ipl-logo

America Vs Walmart

949 Words4 Pages

The annual reports (FORM 10-K) filed with the United States securities and exchange commission provide relevant information about the two firms:

Wal-Mart has operations in U.S., Africa, Argentina, Brazil, Canada, Central America, Chile, China, India, Japan, Mexico, and the United Kingdom. Walmart U.S. retail with about 325 million square feet for 4,500 points of sale is the largest segment of the group contributing 62% of net sales with the highest gross profit as a percentage of net sales. The highest sale volume is expected in the quarter ending on January 31 (Wal-Mart, 2016, pp. 7-9); the fiscal year ends 31 December.
Costco has operations in U.S., Puerto Rico, Canada, United Kingdom, Mexico, Japan, Australia, Spain, Taiwan, and Korea. …show more content…

Indeed, increasing the cost of sales results in greater gross margins; on the other hand, given a cost of sales, increasing inventory reduces gross margin because of unsold units (Kesavan et al., 2010, p. 1523).
Gross profit. An increase in gross margin implies an increase in the average inventory level and a decrease in the expected inventory turnover; moreover, gross margin is positively correlated with price, product variety, and length of the product cycle (Gaur, Fisher, & Raman, 2005, p. 185). Historical gross margin and inventory data are often employed to forecast yearly sales (Kesavan et al., 2010, p. 1532).
Inventory. It is assumed to increase when the economy is expanding and the firm opens new stores; generally, it is affected by managerial efficiency, location, marketing, segment, and economic conditions. Depending on the valuing method (FIFO, LIFO), inventory and cost of goods sold estimation may considerably vary. Gaur, Fisher, and Raman (2005, p. 186) evidenced annual inventory turnover correlation to gross margin (negative), the ratio of fixed to total assets (positive), and the ratio of actual to expected sales (positive). Therefore, inventory turnover should not be considered

Show More
Related
1077 Words | 5 Pages

Using asset turnover and profit margin to forecast changes in profitability. Review of Accounting Studies, 6(4), 371. Inventory Turnover. (2011). In J. Law, Business: the ultimate resource (3rd ed.).

Read More
509 Words | 3 Pages

In the article Up Against Wal-Mart, Karen Olsson exposes the largest retailer in the world by listing many of the retailer’s flaws such as worker mistreatment and discrimination. Throughout the article, Olsson uses anecdotes from employees that have worked at the company and statistics to support her arguments. Ultimately Olsson’s piece serves to harshly criticize Wal-Mart due to low pay wages, unpaid overtime, and gender inequality. From the start, Olsson relies on actual employee interviews to support her arguments against Wal-Mart. By introducing Jennifer McLaughlin, a young woman who has been working for Wal-Mart for three years but makes under $17,000 a year, the author builds tension between the worker and the company.

Read More
1037 Words | 5 Pages

In “Up Against Wal-Mart,” Karen Olsson strongly denounces the mega-corporation by offering compelling testimonies that depict the retail giant as an avaricious enterprise. Specifically, she focuses on the accounts of employees and their experiences with the company. These employees assert that working at Wal-Mart is, in modern vernacular, hell on earth. Among some of the nightmares that Wal-Mart associates face on a daily basis include low wages, mandatory overtime with no pay, and harassment, by management, toward union supporters. Though I agree with Olsson’s outlook that Wal-Mart mistreats labor and does not provide sufficient benefits, my feelings on the issue are mixed because her one-sided stance renders her argument questionable.

Read More
2099 Words | 9 Pages

Here we will focus on the days’ sales in receivables, days’ sales in inventory, and total asset turnover to contribute to our understanding of the company’s health. Days’ sales in receivables is the length of time it takes the company to pay for an item in this case General Motors sells their automobiles almost three times Ford Motor Company. Next, days’ sales in inventory show that the Ford Motor Company keeps an automobile in inventory about twenty days prior to selling it whereas General Motors maintains the vehicle longer. Finally, the total asset turnover provides how efficient a company uses its assets to generate sales. This is calculated by dividing the sales by the total assets.

Read More
1577 Words | 7 Pages

According to a 2017 job survey, in America only 24% of employees are very satisfied with their jobs. (Jared Lindzon). This means in America over half of the employees are less satisfied or unsatisfied with their jobs. However, in order to survive, these people must continue to work where the jobs are available. One author who addresses this problem, is Karen Olsson in her article “Up Against Wal-Mart”.

Read More
4668 Words | 19 Pages

Which one is better Buy Now: Wal-Mart Stores, Inc. versus Costco Wholesale Corporation?

