Posted: May 25th, 2022

Wal-Mart Corporation Financial Analysis

Wal-Mart Corporation Financial Analysis

Wal-Mart Corporation is considered the world’s largest retailer, renown for it’s low prices and high volume sales. Wal-Mart’s emerging accounting practices include complete automation of accounting functions. Wal-Mart is considered a pioneer of sorts, enabling EDI or electronic transmission of inventory information and Just In Time ordering. As such, they have virtually eliminated the need of middlemen calculating future inventory needs, and assessed potential bottlenecks before they become a problem.

Part of Wal-Mart’s success lies in its ability to negotiate TOC practices, JIT and EDI. Wal-Mart has successfully moved toward improving performance by identifying potential bottlenecks or constraints, and also implementing innovative inventory practices and electronic dissemination of information (JIT and EDI). How does Wal-Mart do it? Wal-Mart focuses of EDI enabled JIT purchasing mechanisms. Wal-Mart shifts the “burden” of inventory to the supplier. Inventories move very swiftly with Wal-Mart, due in part to the substantial customer base the company commands.

According to Eli Goldratt’s theory of constraints, or TOC, described in his book, “The Goal,” the “core constraint of virtually every organization it has assisted is management as a collection of parts instead of a single unit” (hoodstrong, 2002). Most managers and high-level executives in a corporation fail because they focus on the collection of parts rather than the relatedness of various functions within an organization. The TOC approach enables organizations such as Wal-Mart to identify “constraints” that prevent them from achieving a goal. In the case of Wal-Mart, this would be selling bulk products at a discounted rate to the mass market. TOC can only be successful if everyone understands the goals.

In order for a TOC approach to be successful, Wal-Mart has identified its constraints and reduced or eliminated any bottlenecks that may have occurred to prevent bulk quantity selling to the masses. The TOC requires organizations to do just this; To be successful companies must identify constraints, rally staff behind approaches to eliminate such constraints, motivate employees to make changes, and reduce or eliminate bottlenecks to the constraints identified (hoodstrong, 2002).

Wal-Mart specifically has “popularized” the TOC solution of reducing inventory constraints by outsourcing inventory to a selected third party (hoodstrong, 2002). Wal-Mart shares a “supply chain partnership” whereby they openly communicate with their suppliers in an effort to adopt a mutually beneficial relationship. Information shared with the third party includes production schedules, design and engineering specifications, costs and inventory data (hoodstrong, 2002).

Wal-Mart is also successful based on its acceptance of EDI, or “Electronic Data Interchange” and JIT practices. Wal-Mart engages in Computer-to-Computer Exchange of business documents with their vendor/suppliers (Sitcur, 2002). The use of electronic data transmission eliminates the need for excessive paperwork and paper trails, thus making the corporation more efficient and productive. EDI is a simple process that allows Wal-Mart executives to communicate on a global level, with the click of a button.

Wal-Mart actually is an entrepreneur in EDI technology, having started to use the communication method over twenty years ago. How does Wal-Mart use EDI? First and foremost they utilize it in scanning technology. For example, when a customer comes into the store to purchase a product, a cashier scans the item. The cashier is not only receiving information about the purchase price, but also sending information to a computer exchange information system, whereby manufacturers of the product will be notified that one of their products has sold. Additionally, store managers will be able to pull inventory reports, or in the case of Wal-Mart supply their outsourced inventory data to their suppliers. EDI allows instantaneous data exchange, making not only shopping, but also inventory management and cost control extraordinarily easy and manageable for the company.

The advantages Wal-Mart has using EDI are enormous; eliminating potential bottlenecks in supply exchange is just one. As one author puts it, “The obvious advantage of EDI is that everyone can accurately forecast with accuracy how much inventory they will be buying and selling over a reasonable period of time” (ScotSys, 2000). EDI virtually enables J.I.T., or just in time ordering. How is this accomplished?

By utilizing EDI technologies, Wal-Mart Corporation enables all members of the manufacturing/supply chain to have instantaneous access to changes in inventory and supply. Going back to the cashier scanning example, when an employee scans a product that is low inventory, that data will be automatically transferred to the store manager and suppliers, triggering a chain reaction that calls for a shipment of the product immediately. EDI and J.I.T. utilization allow for the automation of functions that previously required shear manpower.

