmart2.gif

Stakeholders & WALMART - 1

Main Market/ Non Market stakeholders

Market Stakeholders The stockholders The Wal-Mart Executive The Employees The Communities where Wal-Mart is located Consumers Suppliers Non profit OrganizationCompetitors

Non Market Stakeholders The Labor Unions The International Retail Stores The Politicians

Wal-Mart

Contributions

Contributions

Inducements

Inducements

J. ANT, (2007) ,The Organization Strategy Methodology in Practice

M. Pereira, (2002) ,Wal-mart: staying on top of the Fortune 500 Slide 12 out of 22

The Goals of Market stakeholders - 1:The stockholders – people that actually own share of

Wal Mart & there for are interesting in seen retune of investment. (according to the 2007 annual – there were 312,423 holders)

The Wal-Mart Executive – many of the top executives received stock options are part of the salary.

The Employees – their job is the primary source of income. (according to the 2007 annual – there were 1,600,000 employees)

The Communities where Wal-Mart is located – many of those communities rely on Wal Mart for jobs & purchase their day to day necessities are a low price.

Consumers – Wal mart is the largest grocery retailer and a lot of people purchase their , that why people depend on their success.


Market stakeholders

Slide 13 out of 22

The Goals of Market stakeholders - 2:Suppliers/ Service Providers – rely on continuous &

consistent orders for job & profit. Non profit Organization – Wal mart foundation provides

many funding. According to Wal Mart Good Works Foundation – 97% of foundation goes to communities were Wal Mart is located.

Competitor – interesting to know were Wal Mart is expanding. Because they have the ability to lower price and force other retailers out of business.

Online Retailers – the website is a low cost way to deliver goods to consumer who live in communities without Wal Mart store.

Gasoline Retailers – both oil companies who have contracts with wal mart & gas station have stake in this. The local gas station can’t compete with Wal Mart either price or convenience.

Market stakeholders


The Goals of Non Market stakeholders:The Labor Unions – because the strict

policy about not having their workers unionized.

The International Retail Stores – because of the acquired strategy of companies well established in the destination country.

The Politicians – rely on Wal Mart for campaign funding.

Non Market stakeholders


Strategy Goals of WALMART

Wal-mart has 4 parts to their corporate strategy:

1. Dominance in the Retail Market2. Expansion in U.S and international

Markets3. Creation of Positive Brand &

Company Recognition by offering the best price.

4. Branch Out into New Sectors of Retail

M. Pereira, (2002) ,Wal-mart: staying on top of the Fortune 500

The Conflict of Interest between stakeholders:To implement the First strategic goal,The Wal-Mart Executive Vs Suppliers/ Service

Providers :

To cut the price on an item as much is possible wal mart is cutting the profit of the supplier to minimum.

1 – Dominant the Market

Slide 17 out of 22

The Conflict of Interest between stakeholders:To implement the Second strategic

goal,The Labor Unions & Employees Vs Wal-Mart

Executive :

the labor unions try to prevent from Wal Mart open new stores because they won’t let the employees unionized.

2 – Expanding inside/ outside

Slide 18 out of 22

The Conflict of Interest between stakeholders:To implement the Third strategic

goal:The Wal-Mart Executive Vs Competitors :

Wal Mart engages in partnerships & co branding, with McDonalds, Promotion movies company's from Hollywood.

3 – Positive Brand & Recognition

Slide 19 out of 22

The Conflict of Interest between stakeholders:To implement the Fourth strategic

goal,The Wal-Mart Executive Vs Competitors &

Politicians :wal mart is spreading into new branch, and have to be aware that she can an will be blame by acting as a monopole retailer.

4 – Branch out

Slide 20 out of 22

Conclusion & SummeryFor recognizing Wal Mart stakeholders we pass

the following steps: We define the organization. We examine the is Financial Report We introduce with company product & services Learn about Wal Mart technology. Define Methodology model of stakeholders Introduce with stakeholders goals Introduce with Wal-mart strategy Introduce Conflict of interest between

stakeholders

תודה לכם

Slide 21 out of 22

“There is only one boss. The customer. And he can fire everybody in the company from the chairman on down, simply by spending his money somewhere else.”

Sam Walton the co-founder of Wal Mart

The quotation

Slide 22 out of 22

Bibliography1. Home site: http://walmartstores.com/AboutUs/ 2. Wal Mart Annual reports 2005, 2006, 2007


3. Quinn. B, “How Wal-Mart is Destroying America & World”, Berkeley CA: Ten Speed press (2001)

4. Thau. B, “Wal-Mart Takes on the World” HFN, (2004).5. Troy. M, “The World’s Largest Retailer” Chain Store Age

Executive (2001)6. Wal Mart Foundation Site:

http://walmartstores.com/CommunityGiving/203.aspx 7. Fortune 500 Magazine Site:

http://money.cnn.com/magazines/fortune/8. Wal Mart Company Profile:

http://www.reuters.com/finance/stocks/companyProfile?symbol=WMT.N http://biz.yahoo.com/ic/11/11600.html

Bibliography

Thank for attention

Questions

WALMART Go International1991 – Entered Mexico city1992 – Entered Puerto Rico, Costa Rico, El Salvador &

Hondros1994 – Entered Canada by Acquisition of woolco (123 stores)1994 – Entered Mexico (open 96 stores) 1994 – Entered Hong Kong & Japan Acquisition Seiyu .1995 – Entered Argentina (3 stores) & Brazil (5 stores)1996 – Entered China through joint venture agreement.1998 – Entered Germany Acquisition of Weartauf (21 stores)

& in 1999 Acquisition more stores (71 stores)1998 – Entered Korea through joint venture agreement.1999 –Entered U.K Acquisition of ASDA Group (128 stores)

Slide 6 out of 27http://walmartstores.com/AboutUs/7603.aspx

History

Stakeholders & WALMART - 1

http://www.emeraldinsight.com/fig/0070390910001.png

General stakeholders

Wal-Mart

Slide 14 out of 27

The Supply chain Technology


Technology

Wal Mart & Stockholder Analysis 1

Business