STUDENT UNDERTAKING

I SAGAR SATIJA (BBA 4th SEM) would like to declare that the
Project report entitled “WALMART”. Submitted to Bharati Vidyapeeth
Deemed University School of Distance Education, Academic Study
Centre-BVIMR, New Delhi in partial Fulfillment of the requirement for
the award of the degree.

It is an original work carried out by under the guidance of MR.SHAKTI

SHARMA. All respected guides, faculty member and other sources
have been properly acknowledged and the report contains no
plagiarisms.

To the best of my knowledge and belief the matter embodies in this

project is a genuine work done by me and it has been neither submitted
for assessment to the university nor to any other University for the
fulfillment of the requirement of the course of study.

SAGAR SATIJA

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 ACKNOWLEDGEMENT

No task can be achieved alone, particularly while attempting to finish a

project of such magnitude. It took many special people to facilitate it and
support it. Hence, I would like to acknowledge of their valuable support and
convey my humble gratitude to them.

I would like to express my sincere gratitude to MR.SHAKTI SHARMA for

guiding me on the project of “WALMART”.

I would like to thank him as he had always been open to discussion and
frequently enquired about the project and any problems faced etc. he has
also given me valuable guidance as to how to go about the project.

I have put my best effort to make this project as informative and

understandable as possible. I have done the best I could do and have been
honest to the company, and most importantly to myself.

Thank you SIR for supporting me in making this project.

SAGAR SATIJA

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 PREFACE
Practical knowledge is an important suffix of theoretical knowledge. One
cannot rely solely on theoretical knowledge. Classroom lectures clarify the
fundamental aspects of management, but they must be correlated with the
practical training situations. It is that ideology that practical knowledge
should be made mandatory for the curriculum and has a significant role to
play in the fields of business management.

I have put in my sincere efforts to make this INDUSTRIAL EXPOSURE

project a real success. My project is on “WALMART”, its impact on the
market as the largest IT player and on the economy. This study would help
to understand the position and the growth of the company .

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CONTENTS

Chapter 1: Introduction to Company

1. Nature of Business
2. Type & ownership Pattern
3. Organizational Structure
4. Production Lay out
5. Organizational Policies

Chapter 2: Industrial Analysis

1. Industry Overview
2. Current Issues
3. Key Competitors
4. Environmental Scanning
5. Porters five forces model of competition –Michael Porter

Chapter 3: Marketing Strategies

1. Products of Company
2. 4 Ps (Product: Price, Place & Promotion)
3. STP (Segmentation, Targeting and Positioning)
4. Distribution Channels
5. Promotion Strategies

Chapter 4: Financial Analysis

1. Sources of Finance
2. Ratio Analysis
3. Net Profit/ Balance sheet

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Chapter 5: Key Learning’s from the Company and Recommendations
1. Performance Analysis of the Company
2. Reasons for the expansion/diversification of Company
3. Comment on Organizational Leadership
4. Market share/growth rate of Company
5. SWOT Analysis of the Company

Chapter 6: Findings

Chapter 7: Conclusions and Suggestions

Bibliography

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 INTRODUCTION

Walmart Inc. is an American multinational retail corporation that operates

a chain of hypermarkets, discount department stores, and grocery stores. Headquartered
in Bentonville, Arkansas, the company was founded by Sam Walton in 1962
and incorporated on October 31, 1969. It also owns and operates Sam's Club retail
warehouses. As of October 31, 2017, Walmart has 11,703 stores and clubs in
28 countries, operating under 59 different names. The company operates under the name
Walmart in the United States and Canada, as Walmart de México y Centroamérica in
Mexico and Central America, as Asda in the United Kingdom, as the Seiyu Group in
Japan, and as Best Price in India. It has wholly owned operations in Argentina, Chile,
Brazil, and Canada.

Walmart is the world's largest company by revenue – approximately US$480 billion

according to the Fortune Global 500 list in 2016 – as well as the largest private
employer in the world with 2.3 million employees. It is a publicly traded family-owned
business, as the company is controlled by the Walton family. Sam Walton's heirs own
over 50 percent of Walmart through their holding company, Walton Enterprises, and
through their individual holdings. Walmart is one of the world's most valuable companies
by market value and was the largest U.S. grocery retailer in 2016. 62.3 percent of
Walmart's US$478.614 billion sales came from its U.S. operations.

The company debuted on the New York Stock Exchange in 1972. By 1988, Walmart was
the most profitable retailer in the U.S. and by October 1989, it had become the largest in
terms of revenue. Originally geographically limited to the South and lower Midwest, by
the early 1990s, the company had stores from coast to coast: Sam's Club opened in New
Jersey in November 1989 and the first California outlet opened in Lancaster in July 1990.
A Walmart in York, Pennsylvania opened in October 1990: the first main store in
the Northeast.

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Walmart's investments outside North America have seen mixed results: its operations in
the United Kingdom, South America, and China are highly successful, whereas ventures
in Germany and South Korea failed. Wal-Mart Stores, Inc is an American public
corporation that runs a chain of large discount department stores and a chain of warehouse stores. In
2010 it was the world's largest public corporation by revenue, according to the Forbes Global 2000 for
that year. The company was founded by Sam Walton in 1962, incorporated on October 31, 1969,
and publicly traded on the New York Stock Exchange in 1972. Wal-Mart, headquartered
in Bentonville, Arkansas, is the largest majority private employer and the largest grocery retailer in
the United States. In 2009, it generated 51% of its US$258 billion sales in the U.S. from
grocery business. It also owns and operates the Sam's Club retail warehouses in North America.
Walmart has 8500 stores in 15 countries, with 55 different names.

The company operates under its own name in the United States, including the 50states. It also
operates under its own name in Puerto Rico. Wal-Mart operates in Mexico as Walmex, in the
United Kingdom as Asda in Japan as Seiyu, and inIndia as Best Price. It has wholly-owned
operations in Argentina, Brazil, and Canada. Walmart's investments outside North America have
had mixed results :its operations in the United Kingdom, South America and China are
highly successful, while it was forced to pull out of Germany and South Korea when ventures there
were unsuccessful.

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 Nature of Business

Wal-Mart Stores, Inc. (Walmart) is the largest retailer in the world in terms of revenues
and number of employees. As of 2015, the company has more than 2.2 million employees
worldwide. Founded in Arkansas in 1962, the company has become the leading retail
firm in the world. With this top position in the retail industry, Walmart’s annual revenues
have exceeded $485 billion in the fiscal year ending in 2015. This success is based on the
effective application of strategies to reach the company’s vision and mission. Walmart’s
generic strategy and intensive strategy are both based and aligned with the firm’s vision
statement and mission statement. Thus, the corporate mission statement, the corporate
vision statement, the generic strategy for competitive advantage, and the intensive growth
strategies are contributing factors to the company’s success. Walmart follows its vision
statement and mission statement through the cost-leadership generic strategy, based on
Porter’s model, and the market penetration and market development intensive growth
strategies. Walmart’s mission and vision are used as bases for these strategic choices.

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 Walmart’s Mission and Vision Statements

Walmart’s Vision Statement. The company traces its success to the ideals of its
founder, Sam Walton. These ideals are emphasized in Walmart’s vision statement: “To
be the best retailer in the hearts and minds of consumers and employees.” The
company aims to achieve a top position in the retail industry. Based on its current
situation, the firm has already fulfilled the “best retailer” part of the vision. Walmart’s
vision statement also points to the minds and hearts of the people that matter most to the
business, i.e. consumers and employees. The company has realistically influenced the
minds of consumers and employees on the basis of financial benefits. Employees earn
wages, while consumers save money through Walmart’s low prices. However, the “heart”
component of the vision statement remains to be proven.

Walmart’s Mission Statement. The company’s strategic decisions are also a direct
manifestation of its mission. Walmart’s mission statement is “Saving people money so
they can live better.” This statement is synonymous to the company’s slogan, “Save
money. Live better.” The firm follows and succeeds in fulfilling the “saving people
money” component of the mission statement. Consumers save money through Walmart’s
low selling prices. However, it is not yet clear if the company satisfies the “live better”
component of the mission statement. There are criticisms on Walmart’s very low wages
that are barely enough for employees to make ends meet. There are also criticisms about
the long-term effects of the firm’s continued large-scale sales of cheap and sometimes
Walmart’s Generic Strategy (Porter’s Model)

Based on Porter’s Model, Walmart’s generic strategy is cost leadership. In cost

leadership, the firm’s focus is on maintaining low prices of goods and services. Walmart
is known for low prices, which is the main selling point of the business. The company
keeps its prices low through cost reduction in operations. For example, the firm uses

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information technology to maximize operational efficiency. Walmart also minimizes
employees’ wages for this purpose.
This generic strategy determines the other strategies used in the company. One of the
strategic objectives of Walmart is to keep operating costs low. As mentioned, the firm
minimizes wages and spending in other areas of the business for this objective. Another
strategic objective of Walmart is to achieve economies of scale to support the cost-
leadership generic strategy. To minimize prices, the firm must maintain high sales
volume and large-scale operations.

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 Walmart’s Intensive Strategies (Intensive Growth Strategies)

Market Penetration: Walmart uses market penetration as its main intensive strategy for
growth. Market penetration involves selling more goods or services to the current target
market. Walmart sells more goods and services to its current consumers by offering
discounts, promotions, and special packages. For example, the company offers
discounted wholesale packages of various goods.

Market Development :Walmart uses market development as its secondary intensive

strategy for growth. This intensive growth strategy involves entering new markets to sell
to consumers other than those that the company currently has. For example, Walmart
establishes new stores to achieve market development. The company opens new stores in
overseas locations to tap consumers in those markets.

Product Development: Walmart only minimally uses product development as an

intensive strategy for growth. In this intensive strategy, the focus is on offering new
products to the market. Understandably, Walmart does not invest much in new product
development. Instead, the company’s efforts are on sales and marketing. Thus, product
development is not a significant intensive strategy in the firm’s growth.

Strategic Analysis and Recommendation for Walmart

Walmart’s strategies and strategic choices follow its mission statement and vision
statement. The company follows its vision and mission by keeping its costs and prices
low. This condition is based on the cost leadership generic strategy in Porter’s model.
The company also continues to globally expand to keep supporting this generic strategy.
Through expansion, Walmart achieves better economies of scale, which support the cost

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leadership strategy. The intensive strategies of market penetration and market
development also come along with such global growth and expansion.
For Walmart to succeed in fulfilling its vision statement and mission statement in the
long term, further expansion is needed. The pressure of tough global competition can be
addressed through aggressive growth and expansion of the business. Walmart can expect
resilience in its leadership position in the retail industry through international growth and
expansion.

Ownership Pattern
Walmart Inc. is a joint-stock company registered with the U.S. Securities and Exchange
Commission. As of March 2017,[205] it has 3,292,377,090 outstanding shares. These are
held mainly by the Walton family, a number of institutions and funds.

