Business: Walmart

Strategies (pick one) 1. Re-purpose its superstores as fulfillment centers serving an online retailing business 2. Adopt a membership model (similar to Costco and Sams Club) 3. Cluster Walmart superstores (Clustering starts with the type of local community and then, from the ground up, designing, staff and stock each store for the type of community it serves).

Based on your chosen strategy, do the following.

1. Create Pro-Forma Financial Statements (I/S, B/S and Statement of Cash Flows) with deltas out 3 years and analysis. Each year must have 2 columns: 1 with your strategy and 1 without your strategy. Include Pro-Forma ratios for the first year out with deltas contrasting from the most current years ratios.

2.Net Present Value analysis of the proposed strategys new cash flow and EPS/EBIT analysis you may use Excel to calculate these. NOTE: To construct the first cash flow (cf1) at the very minimum, the new revenue from your strategy(s) must be discounted back to the present value by calculating EBIT, and that figure will be your cfn for each year. cf0 (initial cost of your strategy), cf1 (discounted cash flow first year), r (opportunity cost of capital, the rate of the next best alternative use of cash/debt/equity resources).

3.Specific recommended strategy and long-term objectives Explain why you chose the strategy, and discuss how much the strategy will cost to implement and how much new revenue your strategy will create. Include your action timetable schedule for accomplishing your strategy