Economic Indicators Wal-Mart
Coffinberry, Crockett, Curtis, Mazotas, McGee
University of Phoenix
ECO 360
Janet Hunter
June 22, 2004
Wal-Mart has become the world's number one retailer. Diversification into grocery (Wal-Mart Supercenters and Neighborhood Markets), international operations and membership warehouse clubs (SAM'S Clubs), has created greater opportunities for growth. But unlike some corporations, whose financial growth does not translate into more jobs, Wal-Mart's phenomenal growth has been an engine for making jobs. Wal-Mart has a history of having become a strong investment for Shareholders. The Company made its initial public offering in October of 1970, when selling 200,000 shares for $16.50 per share. If an investor had purchased 100 shares in the initial offering, those shares would have been worth more than $11 million as of January 31, 2004 and the number of shares owned by that investor would have grown to 204,800 thanks to 11 stock splits. From the beginning, Wal-Mart has created tremendous Shareholder value. The Company raised $3.3 million in its initial public-equity offering. As of January 31, 2004, the Company had grown to a market capitalization of nearly $240 billion.
As the largest company in the world, they are held to a very high standard of behavior. The financial performance is an important measure by which they are judged, but it is no longer the only measure. The Company is judged by its accomplishments. Today Wal-Mart is increasingly defined by its actions as an employer, a corporate citizen, and business partner. In addition to Wal-Mart being a great investment, it provides jobs to consumers and is extremely communicative with shoppers.
"We are all working together; that's the s ...