 43.00% (1,415,891,131): Walton Enterprises LLC

 5.30% (174,563,205): Walton Family Holdings Trust

 3.32% (102,036,399): The Vanguard Group, Inc

 2.37% (72,714,226): State Street Corporation

 1.37% (42,171,892): BlackRock Institutional Trust Company

 0.94% (28,831,721): Vanguard Total Stock Market Index Fund

 0.77% (23,614,578): BlackRock Fund Advisors

 0.71% (21,769,126): Dodge & Cox Inc

 0.68% (20,978,727): Vanguard 500 Index Fund

 0.65% (20,125,838): Bank of America Corporation

 0.57% (17,571,058): Bank of New York Mellon Corporation

 0.57% (17,556,128): Northern Trust Corporation

 0.55% (16,818,165): Vanguard Institutional Index Fund-Institutional Index Fund

 0.55% (16,800,850): State Farm Mutual Automobile Insurance Co

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 0.52% (15,989,827): SPDR S&P 500 ETF Trust

 Sam Walton began his retail career in 1950 by opening a 5&10 in downtown
Bentonville, Arkansas. Following his success and his desire to bring
greater value to his customers, he opened the first Wal-Mart store in 1962. Sam
Walton died at the age of 74, leaving the business to his wife and four children. In
total the Walton family currently owns almost half of the company, now operating
as Wal-Mart Stores Inc. (NYSE:

 Jim C. Walton
Sam Walton's youngest living son, Jim, is ranked the number-one owner of
direct shares in the company, with a total of 10.5 million shares as of
December 2017. Jim joined Wal-Mart in 1972, working in the real estate division.
He became president of Walton Enterprises in 1975. As of 2017, he had retired
from Wal-Mart's board of directors.
Jim is the chairman and chief executive officer (CEO) of Arvest Bank, which
operates community banking locations in Arkansas, Oklahoma, Missouri and
Kansas. He also serves as chairman of Community Publishers, a newspaper and
Internet publisher.

 Alice L. Walton
Sam Walton's only daughter, Alice, is ranked the second-highest owner of direct
shares in the company, with 6.7 million shares as of December 2017. Alice began
her career in finance working at First Commerce Corporation and Arvest Bank,
and then founded an unsuccessful investment bank, the Llama Company, in 1988.
Alice may best be remembered for her work in securing the Walton Family
Foundation's support for the Crystal Bridges Museum of American Art in
Bentonville, Arkansas.

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 S. Robson Walton
Sam Walton's oldest living son, S. Robson, is ranked the third-highest owner of
direct shares in the company, with a total of 3.3 million shares as of December
2017. After graduating from the Columbia University School of Law in 1969, S.
Robson joined the law firm Conner & Winters, which would later represent Wal-
Mart. In 1978, he left the law firm to serve as the senior vice president of Wal-
Mart. Two days after his father's death in 1992, he was named the chairman of the
board of directors at Wal-Mart and held the position until 2015.

 John T. Walton Estate Trust

John Walton was Sam Walton’s middle son. He was a Vietnam veteran, the
chairman of a venture capital firm and the founder of the Children’s Scholarship
Fund. John learned to fly after returning from Vietnam and flew planes for Wal-
Mart. In 2005, John died while flying an experimental aircraft.
After his death, the details of his estate were sealed by a Wyoming judge. In 2015,
the filings were unsealed, and it was revealed that he gave half of his fortune to
charitable trusts, a third to his only child, Lukas Walton, and the rest to his wife
Christy. This leaves Lukas and Christy Walton as the fourth-highest owners of
direct shares in the company.

 Walton Enterprises
Walton Enterprises LLC is the Walton family business that manages its massive
fortune. As of December 2017, the enterprise managed more than 1.4 billion
shares of Wal-Mart stock for the Walton family. In 1953, Sam Walton started
arranging his finances to avoid a possible estate tax bill. He divided up his stake
in the family business and gave 20% to each of his four children, and kept the
remaining 20% for himself and his wife.
This strategy split up the assets of the Walton family before they had a chance to
appreciate in value, saving the family an untold sum of money. Walton
Enterprises' primary goal is to interpret the tax code as favorably as possible so

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 that the Walton family, and their future heirs, can keep as much of their fortune as
possible.

Organizational Structure

Walmart’s organizational structure determines the company’s business activities. Its

organizational structure also imposes limits on how the business addresses its problems.
In relation, Walmart’s organizational culture determines the way people respond to
challenges in the workplace. The resilience of the human resources of the company partly
depends on the mindset supported through the organizational culture. Nonetheless, the
long history of Walmart in succeeding and continually growing internationally shows that
the firm’s organizational structure and organizational culture have been helpful in
bringing competitive advantage and success. Such organizational structure interacts with
the organizational culture to maintain the significant competitive advantage of Walmart.
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Walmart’s Organizational Structure
Walmart has a hierarchical functional organizational structure. This structure has two
features: hierarchy and function-based definition. The hierarchy feature pertains to the
vertical lines of command and authority throughout the organizational structure. For
example, except for the CEO, every employee has a superior. Directives and mandates
coming from the top levels of Walmart’s management are implemented through middle
managers down to the rank-and-file employees in Walmart stores. On the other hand, the
function-based definition feature of the company’s organizational structure involves
groups of employees fulfilling certain functions. For example, Walmart has a department
for the function of human resource management. The company also has a department for
the function of information technology, and another department for the function of
marketing. These are just some of the numerous function-based departments in
Walmart’s organizational structure.

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In Store Hourly Workers/ Management:
This is the first and the lowest segment in the Walmart job hierarchy tree. This segment
majorly comprises of entry level positions and mostly all the employees in this segment
are hired on hourly basis; that is they work in the store in an hourly count. The positions
included in this segment of the hierarchical structure are as follows-
 The cashier- the individual is supposed to man the cash counter and fulfill
billing related responsibilities.
 The sales associate- the individual is required to assist the customer in-store.
 HD/ HM on
 Customer Support Manager- the individual is needed to cater to all customer
support related issues that may arise.
 Department Manager- the individual is responsible for the management of a
particular department.
 Support Manager
This level of the management/ workers also included the position of specialty department
manager in some locations.

In- Store Managers:

The In-store managers are the next segment of the Walmart job hierarchical structure.
This segment is located in the middle tier of the Walmart Business hierarchy structure.
The positions included in the segment comprises of individuals who have a greater
responsibilities as manager and hence require a set of interpersonal skills to fulfill their
job responsibilities. The positions in the segment are listed here-
 The assistant manager- this position is inferior to the co-manager and manager
positions and is instilled to provide basic assistance to the manager and co-
manager positions.
 The co- manager- this position, though not inferior, is a counterpart to the
manager position.

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  Manager- the individual is required to carry on the highest level of in-store
management duties.

Above Store Level Management:

This is the topmost tier in the scheme of job hierarchy in Walmart. The list of positions in
this segment includes the higher level executives and even the board of directors. The 3
major positions which are listed in the above store management level are as follows:
 Senior Vice President- this is the peak position in the hierarchy of positions in
Walmart. The senior VP is responsible for everything that goes on in the store/
chains and hence everyone reports to him either directly or through a chain of
other employees.
 Regional Vice President- this individual is second only to the senior VP. He/
she fulfill the duties similar to that of the senior VP but in this case the duties
are limited in geographical extent to a particular region.
 District Manager- this individual is responsible for the management of a
particular district.

Production Layout

As of October 31, 2017, Walmart's international operations comprised 6,291 stores and

800,000 workers in 26 countries outside the United States. There are wholly owned
operations in Argentina, Brazil, Canada, and the UK. With 2.2 million employees
worldwide, the company is the largest private employer in the U.S. and Mexico, and one
of the largest in Canada. In fiscal 2016, Walmart's international division sales
were US$123.408 billion, or 25.8 percent of total sales. International retail units range
from 8,900 to 185,000 square feet (830 to 17,190 square metres), wholesale units range
from 35,000 to 70,000 square feet (3,300 to 6,500 square metres) and other units
(including drugstores and convenience stores) range up to 2,400 square feet (220 square
metres). Judith McKenna is the president and CEO

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Latin America
As of October 31, 2017, there are a total of 4,043 locations in Latin America, which
consists of locations in Argentina, Brazil, Chile, Costa Rica, El Salvador, Guatemala,
Honduras, Mexico, and Nicaragua.

Argentina
Walmart Argentina was founded in 1995 and, as of October 31, 2017, operates 107 stores
under the banners Walmart Supercenter (32 locations), Changomas (52 locations),
Changomas Express (9 locations), Mi Changomas (8 locations), and Walmart
Supermercado (6 locations).

Brazil

In 2004, Walmart bought the 118 stores in the Bompreço supermarket chain in Walmart Brasil,

the operating company, has its head office in Barueri, São Paulo State, and regional offices
in Curitiba, Paraná; Porto Alegre, Rio Grande do Sul; Recife, Pernambuco; and Salvador,
Bahia. As of October 31, 2017, Walmart Brasil operates 485 stores under the banners Todo Dia
(144 locations), Naconial (Sonae) (51 locations), Supermarket (Bompreço) (59 locations),
Walmart Supercenter (54 locations), Maxxi Atacado (Sonae) (44 locations), BIG (Sonae) (37
locations), Hypermarket (Bompreço) (38 locations), Sam's Club (27 locations), Mercadorama
(Sonae) (10 locations), Walmart Posto (Gas Station) (14 locations), Supermercado Todo Dia (3
locations), and Hiper Todo Dia (4 locations)

Central America
Walmart also owns 51 percent of the Central American Retail Holding Company
(CARHCO), which, as of October 31, 2017, consists of 232 stores in Guatemala (under
the Paiz [26 locations], Walmart Supercenter [10 locations], Despensa Familiar [153
locations], and Maxi Dispensa [35 locations] banners) 91 stores in El Salvador (under the
Despensa Familiar [60 locations], La Despensa de Don Juan [17 locations], Walmart
Supercenter [4 locations], and Maxi Despensa [10 locations] banners), 101 stores in
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Honduras (including the Paiz [8 locations], Walmart Supercenter [3 locations], Dispensa
Familiar [66 locations], and Maxi Despensa [24 locations] banners), 95 stores in
Nicaragua (including the Pali [67 locations], La Unión [8 locations], Maxi Pali [19
locations], and Walmart Supercenter [1 location] banner) and 244 stores in Costa Rica
(including the Maxi Pali [39 locations], Mas X Menos [35 locations], Walmart
Supercenter [10 locations], and Pali [160 locations] banners

Chile
In January 2009, the company acquired a controlling interest in the largest grocer
in Chile, Distribución y Servicio D&S SA. In 2010, the company was renamed Walmart
Chile As of October 31, 2017, Walmart Chile operates 371 stores under the banners Lider
Hiper (85 locations), Lider Express (84 locations), Superbodega Acuenta (110 locations),
Ekono (88 locations), and Central Mayorista (4 locations)

Mexico
As of October 31, 2017, Walmart's Mexico division, the largest outside the U.S.,
consisted of 2,317 stores. Walmart in Mexico operates Walmart Supercenter (266
locations), Sam's Club (161 locations), Bodega Aurrera (496 locations), Mi Bodega
Aurrera (335 locations), Bodega Aurrera Express (954 locations), Superama (95
locations), and Medimart Farmacia de Walmart (10 locations).

As of October 31, 2016, there are a total of 1,464 stores in Canada and Europe, the

Middle East and Africa (EMEA), which the latter consists of locations in the United
Kingdom, South Africa, Botswana, Ghana, Kenya, Lesotho, Malawi, Mozambique,
Namibia, Nigeria, Swaziland, Tanzania, Uganda, and Zambia

Canada

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Walmart has operated in Canada since it acquired 122 stores comprising
the Woolco division of Woolworth Canada, Inc in 1994. As of October 31, 2017, it
operates 410 locations (including 331 supercentres and 79 discount stores)[1][2] and, as of
June 2015, it employs 89,358 people, with a local home office in Mississauga,
Ontario.Walmart Canada's first three Supercentres (spelled in Canadian English) opened
in November 2006 in Hamilton, London, and Aurora, Ontario. The 100th Canadian
Supercentre opened in July 2010, in Victoria, British Columbia.
In 2010, Walmart Canada Bank was introduced with the launch of the Walmart Rewards
MasterCard

United Kingdom

Walmart's UK subsidiary Asda (which retained its name after being acquired by
Walmart) accounted for 42.7 percent of 2006 sales of Walmart's international division. In
contrast to the U.S. operations, Asda was originally and still remains primarily a grocery
chain, but with a stronger focus on non-food items than most UK supermarket chains
other than Tesco. As of October 31, 2017, Asda had 638 stores, including 147 from the
2010 acquisition of Netto UK. In addition to small suburban Asda Supermarkets, which
has 209 locations larger stores are branded Supercentres, which has 32 locations. Other
banners include Asda Superstores (341 locations), Asda Living (33 locations), and Asda
Petrol Fueling Station (23 locations) In July 2015, Asda updated its logo featuring the
Walmart Asterisks behind the first 'A' in the Logo.

