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Financial Information for Business Decisions - Case Study Example

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The researcher of the following paper claims that financial information plays an important role in the companies not only for assessing the performance of the business but also for taking business decisions. This study aims at analyzing the business model of a multinational company…
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Financial Information for Business Decisions
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Download file to see previous pages In order to identify the repercussions of the turbulent economic environment, and effects industrial factors on Wal-Mart, an overall analysis of the operations of Wal-Mart over five years would be done. Further, the competitors of Wal-Mart would also be analyzed to gauge the position of the company, globally, in terms of market share. The financial analysis of the company would also reveal the financial stability of the firm, which would assist in deriving a conclusion regarding the effect of financial information on the business decisions of Wal-Mart. Company Overview Wal-Mart Store, Inc. is a multinational company which was established in the year 1945 and is headquartered at Bentonville Arkansas, United States (Yahoo Finance, n.d.). It is a publicly listed company and its shares are traded in the New York Stock Exchange (NYSE) with the ticker symbol “WMT”. The company’s stocks were first traded at NYSE on August 25, 1972 (Wal-Mart, 2012a). Wall-Mart is engaged in retail or supermarket business in various formats around the world. Wal-Mart operates restaurants, retail stores, supermarkets, discount stores, hypermarkets, supercenters, apparel stores, warehouse clubs, etc. The products offered in the stores of Wal-Mart include frozen foods, meat, dairy products, bakery products, baby products, beverages, grocery items, electronic goods, household items and so on. Presently the business operations of Wal-Mart are divided into three broad segments, namely: a) the Wal-Mart International segment, b) the Wal-Mart US segment, and c) Sam's Club segment. Retail stores of various formats are run by Wal-Mart in all the 50 states of the US. Along with this it also operates its retail operations online through walmart.com. The international segment of Wal-Mart has its presence in 26 countries of the world and is also in the business of operating its retail operations in all those countries outside the US. The Sam's Club segment of Wal-Mart includes membership-based warehouse clubs that are operated in 47 states of the US along with Puerto Rico (Wal-Mart, 2012b). The US business segment of Wal-Mart operates its business activities which are divided into six strategic merchandise units. They are: a) Grocery, b) Entertainment, c) Hardlines, d) Health and wellness, e) Apparel, and f) Home. All these six merchandise units offer different categories of merchandise products through its various types of retail stores located in different parts of the US. In the recently published Fortune-500 list, Wal-Mart has been ranked second, just after Exxon Mobil. Business Model Analysis of Wal-Mart After getting an overview regarding the operations of Wal-Mart, its business model would be studied in a comprehensive manner in this section. The current business model would be scrutinized and the changes that have taken place in the last five years in the business framework of the company would also be discussed in this section.  ...Download file to see next pagesRead More
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The topic of "Financial Information for Business Decisions" is quite popular among the tasks in university. Still, this example opens a new perspective of seeing the problem. I’ll use the idea for my own research.

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