Kelsi Frederick
SCLM424-871A
4.1 Assignment
In preparation for entering the Ukrainian market, Walmart Inc. understands the importance of focusing on operations forecasts and developing a marketing budget. Technology keeps expanding and advancing the knowledge of companies, making it even easier to expand stores internationally. There is a need for Walmart to expand to Ukraine; they have had much success in other countries such as Mexico, the United Kingdom, Africa, China, Japan, and many more. With proper budgeting, data collection, and SWOT analysis, Walmart could thrive in the Ukrainian market. Budgeting is imperative as it enables proper operation and services within the company. Every process within the company must be budgeted since it costs the company money to run its business efficiently. The best way to approach this expansion project is to ensure that the budgeting process aligns with the company's objectives/purpose. Below according to macrotrends, are some key financial ratios from 2020 to 2022 needed to evaluate if Walmart should expand its market to Ukraine. Key Financial Ratios
2022
2021
2020
Current Ratio
0.9278
0.9722
0.7945
Gross Margin
25.0987
24.8298
24.6885
Operating Margin
4.5293
4.0325
3.9255
Return on Equity
15.1702
15.6585
18.6396
Return on Assets
5.693
5.4282
6.4276
Asset Turnover
2.3391
2.2145
2.2155
Inventory Turnover 7.5914
9.3509
8.8805
Net Profit Margin
2.3872
2.4162
2.8401
Data collection is an essential process in the forecasting and budgeting process. Walmart must have facts about the market and the nature of its competition while also needing information on its customer base and understanding the customer's needs. Walmart would need to allocate money in its budget to create a marketing approach that will be used to determine the target audience. By understanding the Ukrainian culture, Walmart can set up its stores to improve the customer's shopping experience and provide more quantities of the products the customers would use. Tailoring stores based on the culture and the customer's needs through data
collected would help with social media posts about the store opening. Most companies fail since their data collection approach barely aligns with the company's needs; however, this is where Walmart is different. Walmart has a purpose it follows with every decision the company makes, giving them the advantage to succeed in the expansion to Ukraine.
Walmart has remained successful in the growth of the company. However, with the proper knowledge of a SWOT analysis, they can become even more prosperous. They have many strengths, one being global expansion in 27 countries. Evaluating the Strengths, Weaknesses, Opportunities, and Threats will help the company financially prepare a budget for the expansion project. For example, we may need to spend more time and money evaluating and understanding our weaknesses while also figuring out how to turn those weaknesses into strengths or opportunities for growth.