Read More
1485 Words | 6 Pages

“It is a wise man who said that there is no greater inequality than the equal treatment of unequals” (Frankfurter). There is a time in life where a person can work just as hard as you but that person seems to be more successful than you. Having the same equal treatment as someone else will not make you equal to them. In “Up Against Wal-Mart”, Karen Olsson writes an article about employees being mistreated by Wal-Mart. Employees are unable to be successful to achieve the American Dream because of this mistreatment.

Read More
518 Words | 3 Pages

However, this may not adequately reflect the true economic value of the inventory, particularly in unstable market conditions. Given how consumer preferences are ever-changing, along with the emergence of fast fashion, inventory valuation methods that account for real-time market trends could provide a more accurate representation of inventory values. Macy’s could consider using data analytics and forecasting techniques to mitigate risks associated with inventory markdowns. Macy’s depreciates its PP&E using straight-line or accelerated methods over their estimated useful lives. As Macy’s invests in technological upgrades and store renovations to enhance customer experience, traditional depreciation methods may not capture the full value of their investments.

Read More
403 Words | 2 Pages

Previously I spoke about a hypermarket known as Target. Since Target is a retailer its goods are available for resale to customers. This hypermarket has an extensive variety of merchandise such as outdoors furniture’s, clothes, and groceries. In addition, Target could calculate its profit for the year by either using First-in, first-out (FIFO) or last in, first-out (LIFO) Inventory Valuation methods. Moreover, I would advise using the FIFO inventory method.

Read More
776 Words | 4 Pages

Key Trends – Globalisation One of the main opportunities Costco has is more global expansion to specific targeted countries. Although operating in many countries, Costco is heavily dependent on the U.S. and Canadian markets. It still has the opportunity to expand into the Asian and Australian markets where it has a limited presence. Costco has the capability to operate about 100 stores in Taiwan, Korea and Japan combined and about 20 stores in Australia. It currently has 41 stores in Taiwan, Korea and Japan combined and 6 stores in Australia.

Read More
1283 Words | 6 Pages

By October 2015, Costco had established 206 warehouses in eight countries outside the United States. In 2015, the key various markets in which Costco operated in were Canada, Mexico, United Kingdom, South Korea, Taiwan, Japan, Australia, and Spain. As of March 2023, Costco has 849 warehouses worldwide: 584 in the United States, 107 in Canada, 40 in Mexico, 31 in Japan, 29 in the United Kingdom, 18 in Korea, 14 in Australia, 14 in Taiwan, 4 in Spain, 3 in China, 2 in France, 1 in Iceland, 1 in New Zealand, and 1 in Sweden. (Wikipedia, 2023.) We will focus on the mode of entry for the eight countries Costco entered in 2014-2015.

Read More
208 Words | 1 Pages

Residents in a impoverished neighborhood in Los Angeles were shocked to find out that a Walmart in their neighborhood was shut down on January 17, 2016. Union harassment and the mandatory $15 minimum wage are the reasons that the Walmart has been closed. Asians and Hispanic immigrants in the area campaigned for years to get a Walmart in the area. The Walmart was finally built in September 2013. Crowds flocked to the Walmart because the costs of its products were relatively low compared to other stores.

Read More
325 Words | 2 Pages

Rica, El Salvador, Guatemala, Honduras, Japan, Mexico, Nicaragua, Puerto Rico, and the United Kingdom. It is the largest or second-largest retailer in several of these countries. Wal-Mart recently announced plans to open stores as part of a joint venture in India and is reportedly looking for a partner in Russia (Giridharadas and Rai, 2006; Reuters, 2007). Wal-Mart ’s size alone warrants studying its effects.

Read More
1215 Words | 5 Pages

‘Is Wal-Mart Good for America?’ On PBS Frontline, May 11, 2015 ‘Is Wal-Mart Good for America?’ is a documentary that examines the relationship between Wal-Mart’s rapid growth and its impact on the US economy ever since it blossomed in trade productivity in the mid 20th century. The documentary, published on February 2014 by PBS Frontline, conveys a deep understanding of how Wal-Mart changed the living standards of many Americans and took consumerism and retail logistics in the U.S. to another level; by cutting costs through offshore outsourcing to China and employing cheap Chinese labor. The documentary focuses on the changing relationship between big retailers and manufacturers and the transition in pricing and decision-making.

Read More
1791 Words | 8 Pages

The Value Chain 4 4. Operations Strategy Implications (Store level) 5 5. Inventory Management and Demand Forecasting 9 6. Supply Chain Management 9 7. Quality Management 11 8.

Read More

More about America Vs Walmart

Related Topics

Open Document