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ACCG828 Management Control System

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Macquarie University

   

MANAGEMENT CONTROL SYSTEM (ACCG828)

   

Added on  2020-05-08

ACCG828 Management Control System

   

Macquarie University

   

MANAGEMENT CONTROL SYSTEM (ACCG828)

   Added on 2020-05-08

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Running head: WALMART: MANAGEMENT CONTROL SYSTEM 1Walmart: Management Control SystemName Institution
ACCG828 Management Control System_1
WALMART: MANAGEMENT CONTROL SYSTEM 2WALMART: MANAGEMENT CONTROL SYSTEMFinancial Performance Walmart stores online sales growth has contracted to 12 percent for the fiscal year 2016subsequent to twenty-two growth recorded in fiscal year 2015. However, the ecommerceperformance for Walmart remains impressive. A 14 to 15 billion dollar online Walmart businessis more than respectable, particularly where it augments a brick-and-mortar business. The brick-and-mortar generates about 470 billion dollars in annual sales. Walmart stock market isunfriendly as the investors negates the long-run benefits if the organization’s ecommerceinvestment. Due to underperforming and persistent loses, Walmart closed 269 stores globallyalongside 154 stores in the United States. The company has reported worse sales in 35 years since 1980. The sales have dropped0.70% in revenue to about 482.10 billion dollars due strong dollar that could have Walmart salesrevenue increasing 2.8%. Walmart’s ecommerce sales growth has slowed for 5 quarters in a rowto 8% in final three months of fiscal 2016. The sales growth outlook has decreased to flat fromthree to four percent worse than expected impact from fluctuations in currency and revenue lossfrom stores closure. Walmart share has slid 3.10% to 64.09%. Walmart’s retail sales market share has dropped 0.7% from 9.9% to 9.2% five years ago.Net sales went up 2.5% to 81.5 billion dollars and traffic improved by 0.7%. In the fourth quarteroveral sales dropped 1.5% to 129.7 billion dollars which would surged 2.20% in absence ofcurrency fluctuations. Walmart’s net income for 3 months dropped 7.90% to 4.57 billion dollars.Sales in the UK fell 5.80% in most recent quarter six-times in a row drop. Walmart is reducingcost and investment 1.50 billion dollars over the 4 years. Walmart earned 446.980 billion dollars
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WALMART: MANAGEMENT CONTROL SYSTEM 3in profit in year 2014, a 6.0% surge in sales in year 2013 based on its financial statement (2011to 2013). The most dividend surge was reported in 2015 February where 2.0% surge was approvedby its Board of Directors equivalent to a surge of 0.49 cent a share. For the previous 5 years,Walmart US reported 328.70 billion dollar sales in top line revenue. Walmart is presently valuedat 15.1 times forward earnings with real trade of 69.480 a share. Walmart has 11, 000 millionstock authorized alongside 3780 million outstanding traded in stock exchange markets. Theoperating income of the Company surged to 32585 million dollars in 2014 from 28545 milliondollars in 2012. Over the past three years, the revenue of Walmart has surged 39,736 dollars. The grosssurge in revenue has been 9.10%. The Walmart’s cost of sale surged from 304657 million dollarsto 335127 million dollars. In 2014, Walmart recorded a 2.0% surge in assets over three years.Walmart’s stock comprised 78% of total assets. Property and equipment stood at $170 indicatinga good surge over past 3 years because of new retail stores being built. Walmart liquidity ratios as at Jan 31, 2015, Jan 31, 2014 and Jan 31, 2013; current ratio0.970, 0.880 and 0.830. Walmart’s quick ratio showed 0.24; 020; and 0.20 and cash rationshowed 0.140; 0.10 and 0.110. These ration indicate good direction. Walmart’s liquidity ratiopreset ratio surged from 2013 to 2014 as well as from 2014 to 2015. The quick ratio droppedthough improved from 2014 through 2015 exceeding 2013’s ratio. Potential Problems Facing WalmartWalmart is facing stiff competition against Amazon in e-commerce while coping with theeffect of the strong dollar as well as loss of share in the Walmart’s United Kingdom stores. Thishas since the company report its 1st annual sale decline since at least year 1980. The revenue of
ACCG828 Management Control System_3

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