Your

Success Factors,

Risk, and

Projections report should be approximately

2?4 pages long (excluding title page, spreadsheets and

graphs, and references list). It should be double spaced,

with 12 -point Times New Roman font

and one-inch margins, and should use the latest guidelines for APA

formatting for references and citations. Please also include your name, course name, and submission date on the title page

Please see the attached instruction. Please include all instructions. The company that I am doing is Walmart. Please see the detail in the paper I provided. Please use Walmart as the assigned company

MBA 520 Milestone Two Guidelines and Rubric In this report, you will discuss factors that may affect current and future performance of the chosen company. Based on what you know about the organization's financial health and performance, you will then forecast future performance of the company for each of the next three years. Prompt: After having evaluated the company's financial health, you should research and assess the company's strategic priorities and behavior. You should investigate internal risks and non-monetary factors that may affect current and future performance and decisions. To justify your findings and projections, you will need to produce accurate and relevant data tables, explaining how the numbers were informed by existing information and modeling different scenarios. IV. V. Success Factors and Risks. Use this section to discuss the factors that may affect current and future performance. Specifically: A. How do the organization's financial and strategic priorities affect accounting procedures and business decisions? How might that affect business success? For example, is management growth-oriented or efficiency-oriented? What is the organization's approach to risk and short- versus long-term planning horizons? B. How might the organization better capitalize on non-financial factors such as market share, reputation, human resources, physical facilities, or patents? Support your response with relevant research and analysis. C. What are the most significant internal risks to the company's financial performance? Give evidence to support your response. For example, is the company vulnerable to technological changes or cyber-attacks? Loss of high-talent personnel? Production disruptions? Projections. Based on what you know about the organization's financial health and performance, forecast its future performance. In particular, you should: A. Project the organization's likely consolidated financial performance for each of the next three years. Support your analysis with an appendix spreadsheet showing actual results for the most recent year, along with your projections and assumptions. Remember, your supervisor is interested in fresh perspectives, so you should not just replicate existing financial statements, but should add other relevant calculations or disaggregations to help inform decisions. B. Modify your projections for the coming year to show a best- and worst-case scenario, based on the potential success factors and risks you identified. As with your initial projections, support your analysis with an appendix spreadsheet, specifying your assumptions and including relevant calculations and disaggregations beyond those in existing financial reports. C. Discuss how your assumptions, forecasting methodology, and information gaps affect your projections. Why are your projections appropriate? For example, are they consistent with the organization's mission and priorities? Aggressive but achievable? How would changing your assumptions change your projections? Rubric Guidelines for Submission: Your Success Factors, Risk, and Projections report should be approximately 2-4 pages long (excluding title page, spreadsheets and graphs, and references list). It should be double spaced, with 12-point Times New Roman font and one-inch margins, and should use the latest guidelines for APA formatting for references and citations. Please also include your name, course name, and submission date on the title page. Instructor Feedback: This activity uses an integrated rubric in Blackboard. Students can view instructor feedback in the Grade Center. For more information, review these instructions. Critical Elements Success Factors and Risks: Priorities Success Factors and Risks: Non-Financial Factors Success Factors and Risks: Risks Exemplary (100%) Meets \"Proficient\" criteria, and discussion of how priorities inform management decisions is especially nuanced Proficient (90%) Determines how organization's financial and strategic priorities affect accounting procedures and business decisions and the implications for business success Needs Improvement (70%) Determines how organization's financial and strategic priorities affect accounting procedures and business decisions and the implications for business success, but response is cursory or contains inaccuracies or links between priorities and business decisions and procedures are weak or illogical Meets \"Proficient\" criteria and Identifies how organization might Identifies how organization might