Nobody downloaded yet

WalMart Merger - Assignment Example

Comments (0) Cite this document
Walmart Merger Instructor Name WALMART MERGER ABSTRACT For a couple of decades now, Wal-Mart has been characterized as being the leader, the dominant firm and the Big One Retail Company, all relatively smaller firms look up to. The main reasons behind this are multifarious, with the consumers benefitting the most among them…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER93% of users find it useful
WalMart Merger
Read TextPreview

Extract of sample
"WalMart Merger"

Download file to see previous pages The paper has been divided into two main parts: the first part mainly dealing with the Retail Industry, the major players, their production schemes, and their impact on the consumers and society overall. The second part deals with the advantages and disadvantages the firms might have because of the merger. PART I: INTRODUCTION Oligopoly is characterized as consisting of a small number of large sellers, being called the ‘Competitive Fringe’, with a few big firms dominating the entire industry’s production (Lipsey, 2004). These big firms, act as the trend-setters in terms of price and output, and are a major reflection of the entire Market. In this instance, the Retail market, is characterized by one big firm – Wal-Mart, with smaller firms either adhering to an acquisition or a merger, for their benefit. For example, in the United Kingdom, the Big Five Banks – Barclays, Lloyds TSB, Royal Bank of Scotland, HSBC and HBOS - dominate the Banking Sector. Similarly, there are many small departmental stores, selling retail products, but a dominant few, like Sainsbury, Asda and Tesco, taking over the entire nation. The small firms, then, sometimes, find it profitable to merge, consolidate, co-operate or be purchased by the Big One. SALES, OPERATIONS AND FIRMS IN THE MERGER According to Forbes Global 2000 list, Wal-Mart is the world’s 18th largest public corporation, and the world’s largest corporation when it comes to annual revenue ($421.849 billion), with its international operations accounting for 26.1 % of its total sales, and a gross profit margin of 24.7%, running chains of discounted departmental stores and warehouse stores. With a total of 8500 stores in 15 different countries, with 55 different names, Wal-Mart extends its operations in nine different retail formats, including general merchandise, food and drugs, Super Center, small markets, cash and carry stores, membership warehouse clubs, apparel stores, discount stores and restaurants (Holdings, 2011). VERTICAL INTEGRATION: REASONS TO CONSOLIDATE A lot of consolidation has been seen among retailers and retails chains, over the past couple of decades, with 40,788 mergers & acquisitions having been announced only between 1988 and 2010. The main reasons behind the consolidation of firms in the industry may be due to: 1. Economies of Scale: This refers to a significant decrease in the fixed cost of the merging firms by the removal of duplicate or extensive operations; 2. Economies of Scope: Economies of scope exist due to the alteration of method of the distribution and the marketing of products. For instance, two homogeneous products may have been advertised in a similar way previously, but now they are not; 3. Vertical Integration: This primarily means the merging of two or more firms from the same industry results in increasing profits and a larger consumer surplus than before, implying a decrease in the deadweight loss. This is done by the firms deciding on a particular amount of output, and then sticking to that output level; 4. Investment benefits: The merged firms have higher chances of receiving greater benefits when it comes to Investment, because of the name of the big firm attached to it. Sensing financial stability, the smaller firms, once a part of the big firm, are viewed as being stable, and thus attract a larger number of investors. There ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
(“WalMart Merger Assignment Example | Topics and Well Written Essays - 1750 words”, n.d.)
WalMart Merger Assignment Example | Topics and Well Written Essays - 1750 words. Retrieved from https://studentshare.org/macro-microeconomics/1431973-walmart-merger
(WalMart Merger Assignment Example | Topics and Well Written Essays - 1750 Words)
WalMart Merger Assignment Example | Topics and Well Written Essays - 1750 Words. https://studentshare.org/macro-microeconomics/1431973-walmart-merger.
“WalMart Merger Assignment Example | Topics and Well Written Essays - 1750 Words”, n.d. https://studentshare.org/macro-microeconomics/1431973-walmart-merger.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document
This can be shown by some other discount retailing firms that together with Wal-Mart started within that same period. For example, the Kmart which was started by the Kresge
2 Pages(500 words)Case Study
WalMart/Retail/Pharmacy Merger
The data that will be used to compute for the four-firm concentration ratio and the eight-firm concentration ratio is from The 2010-2011 Economic Report on Retail and Specialty Pharmacies (Fein, 2010). Table 1 below shows the market shares of the largest U.S.
3 Pages(750 words)Assignment
Walmart Cultural Barriers
The corporation is planning more expansions in the future. The company has faced a number of challenges in its conquest to expand to different areas of the world. In nations that embrace nationalism, joint ventures with local businesses and acquisitions are among the chief problems.
4 Pages(1000 words)Assignment
2. I think a big reason why Walmart was so successful in Mexico was that in entered into a joint venture with a local Mexican firm, Cifra. Added to this is the fact that the proximity of Mexico is very close to the United
1 Pages(250 words)Assignment
Merger Dilemma
The process will help them develop positive attitude towards change. Involving employees in all phases of merging will motivate them to
1 Pages(250 words)Assignment
Merger,Acquisition,and International Strageties
On the other hand, merger is said to occur in a situation where two companies make agreements to combine and form a definite organization rather than to remain independent and operate separately (Kumar, 2012). In the United States, American
7 Pages(1750 words)Assignment
The mechanism reduces the price of a pair or more of selected items each day of business of the corporation. Consumers are at a privilege to purchase different items in two or more at discounted prices on
2 Pages(500 words)Assignment
By doing so, the organization of Wal-Mart became successful in enhancing its profit margin and total revenue to a considerable extent among
2 Pages(500 words)Assignment
Walmart have used in lowering the cost and offering value for consumers are through activities such as putting pressure on workers to work overtime without compensating them. The work increases the goods that are supplied to consumers to meet their demand but there is reduction
2 Pages(500 words)Assignment
Merger, Acquisition, and International Strategies
In 2011, AT&T Company merged with the T-Mobile Company making it the largest wireless company in the United States. This merger left their competitor company Verizon Wireless behind. There are different ways that the T-Mobile
6 Pages(1500 words)Assignment
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Let us find you another Assignment on topic WalMart Merger for FREE!
logo footer
Contact us:
Contact Us Now
FREE Mobile Apps:
  • StudentShare App Store
  • StudentShare Google play
  • About StudentShare
  • Testimonials
  • FAQ
  • Blog
  • Free Essays
  • New Essays
  • Essays
  • Miscellaneous
  • The Newest Essay Topics
  • Index samples by all dates
Join us:
Contact Us