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Asia

As of October 31, 2017, there are currently a total of 781 stores in three Asian countries:
China, Japan, and India.
Walmart has joint ventures in China and several majority-owned subsidiaries. As of
October 31, 2017, Walmart China ( 沃 尔 玛  Wò'ērmǎ)[141]operates 424 stores under the
Walmart Supercenter (386 locations), Sam's Club (18 locations), Neighborhood Market
(2 locations) and Hypermarket (18 locations) banners. In Japan, Walmart owns 100
percent of Seiyu (西友 Seiyū) as of 2008. As of October 31, 2017, there are 337 stores
under the Seiyu (Hypermarket) (91 locations), Seiyu (Supermarket) (236 locations),
Seiyu (General Merchandise) (1 location), and Livin (9 locations) banners.

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 Opening
Store Address City State Times

Wal-Mart India Private Limited, Khasra No 425,

426 & 428 
Best Price Modern Toposherkhania Akhnoor Road Jammu (J&K)
Wholesale,  Jammu & 180003 Jammu & 7:00 AM -
Kashmir India Jammu Kashmir 8:30 PM

Wal-Mart India Private Limited. Plot No. 75/26 -

75/14, AIPL Ambuja Dream City Manawala, GT
Jalandhar Highway Road
Best Price Modern Amritsar
Wholesale, Amritsar, Punjab 140601 7:00 AM -
Punjab India Amritsar Punjab 8:30 PM

Wal-Mart India Private Limited. Khasra No.

193-195 Adjoining Ioc Petrol Pump, Near
Toyota Showroom Paragpur, G.T Road
Best Price Modern Jalandhar
Wholesale, Jalandhar, Punjab 144004 7:00 AM -
Punjab India Jalandhar Punjab 8:30 PM

Wal-Mart India Private Limited. Aeren Business

Complex, Opp. Old Chungi Naka, Jalandhar G.T
Road
Best Price Modern Ludhiana
Wholesale, Ludhiana, Punjab 141008 7:00 AM -
Punjab India Ludhiana Punjab 8:30 PM

Best Price Modern Wal-Mart India Private Limited. Khasra No. Zirakpur Punjab 7:00 AM -
Wholesale, Zirakpur, 444, 437, 438 N.H. 22, Chandigarh Ambala 8:30 PM
Punjab Road, Opp: Bristol Hotel
Zirakpur

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 Opening
Store Address City State Times

Punjab 140603
India

Wal-Mart India Private Limited. Near Adesh

Hospital, 12 Canal Irrigated, Village Bucho
Kalan, Hadbast No 201, Tehsil Nathana
Best Price Modern Bathinda
Wholesale, Bathinda, Punjab 151010 7:00 AM -
Punjab India Bathinda Punjab 8:30 PM

Best Price Modern Wholesale Walmart India Pvt

Ltd Khasra No. 814-817, Village – Chalesar
Tehsil – Itmadpur Kanpur Road
Best Price Modern Agra
Wholesale, Agra, Uttar Uttar Pradesh 282006 Uttar 7:00 AM -
Pradesh India Agra Pradesh 8:30 PM

Wal-Mart India Private Limited. E-Commercial

Belt, Sushant Golf City, Shaheed Path, Sultanpur
Road
Best Price Modern Lucknow
Wholesale, Lucknow, Uttar Pradesh  Uttar 7:00 AM -
Uttar Pradesh India Lucknow Pradesh 8:30 PM

Organisational Policies

HR Policies at Walmart
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1. Work culture and core values employee training and development workforce planning
and employee benefits best HR practices at Walmart negative hr practices at walmart
IKEA comparison and recommendations Flow of presentation
2. work culture and core values associates are the heart of Walmart business . AS Sam
Walton said,” our people make the difference, working here means opportunity for every.
3. Work culture and striving for excellence. Respect for individual and services to their
customers .core values three basics beliefs since the first walmart opened in 1962, their
work culture has thrived by operating with three core beliefs.
4. Best HR practice at walmart the sundown rules the 10- foot rules teamwork open door
grass roots process servant leadership conflict resolution.
5. Protecting price advantages culture commited to business success connecting people to
products focus people to insure operational efficiency focus on reducing expenses talent
strategy driving results risk minimization by aligning business practices with HR
practices

CORPORATE POLICIES
Walmart stores, inc. currently has numerous corporate policies concerning the
following selected categories:
 Accounting
 Asset protection
 Corporate affairs
 Environmental
 Ethics
 Global security
 Information system
 Legal
 Marketing
 Operations

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  Privacy
 Risk Control
 People divison

Walmart CSR Policies

 Walmart is refferd in the CSR field as a “ Global legislator’
 They use contractual relationships to regulate global suppliers.
 Walmart publishes its own global responsibilities report annually
 Three parameters; Environment, Social,, and goals.
 Walmart performance , policies and financials figures portray it as a modal
company on CSR
 Financial investments: education, health , fighting, hunger, local farmers support,
and affordable food.

CHAPTER-2

INDUSTRIAL ANALYSIS

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This timeline depicts Walmart's net sales worldwide from 2008 to 2017, by division.
Walmart International's net sales amounted to 116.12 billion U.S. dollars in the 2017
fiscal year. Walmart's total net sales amounted to about 481.32 billion U.S. dollars in the
same fiscal year.

Walmart

Wal-Mart was founded in 1962 by Sam Walton when he and his brother James “Bud”
Walton opened the first Wal-Mart Discount City in Rogers, Arkansas. Since then, Wal-
Mart has grown to become the largest publicly-owned retail company in the world. In the
United States, the company includes Wal-Mart discount stores, Supercenters,
Neighborhood Markets, and Sam’s Club warehouse membership clubs. The company
also has many international operations. Wal-Mart is considered a variety store which
focuses on low prices featuring apparel as well as hard goods, and has been committed to
upholding their basic value of customer service.

Beginning in the early 1990s, Wal-Mart went to great lengths to increase their market
share. They introduced a full line of groceries into their stores, diversified their market by

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appealing to certain ethnic groups through bilingual advertisements, and took steps to
promote the awareness of environmental issues.

In the 2017 fiscal year, Wal-Mart operated over eleven thousand stores worldwide and
these stores generated close to 482 billion U.S. dollars in net sales. Even though Wal-
Mart has been criticized for their low wages, they claim to do a lot of good for lower
income households. Figures show that a family can save about one thousand U.S. dollars
a year with their ability to cut prices on some products, such as toys, by thirty percent in
order to stimulate more sales

CURRENT ISSUES

1.Walmart set to be largest shareholder in Flipkart

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BENGALURU| NEW DELHI Walmart Stores Inc is in the final stage of negotiations to
become the largest shareholder in Flipkart — India’s biggest online retail company —
pitching the world’s largest brick-and-mortar retailer into a direct face-off with another
giant American retailer — Amazon — in one of the most dynamic markets for
ecommerce globally. To begin with Walmart could buy about 20-26% stake and increase
its shareholding to 51% in tranches.

The Bentonville-based retail giant could invest up to $10-12 billion for the entire stake
purchase, said two people directly aware of the ongoing discussions. The deal will
include the purchase of shares from existing investors such as Japanese telecom and
internet giant SoftBank, the sources said. 

“The primary investment will be between $1-2 bn, depending on the final size of the deal.
The rest will be Walmart buying shares from other investors,” said one of the people
cited above.

2.Walmart Raises Annual Dividend to $2.08 per Share, Marking 45th Consecutive Year
of Dividend increases

BENTONVILLE, Ark., Feb. 20, 2018 – The Board of Directors of Walmart Inc.
(NYSE: WMT) approved an annual cash dividend for fiscal year 2019 of $2.08 per share,
an increase of 2 percent from the $2.04 per share paid for the last fiscal year. The fiscal

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year 2019 annual dividend of $2.08 per share will be paid in four quarterly installments
of $0.52 per share, according to the following record and payable dates:

Record Dates Payable Dates

Mar. 9, 2018 Apr. 2, 2018

May 11, 2018 Jun. 4, 2018

Aug. 10, 2018 Sep. 4, 2018

Dec. 7, 2018 Jan. 2, 2019

“We’re proud of our track record of returning meaningful cash to shareholders and are
pleased to be increasing our annual dividend for the 45 th consecutive year,” said Brett
Biggs, executive vice president and chief financial officer at Walmart Inc.
In fiscal year 2018, Walmart returned $14.4 billion to shareholders in the form of
dividends and share repurchases.

3.Opportunity
Walmart employs 2.3 million associates around the world. About 75% of our store
management teams started as hourly associates, and they earn between $50,000 and
$170,000 a year. Walmart is investing $2.7 billion over two years in higher wages,
education and training.

Wal-Mart CEO reveals the company's 8 biggest problems.

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Wal-Mart US CEO Greg Foran has spent a lot of time visiting the company's stores since
he took the helm eight months ago.
With sales in the US lagging, Foran has traveled to Wal-Mart stores across the country in
search of ways to improve customers' experiences with the retailer.

Foran shared what he learned during his travels in a meeting with investors on
Wednesday. Here's what he said:
1. Many Wal-Mart stores lack cleanliness and tidiness.

"We want this year to be the year of improving our stores," Foran said, according to
a transcript of his remarks. "So by the time we hit holiday season, our stores are clean,
tidy, well merchandised and run by engaged associates. Today in the main, we're not."
2. Stores aren't restocking shelves fast enough. "We've got too much inventory in the
back rooms and our processes are not where we want them to be and that's causing some
undue shrinkage and some out-of-stocks," Foran said.
The company has already started to implement some changes to fix these issues, such as
marking down foods that are nearing their expiration date to reduce the amount of food
that goes to waste.

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3. Store layout and design compromises customer convenience and space in some
cases.
"Both Supercenters and Neighborhood Markets have potential to be better" when it
comes to layout, design, lighting, and even store temperature, Foran said.
"Some of the stores recently opened in our opinion are not quite as good as ones that we
had opened in previous years," he said.

4. Digital services need to be integrated with physical stores.

For example, Wal-Mart wants to allow customers to order groceries online for in-store
pickup and delivery - a service which the company is currently testing in some areas.

5. The retailer needs to improve traffic-driving side businesses like gas, care clinics
and financial services.
"We have a mindset that we are building scalable profitable businesses whilst driving
additional traffic to our stores," he said. "Consider how important pharmacy is to
Supercenters and Neighborhood Markets as a traffic driver."

6. Prices aren't always as low as competitors'.

"While we have pockets of leadership [on price], in more competitive markets, our gain
is too small," Foran said.

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7. The brand needs to offer a wider product assortment in general merchandise,
fresh produce, grocery and private label.

"When we get the assortment right, we know that the customers respond," Foran said.
8. The Bentonville, Arkansas headquarters needs to be focused on customer service.
"Our job at the home office in Bentonville is to serve the stores to in turn serve
customers. Sam Walton, founder of our business based on this principle," Foran said.
"But to be frank, in some recent years, we've slipped a little away from this. We've
recently undertaken some important activities to simplify our organization and empower
our stores, our associates in our stores to make decisions, but [there's] more to do."

KEY COMPETITOR :

Wal-Mart Stores is an irresistible (or at least unavoidable) retail force that has yet to meet
any immovable objects. It is the world's #1 retailer, as well as the world's largest
company by revenue (and largest employer with 2.3 million associates). The company
sells groceries and general merchandise, operating more than 5,300 stores in the US,
including about 4,600 Walmart stores and 660 Sam's Club membership-only warehouse
clubs. Walmart's international division numbers more than 6,500 locations; it's the #1
retailer in Canada and Mexico and has operations in Asia, Africa, Europe, and Latin
America. Some 260 million customers visit Walmart's stores and websites each week.