demonstrates extraordinary better capitalize on non-financial better capitalize on non-financial insight into the ways in which factors, supported by relevant factors, supported by research non-monetary factors impact research and analysis and analysis, but response is business opportunities cursory, contains inaccuracies, or is poorly supported Meets \"Proficient\" criteria and Pinpoints most significant Pinpoints most significant provides especially nuanced and internal risks to financial internal risks to financial well-supported insight into the performance, supported by performance, supported by internal factors that are most evidence evidence, but response is significant in driving financial risk cursory, contains gaps in accuracy or logic, or evidence is weak or irrelevant Not Evident (0%) Does not determine how organization's financial and strategic priorities affect accounting procedures and business decisions and the implications for business success Value 15.7 Does not identify how organization might better capitalize on non-financial factors, supported by research and analysis 15.7 Does not pinpoint most significant internal risks to financial performance, supported by evidence 15.7 Projections: Likely Performance Meets \"Proficient\" criteria, and projections are especially nuanced and well-supported by evidence and realistic assumptions Projects likely consolidated financial performance for next three years, supported by spreadsheet showing actual results for most recent year, projections, and assumptions Projects likely consolidated financial performance for next three years, supported by spreadsheet showing actual results for most recent year, projections, and assumptions, but response contains inaccuracies or faulty assumptions or omits key details Projections: Best and Meets \"Proficient\" criteria and Modifies projections to show Modifies projections to show Worst Case demonstrates especially keen best- and worst-case scenarios best- and worst-case scenarios insight into the range of possible for coming year based on success based on success factors and financial projections, based on factors and risks identified, risks identified, supported by reasonable and realistic supported by spreadsheet with spreadsheet with assumptions assumptions assumptions and relevant and additional information, but information beyond existing response contains inaccuracies financial reports or faulty assumptions or additional information included is not relevant Projections: Discuss Meets \"Proficient\" criteria and Discusses how assumptions, Discusses how assumptions, demonstrates especially keen forecasting methodology, and methodology, and information insight into the sensitivity of information gaps affect gaps affect projections and why financial projections to changing projections and why projections projections are appropriate, but circumstances and assumptions are appropriate discussion is cursory or illogical or contains inaccuracies Articulation of Submission is free of errors Submission has no major errors Submission has major errors Response related to citations, grammar, related to citations, grammar, related to citations, grammar, spelling, syntax, and organization spelling, syntax, or organization spelling, syntax, or organization and is presented in a professional that negatively impact readability and easy-to-read format and articulation of main ideas Does not project likely consolidated financial performance for next three years, supported by spreadsheet showing actual results for most recent year, projections, and assumptions 15.7 Does not modify projections to show best- and worst-case scenarios based on success factors and risks identified, supported by spreadsheet with assumptions and information beyond existing financial reports 15.7 Does not discuss how assumptions, forecasting methodology, and information gaps affect projections and why projections are appropriate 15.7 Submission has critical errors related to citations, grammar, spelling, syntax, or organization that prevent understanding of ideas Earned Total 5.8 100% Running head: WAL-MART FINANCIAL HEALTH AND PERFORMANCE Wal-Mart Financial Health and Performance 1 WAL-MART FINANCIAL HEALTH AND PERFORMANCE 2 Wal-Mart Financial Health and Performance Organizational Context The Wal-Mart is a world or multinational retailer in the United States of America as its roots. It runs small single department stores that have grown for many years to make profit and has therefore grown to become one of the world's largest retailer stores. It runs under the corporation of hypermarket and grocery department stores. Through increased sales of the company they have been able to acquire more finance and income that has enabled its growth. The growth of the company has been contributed by both the sales in the stores and the organizational structure of the company that includes the leadership of the company. This has therefore enabled good financial performance and health business practices. Features Wal-Mart operates both whole and retail services to the customers. It is widely located due to its