Answer to Question #289879 in Management for Zeinab Zoayter

Question

Part b (1,000 words)

Critically assess the organisation’s financial performance and its overall approach to managing stakeholders expectations. This should include some interpretation of the financial statements and any other information you consider relevant.

Part c (500 words)

Discuss how the issues you have explained in part a) and b) above might be addressed in terms of improvements or recommendations. How might your recommendations result in more effective financial decision making for your organisation?

Answer 1

Walmart's net sales in the United States reached $370 billion in fiscal 2021, up 8.6% from $341 billion in fiscal 2020. Walmart's operational expenses as a proportion of net sales remained steady in fiscal 2021 compared to fiscal 2020, despite incurring $4 billion in COVID-19-related charges. Walmart's financial performance could be jeopardized by changing consumer behaviors and preferences, including a shift toward more online grocery purchases, if the company fails to respond quickly enough or meet shoppers' heightened convenience expectations, according to Walmart's 2021 annual report. Walmart relies on investments in digital infrastructure, store remodels, and other customer initiatives rather than new store openings to help drive net sales in fiscal 2022. according to the report and proxy statement, which was released ahead of Walmart's annual shareholder's meeting on June 2. Continued uncertainty about the duration and economic effects of the COVID-19 pandemic, competitive pressures from rival retailers' M&A activity, and potential costs associated with climate change—whether in responding to extreme weather events or complying with new climate-related regulations—are all risk factors identified by the company.

Walmart's risk management team supports the company's focus on technology to boost efficiency. The team has established systems for instant closed-circuit television access in its stores and clubs, case manager Scorecards to better recognize, replicate, educate, and reward best practices, a mobile app for more efficient accident intake, bot technology, and more, among its numerous triumphs.These innovations will save more than $6 million in yearly claims administrative costs, save substantial time at the store level, and improve claim quality.Wal-Mart ensures that its distribution facility is close to its retail locations. It is how they can guarantee that delivery to their stores would arrive within a day. They've also maximized the usage of technology. They can speak with each other and with retailers, distribution centers, and suppliers. "By consolidating orders for items, the company was able to purchase full truckload amounts without incurring inventory expenditures" (Wal-Mart Stores, 2).it demonstrates how distribution control aids in the regulation of financial management. They can save time and money because they can communicate swiftly and effectively.