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 AMAZON WALMART

Industry E-commerce and Online Warehouse Department Stores

Auctions in the US Clubs & in the US
Supercenters in
the US

Key Drivers Per capita disposable income

Number of mobile internet connections
Percentage of services conducted online
World price of crude oil

Life cycle Growth Mature Decline

stage:

Concentration Low – HHI 250 High – HHI High HHI 2,000

Level: 5,000

Technology High Medium Medium

Change:

Barriers to Low High Medium

Entry:

Threats High reliance on shipping Gas stations E-commerce sites

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 companies (FedEx, UPS,
etc.). generate large are better
portion of positioned due to
Operating profits limited
when industry low overhead
oil prices are high.
Membership revenue. costs, offering
(like Prime) limits ability to pass lower prices and
higher costs onto customers. wider inventories.

Opportunities Disposable income levels determine quantity and quality of online

purchases
Integrate in-store and online for personalized customer experience

Company Overviews

Amazon

Amazon.com, founded in 1994 by current CEO Jeff Bezos, is the largest

internet-based retailed in the US. They maintain three different operating
segments: North America, International, and eb Services. In Q2 of 2015,
Amazon reported $23 billion in sales of which North America represented 60%,
International 32%, and Web Services 8%.2 Amazon currently sells over 300
million products in a variety of categories. Its retail operation encompasses
many different business models – Amazon Retail, Amazon Marketplace, and
Amazon Web Services. In Amazon Retail, the company purchases and takes
possession of inventory in which it stores in one of its 743 distribution centers in
the US. In Amazon Marketplace, third party sellers are able to list items on
Amazon’s website and the seller pays a fee to Amazon. Amazon Web Services
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is cloud-computing platform providing services like online storage and virtual
servers.

Walmart

Walmart, founded in 1962 by Sam Walton, was the world’s largest company by
revenue5. Its operating segments include Sam’s Club, Walmart US, and
International. In Q2 of 2015, Walmart reported $119 billion in sales of which
Walmart US represented 62%, International 26% and Sam’s Club 12%.6 Sales
are generated predominantly through one of its 11,526 stores throughout the
globe. Walmart also generates sales through its website Walmart.com, however
less than 3% of sales are generated online. Evolving to compete in the digital
space, Walmart is moving from a traditional brick-and-mortar retail store to an
omni-channel model which includes online sales.

PESTLE ANALYSIS

Walmart’s remote environment or macro-environment involves factors that

determine the company’s success. These factors are best presented through the
PESTEL/PESTLE analysis model. As a retail industry leader, Walmart
continues to withstand the potential negative effects of threats in the political,
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 economic, sociocultural, technological, ecological and legal (PESTEL/PESTLE)
aspects of its business. However, this success requires continued evaluation of
the retail industry environment. These PESTEL/PESTLE factors also change
over time, thereby imposing challenges for Walmart. These changes may present
threats or opportunities. Walmart must exploit the opportunities and protect
itself from threats. In using the PESTEL/PESTLE analysis, Walmart leaders and
managers can determine which factors to prioritize in strategy development.

Political Factors

Walmart considers political factors in the retail market, usually pertaining to government
policies. In the PESTEL/PESTLE analysis model, politically active interest groups are
also significant. The following are the political external factors in Walmart’s
remote/macro environment:

1. High stability of politics (opportunity)

2. Political support for globalization (opportunity)
3. Political pressure for higher wages (threat)

Economic Factors

Walmart is under significant pressure from economic changes. Any such change directly
leads to changes in the company’s revenues. Based on the PESTEL/PESTLE analysis
model, the following are the economic external factors in Walmart’s remote/macro
environment:

1. Stability of major economies (opportunity)

2. Continued growth of developing countries (opportunity)
3. Decreasing unemployment in the United States (opportunity)
All of these economic factors show that Walmart should exploit opportunities around the
world. Emphasis should be on the fast-growing economies of developing countries,
which have increasing demand for goods from retail firms like Walmart.
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Social/Sociocultural Factors

The social or sociocultural factors in the business environment of Walmart influence

consumer perception and preferences. In the PESTEL/PESTLE analysis model, the
following are the social or sociocultural external factors in Walmart’s remote/macro
environment:

1. Healthy lifestyle trend (opportunity)

2. Cultural diversity trend (opportunity)
3. Urban migration (opportunity)
These social/sociocultural factors present opportunities for Walmart. The company can
increase its array of healthful products. Walmart can also increase the variety of its
products to satisfy various cultural preferences. Moreover, the company can adjust its
strategies to exploit increasing consumer demand in cities and surrounding areas.

Technological Factors

Walmart needs to address technological trends. In the context of the PESTEL/PESTLE

analysis model, technologies affect the retail industry’s competitive landscape. The
following are the technological external factors in Walmart’s remote/macro environment:

1. Increasing business automation (opportunity)

2. Business analytics or big data (opportunity)
3. Increasing mobile device usage among consumers (opportunity)
Walmart can increase its investment in all three factors. In exploiting the opportunity in
mobile device usage of customers, the company must boost its online presence. Online
marketing and online selling increase Walmart’s revenues.

Ecological/Environmental Factors

The ecological or environmental factors significant in Walmart’s business pertain to

environmental conservation concerns. Environmental conservation is now a popular

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principle. The following are the ecological external factors in Walmart’s remote/macro
environment in the PESTEL/PESTLE analysis model:

1. Business sustainability trend (opportunity)

2. Environmentally friendly products trend (opportunity)
To attain business sustainability, Walmart must improve operational efficiency.
Technological innovation helps improve efficiency in business. Improved policies and
standards on products sold at its retail stores can also strengthen Walmart in addressing
these ecological factors.

Legal Factors

Walmart is subject to the requirements of laws and regulations. Based on the

PESTEL/PESTLE analysis model, these external factors usually impose limits on retail
firms. The following are the legal external factors in Walmart’s remote/macro
environment:

1. Food safety regulations (opportunity)

2. Employment regulations (opportunity)
3. Tax law reform (threat)
Tax reform is a potential threat if it leads to higher tax rates. Walmart must take food
safety regulations as an opportunity to improve quality standards. Also,
enhancing Walmart’s human resource management practices can exploit opportunities
concerning employment regulations.

Recommendations based on Walmart’s PESTEL/PESTLE Analysis

The PESTEL/PESTLE analysis of Walmart shows that the company has more
opportunities than threats in its remote/macro environment. The external factors present
significant opportunities. The firm must take a proactive approach to address threats.
However, most of Walmart’s efforts must focus on exploiting the opportunities identified
in the retail business environment. Based on the PESTEL/PESTLE analysis, Walmart can
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improve HR management practices, boost investments in technology, enhance quality
standards, and expand its business worldwide.

PORTER’S FIVE FOURCES MODEL OF COMPETITION

Walmart’s strategic direction is based on the company’s responses to the Five Forces in
its industry environment. The firm has succeeded in achieving the leading position in the
retail industry. Walmart now stands as the biggest retailer in the world. However, the
external factors in the industry environment impose pressure that must be addressed.
Walmart needs to develop strategies that address the bargaining power of buyers and
suppliers. Effective strategies are also needed for the firm to withstand the threats of
substitutes and new entrants. While Walmart has achieved success in this industry
environment, this Porter’s Five Forces analysis reveals that the company must keep
evolving to ensure long-term viability.

A Five Forces analysis of external factors in the industry environment of Walmart, based
on Porter’s model, shows the implications of the competitive rivalry or intensity of

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competition, bargaining power of buyers or customers, bargaining power of suppliers,
threat of substitutes or substitution, and the threat of new entrants. All of these factors
impact Walmart’s success rate.

Overview: Walmart’s Five Forces Analysis

In summary, Walmart must focus on competitive rivalry and the threat of new entrants,
based on this Porter’s Five Forces analysis of the retail industry environment. These two
external factors have the strongest force on Walmart’s business:

1. Strong competitive rivalry or competition

2. Weak bargaining power of buyers
3. Weak bargaining power of suppliers
4. Weak threat of substitutes or substitution
5. Strong threat of new entrants

Recommendations. Walmart must create new strategies that develop and sustain the
company’s competitive advantage in the long term. Emphasis on competitive advantage
helps address concerns on competitive rivalry and the threat of new entrants. For
example, Walmart can invest more in automation of internal processes in its supply
chain. Improving human resource development can also boost the company’s competitive
advantage.

Intensity of Competitive Rivalry (Competition)

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The intensity of competitive rivalry is strong in the retail industry. There are many firms
of different sizes competing in this industry environment. The following external factors
are the most significant for Walmart to consider with regard to competition:

1. Large number of firms in the retail market (strong force)

2. Large variety of retail firms (strong force)
3. High aggressiveness of retail firms (strong force)
Walmart experiences the strong force of these three external factors in competitive rivalry
in the retail industry environment. The company must remain aggressive to remain
competitive. While it is currently the industry leader, Walmart must keep its growth pace
to remain in this position.

Bargaining Power of Buyers

Walmart faces the weak intensity of the bargaining power of buyers in the retail industry
environment. The large population of buyers makes it difficult for them to impose
significant pressure on retail firms. Walmart must address the following external factors
concerning the bargaining power of buyers or customers:

1. Large population of buyers (strong force)

2. High diversity of buyers (weak force)
3. Small size of individual purchases (weak force)
The large population of buyers exerts a strong force on Walmart and the retail industry.
However, the weak force of buyer diversity and the weak force of small individual
purchases counteract such condition. In effect, the bargaining power of buyers is weak in
influencing Walmart and other retail firms.

Bargaining Power of Suppliers

The bargaining power of suppliers has weak intensity in the retail industry environment.
There are many suppliers in the retail industry. Large firms like Walmart can easily affect

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these suppliers. Based on this condition, Walmart and other retail firms must address the
following factors contributing to the bargaining power of suppliers:

1. Large population of suppliers (strong force)

2. Tough competition among suppliers (weak force)
3. High availability of supply (weak force)
The large population of suppliers has strong potential to impact firms like Walmart.
However, there are many suppliers competing for the limited space in retail stores. Also,
the high availability of supply makes it difficult for suppliers to impact retail firms. Thus,
Walmart and other retailers face the weak intensity/force of the bargaining power of
suppliers.

Threat of Substitutes or Substitution

The threat of substitutes or substitution has weak intensity in affecting the retail industry
environment. Walmart offers a wide variety of goods and some services that have a few
or no substitutes. The following external factors are the most significant on Walmart,
concerning the threat of substitution:

1. Considerable availability of substitutes (moderate force)

2. Low variety of substitutes (weak force)
3. Higher cost of substitutes (weak force)

Some substitutes to Walmart’s goods are readily available. This is a significant

consideration in the retailer’s strategic planning process. However, the external factor of
the low variety of substitutes makes it difficult for consumers to move away from
products available from retailers like Walmart. Also, some substitutes are more expensive
than the low-cost goods available at Walmart stores. Thus, in the retail industry

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environment, the threat of substitutes or substitution has a weak intensity/force on
Walmart.

Threat of New Entrants (New Entry)

Walmart and other retailers must address the strong-intensity threat of new entrants. New
entry of retail firms is easily achieved even in the presence of giants like Walmart. Small
retailers can enter the market and compete on the basis of convenience, location,
specialty, and other factors. This force is broken down into some of its component
external factors, as follows:

1. Low cost of doing business (strong force)

2. Moderate capital costs (strong force)
3. Moderate cost of brand development (moderate force)
It is costly to develop a new entrant’s brand. This condition exerts a moderate force on
companies like Walmart. However, the cost of establishing a new retail firm and the cost
of running it are low to moderate. Thus, new entrants can keep operating and become
potential threats to firms like Walmart.

