Business

2007

WAL-MART

EXECUTIVE SUMMARY

MGMT 479F - Team B

Michelle Barnes, Sharl Flowers, Alex Layton, Andrew Miller, and Anh Linh Tran

This report discusses an evaluation of Wal-Mart’s strategic management. The purpose of this evaluation is comparing and analyzing our performance in the last five years that helps us better measuring our operation and financial conditions as well as enable us to accomplish our future objectives and to continue growth of business. This is a critical review the strengths and weaknesses of each area of Wal-Mart’s domestic and international strategies and programs to identify all effective programs and to detect any defective one and make necessary adjustment.

BACKGROUND

I. Current situation

A. Corporation performance: Overall there is an increase in sales and cash flow from operating activities. Also there is a growth in national and international business expansion. Here are some keyed terms in 2006: i) Continuous growth in sales and earnings. Great international expansion for the last five years; ii) Financial: Current ratio is 0.9%. Earnings per share increased from $2.41 in 2005 to $2.68 in 2006; iii) Performance: a) Highpoint: increase in sales of 9.5% comparing to last year. Increase cash flow from operating activities from $10,267 million to $11,231 million. b) Low point: low return on assets of 8.91%, low return on shareholders’ equity with 22.5%, negative price-earnings per share ratio caused a decline in share price from $56.98 in 2002 to $46.11 in 2006 (1st decline in 10 years).

B. Strategic posture:

Mission: “Always low price,” saving people money so they can live better regardless of background or where they may live and to build a better life.

Objectives: “Lines extension and stores expansion.”

Strategies: Wal-Mart’s current strategies concentrate on “customer satisfaction and team spirit.” They are implemented through the following programs:

* Domestic strategies and...