AGENDA• About us• Wal-Mart’s Recent Performance• Dependent Variable• Root Cause Analysis• Recommendations• Q & A

ABOUT US

• Multi National Team and Offices

Timeline

RECENT PERFORMANCE SUMMARY

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Dependent Variable (DV) DV = Annual Growth Rate

2000 2001 2002 20030.00%

2.00%

4.00%

6.00%

8.00%

10.00%

12.00%

14.00%

16.00%

18.00%

Wal-Mart Annual Growth Rate

Years

Ann

ual G

row

th R

ate

Causal Analysis

Declining Sales

Growth

Customer Service

CompetitionWalmart Business Model Losing Appeal

Technology

Product Mix

Distribution Channels

Causal Analysis – Customer Service

Compensation (wages and

benefits)

Management Demographics

Declining Sales Growth

Customer Service

Culture

Employee Turnover

Training

Causal Analysis – Competitive Advantage

Target

Amazon

Declining Sales Growth

Competition

Ebay

Other online retailers

Cosco

Causal Analysis – Product Mix

On-lIne retailing

Discount Stores

Declining Sales Growth

Product Mix

Supermarkets

Sam’s Club

International

Where do we go from here?

International CAGR

discount sams supercenter internationa0%

5%

10%

15%

20%

25%

30%

35%

40%

ebit margin 2003revenue cagr 1999-2003

International Stores

Title

Supercenter

Stick to the Status Quo

Title

Title