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 CHAPTER-3

MARKETING STRATEGIES

1. Products of company

Walmart in.like many large retail and grocery chains, offers store brands (also called

house brands or generic brands), which are lower-priced alternatives to name
brandproducts. Many products offered under Walmart brands are private label products,
but in other cases, the production volume is enough for Walmart to operate an entire
factory.[citation needed]

Contents

 1Apparel brands
 2Major brands
o 2.1Sam's Choice
o 2.2Great Value

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 o 2.3Equate
o 2.4Mainstays
o 2.5Ol' Roy
o 2.6Special Kitty
o 2.7Parent's Choice
o 2.8Price First
o 2.9Play Day
o 2.10Pen+Gear

 3Additional brands
o 3.1Homelines
o 3.2Others

 4Former brands
 5See also
 6References
 7External links

Apparel brands[edit]

 Athletic Works is a brand for athletic clothing, such as gym shorts and running
shoes, and has been partially replaced by the Starter and recently acquired Russell
Athletic.
 Child of Mine is a children's clothing brand, manufactured exclusively for
Walmart by Carter's.
 Time n Tru is a brand that is for misses, purses, jewelry women’s belts, and
shoes. It replaced the Faded Glory brand in 2018.
 George is a brand of more formal clothing for men. It also consists of dress shoes,
belts, and neckties. It was created by the British retailer Asda in 1990, and since
Walmart acquired Asda in 1999, it has maintained and expanded it to other markets,
notably the United States, Canada, and Japan. The George brand was named

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 after George Davies, who was its original chief designer. Davies is no longer
associated with the brand, although Asda and Walmart have aimed to remain true to
the low price business model that he established.
 No Boundaries, usually abbreviated as NOBO, is a line of general apparel
marketed for young children to adults, but chiefly targeted at teenagers and young
adults.
 Secret treasures is a brand for women’s sleepwear and intimates that took over
simply basic in 2015.
 Starter Clothing (SC) Line partnered with Wal-Mart in 2007, and now Starter is
exclusively sold there. The products are active and athletic clothing and men's
underclothes.
 White Stag is a brand for women's clothing, footwear, and basic jewelry.
Founded in 1931 as a skiwear manufacturer in Portland, Oregon, the company was
purchased by the Warnaco Group in 1966, which after the company exited
bankruptcy, later sold the brand to Walmart in 2003.

Main article: White Stag (clothing)

 725 Originals was trademarked in 1996, though it is now discontinued. It is still

available in Mexico.
 Terra sky is a brand for plus size women’s clothing that replaced JMS and Faded
Glory women’s plus in 2018.

Major brands[edit]

Sam's Choice[edit]

Not to be confused with Sam's Club.

Main article: Sam's Choice

Sam's Choice, originally introduced as Sam's American Choice in 1991, is a retail

brand in food and selected hard goods. Named for Sam Walton, founder of Walmart,
Sam's Choice forms the premium tier of Walmart's two-tiered core corporate grocery

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branding strategy that also includes the larger Great Value brand of discount-priced staple
items.

Compared to Great Value products and to other national brands, Sam's Choice is
positioned as a premium retail brand and is offered at a price competitive with standard
national brands. It typically offers either competitive items in a given product category,
or items in categories where the market leader is an "icon" (for example, Coca-Cola in
the soft drink category).

Most Sam's Choice beverage products (excluding Grapette and Orangette) are

manufactured for Walmart by Cott Beverages. Other products in the line, including
cookies, snack items, frozen meals, and similar grocery items are made by a variety of
agricultural and food manufacturers.

Competitive pricing of the Sam's Choice brand and store-branded and generic goods is
possible because of the lower expense required to market a retail chain's house brand,
compared to advertising and promotional expenses typically incurred by the national
brands.

Most Sam's Choice-branded products have been replaced by either the relaunched Great
Value brand, or the new Marketside brand. The brand was reintroduced in 2013 with a
new logo and a focus on premium food products with organic ingredients.

Adventure Force

Adventure Force is a line of toys suitable for outdoor use. Products include waterarms
(water blaster guns).

Great Value

Great Value was launched in 1993 (but products were made as early as 1992) and forms
the second tier, or national brand equivalent ("NBE"), of Walmart's grocery branding
strategy.[1]

Products offered through the Great Value brand are often claimed to be as good as
national brand offerings, but are typically sold at a lower price because of lower
marketing and advertising expense. As a house or store brand, the Great Value line does

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not consist of goods produced by Walmart, but is a labeling system for items
manufactured and packaged by a number of agricultural and food corporations, such
as ConAgra, Sara Lee which, in addition to releasing products under its own brands and
exclusively for Walmart, also manufactures and brands foods for a variety of other chain
stores. Often, this labeling system, to the dismay of consumers, does not list location of
manufacture of the product. Wal-Mart contends that all Great Value products are
produced in the United States. Otherwise, the country of origin would be listed.

As Walmart's most extensively developed retail brand, covering hundreds of household

consumable items, the Great Value line includes sliced bread, frozen vegetables, frozen
dinners, canned foods, light bulbs, trash bags, buttermilk biscuits, cinnamon rolls, pies
and many other traditional grocery store products. The wide range of items marketed
under the Great Value banner makes it Walmart's top-selling retail brand.

The Great Value brand can also be seen in Canada, Costa Rica, Honduras, Nicaragua,
Mexico, Argentina, Chile and Brazil and some Trust Mart stores in Xi'an, Shaanxi
Province, China, through a partnership with Walmart. Bharti EasyDay retail grocery
stores sell Great Value brand products in India as well. Great Value brand products as
well as Walmart merchandise are also present in Seiyu grocery stores (owned by
Walmart) in Tokyo, Japan as of October 2014, despite at least one report of a transition
away from the brand.

By mid-summer 2009, Walmart had redesigned the Great Value labels to be

predominantly white. The new redesign also includes over 80 new items, including thin-
crust pizza, fat-free caramel swirl ice cream, strawberry yogurt, organic cage-free eggs,
double-stuffed sandwich cookies, and teriyaki beef jerky. Walmart changed the formulas
for 750 items, including: breakfast cereal, cookies, yogurt, laundry detergent, and paper
towels. The new brand was tested by over 2,700 people. Other retailers are following suit
with their private label packaging as well.

Great Value went through another redesign in 2013 for most of its food items, replacing
predominantly white designs with more colorful packaging.

Equate

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The brand name "equate" on a container of lotion.

Equate is a brand used for consumable pharmacy and health and beauty items, such
as shaving cream, skin lotion, over-the-countermedications, and pregnancy tests. Before
its takeover by Walmart, the formerly independent Equate brand sold consumer products
at both Target and Walmart at lower prices than those of name brands. Equate is an
example of the strength of Walmart's private label store brand. In a 2006 study, The
Hartman Group marketing research firm issued a report which found that "Five of the top
10 "likely to purchase" private label brands are managed by Wal-Mart including: Great
Value, Equate, Sam's Choice, Wal-Mart and Member's Mark (Sam's Club), per the
study." The report further noted that "...we are struck by the magnitude of mind-share
Wal-Mart appears to hold in shoppers' minds when it comes to awareness of private label
brands and retailers."

In mid-2010, the brand underwent a logo redesign, as well as packaging changes similar
to the Great Value brand.

Mainstays

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Mainstays is a brand marketed by Walmart for its lower-priced lines of bedding, kitchen
utensils, ready-to-assemble furniture, and home decor.

Ol' Roy

Ol' Roy is Walmart's store brand of dog food, created in 1983 and named after Sam
Walton's bird dog. It has become the number-one selling brand of dog food in the United
States, surpassing Nestlé's Purina.

In 1998, samples of Ol' Roy (together with various other brands) were subject to
qualitative analyses for pentobarbital residue by the U.S. Food and Drug
Administration Center for Veterinary Medicine due to suspicion that the anesthetizing
drug may have found its way into pet foods through euthanized animals, including cats
and dogs. DNA test for all the samples failed to detect cat and dog DNA but multiple Ol'
Roy samples tested positive for the drug, presumably from rendered cattle. The CVM has
said that due to the low level of exposure, the risk of adverse effects was low.

Special Kitty

Special Kitty is Walmart's store brand of cat food and other cat care products, such as

litter and treats.

Parent's Choice

Parent's Choice is Walmart's store brand for baby products, including diapers, formula,
and accessories. Like other Walmart store brands, its design and packaging was
relaunched in 2010. Parent's Choice is manufactured by Wyeth (a pharmaceutical
company). Wyeth was bought out by another pharmaceutical company in 2009, Pfizer.

Price First

Price First is a bottom-tier, low priced generic brand that Walmart introduced in late
2013. It includes very basic grocery items, trash bags, and paper goods. It was launched
as an experimental brand targeted towards the most budget-conscious shoppers. It is the
lowest priced brand at Walmart and availability varies by stores. Some of the grocery
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items include milk (which is often brand-name milk with a Price First label, as is Great
Value milk), bread, granulated sugar, canned fruit/vegetables, boxed brownie mix, toaster
pastries, elbow pasta, egg noodles, spaghetti, and skillet meals. Non grocery items
include paper towels, toilet tissue, trash bags, and food storage bags.

Play Day

Play Day is a wide-ranging brand of budget-priced children's toys. Play Day launched in
between mid-2014 and early-2015, as a replacement brand for Kid Connection. 

Pen+Gear

Pen+Gear is Walmart's store brand for school and office supplies. From notebooks, pens,
markers, paper, binders, pencils and even paper shredders which can be a bit costly for a
Walmart/generic brand item. Pen+Gear replaced a former brand Casemate in late 2016.
Casemate was the same purpose of school and office supplies, but they found a better
name for the brand in late 2016.

Additional brands

Homelines

 Better Homes and Gardens is a product line with designs inspired from
the popular magazine of the same name.
 Hometrends products include small furniture, tableware and various home decor
accessories, such as rugs and faux plants.
 Your zone is a home product line that tailors toward teenagers and college
students.
 Mainstays Kids

Former brands

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 "Canopy" was a home product line that features coordinated solutions for rooms
and other domestic goods. The brand was replaced by the Better Homes and Gardens
line in late 2012.
 Durabrand was a brand used for home electronics such as televisions and DVD
players. The brand was also used on various small kitchen appliances.
 ilo was another brand of home electronics, consisting of more upscale items such
as televisions, small electronics and digital music players.
 "Metro 7" was an upscale brand of women's apparel, that was originally released
in the fall of 2006, and eventually phased out.
 "Puritan" was a brand for men's basic clothing, including shirts, pants,
undergarments, socks, ties, and some accessories. In late 2010, the brand was phased
out completely and replaced by Faded Glory (with undergarments and socks and
casual clothing) and George (with ties, shirts, and pants and formal clothing).
 "Promark" was a brand for tools in the '80s and early '90s. It was replaced by
Popular Mechanics branding.
 "Casemate" was Walmart's school and office supplies brand in 2015. In late 2016
it was replace by Pen+Gear.
 “Faded Glory” was a brand for womens, men’s, and children including shirts,
shoes, belts. But has been replaced by “time n tru” for women, “george” for men, and
“wonder nation” for kids in 2018
2.Walmart’s Marketing Mix (4Ps) Analysis & Recommendations

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A Walmart store in Laval, Canada. Walmart’s marketing mix focuses on product,
promotion and price for competitive advantage, although the firm can increase its
emphasis on place/distribution to improve the marketing mix. (Photo: Public Domain)
Walmart’s marketing mix revolves around the nature of the firm’s retail business. The
company’s cost leadership generic strategy also defines the marketing mix. The overall
behavior of Walmart in the global retail market is linked to its marketing mix strategies.
With its continued leadership as the biggest retailer in the world, Walmart expects to use
the same marketing mix as it expands globally. The strategies included in the company’s
current marketing mix have already shown considerable success. Thus, it is realistic to
continue using it as is. However, Walmart can improve its current marketing mix,
especially in the place/distribution component.

