Club1. Identify and explain the main sections of the annual report. The company that I chose to analyze is Wal-Mart. The main sections of the annual report consist of revenue, balance sheet, and cash flows. Over the past year, Wal-Mart had a 2. 19% price range over the last 100 days, and a 52 week high/low of 77. 15-57. 36. Their net sales were increased over the last year by 5. 9%, leaving their net sales at $443,854,000. 2. Discuss the key factors that influenced the company’s financial performance during the year.
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During the fiscal year 2011-2012, Wal-Mart opened 612 new stores through organic growth. They continue to add stores worldwide. Given their current goal, they offer an everyday low price guarantee, which intrigues shoppers to dwell in their stores more often. Rarely is there a customer who walks out of Wal-Mart empty handed. They continue to keep their focus on customer satisfaction through their low pricing, which helps the shopper buy more frequently from their stores. During this hard economic time, their prices are one of their foundations for success.
With their solid price match guarantee, they will beat any competitor ad or coupon in pricing. They make this simple and appealing to the consumer, even allowing such guarantees to be used on busy shopping days, such as black Friday. Wal-Mart has also started opening more Neighborhood Markets, stores that are designated for grocery items only. This takes the busy shopping trip out of the regular Wal-Mart’s and initially attracts customers from other supermarkets who tried to avoid the busy crowds. 3. Discuss the primary assets held by the company.
There are several primary assets held by Wal-Mart. Their absolute primary asset is their Supercenter. They offer the same variety as other Wal-Mart’s, and also have a full service supermarket. This gives the customer the convenience of shopping for everyday low price items grocery and non-grocery. Their next top asset is the Wal-Mart market. These are a chain of grocery stores launched by Wal-Mart in 1998 as the name Neighborhood Market. Today, the name has expanded to include Supermercado de Wal-Mart, a store designed to appeal to the Hispanic community.
The next asset that Wal-Mart has is their Sam’s Club. This is a membership-only club. They ranked second in sales volume among warehouse clubs. 4. Explain how management characterizes the internal control environment of the company. Depending on the management styles of each individual manager, as long as the rules are strictly adhered to, the internal control environment remains stable and structured as the corporate offices intend. This characterizes the work environment, customer service policies, and shrinkage.
If there is a poor management style in any company, there is no structure and this could create a hostile and unappealing work environment. This can lead to a higher shrink percentage. Typically every worker does its job in Wal-Mart. Their policies are as strict as any other company, and their customer service policies remain equal to making sure the customer is 100% satisfied. Wal-Mart is essentially becoming the one and only store you will ever need to shop at for any type of item.
