1. MGMT 495 Summer 2011: Kelly Bossolt Marta Kovorotna Sarah Smith

2. Executive Summary Financial Analysis External Analysis Internal Analysis Technology Human Capital Competitive Advantages Recommendations

3. Financial Analysis As of 2004 compared to top competitors Company:Revenue: Home Depot$65 Billion Target$50 Billion Walmart$250 Billion Harvard Business School, Wal-Mart, 2005, David B. Yoffie

4. Financial Analysis As of 2011 compared to top competitors Company:Revenue:EBITDA: Home Depot (HD)$67 Billion7.66B Target (TGT)$67 Billion7.35B Sears (SHLD)$43 Billion1.22B Walmart (WMT)$421 Billion33.46B http://finance.yahoo.com/

5. Financial Analysis Walmart’s net sales over the years (In Billions): http://walmartstores.com/sites/annualreport/2011/sams_club.aspx

6. Financial Analysis http://walmartstores.com/sites/annualreport/2011/sams_club.aspx

7. External Analysis Wal-Mart – greedy for control Sophisticated ecosystem The growth feeds the ecosystem, the ecosystem powers the growth Market capitalism More than 30% of the entire market Customers vote Wal-Mart with wallets Suppliers vote with their products

8. External Analysis Consumers One stop shoppers 90% Americans live within 15 miles 93% US households shopped in Wal-Mart Save up to $900 a year Conflicted customer Suppliers Huge part of ecosystem Weak bargaining power Failure to comply Vlasic example Procter & Gamble and Gillette 16% of their business

9. External Analysis Competition Target, Home Depot, Costco Best Buy, Radio Shack Sears and Kmart merger Environment Destroying more jobs than creating Sustainability Eliminate 20 million metric tons of greenhouse gas (GHG) emissions from Wal- Mart's global supply chain by the end of 2015. Zero Waste More sustainable products, at more affordable prices

10. Internal Analysis: Technology  Bar Coding  Share info with in and across stores and to suppliers  Electric Data Interchange (EDI)  Forecasting, planning, replenishment, shipping  Retail Link  Required by suppliers – point of sale technology

11. Internal Analysis: Technology  Radio Frequency Identification (RFID)  Reduced shrinkage, inventory tracking, time saver  Online  Pushed boundaries  New products – music store, internet access

12. Internal Analysis: Human Capital  Criticisms  Low pay, heavy part time reliance  No unions  Bad evaluation procedures  Promote  Good working conditions

13. Competitive Advantage  Technology  Name  Fortune’s most admired company in 2003  Philanthropic efforts  International mergers and acquisitions  Smart at entering potential markets  Captures the culture and adapts (mostly)

14. Recommendations Keep investing in Technology Employee incentives Don’t force culture too fast internationally