Walmart’s marketing mix is a key success factor in this retail business, although the
company can focus more on the place/distribution component of the marketing mix to
strengthen its global position.

Elements of Walmart’s Marketing Mix

Product. Walmart’s product is its retail service. In general, retail firms are service
businesses. The company attracts customers by providing convenient and effective
service. For example, Walmart’s sales personnel are trained to effectively assist shoppers
in finding the goods they need. Convenience is achieved because the firm offers a wide
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array of goods in its stores. Most shoppers expect easy one-stop shopping at Walmart
stores. The product component of the marketing mix affects Walmart by defining
customer experience. The company’s sales personnel directly influence how customers
feel when they enter the stores.
Prices and Pricing Strategy. Walmart uses an Everyday Low Price (EDLP) pricing
strategy. In fact “Everyday Low Price” advertisements are frequently seen in Walmart
stores. The objective of this pricing strategy is to attract large populations of customers.
This strategy supports Walmart’s generic business strategy, which is cost leadership. The
company has low costs and low prices. However, the large sales volume enables Walmart
to generate profits. Thus, in the marketing mix, the pricing component is the main
contributor to Walmart’s competitiveness.
Promotion (Promotional Mix or Marketing Communications Mix). Walmart’s
promotional mix is composed of advertisements, sales promotions, personal selling, and
public relations. The company advertises on newspapers and websites. Walmart uses
sales promotions in the form of special deals and discounts. Personal selling happens at
Walmart stores, where sales personnel persuade customers to try new products or
package deals. In terms of public relations, the company uses press releases to inform
customers and investors about policies, programs and strategies. The firm also
occasionally sponsors charity programs. Thus, the promotion component in Walmart’s
marketing mix helps improve the company’s ability to attract customers to its stores and
helps build brand recall.
Place (Distribution). Walmart uses the intensive distribution strategy or intensive
distribution channel design. In this strategy, Walmart stores offer the same variety of
goods, while the same employee roles and responsibilities apply to each store. In
addition, the company continues to open new stores to reach more customers. Thus, the
place/distribution element of Walmart’s marketing mix helps attract customers by making
shopping convenient in terms of location.

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Recommendations based on Walmart’s Marketing Mix

Walmart’s marketing mix has proven effective in supporting the company’s success.
However, there are still many locations where Walmart stores are absent or difficult to
reach. This is especially true in the markets of developing countries. Therefore, based on
the characteristics of its marketing mix, Walmart should improve on the
place/distribution component. Specifically, the firm can enter new markets and penetrate
current markets through foreign direct investments and joint ventures. In this way, the
place/distribution element of Walmart’s marketing mix can provide stronger support for
the company’s competitive advantage and continued success in the global market.

3.Walmart Segmentation, Targeting and Positioning

Walmart segmentation, targeting and positioning is the core focus of Walmart strategic
marketing. Segmentation refers to dividing population into groups according to certain
characteristics, whereas targeting is associated with choosing specific groups identified as
a result of segmentation to sell products. Positioning refers to the selection of the
marketing mix the most suitable for the target customer segment.

Walmart uses mono-segment type of positioning and accordingly, Walmart marketing

management appeals to single customer segment who place greater value on the price
attribute of products compared to other attributes.

Walmart segmentation, targeting and positioning

It is important to specify that although Walmart attempts to target customers of all ages
via its marketing communication messages, particular attention is paid to young
consumers, dubbed as generation X due to the strategic importance of achieving the
loyalty of young consumers for long-term perspectives. Along with the promise of cheap
prices, Walmart attracts Millemials via effective integration of social media marketing
into its marketing communications strategy. This strategy is proving to be effective so
far.As it is illustrated in figure below, Millennials favour Walmart over stores including
Target, Costco, Trader Joe’s, and Whole Foods in North America[1]

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4.DISTRIBUTION CHANNELS

Walmart began with the goal to provide customers with the goods they
wanted whenever and wherever they wanted them. The company then
focused on developing cost structures that allowed it to offer low
everyday pricing. Walmart then concentrated on developing a more highly
structured and advanced supply chain management strategy to exploit and
enhance this competitive advantage and assume market leadership
position.

Fewer links in the supply chain

Even in its early years, Walmart’s supply chain management contributed

to its success. Founder Sam Walton, who owned several Ben Franklin
franchise stores before opening the first Walmart in Rogers, Ark in 1962,
selectively purchased bulk merchandise and transported it directly to his
stores.
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Walmart’s supply chain innovation began with the company removing a
few of the chain’s links. In the 1980s, Walmart began working directly
with manufacturers to cut costs and more efficiently manage the supply
chain.

Under a Walmart’s supply chain initiative called Vendor Managed

Inventory (VMI), manufacturers became responsible for managing their
products in Walmart’s warehouses. As a result, Walmart was able to
expect close to 100% order fulfilment on merchandise.

In 1989, Wal-Mart was named Retailer of the Decade, with distribution

costs estimated at a mere 1.7% of its cost of sales – far superior to
competitors like Kmart (3.5%) and Sears (5%).

The company’s supply chain has only become more effective since then.

Strategic vendor partnerships

Walmart embarked on strategic sourcing to find products at the best price

from suppliers who are in a position to ensure they can meet demand. The
company then establishes strategic partnerships with most of their
vendors, offering them the potential for long-term and high volume
purchases in exchange for the lowest possible prices.

Furthermore, Walmart streamlined supply chain management by

constructing communication and relationship networks with suppliers to
improve material flow with lower inventories. The network of global

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suppliers, warehouses, and retail stores has been described as behaving
almost like a single firm.

“Wal-Mart’s whole thing was collaboration,” Crowell said. “That’s a big

part of what made them so successful.”

Cross docking as inventory tactic

Cross docking is a logistics practice that is the centrepiece of Walmart’s

strategy to replenish inventory efficiently. It means the direct transfer of
products from inbound or outbound truck trailers without extra storage, by
unloading items from an incoming semi-trailer truck or railroad car and
loading these materials directly into outbound trucks, trailers, or rail cars
(and vice versa), with no storage in between.Suppliers have been
delivering products to Walmart’s distribution centres where the product is
cross docked and then delivered to Walmart stores. Cross docking keeps
inventory and transportation costs down, reduces transportation time, and
eliminates inefficiencies.

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Walmart’s truck fleet of non-unionized drivers continuously deliver goods
to distribution centres (located an average 130 miles from the store),
where they are stored, repackaged and distributed without sitting in
inventory. Goods will cross from one loading dock to another, usually in
24 hours or less, and company trucks that would otherwise return empty
“back haul” unsold merchandise.

Using cross docking, products are routed from suppliers to Walmart’s

warehouses, where they are then shipped to stores without sitting for long
periods of time in inventory. This strategy reduced Walmart’s costs
significantly and they passed those savings on to their customers with
highly competitive pricing.

Technology

In its relentless pursuit of low consumer prices, Walmart embraced

technology to become an innovator in the way stores track inventory and
restock their shelves, thus allowing them to cut costs.

Technology plays a key role in Walmart’s supply chain, serving as the

foundation of their supply chain. Walmart has the largest information
technology infrastructure of any private company in the world. Its state-
of-the-art technology and network design allow Walmart to accurately
forecast demand, track and predict inventory levels, create highly efficient
transportation routes, and manage customer relationships and service
response logistics.

For example, Walmart implemented the first companywide use of

Universal Product Code bar codes, in which store level information was

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immediately collected and analysed, and the company then devised Retail
Link, a mammoth Bentonville database. Through a global satellite system,
Retail Link is connected to analysts who forecast supplier demands to the
supplier network, which displays real-time sales data from cash registers
and to Walmart’s distribution centres.

Suppliers and manufacturers within the supply chain synchronize their

demand projections under a collaborative planning, forecasting and
replenishment scheme, and every link in the chain is connected through
technology that includes a central database, store-level point-of-sale
systems, and a satellite network.

What made Walmart so innovative was that it has been sharing all these
information with all their partners and back in the days, a lot of companies
weren’t doing that. In fact, they were using third parties where they had to
pay for that information.

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Walmart’s approach means frequent, informal cooperation among stores,
distribution centers and suppliers and less centralized control.
Furthermore, the company’s supply chain, by tracking customer purchases
and demand, allows consumers to effectively pull merchandise to stores
rather than having the company push goods onto shelves.

In recent years, Wal-Mart has used radio frequency identification tags

(RFID), which use numerical codes that can be scanned from a distance to
track pallets of merchandise moving along the supply chain. As inventory
must be handled by both Wal-Mart and its suppliers, Wal-Mart has
encouraged its suppliers to use RFID technology as well.

Even more recently, the company has begun using smart tags, read by a
handheld scanner, that allow employees to quickly learn which items need
to be replaced so that shelves are consistently stocked and inventory is
closely watched.

According to researchers at the University of Arkansas, there was a 16%

reduction in out-of-stocks since Wal-Mart introduced RFID technology
into its supply chain. The researchers also pointed out that the products
using an electronic product code were replenished three times as fast as
items that only used bar code technology.

In addition, Wal-Mart also networked its suppliers through computers. It

entered into collaboration with P&G for maintaining the inventory in its
stores and built an automated re-ordering system, which linked all
computers between P&G factory through a satellite communication
system. P&G then delivered the item either to Wal-Mart distribution
centre or directly to the concerned stores.

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4.PROMOTION STRATEGIES

Promotion Strategy Study: Attract Retail Consumers

Promotion

Under the pressure of poor price image and decreasing market share, retail stores usually
take same price and promotion strategy for products in different categories. In other
words, retailers practice a same price and promotion strategy to products with famous
brands and best-sellers.

Dickson and Ginter (1987) define product differentiation as follows: “A product offering
is perceived by the consumer to differ from its competition on any physical or
nonphysical product characteristic including price” (p. 4). The aim of differentiation is to
earn superior profit through, for example, reduced price sensitivity or achieving a price
premium (Sharp and Dawes, 2001). Differences in product offerings can be perceptual
and created by mechanisms such as usage experience, word of mouth and promotion, or
actual and created by specific product characteristics (Dickson and Ginter,
1987).”(Svendsen, Haugland, Grønhaug, & Hammervoll, 2011).

When making promotion plan, retailers should be aware of what targeted consumers
focus on. It is required to identify consumers’ preference first based on their shopping
habits and prospect of increasing price image. Normally, like Wal-Mart, products or
brands that can be easily created positive price images and attract consumers’ traffic are
displayed in a highlighted stage.

Additional, retailers need to know the reasons consumers purchase this product over that
one. Specific speaking, every shopping behavior consumers make like why they change
favored brand is worth to evaluate. For example, a data analyze of a supermarket’s VIP
member card may show that among 63 percent of customers who purchase napkin with

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Scott also are interest in buying Kleenex. Therefore, promotions for these two products
should not be planned in the same period.

Assume that historical data is enough to build a reasonable analysis model, retailers
should be able to predict consumers’ shopping behavior in short future based on
previously responses to promotion activities. Benefits from the data analysis, consumers’
elasticity demand and buying purposes can also be defined. Using consumers’ shopping
period analysis can identify promotion period. Research presents that 13 weeks are too
long for most categories of products. At the beginning and end of the 13 weeks,
promotion can bring more profits than intersession. Hence, an effective strategy is to
offer two short term promotion in an average shopping period.

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 CHAPTER-4

FINANCIAL ANALYSIS

1.SOURCES OF FINANCE

Capital Resources

If our operating cash flows are not sufficient to pay increased dividends and to fund
our capital expenditures, we anticipate funding any shortfall in these expenditures with a
combination of commercial paper and long-term debt. We plan to refinance existing
long-term debt as it matures and may desire to obtain additional long-term financing for
other corporate purposes. We anticipate no difficulty in obtaining long-term financing in
view of our credit rating and favorable experiences in the debt market in the recent past.

