FIN 419 Week 2 Team Assignment - Financial Outcomes Paper

FIN 419 Week 2 Team Assignment - Financial Outcomes Paper -...

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Week 2: Financial Outcomes Paper
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Week 2: Financial Outcomes Paper - Wal-Mart Financial Initiative Wal-Mart is one of, a fortune 500 company that comprises of hundreds and thousands of outlets in so many countries globally. Michael T. Duke who is the President as well as Chief Executive Officer of Wal-Mart outlets, Inc. has stated that growth is one of the financial priorities of Wal-Mart. Growth : he stated that Wal-Mart will keep on going internationally. It is because we have so many have many prospects to grow by launching new outlets for a company, by ingoing into the new markets, making acquisitions, integrating online channels, and increasing new, pioneering formats to let people practice the Wal-Mart brands (Wal-Mart, 2010). In this report there are three main possible financial results are discussed. Among which are decreased sales, increased sales, and no change in sales, and finally the examination and conclusion of the most probable result will be conferred. Financial Outcome: Decrease in Sales Wal-Mart’s decision of increasing growth is generated by the company’s prospective in available markets. Wal-Mart had 4,300 outlets on January 31, 2010, and these outlets were only in the United States (Wal-Mart, 2010). As per Wal-Mart 2010, “the company has developed more than 8,400 outlets in 15 countries all over the world” (Business Description). This achievement has been taken with the help of an aggressive approach to enter into the brand new market. On the other hand, all the companies throughout the world are dedicated to hold the retail giant from going into the new markets. Portland, Oregon is known for its position on Wal- Mart as the city has fought to keep the retailer from constructing further stores. At present, Wal- Mart has one outlet within the Portland’s city restrictions, and plans to construct the next store have been turned down frequently. The mayor of Portland, Sam Adams, addresses by saying that “this is a company that has my bad feeling because they don’t care of their employees, treat their employees badly and the communities they go into with total disparagement" as mentioned by Frank in 2009. The growth of Wal-Mart’s growth relies on its approval within the society it enters; however, Wal-Mart’s program to persist growth is dependent on communities allowing Wal-
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Mart to begin itself as a part of that particular society. As confirmed in Portland, Oregon, not all the community’s needs a Wal-Mart. The letter which CEO has written to its shareholders, Michael Duke has mentioned the prospects in urban markets as a main donor to development potential (Wal-Mart, 2010). On the other hand, sales growth has turned down progressively since 2007. Wal-Mart’s 2010 annual report explains a 1% rise in the rise of sales than the former year.
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FIN 419 Week 2 Team Assignment - Financial Outcomes Paper -...

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