Financial Initiatives That Wal Mart's Essay

This is one of the reasons the ROI is likely to remains partially unaffected by the crisis. These considerations become clearer if one studies the figures that are presented in the Wal Mart annual report. In 2009, ROI was 19.3%, a very small decrease from the 19.6% in 2008, showing how well Wal Mart continued to efficiently operate its assets. The explanation of the reasonably stable values of the ROI was that the operating income increased in 2009 from 2008 by the similar amount as in the period from 2007 to 2008, consolidating the view according to which the company was relatively not affected by the economic crisis.

At the same time, the operating income also grew faster than the net sales, which shows...

...

This trend was especially clear on the U.S. market, mainly because the international market also needs to take into consideration additional variables, such as, notably, the foreign exchange fluctuations.
The focus on ROI will most likely continue in the next period of time and will contain similar elements, such as investing in technology in order to make the retail and supply chain management more efficient. This clearly translates in the ability of the company to provide cheap products for its clients, increasing thus the operating income because of controllable expenses. This will in turn also increase the volume of…

Sources Used in Documents:

These considerations become clearer if one studies the figures that are presented in the Wal Mart annual report. In 2009, ROI was 19.3%, a very small decrease from the 19.6% in 2008, showing how well Wal Mart continued to efficiently operate its assets. The explanation of the reasonably stable values of the ROI was that the operating income increased in 2009 from 2008 by the similar amount as in the period from 2007 to 2008, consolidating the view according to which the company was relatively not affected by the economic crisis.

At the same time, the operating income also grew faster than the net sales, which shows the efficiency of current management in dealing with cost management and level of expenses. This trend was especially clear on the U.S. market, mainly because the international market also needs to take into consideration additional variables, such as, notably, the foreign exchange fluctuations.

The focus on ROI will most likely continue in the next period of time and will contain similar elements, such as investing in technology in order to make the retail and supply chain management more efficient. This clearly translates in the ability of the company to provide cheap products for its clients, increasing thus the operating income because of controllable expenses. This will in turn also increase the volume of sales and maximize the ROI.


Cite this Document:

"Financial Initiatives That Wal Mart's" (2009, May 23) Retrieved May 17, 2024, from
https://www.paperdue.com/essay/financial-initiatives-that-wal-mart-21656

"Financial Initiatives That Wal Mart's" 23 May 2009. Web.17 May. 2024. <
https://www.paperdue.com/essay/financial-initiatives-that-wal-mart-21656>

"Financial Initiatives That Wal Mart's", 23 May 2009, Accessed.17 May. 2024,
https://www.paperdue.com/essay/financial-initiatives-that-wal-mart-21656

Related Documents

Wal-Mart's Strategic And Financial Planning: Since its inception about 50 years ago, Wal-Mart has continued to remarkable growth as a firm that focuses on providing customers with a wide range of merchandise at great prices. In its initial years, the company only operated in one store that has contributed to changes in the way retail works. Currently, the firm operates over 10,000 retail units within 69 distinct banners in 27 countries

Wal-Mart Corporation Mission and Vision Statement Analysis Linking Wal-Mart's Mission and Vision to Their Strategic Goals ands Objectives Assessing the Link Between Wal-Mart's Financial Performance And Its Strategic Goals Wal-Mart Competitive and Marketing Analysis Wal-Mart Marketing Analysis Selecting An Appropriate Strategy (low cost, differentiation or niche) For Maximizing Organization's Return on Shareholders Potential Wal-Mart Merger & Acquisition Strategy Incentive and Reward Strategies for Wal-Mart Employees Evaluating How Current Strategies Define Ethicacy Levels at Wal-Mart Wal-Mart Ratio Analysis Income Statement Analysis,

Wal-Mart is the name that is well-known to all the households these days because it has established itself as the largest retailer the world over. The sales of Wal-Mart are growing with every passing day as the sales totaled up to more than $280 billion, according to the reports published in 2004. However, it should be noted Wal-Mart did not appear on the international with more than 4500 stores in

Further, under this segment are a number of financial products ranging from bill payments to wire transfers and money orders. On the other hand, the company's international segment has in its fold online retail as well as a number of discount and retail store formats. The company's Sam's Club segment has in place private-label items as well as other merchandise categorized as either soft goods or hard goods. Further,

Wal Mart's Business Environment When most people think of Wal Mart, they will often associate it with the various stores around the globe. This has helped the company to establish a major presence inside the retail marketplace. However, the challenges with the economy and competitive pressures have been impacting the business environment of the firm. To fully understand what is taking place there will be a focus on: the company's financial

Wal-Mart Nation The dream of Sam Walton was a simple one: "Give people high value, low prices and a warm welcome" (Walton, 2003). At an early age, he was working hard delivering what the customer needed and wanted at a reasonable price - newspapers and selling milk from the cow (Huey, 1998). The development of Wal-Mart, KMart, and Target has brought about a retail business that is highly competitive within the