Walmart Essay

2344 words - 10 pages

Wal-Mart Subsidiaries and Partners:

Wal-Mart is one of the biggest retail chains in the world and in terms in the amount of sales the company generates, it is the one of the top five biggest companies in the world in terms of sales. Wal-Mart currently has 3,898 stores throughout the United States including 629 Discount stores and 3,029 Supercenters. The Walton family has the majority stake in the company with a 48% ownership in the corporation. Wal-Mart also has a vast grasp on the international market as well with 5,733 stores in countries across the world including Canada, Argentina China and Japan.

With respect to strategic partners, Wal-Mart has branched out to numerous companies ...view middle of the document...

To show how successful this subsidiary has been for Wal-Mart, Sam’s Club generated $47 billion in sales during 2011, which equates to 11% of Wal-Mart’s aggregate sales.

The last subsidiary under Wal-Mart is Wal-Mart International. This subsidiary currently comprises of 4,263 stores, employs 660,000 workers in 15 countries outside of the U.S. Since Wal-Mart International has such presence in so many countries, the aggregate sales for this division were $100 billion, which represents 24.7% of Wal-Mart’s total sales. This division employs 2.1 million people worldwide and is one of the largest private employers in various countries including Canada and Mexico.

Wal-Mart in order to have an advantage over its competition has made strategic partnerships to get ahead of their adversaries and to have great PR with the public. One example of this includes the partnership that Wal-Mart made with Seventh Generation to offer environmentally friendly products in more than 1,500 stores across the nation. Seventh Generation is one of the nation’s leading brands for non-toxic and environmentally household products. Another partnership that Wal-Mart has made was with the American Diabetes Association. Wal-Mart awarded $1 million to fund the Living With Diabetes program, which will allow further development of distribution tools for patients.

Mergers and Acquisitions:

Wal-Mart is one of the largest corporations in the United States and it didn’t achieve this amount of success without acquiring and merging with other businesses to further expand their brand.

* In 2008, Wal-Mart completely buys out the Japanese supermarket, Seiyu, for $875 million making it a subsidiary of Wal-Mart. Wal-Mart in turn introduces its own logistics, branding and distributing techniques to the company. Wal-Mart also decided to close 20 of its outlets and 6% of its work force overall in order to increase their aggregate profit margin. This marked a major international acquisition for Wal-Mart because it allows them to have a strong presence in the Asian market place.

* In 2011 Wal-Mart announced its merger with South Africa's retailer Massmart and was eventually approved by the country's Competition Tribunal in order for the deal to go through. The approval comes with conditions and rules both proposed by Wal-Mart and Massmart. They agreed to include setting up a supplier development fund and no merger-related clause for two years. The combined merger, where Wal-Mart holds a 51% share in the company, plans notable new store openings and projects growth of more than 50% in the Massmart food business over a five-year period which in turn profits both parties involved in the merger.

* In 1994 Wal-Mart announced that it would take over the Canadian retailer, Woolco and its 120 stores throughout Canada. Wal-Mart will sublease the Woolco stores from Woolworth Canada Inc. and buy most of the assets and inventory of the stores it is buying. Wal-Mart said it...

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