The qualitative impact of TOC, JIT and EDI utilization at Wal-Mart is very apparent even to the layperson. Wal-Mart continues to be considered one of the most successful and largest discount retailers. Their success lies in the ability to foresee inventory needs before shortages occur. By utilizing EDI technologies, Wal-Mart has successfully ensured that all members of their organization, their vendors and supplier included, always have up to the minute information about product inventory.

Wal-Mart has also successfully assessed potential constraints in business. By implementing TOC practices, the company has continually solved potential sales and financial difficulties. They have trained personnel to identify potential constraints before they impact production schedules, inventory or customers. By scanning merchandise through EDI technology, Wal-Mart supplies its managers, customers and external partners with up to the minute information related to inventory, product success, customer satisfaction and wants.

Suppliers are now tasked with the responsibility of recognizing potential shortages and supplying the organization with product, Just In Time, before a shortage of material occurs. Many companies might benefit from incorporating the practices of JIT, EDI and TOC, as Wal-Mart has been using for years very successfully.

References

Hood and Strong. (2002)”Identify, Eliminate Bottlenecks that Impede Manufacturing.” Fall, 2002. Manufacturing Monitor. March 14, 2003, http://aolsearch.aol.com/aol/redir?src=websearch&requestId=4ba2219e7cf1443a&clickedItemRank=6&userQuery=%22theory+of+constraints%22+and+WalMart&clickedItemURN=http%3A%2F%2Fwww.hoodstrong.com%2FMFG%2F2002%2FMM%2520Fall02%2520articles.html

Gentry, James K. (1996). “Reading Business Financial Statements.” February 16, 2000, http://www.facsnet.org/tools/biz_econ/covering_biz/part2.php3

Scot/Sys 2000, “Electronic Data Interchange http://www.scotsystems.com/ScotSys_2000/EDI/body_edi.html

Sitcur. “Sitcur Analysis.” Los Angeles, CA. March 13, 2003, http://aolsearch.aol.com/aol/redir?src=websearch&requestId=25026abf644b8000&clickedItemRank=2&userQuery=JIT+and+EDI+with+WalMart&clickedItemURN=http%3A%2F%2Fwww.sitcur.com%2Feasycomm.htm

---

Get Professional Assignment Help Cheaply

Are you busy and do not have time to handle your assignment? Are you scared that your paper will not make the grade? Do you have responsibilities that may hinder you from turning in your assignment on time? Are you tired and can barely handle your assignment? Are your grades inconsistent?

Whichever your reason is, it is valid! You can get professional academic help from our service at affordable rates. We have a team of professional academic writers who can handle all your assignments.

Why Choose Our Academic Writing Service?

• Plagiarism free papers
• Timely delivery
• Any deadline
• Skilled, Experienced Native English Writers
• Subject-relevant academic writer
• Adherence to paper instructions
• Ability to tackle bulk assignments
• Reasonable prices
• 24/7 Customer Support
• Get superb grades consistently

 

Online Academic Help With Different Subjects

Literature

Students barely have time to read. We got you! Have your literature essay or book review written without having the hassle of reading the book. You can get your literature paper custom-written for you by our literature specialists.

Finance

Do you struggle with finance? No need to torture yourself if finance is not your cup of tea. You can order your finance paper from our academic writing service and get 100% original work from competent finance experts.

Computer science

Computer science is a tough subject. Fortunately, our computer science experts are up to the match. No need to stress and have sleepless nights. Our academic writers will tackle all your computer science assignments and deliver them on time. Let us handle all your python, java, ruby, JavaScript, php , C+ assignments!

Psychology

While psychology may be an interesting subject, you may lack sufficient time to handle your assignments. Don’t despair; by using our academic writing service, you can be assured of perfect grades. Moreover, your grades will be consistent.

Engineering

Engineering is quite a demanding subject. Students face a lot of pressure and barely have enough time to do what they love to do. Our academic writing service got you covered! Our engineering specialists follow the paper instructions and ensure timely delivery of the paper.

Nursing

In the nursing course, you may have difficulties with literature reviews, annotated bibliographies, critical essays, and other assignments. Our nursing assignment writers will offer you professional nursing paper help at low prices.

Sociology

Truth be told, sociology papers can be quite exhausting. Our academic writing service relieves you of fatigue, pressure, and stress. You can relax and have peace of mind as our academic writers handle your sociology assignment.

Business

We take pride in having some of the best business writers in the industry. Our business writers have a lot of experience in the field. They are reliable, and you can be assured of a high-grade paper. They are able to handle business papers of any subject, length, deadline, and difficulty!

