Question

Create a company overview of Wal-Mart and Identify at least SEVEN key performance indicators Key Performance Indicators (K(KPIs) of Wal-Mart's sucess.

In the overview, include

•Products and/or services it sells and/or manufacturers

•Geographic area in which it conducts operations

•Most recent annual revenue, operating income, and market share

•Major competitors

•Other noteworthy facts

•The KPI you choose should be representative of the most important strategic goals of the company.

•Example: If a goal is to increase membership, “number of members” or “growth rate in membership” would be a good choice of metric.

•Choice of KPIs should be balanced

•Example: Not all KPIs should be financial; there should be a mixture of financial, marketing, customer satisfaction etc. if it is appropriate and possible to include these other types of metrics

Answer 1

Walmart is an American based multinational retail corporation. The company offers a wide variety of products and services and operates in retail goods, pharmacy, financial services and photo services through a chain of hypermarkets, discount stores and grocery stores.

Retail: In the retail sector, Wal-Mart deals with electronic items like camera, media players, laptop and computers . It also sells books, songs and jewellery. Wal-Mart also deals in home decor items, grocery, sports equipments, health and beauty, pet supplies and baby products.

Pharmacy: The retailer is also involved in pharmaceutical services including in-store pickup and online delivery of medicines.

Financial services: Wal-Mart offers a good range of financial services to its customers. These services are in the form of credit card, debit card, cheque transactions and money transfers through moneygram. It also offers a zero annual fee credit card.

Photo services: Wal-Mart has photo studios where customers can get their photographs printed in an hour.

Wireless: Wal-Mart in collaboration with the mobile service provider T-mobile offers wireless facilities to its customers. These facilities includes unlimited plans for texts and voice calls.

Geographic areas.

Wal-Mart is headquartered in Bentonville, Arkansas and operates in 28 countries. It has outlets in Canada, Mexico, Asia, Africa, Europe, and Latin America. In United States and Canada the retailer is known as Wal-Mart. In Mexico and Central America it is known by the name of "Wal-Mart de Mexico y Centroamerica. In the UK it is known as Asda . It is know as Seiyu group in Japan and Best Price in India.

Most recent annual revenue: 500.34 billion US dollar.

Operating income: 17.301 billion US dollar

Total assets : 204.52 billion US dollar

Total equity: 77.869 billion US dollar

Major competitors of Wal-Mart: Target and Amazon

KEY PERFORMANCE INDICATORS

1. Sales and gross margin.

Sales margin is one of the most important KPI which indicates the performance of Walmart. Wal-Mart compares its sales across the world and category wise . On the basis of which they generate marketing strategies to attract customers. Gross margin indicates the total profit on the basis of the sales.

2. Average customer spend.

This is another KPI used by Wal-Mart which calculates the average amount spent by customers on each purchase . Through this KPI they try to segment their customers.

3. Inventory turnover rate.

This KPI indicates the number of times an average stock is solf in an year . This indicator enables Wal-Mart to analyse how quickly they are able to sell.

4. Shopper value.

Through this KPI Wal-Mart evaluates the worth of a customer.

It is calculated by dividing total sales by total shopper traffic.

5. Customer Retention.

This indicator helps to analyse how long a customer sticks to Wal-Mart.

6. Marketing KPIs

Wal-Mart uses marketing KPIs like analysing newsletter subscribers, social network page fan followers, blog etc.

7. Customer service

Through customer service KPIs Wal-Mart keeps its customers happy by providing after sale services and by making changes on the basis of customer feedbacks.