GROUP 2
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PRESENTATION ON FORTUNE 500
WALMART Rank number:1
INDUSTRY
TYPE-RETAIL
Sam Walton
What is Fortune 500? A listing prepared annually by Fortune magazine of the 500 largest U.S. industrial corporations, ranked by sales. Fortune also prepares a listing called the Fortune Service 500 for non-industrial corporation
HISTORY 1962 – Wal-Mart begins
Before opening Wal-Mart, Sam traveled the country studying everything he could about discount retailing.Sam and his wife Helen put up 95 percent of the money for the first Wal-Mart store in Rogers, Ark.
1972 – Wal-Mart goes public
Discounters such as Kmart quickly expanded in the 1960s, while Sam only had enough money to build 15 Wal-Mart stores. In 1972, Wal-Mart stock was offered for the first time on the New York Stock Exchange. The 1980s – Wal-Mart comes of age In 1983, the first Sam’s Club memberswarehouse store opened. The first Supercenter opened in 1988, featuring a complete grocery, and 36 departments of general merchandise.
The 21st century – one of the most
successful retailers in the world Today, 7,390 stores and club locations in 14 markets employ more than 2 million associates. Our history is a perfect example of how to manage growth without losing sight of your values.
Merchandising Information Systems
Operations
FUNCTIONAL DEPARTMENTS Marketing
Finance logistics
What is LOGISTICS ? LOGISTICS is that part of the supply chain process that plans, implements, and controls the efficient, effective flow and storage of goods, services, and related information from the point-of-origin to the point-of-consumption in order to meet customers' requirements.
Three objectives of logistics strategy:
Cost reduction (variable costs) Capital reduction (investment, fixed costs) Service Improvement.
The Increased Importance of Logistics A Reduction in Economic Regulation Recognition by Prominent Non-
Logisticians Technological Advances The Growing Power of Retailers Globalization of Trade
FINANCIAL STATUS
FY(2007)jan to dec
Revenues
$378,799 Millions
Profits
$ 12,731 Millions
Assets
$ 163,514 Millions
Stockholders' equity
$ 64,608 Millions
Current Financial Report
31/Oct/2008
01/Aug/2008
STRATEGIES Mutual Support We help each other best serve our customers We each have an opportunity to do something great for the team Mutual Respect We look for and expect the best in others We anticipate that everyone wants to be successful and we
always looks for ways to improve Our shared diversity is one of our greatest strengths Overall Cost Leadership. Myth that Walmart has low prices throughout the store. 365 Days Discount Stores.
COMPETITORS Carrefour Kmart Target
SWOT ANALYSIS
OPPORTUNITIES
WEAKNESS
THREATS
STRENGTH
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. Wal-Mart has grown substantially over recent years, and has experienced global expansion. The company has a core competence involving its use of information technology to support its international logistics system. For example, it can see how individual products are performing country-wide, store-by-store at a glance. IT also supports Wal-Mart's efficient procurement. A focused strategy is in place for human resource management and development. People are key to WalMart's business and it invests time and money in training people, and retaining a developing them. Q`
Weaknesses Wal-Mart is the World's largest grocery retailer and control of its empire, despite its IT advantages, could leave it weak in some areas due to the huge span of control. Since Wal-Mart sell products across many sectors (such as clothing, food, or stationary), it may not have the flexibility of some of its more focused competitors. The company is global, but has has a presence in relatively few countries Worldwide.
Opportunities To take over, merge with, or form strategic alliances with other global retailers, focusing on specific markets such as Europe or the Greater China Region. The stores are currently only trade in a relatively small number of countries. Therefore there are tremendous opportunities for future business in expanding consumer markets, such as China and India. New locations and store types offer Wal-Mart opportunities to exploit market development. They diversified from large super centres, to local and mallbased sites. Opportunities exist for Wal-Mart to continue with its current strategy of large, super centres.
Threats Being number one means that you are the target of competition, locally and globally. Being a global retailer means that you are exposed to political problems in the countries that you operate in. The cost of producing many consumer products tends to have fallen because of lower manufacturing costs. Manufacturing cost have fallen due to outsourcing to low-cost regions of the World. This has lead to price competition, resulting in price deflation in some ranges. Intense price competition is a threat.
Why Walmart is not in India…?
USP(Unique Selling Preposition)
Always low price.
BIBLIOGRAPHY www.walmartstores.inc www.google.com
www.wikipedia.com
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