Company Analysis-Walmart

WalMart Analysis

WalMart Analysis

FIN 534

[ ]Abstract

This paper will evaluate WalMart. It will briefly discuss WalMart’s history, its operations, locations, markets, and lines of business. It will also evaluate the company’s vulnerability to current financial threats such as a recession, higher interest rates, and global competition and predict how these trends will impact financial performance in future periods. The paper will briefly discuss how the stock is likely to perform in the future, what type of investor would be drawn to this stock, and make a recommendation to management to improve stock performance.

Walmart Analysis

Provide a detailed overview of a U.S. publicly traded company.

Wal-Mart began as the brainchild of Sam Walton, in the mid to late 40’s. [ (Frank, 2006) ] Sam Walton visualized a business where the profits were not limited to the price of an item a customer bought, but maximized by the volume of products being purchased. [ (Frank, 2006) ] Many retailers operate by keeping their prices high and pocketing the difference in savings from receiving products from suppliers at a discount. [ (Frank, 2006) ] Mr. Walton had a different idea. Instead of keeping prices high, his business model would pass the savings, received from suppliers in the form of discounted prices on merchandise, onto the consumers. [ (Frank, 2006) ] This decrease in the price of items would help to motivate consumers to buy more products, which would boost profits from the amount of items being purchased. [ (Frank, 2006) ] This revolutionary idea of profiting from the volume of sales changed the traditional way of doing business. Mr. Walton launched his business model on July 2, 1962 with the grand opening of the first Wal-Mart store in Rogers, Arkansas. [ (WalMart Stores, Inc.,...