Wal-Mart Fortune 500

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Group 6

• Walmart

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Group 6 Walmart

• Joseph Vazquez - PowerPoint
• Emmanuel Yunes - Introduction
• Sasha Pelaez Marketing
• Giselle Pacheco Financials
• Ramise Succes - Conclusion
• Destiney Burt Corporate Structure

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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.

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Walmart Headquarters

• Walmarts 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.

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Walmart

• Its main subsidiaries are Asda, Sams Club, Seiyu
  Group and Walmex.
• These subsidiaries were not subsidiaries at first
  but after time the shares of the companies were
  bought out.

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Walmart

• Their corporate structure consists of the
  standard, presidents and CEOs of different
  departments of the company.
• Wal-Marts corporate structure also consists of a
  board of directors, which include, the chairmen,
  CEOs, and business administrators.
• The shareholders elect who the company brings in
  to put in the board of directors.

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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.

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Integrity of Walmart

• Sam Walton stated Walmarts 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 companys standards.
• The Statement of Ethics shows the kind of
  attitudes and conduct that makes such an honest
  workplace that Wal-Mart is today.

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People Love Walmart

• After Sam Walton died, the new CEO became H. Lee
  Scott.
• He stated that, While our history is rich with
  success, theres 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.

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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 Customeralways.
• Walmart had to higher thousands of associates to
  help it sustain all the new stores but also keep
  its name.

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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.

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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.

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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
  Wal-Mart to its competitors is to purchase
  products from other countries to offer customers
  variety of the merchandise.

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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.

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Marketing

• The companys 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.

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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)

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Financials Table
  2013 2012 2011 2010 2009 2014 Projection
Total Revenues 469,162 446,950 421,849 408,085 404,252 480,000
Net Sales 466,114 443,854 418,952 405,046 401,087  
Cost of Sales 352,488 335,127 314,946 304,657 304,056  
Operating, selling, general and administrative expenses 88,873 85,265 81,361 79,607 77,520  
Total Operating expenses 441,361 420,392 396,307 384,264 381,576 455,000
Other Expenses (Tax) 10,802 10,859 9,153 9,451 9,441  
Net Income (Profit) 16,999 15,699 16,389 14,370 13,235 18,000
Dividends declared per common share 1.59 1.46 1.21 1.09 0.95  

• (Amounts in millions per share data and unit
  count data)

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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.

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Profits

• From the points stated in the previous slide, the
  high numbers on the financial statements supports
  Wal-Marts 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.

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Walmart

• . Wal-Mart is made up of three different
  segments Wal-Mart U.S., Wal-Mart International,
  and Sams 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.
• Walmarts profit for the 2013 fiscal year was
  around 16,999 million.

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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.

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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.

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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 its number one spot back.
• They did so by not trying to steer away from
  their everyday low prices, which is what happened
  in 2012.

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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-Marts total revenue jumped from
  446,950 million in 2012 to 469,162 million in
  2013.

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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.

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Walmart

• Walmart was just an idea until 1962 and since
  then, it has become the second worlds 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.

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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
  Waltons 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.

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Walmart

• With its 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 Sams
  Club its their chain of warehouse clubs.
• All have everyday low prices.

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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.

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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.

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Problems?

• Financially they dont 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 dont really exist because it has
  more employees than any other company in the
  entire world.

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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.

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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 its supply and demand.

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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.

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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.

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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.