To monitor our credit rating and our capacity for long-term financing, we consider
various qualitative and quantitative factors. We use the ratio of adjusted cash flow from
operations to adjusted average debt as one leverage metric. This metric was 39% for the
trailing twelve months ending July 31, 2007 and lower than the 43% for our fiscal year
2007. The decrease in the metric is primarily due to the decrease in our cash flows from
operating activities of continuing operations as discussed above. A detailed calculation of
the adjusted cash flow from operations to adjusted average debt is set forth in Exhibit
12.2 along with a reconciliation to the corresponding measurement calculated in
accordance with generally accepted accounting principles.

We also monitor the ratio of our debt to our total capitalization as additional support
for our long-term financing decisions. At July 31, 2007, July 31, 2006 and January 31,
2007, the ratio of our debt to total capitalization was approximately 40.9%, 41.8% and
38.8%, respectively. For the purpose of this calculation, debt is defined as the sum of
commercial paper, total long-term debt and total capital lease obligations. Total
capitalization is defined as debt plus shareholders’ equity.
This excerpt taken from the WMT 10-Q filed Jun 1, 2007.

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Capital Resources

If our operating cash flows are not sufficient to pay increased dividends and to fund
our capital expenditures, we anticipate funding any shortfall in these expenditures with a
combination of commercial paper and long-term debt. We plan to refinance existing
long-term debt as it matures and may desire to obtain additional long-term financing for
other corporate purposes. We anticipate no difficulty in obtaining long-term financing in
view of our credit rating and favorable experiences in the debt market in the recent past.

To monitor our capacity for long-term financing, we use the ratio of adjusted cash
flow from operations to adjusted average debt as our primary leverage metric, which is
consistent with one of the methods commonly used by credit rating agencies to determine
our credit rating. This metric was 38% for the trailing twelve months ending April 30,
2007 and lower than the 43% for our fiscal year 2007. The measurement of the metric at
the end of each time period is well within the appropriate range for maintaining our credit
rating. The decrease in the metric is primarily due to the decrease in our cash flows from
operating activities of continuing operations as discussed above. A detailed calculation of
the adjusted cash flow from operations to adjusted average debt is set for in Exhibit 12.2
along with a reconciliation to the corresponding measurement under generally accepted
accounting principles.

We also continue to monitor the ratio of our debt to our total capitalization as
additional support for our long-term financing decisions. At April 30, 2007, April 30,
2006 and January 31, 2007, the ratio of our debt to total capitalization was approximately
41.3%, 41.9% and 38.8%, respectively. For the purpose of this calculation, debt is
defined as the sum of commercial paper, total long-term debt and total capital lease
obligations. Total capitalization is defined as debt plus shareholders' equity.
This excerpt taken from the WMT 10-K filed Mar 29, 2006.

Capital Resources

During fiscal 2006, we issued $7.7 billion of long-term debt. The net proceeds from the
issuance of such long-term debt were used to repay outstanding commercial paper
indebtedness and for other general corporate purposes.
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At January 31, 2006 and 2005, the ratio of our debt to our total capitalization was 42%
and 39%, respectively. The fiscal 2006 consolidation of Seiyu and purchase of Sonae
increased our debt to total capitalization at January 31, 2006, by 2.5 percentage points.
Our objective is to maintain a debt to total capitalization ratio averaging approximately
40%.

Management believes that cash flows from operations and proceeds from the sale of
commercial paper will be sufficient to finance any seasonal buildups in merchandise
inventories and meet other cash requirements. If our operating cash flows are not
sufficient to pay dividends and to fund our capital expenditures, we anticipate funding
any shortfall in these expenditures with a combination of commercial paper and long-
term debt. We plan to refinance existing long-term debt as it matures and may desire to
obtain additional long-term financing for other corporate purposes. We anticipate no
difficulty in obtaining long-term financing in view of our credit rating and favorable
experiences in the debt market in the recent past. The following table details the ratings
of the credit rating agencies that rated our outstanding indebtedness at January 31, 2006.

2.RATIO ANALYSIS

Annual Income Statement (values in 000's)

Period Ending: Trend 1/31/2017 1/31/2016 1/31/2015 1/31/2014

Liquidity Ratios

Current Ratio 86% 93% 97% 88%

Quick Ratio 22% 24% 28% 24%

Cash Ratio 10% 13% 14% 10%

Profitability Ratios
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 Period Ending: Trend 1/31/2017 1/31/2016 1/31/2015 1/31/2014

Gross Margin 26% 25% 25% 25%

Operating Margin 5% 5% 6% 6%

Pre-Tax Margin 4% 4% 5% 5%

Profit Margin 3% 3% 3% 3%

Pre-Tax ROE 26% 27% 30% 32%

After Tax ROE 18% 18% 20% 21%

3.BALANCE SHEET/NET PROFIT

Annual Income Statement (values in 000's)Get Quarterly Data

Period Ending: Trend 1/31/2017 1/31/2016 1/31/2015 1/31/2014

Current Assets

Cash and Cash $6,867,000 $8,705,000 $9,135,000 $7,281,000

Equivalents

Short-Term $0 $0 $0 $0
Investments

Net Receivables $5,835,000 $5,624,000 $6,778,000 $6,677,000

Inventory $43,046,000 $44,469,000 $45,141,000 $44,858,000

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Period Ending: Trend 1/31/2017 1/31/2016 1/31/2015 1/31/2014

Other Current $1,941,000 $1,441,000 $2,224,000 $2,369,000

Assets

Total Current Assets $57,689,000 $60,239,000 $63,278,000 $61,185,000

Long-Term Assets

Long-Term $0 $0 $0 $0
Investments

Fixed Assets $114,178,000 $116,516,000 $116,655,000 $117,907,000

Goodwill $17,037,000 $16,695,000 $18,102,000 $19,510,000

Intangible Assets $0 $0 $0 $0

Other Assets $9,921,000 $6,131,000 $5,455,000 $6,149,000

Deferred Asset $0 $0 $0 $0
Charges

Total Assets $198,825,000 $199,581,000 $203,490,000 $204,751,000

Current Liabilities

Accounts Payable $63,008,000 $58,615,000 $58,583,000 $57,174,000

Short-Term Debt / $3,920,000 $6,004,000 $6,670,000 $12,082,000

Current Portion of
Long-Term Debt

Other Current $0 $0 $0 $89,000

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Period Ending: Trend 1/31/2017 1/31/2016 1/31/2015 1/31/2014

Liabilities

Total Current $66,928,000 $64,619,000 $65,253,000 $69,345,000

Liabilities

Long-Term Debt $42,018,000 $44,030,000 $43,495,000 $44,559,000

Other Liabilities $0 $0 $0 $0

Deferred Liability $9,344,000 $7,321,000 $8,805,000 $8,017,000

Charges

Misc. Stocks $0 $0 $0 $1,491,000

Minority Interest $2,737,000 $3,065,000 $4,543,000 $5,084,000

Total Liabilities $121,027,000 $119,035,000 $122,096,000 $128,496,000

Stock Holders Equity

Common Stocks $305,000 $317,000 $323,000 $323,000

Capital Surplus $2,371,000 $1,805,000 $2,462,000 $2,362,000

Retained Earnings $89,354,000 $90,021,000 $85,777,000 $76,566,000

Treasury Stock $0 $0 $0 $0

Other Equity ($14,232,000) ($11,597,000) ($7,168,000) ($2,996,000)

Total Equity $77,798,000 $80,546,000 $81,394,000 $76,255,000

Page | 72
 CHAPTER-5

PERFORMANCE ANALYSIS

Walmart is a repudiated comapny. The revenue of the company has increased with the
time. The company has acquired a good percentage in the the market. Walmart generated
$89 billion of revenues during 1995 and had a net profit of $2.7 billion. During 2015,
Walmart generated $482 billion of revenues and had a net profit of $14.7 billion. Net profit
margins for Walmart have remained consistent. They have been in the range of 3.0-3.6% for
the last 21 years.

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From the graph we can notice that there is increase in the revenue of walamrt in each
succeeding year. The company had the highest revenue in year 2014 which was $ 485,651
million. The revenue declined in the year 2015. It was reduced to $ 482,130 million.

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The net profit of Walmart went on increasing with succeeding time .The highest net profit of
Walmart was in 2012, it was measured to $16,963 million. The profits decreased to $14,694
million in year 2015. The first year net profit of Walmart was nearly $ 2,737 million. It
reached to 16,963. The journey of Walmart was not easy .

Walmart reported its first annual sales decline since at least 1980, underlining the stiff
challenges it faces competing against Amazon in ecommerce while coping with the
impact of the strong dollar and a loss of share at its UK Asda stores. The 0.7 per cent
decline in revenue to $482.1bn* for the year ended January was due mainly to the strong
dollar, without the impact of which sales would have risen 2.8 per cent. The fall, the
worst in at least 35 years according to S&P Capital IQ data, came as the world’s largest

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retailer said that ecommerce sales growth slowed for the fifth consecutive quarter to 8 per
cent in the final three months of the year. The company blamed the deceleration on its
UK, Chinese and Brazilian markets. By contrast Amazon’s quarterly growth was 26 per
cent despite its much larger base. The company reduced its sales growth outlook for this
fiscal year to flat from between 3-4 per cent, reflecting a worse than expected impact
from currency fluctuations and loss of revenue from its store closures. Shares slid 3.1 per
cent to $64.09 by close of trading in New York. The 54-year-old company, which grew
into the world’s largest retailer from a single store in rural Arkansas, is undertaking its
biggest transformation since its inception as it tackles intensifying competition amid
rapid shifts in the way consumers shop. While it remains a dominant force in the US
economy with 9.2 per cent of all retail sales, that figure has slipped from 9.9 per cent five
years ago, said Neil Saunders, an analyst at research firm Conlumino. “For the past 10
years, Walmart appeared to be on the back foot in terms of rethinking its business model
for this new landscape. And, as the evidence attests, the impact on it has been negative,”
Mr Saunders said. “Given that online is where the growth is, Walmart needs to play far
harder in that space if it is to retain its retail crown over the longer term.” Greg Foran,
Walmart’s US head, has been making changes at American stores to make them more
attractive places to shop as the company faces intense competition from all angles,
whether online or from discount stores like Dollar General and higher end stores like
Kroger.

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With the above in mind, it’s hard not to see how Amazon/Whole Foods
puts Walmart on the back foot. And in fact, other Toptal Experts are more
sanguine. Finance Expert Tayfun Uslu thinks that “in the race to become
the first monopoly, Amazon is now ahead.” And on the monopoly point,
he is not alone. In the wake of the acquisition, several articles have come
out assessing the question of whether the Seattle-based retailer has
perhaps gone too far. Toptal VP of Business Talent Rajeev
Jeyakumar admits, “I already get most of my groceries from either Whole
Foods or Amazon Fresh. So they’ve got a lock on my wallet share!
Especially if you throw in Alexa ordering and if they acquired Grubhub—
I may never leave the couch. I might as well get my Amazon credit card
now and let them take that part of the value chain too.”
So perhaps the picture is a far more aggressive one, with Amazon’s move
an all-out declaration of war. Finance Expert Sebastian Fainbraun
certainly seems to think so: “They aren’t declaring war—they are
declaring victory. Walmart has a good web presence but Amazon runs the

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internet. If they integrate properly, war over. Amazon is the new Walmart
and Bezos is the new Walton.”

2.REASONS

Diversification Strategy–Walmart

Walmart is one of the most diversified companies in the world. There are different
subsidiaries of Walmart that sell different merchandize. Examples are the Neighborhood
Walmart that focuses on groceries, Walmart.com as the e-commerce appendage of the
company, Walmart supercenters that sell mostly general merchandize, Sam’s club being a
wholesale leader. There is also the Walmart Internation that spans from Argentina to
Zambia. There are over 6000 international units. There is also the Walmart Logistics,
Walmart Realty and the Walmart Portrait Studio.

