Case Study The success of Walmart in the retail industry inspired many. Excellent management team and cooperative associates are some of the ingredients in its success. Applying strategies into action and implementing discipline to follow rules are also effective ways to success. Innovation and continuous evolution of ideas for advancement affects the performance of any sector in the company. Team work and effort of everyone as a whole drives the company to be more efficient and reliable store to go to. We will further study the performance of Walmart from 2010 to 2014 that was shown in its Annual report. Financial risk and business risk are included in the case study. Net sales in 2010 reached $405 billion which indicates 1% increase compare to the previous year. However, return on investment (ROI) remains at 19.3% for 2010 and 2009 year and return on assets (ROA) has increased 0.5% from 8.4% to 8.9% respectively. The financial …show more content…
The little increase in net sales compare to the prior year falls at 1.6%. The short growth is due to the decrease in operating income, additional property investments and equipments acquisitions. ROI falls at 17% in 2014 and 18.1% in 2013. ROA declines as well from 8.9% going down to 8.1%. Investment in pricing affected the total performance of 2014. Nevertheless, its the financial performance of the company shows consistently strong compared to its competitors. The five year period analysis in financial performance of the company indicates that the company uses its assets effectively to optimise leverage and returns. Continuous investments in property, plant and equipment affected the overall results but it prepares the company to embrace the new landscape of innovating business in retailing. E-commerce was introduced. Seamless shopping and digital market were all part of the changing views of retailing. The company bridges the gap between the consumers and the