Sample Essay

The main problems that were evident in the case pertaining to long term included the following:

Obsolete Products

The Wal-Mart company has had to deal with an increasing number of obsolete products in its inventory which are adding to the wastage and therefore increasing the inventory costs.


The Wal-Mart company established an effective and efficient distribution network which allowed it to work seamlessly without inventory. However Wal-Mart company needs to change and update its technology to make this system efficient and effective again.

Declining Revenues

The revenues for the company are declining due to declining sales, and increased overhead costs. Moreover the company is eating into its own market share by having its stores too close to each other

Through the analysis of the data available in the case it was determined that the increase in the net sales by Wal-Mart has decreased considerably over the period of time since 1993. in 1993, the rate of increase of net sales was at 26 percent while as recorded in 2004 and 2005, the net increase in sales had dropped down to 11.6 percent and 11.3 percent respectively. The cost of sales was also increasingly incrementally along with the debt burden of the company since 1993.

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