Services that Walmart offers in a particular location are also very diverse. This may
include tire and lube, optical service, groceries, general merchandize, furniture, jewelry,
and pharmacy services. Some locations sell gasoline as well. This diversification is one
of the reasons the company is staying on top of the fortune 500 list. It makes Walmart the
one-stop shop where people will find what they are looking for at prices they can afford.
For most shoppers, shopping at Walmart is very convenient. Corporate diversification is
the reason.

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expansion

Since Wal-Mart Stores Inc. announced it would hand out bonuses and expand benefits to
more than 1 million associates thanks to new tax reform measures, the retail giant has
also laid out plans for store closures and thousands of layoffs at both the store and
corporate level.

Wal-Mart WMT, +0.17%   confirmed about 1,000 layoffs in California on Monday,

including 650 associates in Sam’s Club locations in Los Angeles, Sacramento and
Orange County, and 359 at a Wal-Mart location in Sacramento.
A company spokesperson said these cuts were part of the company’s effort to manage its
fleet effectively.

“We are working with our associates to help find them other local opportunities where
possible, at either nearby clubs and stores, or elsewhere,” the company said in an email to
Market Watch.

3.Market Share and Growth

Walmart - Statistics & Facts

Walmart is the largest retail corporation of discount department and warehouse stores in
the world. In 2017, the company's global net sales amassed approximately 481.32 billion
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 U.S.dollars. These figures have grown considerably over the last few years; increasing
about 0.8 percent in 2017 compared to the prior fiscal year. As of the 2017 fiscal year, the
company operated more than eleven thousand stores throughout the world and this figure
is more than likely to increase as the company continues to expand into emerging
markets. 

Walmart is predominantly broken down into three divisions: Sam's Club, Walmart
International and Walmart U.S., with the latter generating the majority of the companies
earnings. In 2017, the U.S. segment of Walmart alone generated over 300 billion U.S.
dollars, which correlates to about 60 percent. 

4.Organizational Leadership

Today, Walmart and its associates are guided by a relentless commitment to its customers

that’s centered on a fundamental purpose of “saving people money so they can live
better”.
This commitment can be traced back to the early days of the company and its founder,
Sam Walton. Since the first discount store opened in 1962 in Rogers, Ark., Walmart has
grown to a global brand serving 260 million customers each week across its 11,500
locations spanning 28 countries or on one of its e-commerce websites available in 11
countries. Despite six decades of growth and expansion, Walmart has remained true to
Walton’s “Every Day Low Prices” philosophy along with his belief that Walmart’s
associates are the ones responsible for making the difference for its customers and
business performance.

1. Walmart sees corporate culture as a key business strategy.

For culture to survive as organizations expand, everyone needs to be committed to it as a
business strategy. In high performing organizations, efforts to build a positive culture do
not compete with the means to achieve business results – culture is the means. Realizing
this, Walmart has integrated culture development into its business planning processes.
Moreover, senior leaders are heavily engaged in that planning, and also serve as culture

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 role models as they communicate the company’s strategy and values to others within the
organization. After all, truly successful corporate culture rollouts start from the top.
Did you know that high-performing companies spend 1.5 to 2 times more on leadership
than other companies, and reap results that are triple or quadruple the levels of their
competitors (Global Human Capital Trends 2015, Deloitte, February 2015)?
2. Walmart engages frontline leaders to support its culture.
Successful corporate culture rollouts might start at the top, but their long-term viability
depends upon buy-in from the grassroots. Don’t simply wait for company culture to
trickle down from senior leadership. Engage frontline leaders to support and live
the company culture as well. This includes leaders in the formal “chain of command” as
well as more informal leaders that live and influence at or near the front line.
Each Walmart associate is expected to be a keeper of the culture and practice behaviors
consistent with company values – one of those behaviors being to lead by example. In
that way Walmart has 2.3 million culture leaders, and that is one of the reasons why the
company is so effective in developing its own talent– with 75 percent of its salaried U.S.
field managers promoting from hourly positions.

5.SWOT ANALYSIS

Strengths

Reputation Brand Name: Wal-Mart is a powerful brand and pioneer in the retail industry
with the wide spread network of stores. It has a reputation for low price, convenience and
a wide range of products all in one store for customers. Wal-Mart has captured about
10% of the retail market in the U.S. and continues to expand. Wal-Mart stores continue to
open all over the country making Wal-Mart a household name. Wal-Mart has also been
widely acknowledged for its social responsibility actions. The company has donated to a
variety of charitable organizations and has been accredited for bringing jobs and wealth
to less developed communities.

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Offer Low Prices: Wal-Mart uses its enormous size and buying power to pressure its
suppliers into extremely low prices, offering orders of high volumes of merchandise in
exchange for low prices. The good thing about Wal-Mart is that its shifts the low cost
advantage to customers and available the products at lower prices. It has loyal customer
base because it meets the expectation of customer by always delivering the goods at
lower prices at compare to its competitors.

Expand Global Market: Wal-Mart has aggressively expands its international market over
the past few years and has experienced global expansion. For example its purchase of the
United Kingdom based retailer ASDA.

Cross-docking inventory system: Using the cross-dock technique, Wal-Mart was able to
effectively leverage their logistical volume into a core strategic competency. Wal-Mart
operates an extensive satellite network of distribution centers serviced by company
owned trucks. Its satellite network sends point of sale (POS) data directly to 4,000
vendors. Each register is directly connected to a satellite system sending sales
information to Wal-Mart's headquarters and distribution centers.

Weaknesses

Employee turnover: Wal-Mart has high employee turnover which costs more money and
time for company to train the new employee.

Bad publicity: Wal-Mart is currently facing a gender discrimination lawsuit. Their female
employees accuses that they were discriminated against in matters regarding pay and
promotions. And also, Their female managers were accounted for the minority group in
the company.

Lock of flexibility: Wal-Mart sell very wide range kinds of products for example like
clothes, food, pharmacy or stationary which lack of flexibility compare with other more
focused competitors. Other competitors may have the ability to make changes and
improve on a certain product lines when the needs of their customers change. Wal-Mart,
however, may have too much merchandise and not be able to focus in on sectors that
need to be improved.

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Some products have poor quality: Although Wal-Mart provides low price of products,
however, customers sometimes complain about the poor quality of few products.

Facing difficulty in International market: It is hard for Wal-Mart to expand their business
out of US to totally different countries all around the world. Moreover, Wal-Mart has to
facing different culture and customer behavior in different countries, for example Wal-
Mart facing difficulty to expand the market in China.

Opportunities

Customers: Because Wal-Mart provides low price to their customers, so they are able to
attract more customers. Furthermore, customers basically are able to purchasing
everything in one store that satisfied their needs. Wal-Mart 24 hour's stores also satisfied
their customers.

Diversified store types: Wal-Mart's different store types and new locations provide more
opportunities to exploit new market. Stores diversified from local, small-based sites to
large super centers.

International Expansion: No doubt that continued expand the international market is a

huge opportunity for Wal-Mart. Wal-Mart's oversea stores have experienced significant
growth. There are actually tremendous opportunities for future growth in developing
countries and Asian markets than in the United States such as China and India. Creating
strategic alliances and licensing agreements with other global retailers are ways to move
into different countries.

Threats

Competition: Wal-Mart faces different strong competitions locally and internationally.

Wal-Mart main competitors are including Kmart, Target, Carrefour and Costco
wholesale. In 2010, the Net Profit Margin for Wal-Mart is 3.59%, Target 4.22%, Costco
wholesale 1.69%, Carrefour 0.38%, respectively (Hoovers, 2010). Target is Wal-Mart's
direct competitor in the US, offering a range of general merchandise in a similar store
format (Wikinvest, 2010).

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Economy Recession: The revenue for Wal-Mart is affected by economy recession. Good
economy is an opportunity for great business, because customers will have more money
to spend. If the economy is great, there will be more jobs and people will shop more.
However, if the economy is bad, there will be fewer jobs and people will shop less. Also,
with the high price of gasoline and its effect on the economy, Wal-Mart will certainly be
affected the most.

Strategy imitation: Wal-Mart strengthens its competitive advantage on low-cost products.

Other competitors may imitate their low-cost strategy to take over their market shares.

Low Brand Loyalty: In the retail industry, customers would like to choose the product
with the lowest price. In other words, customers do not care about the brand or which
retail stores, if Costco has the exactly same chips that sell cheaper than in the Wal-Mart,
then customers will choose to buy the chips in the Costco not Wal-Mart.

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 CHAPTER-6

FINDINGS

 Walmart Inc. is a joint-stock company registered with the U.S. Securities and

Exchange Commission
 Wal-Mart was founded in 1962 by Sam Walton when he and his brother James
“Bud” Walton opened the first Wal-Mart Discount City in Rogers, Arkansas
 Countries of operation : As of October 2009, Walmart stores operate
in Argentina, Brazil, Canada, Chile, China, Costa Rica, El
Salvador, Guatemala, Honduras, India, Japan, Mexico, Nicaragua, Puerto Rico,
the United Kingdom, and the United States
 The company has well established infrastructure and healthy environment which
attracts the Human resources’ willingness to work over there.
 Walmart's history is more than just the stores we've built, the partnerships we've
made and the customers we've served. So much of our history is in the details. See
how Walmart began, how we’ve grown and how our leadership has changed the
retail industry.
 Wal-Mart's products are usually priced 20% lower than those of its competitors

 Wal-Mart imposes a strict control on its overhead costs

 Wal-Mart¶s key to success is that it thinks like the customer, give a good value in
productfor the customer, sell the customer what he or she really wants to buy,
exceeds thecustomer¶s expectation and ensures that the customer enjoy themselves
in the process.
 At present, the most important goal for Wal-Mart is to maintain their current net
salesgrowth of approximately 12 percent per year.
 Wal-Mart's buying power is immense and it is seeking to gain further
efficiencies byincreasingly shifting buying towards Asia

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 CHAPTER-7

CONCLUSION AND SUGGESTIONS

CONCLUSION

Form the SWOT analysis it is clear that the strengths as well as opportunities of company
are more. It is due to the efforts made by all the levels-top level , managerial level , and
operational level of the organization . The initial investment and every year they
increased the investment this willingness of the entrepreneurs shows the plus point of the
organization . The ever expanding business every year is the indicator of success and its
bright future ;I shows the company’s commitment to future growth and improvement .
The company is not only has profits Human resource and society . It can be seen that
there is a good competition between the companies in this sector are focusing more on
customer satisfaction. Even year by year the export market is also booming in a wide
span, so the organisation can grow very soon as this is also mostly concentrated on
exports .

This project reports gives a viewed picture of how Walmart infrastructure engineering
limits company has molded itself into a well established company. It is my immense
pleasure to do my projects in such dynamic company which has reached great heights by
employing sound financial techniques and innovative market strategies. The story of the
company proves that great things are done with humble beginnings which are
inspirational for new entrepreneurs.

SUGGESTION
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 Walart should invest more in its infrastructure to expand business
 Proper allocation of funds in various activities
 The company should grab various more opportunities for future perspective and
growth giver how to use it. I think this would be of the highest charitable and
civicservice.
 Walmart should emphasize on areas of appeal such as: special sizes, lower prices, better
service, wider selection, good location, or convenient hours.
 The organization should offer unique products at prices your customers can well afford.

 Walmart should use memorable advertising that sets their business apart from the
competition.
 Utilize a system for tracking slow-moving merchandise and those products that are your
best-sellers.
 Increase your sales transactions by offering better prices, more value, sales incentives, or
add-ons.
  Find out who your customers are and what they are seeking.

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