you will need to access Walmart’s most recent annual report from Walmart’sFinancial Information(Links to an external site.)page. You can use the annual report to gather additional international data.
In this final project you will continue to build on your Walmart Case study work from previous courses. Imagine that you have been hired as a data analyst for Walmart. The Walmart executive team has asked you to gather data that will assist them in determining if this foreign market is a viable option for a Walmart expansion. You will continue to research Peru. This case study is Walmart wanting to expand in Peru.
You have been tasked with collecting and analyzing key data points that will assist Walmart in their decision to expand to Peru. In Part I, you will gather data from various sources, use the tools learned throughout this class to analyze data, and determine the best way to present this data to the Walmart executive team. Finally, you will make a recommendation on whether or not this foreign market is a viable option for a Walmart expansion.
Note: It is OK to not recommend an expansion to Peru. Just be sure to justify your recommendation.
Step 1: Data Collection
As a data analyst, you will be required to locate data from multiple sources. Walmart’s latest Annual Report to begin your data collection. These databases should serve as a guide for your research. You are expected to identify additional data sources that will be useful in your analysis.
Accessing Mergent database:
You may want to review the Income Statement for items such as net sales, operating expenses, projected income, etc. It is recommended that you review data from at least the last five years.
If you wish, you can export this data into an excel document by selecting the “Download” option in the upper right corner of the Mergent page.
Accessing Business Insights: Global database:
You may want to review items such as gross profit, interest expense, net income, etc. You may wish to gather data for countries that are closest to your region for comparison.
Accessing Walmart’s annual report:
You can find Walmart’s most recent annual report on theirFinancial Information(Links to an external site.)page. You can use the annual report to gather additional international data.
Here are some examples of data that may be useful to an analyst:
·Under “Item 1: Business,” in the “Walmart International Segment,” you may wish to gather data for retail unit count and retail square feet for all available fiscal years for the country or continent closest to your region. For example, if you are looking to expand in Peru, you will use the data for south America.
·In the “Item 2: Properties” section of the report, you may wish to gather data for the owned and leased properties for the country or continent closest to your region.
·In the “Results of Operations” section of the report, look for “Walmart International Segment.” You may wish to gather data for net sales, operating income, and unit counts at period end for all available fiscal years.
You will likely need to gather more data to make your case. You are encouraged to seek out additional data points that will assist you in your analysis. Other data points you may want to consider include, but are not limited to
·Gross national income
·Population and demographic data of peru
·Key economic metrics, including current economic status, inflation, etc.
·Labor market data, including average wage, unemployment rate, cost of living, etc.
·Market environment
·Foreign exchange
·Credit environment outlook
Here are some suggested databases to get you started. These databases may not have all the information you need to make a full evaluation. You may need to conduct your own research to find useful databases that house the data you need to conduct your analysis.
·International Labour Organization’sILOSTAT(Links to an external site.)
·The World Bank’sDoing Business Data(Links to an external site.)
·The World Bank’sDataBank(Links to an external site.)
Step 2: Analyzing the Data
Now that you have gathered your data, you will need to determine the best way to compile the data for analysis. Using the tools and skills you have learned in this course, create graphs and tables that will assist you in making sense of the data. You will use these tables to assess the data and support your analysis.
In your paper,
·Summarize the background of Peru or region, including what makes it unique and why it is a viable option for Walmart expansion.
·Assess the data sets and include any charts or graphs used in your evaluation.
oMeasure outlook sales, interest, and other trends to make a determination on the regional outlook. Is the outlook improving, remaining stable, or deteriorating? For example, how will this expansion affect sales trends, interest cost trends, etc.?
oCalculate whether Walmart will have favorable or unfavorable currency translation adjustments. For example, how strong is the country’s currency against the U.S. dollar?
oCreate revenue projections and sales projections based on the data. Consider the currently translation adjustments in your projection.
oPropose a recommended course of action based on your interpretation of the data.