Statistics

We boast of having some of the most experienced statistics experts in the industry. Our statistics experts have diverse skills, expertise, and knowledge to handle any kind of assignment. They have access to all kinds of software to get your assignment done.

Law

Writing a law essay may prove to be an insurmountable obstacle, especially when you need to know the peculiarities of the legislative framework. Take advantage of our top-notch law specialists and get superb grades and 100% satisfaction.

What discipline/subjects do you deal in?

We have highlighted some of the most popular subjects we handle above. Those are just a tip of the iceberg. We deal in all academic disciplines since our writers are as diverse. They have been drawn from across all disciplines, and orders are assigned to those writers believed to be the best in the field. In a nutshell, there is no task we cannot handle; all you need to do is place your order with us. As long as your instructions are clear, just trust we shall deliver irrespective of the discipline.

Are your writers competent enough to handle my paper?

Our essay writers are graduates with bachelor's, masters, Ph.D., and doctorate degrees in various subjects. The minimum requirement to be an essay writer with our essay writing service is to have a college degree. All our academic writers have a minimum of two years of academic writing. We have a stringent recruitment process to ensure that we get only the most competent essay writers in the industry. We also ensure that the writers are handsomely compensated for their value. The majority of our writers are native English speakers. As such, the fluency of language and grammar is impeccable.

What if I don’t like the paper?

There is a very low likelihood that you won’t like the paper.

Reasons being:

• When assigning your order, we match the paper’s discipline with the writer’s field/specialization. Since all our writers are graduates, we match the paper’s subject with the field the writer studied. For instance, if it’s a nursing paper, only a nursing graduate and writer will handle it. Furthermore, all our writers have academic writing experience and top-notch research skills.
• We have a quality assurance that reviews the paper before it gets to you. As such, we ensure that you get a paper that meets the required standard and will most definitely make the grade.

In the event that you don’t like your paper:

• The writer will revise the paper up to your pleasing. You have unlimited revisions. You simply need to highlight what specifically you don’t like about the paper, and the writer will make the amendments. The paper will be revised until you are satisfied. Revisions are free of charge
• We will have a different writer write the paper from scratch.
• Last resort, if the above does not work, we will refund your money.

Will the professor find out I didn’t write the paper myself?

Not at all. All papers are written from scratch. There is no way your tutor or instructor will realize that you did not write the paper yourself. In fact, we recommend using our assignment help services for consistent results.

What if the paper is plagiarized?

We check all papers for plagiarism before we submit them. We use powerful plagiarism checking software such as SafeAssign, LopesWrite, and Turnitin. We also upload the plagiarism report so that you can review it. We understand that plagiarism is academic suicide. We would not take the risk of submitting plagiarized work and jeopardize your academic journey. Furthermore, we do not sell or use prewritten papers, and each paper is written from scratch.

When will I get my paper?

You determine when you get the paper by setting the deadline when placing the order. All papers are delivered within the deadline. We are well aware that we operate in a time-sensitive industry. As such, we have laid out strategies to ensure that the client receives the paper on time and they never miss the deadline. We understand that papers that are submitted late have some points deducted. We do not want you to miss any points due to late submission. We work on beating deadlines by huge margins in order to ensure that you have ample time to review the paper before you submit it.

Will anyone find out that I used your services?

We have a privacy and confidentiality policy that guides our work. We NEVER share any customer information with third parties. Noone will ever know that you used our assignment help services. It’s only between you and us. We are bound by our policies to protect the customer’s identity and information. All your information, such as your names, phone number, email, order information, and so on, are protected. We have robust security systems that ensure that your data is protected. Hacking our systems is close to impossible, and it has never happened.

How our Assignment  Help Service Works

1.      Place an order

You fill all the paper instructions in the order form. Make sure you include all the helpful materials so that our academic writers can deliver the perfect paper. It will also help to eliminate unnecessary revisions.

2.      Pay for the order

Proceed to pay for the paper so that it can be assigned to one of our expert academic writers. The paper subject is matched with the writer’s area of specialization.

3.      Track the progress

You communicate with the writer and know about the progress of the paper. The client can ask the writer for drafts of the paper. The client can upload extra material and include additional instructions from the lecturer. Receive a paper.

4.      Download the paper

The paper is sent to your email and uploaded to your personal account. You also get a plagiarism report attached to your paper.

PLACE THIS ORDER OR A SIMILAR ORDER WITH US TODAY AND GET A PERFECT SCORE!!!

---