Is Wal-Mart Good for America
assignment should not exceed two type-written pages in 12-pitch font, single spaced, excluding tables, figures, charts, references and/or other appendices, and must be stapled. Identify each assignment question by using the question number in a new paragraph with an introductory phrase identifying the main premise of the question
Is Wal-Mart Good for America? www.pbs.org
Outside research on Wal-Mart (www.walmart.com) is required. Use alternative sites to supplement the information provided to you in the film. Please answer the following assignment questions:
1. The business environment.
a. What does the documentary “Is Wal-Mart Good for America” illustrate about the current business environment
2. Outsourcing is one method of keeping the cost of production down.
Research the advantages and disadvantages of outsourcing and provide compelling arguments for each position provided by the articles below.
The following Web sites support the concept that outsourcing is good for US.
The Great Hollowing-Out Myth (The Economist)
Jobs, Immigration, and Outsourcing (The Cato Institute)
Top Economists Square Off in Debate over Outsourcing (The Wall Street Journal)
The following Web sites do not support outsourcing as good for US.
Towards A Progressive View on Outsourcing (The Nation)
Interview with Lou Dobbs (NOW with Bill Moyers)
Top Economists Square Off in Debate Over Outsourcing (The Wall Street Journal)
3. Walmart’s business model.
a. What is the fundamental premise or principle of Walmart’s business model?
b. According to the film, which business practices have made Walmart so successful?
4. Social Responsibility. There are two perspectives as to whom organizations are socially responsible: the shareholder model and the stakeholder model.
a. Which model to do you think applies to Walmart? Explain why.
b. According to the model you subscribed to Walmart under 4a, who do you think gains the most from Wal-Mart’s business model? Again, explain why.
5. The following questions relate to Walmart’s market and financial performance. I recommend that you use either Walmart’s annual report or the company’s 10K report to answer the questions. To do so, go to Walmart’s website, then go to investor relations and call up the company’s latest annual or 10-K report.
a. Provide current market data for Walmart: number of stores; domestic versus international locations. Where are most of Walmart’s international stores located and why?
b. Provide a trend analysis for years 2011, 2012 and 2013 as to where Walmart expanded and/or divested in its domestic and international markets. That is, where did they open and/or close stores. Also pay attention to the type of stores they are opening and/or closing.
c. Provide the latest reported annual financial information: What were Walmart’s total revenues and net income for 2013. What were Walmart’s domestic versus international revenues for 2013? Be careful when you report your numbers with respect to billions and millions.
d. Provide a trend analysis for the past three years (2011, 2012, and 2013) with respect to Walmart’s revenues and net income. Are the company’s revenues growing, if so, in which markets? Are certain markets (domestic or international) growing faster than others and why?
e. What did you learn from your market and financial analysis under 4b, 4c, 4d, and 4e? Do the trends in market data support your financial analysis?
f. Walmart’s future. What are Walmart’s plans for the future? For instance, where and how does the company plan to grow? Does it plan to divest in certain markets? Does the company have any new ideas with respect to its business model?
6. Walmart in the news.
a. What are some of the most recent stories released in the media about Walmart? Provide dates, details and references.
b. How has Walmart responded to the stories you discussed under 6a? Provide details and references.