performance of global scope business operation. It operates in different segments that include Wal-Mart U.S, Wal-Mart international and Sam's club. These operating segments involve digital, online and retail store operations. The company sells a variety of goods and services to varying customer at lower prices to enhance attraction of customers (Wahlen et., al 2014). These products include electronics, office and home equipment's, toys, beauty products, groceries and other products that a person my need for daily task. These are carried out in different store categories which vary from supermarkets, hypermarkets, warehouses, cash and carry items, drugs stores, supercenters, and digital retail. These varieties of items are appealing to the customers and enhance marketing opportunities and competitive advantages that enable the company to succeed in its operation. WAL-MART FINANCIAL HEALTH AND PERFORMANCE 3 The company has technological advances and makes the effort to expand and bring new products which enable healthy financial performance of the company. Having different and new store formats is also appealing to the customer due to accessibility hence increasing the number of sales. Organization Structure The company is managed through a structure that contains both the hierarchical and function based definition. Vertical command line exists within the firm's Hierarchy and the authority across the organization while the function based is the group of employees that include departments that govern the employee at the level of operation (Wild et., al 2004). This therefore is influential to the level of decision making on the company due to involvement of all parties hence improving the performance of employees due to their involvement and the feeling that they are valued which therefore reflects back to the outcome of the company. Walmart Financial Performance Financials Revenue Percentage Gross Margin 2012-01 2013-01 2014-01 2015-01 2016-01 446,509 468,651 476,294 485,651 482,130 24.8 24.8 24.8 25.1 25.0 Operating Income 26,491 27,725 26,872 27,147 24,105 Percentage Operating Margin 5.9 5.9 5.6 5.6 5.0 Net Profit 15,699 16,999 16,022 16,363 14,694 WAL-MART FINANCIAL HEALTH AND PERFORMANCE 4 2012-01 2013-01 2014-01 2015-01 2016-01 Dividends 1.46 1.59 1.88 1.92 1.96 Cash Flow USD Mil 24,255 25,591 23,257 28,564 27,389 * Indicates calendar year-end data information Financial Health Wal-Mart is one of the most powerful company in the world that has a strong balance sheet and great cash generation in its operation. Wal-Mart is making investments that are significant to the people and delivering technological advances through their association with shareholders and customers (Isberg et., al 2013). In the recent fiscal year it has generated a great revenue, operating income and return on investment in its annual report. In the current year it has added 300 new global stores. The shareholders have returned in excess through the dividends and purchase of share due to the strong financial strength. Wal-Mart has an everyday low operation concept to customers that appeals the customers hence increased seal and with their global appearance and the chains of operation they are able to gain competitive advantage. To understand the profitability and healthy performance of Wal-Mart it is worth to consider their price to sale ratios, operating margin, return on invested capital and dividend yield. Their price to sales ratio has enhanced growth due to competitive pressure by their peers. The high dividend yield has fluctuated the changes in the price of stock and also the amount paid per share as compared to their competitors. The company is generating a lot of free cash flows that are more than enough to cover the needs of the dividends. The company's margin of operation is above -0.1% in the industry level and is likely to remain constant due to rise of labor and costs WAL-MART FINANCIAL HEALTH AND PERFORMANCE 5 that are restricting from the closures of the store (Jablonsky, et., al 1998). The company has had a high return on invested capital that has indicated that the company has delivered value to its shareholders. WAL-MART FINANCIAL HEALTH AND PERFORMANCE 6 Conclusion Due to continued sales and growth of the company through production and management it has thereby shown a good health performance through its income operations and sales on the stores. Use of technological operation methods and having global stores has enabled earning of more customers which has increased their sales due to selling a variety of stock products at favorable prices. WAL-MART FINANCIAL HEALTH AND PERFORMANCE 7 References Isberg, S., & Pitta, D. (2013). Using financial analysis to assess brand equity. Journal of Product & Brand Management, 22(1), 65-78. Jablonsky, S. F., & Barsky, N. P. (1998). The manager's guide to financial statement analysis. Wiley. Wahlen, J., Baginski, S., & Bradshaw, M. (2014). Financial reporting, financial statement analysis and valuation. Nelson Education. Wild, J. J., Bernstein, L. A., Subramanyam, K. R., & Halsey, R. F. (2004). Financial statement analysis. McGraw-Hill