Wal-Mart CaseEssay Preview: Wal-Mart CaseReport this essaySWAT ANALYSISUnable to compete with supersized company like Wal-Mart, CostcoInability to maintain margin on low cost productsAlong the threats we described above, we found also a number of legal issue facing the company. We believe that we should recognize and addressed them as we move to make a final decision on this acquisition. We will need to get a better understanding of the scope of these legal issues and what if any these issues will interfere with our plan.
Kmart management has tried in the past to drop its prices and offer low cost products just like our company. However their new strategy never could bring fruit as the competitors were doing the same,. Kmart need to develop new strategies to compete.,
Kmart image was also tarnished by some legal battles against some of its officers former vice president). These officers were charged for security fraud, making false statement to the SEC. This degrading image can be presented as a solution for the company to change ownership and be open to our new proposal and acquisition. We also know about Martha Stewart fraudulent dealing with the company. For all these reasons we will present a real case.
We will propose Kmart a real change in strategy, a change in its marketing strategy. This would be a number one focus in our value proposition.Kmart is one of the largest retail stores with strong financial statements and balance sheet. Kmart resurface from bankruptcy and gain back some grounds with the help of then CEO Julian Day. Julian had brought the Kmart to a viable state in the year 2000 and had improved the company profitability. Nowadays, Kmart has been downgraded due to the economic condition. Its financial statements have some weaknesses. Sales have been declining, and it cash has consequently suffered. At the end of 2012 Kmart operating cash flow was negative 295 million. Also in 2012 its cash flow from investing and financing are in the red. Cash flow from investing was a negative 309 in 2012, and a negative 28 million for its financing activities.
Fraud?
In 2011 the UK government’s National Crime Agency (NCA) had come under public scrutiny for using deceptive methods to hide evidence of corruption. • C&O Aventis Asset Management, which had been accused by the UK government of fraud, is still in business. • In October, Eurozone sovereign wealth fund Eurocore lost $15 billion in financial settlement after discovering that its subsidiaries and subsidiaries sold an unregistered share of US$3.6 billion of its common stock as securities.
• One of Eurocore’s co-founders, Nick Colwell, was convicted last month of tax evasion, making him a criminal in the eyes of the British public. • In a statement on January 1 and 2, Eurocore said it had been conducting and continuing to conduct investigations into the sale of all its shares of US$7.8 billion in US$5.3 billion of European common stock. • C&O Aventis and its chief executive, John Pinto, have been found guilty of tax evasion, making them a criminal. • In a joint statement, Eurocore co-founders Nick Colwell and John Pinto said the sale of US$3.6 billion of Eurocore common stock was an example of collusion, an “accidental acquisition”. • In December Eurocore said it had also failed to declare an accounting error. • The SEC’s inspector of fraud has concluded that C&O Aventis has acted only as an adviser, despite the fact it is an asset management company that invests in shares of US$5.4 billion in EURO. • According to Eurocore, US$3.6 billion of its common stock is unregistered in the UK, and not yet registered as an asset. • The SEC is investigating the alleged trade in US$3.6 billion of Eurocore’s common stock. • “We cannot comment on the specific case at present but Eurocore has been in business for over four years and did not intend to make any changes to our financial performance,” the SEC said in 2012.
In 2009, The Financial Times reported that the UK government had been investigating an investment in the UK financial system that was allegedly managed by the U.K.’s biggest private equity firm, C&O Aventis. • In 2007, C&O reported that it was doing “uncontrolled business”. • In 2013, the Financial Times reported that C&O Aventis had sold more than $40 billion worth of US$11.6 billion of shares valued at US$80.39 million. • In 2015, the SEC reported that an analysis by the CFTC of an international money laundering scheme operated by one of its two main subsidiaries, UF, in an amount valued at US$50 billion found the company to have made more than $300 million. • At the time, according to a SEC report, the SEC had reviewed an investigation into whether the company had engaged in “inherent financial or financial fraud by selling company shares of Eurocore”. The CFTC’s director and chairman, George Weltzer, said in December that he was satisfied it had taken a “very balanced approach” when it examined the matter. • In response to a question from The Globe & Mail, Paul Klemkowsky, the general counsel of the British Investment Authority, said the commission had no comment.
The CFTC ruled the company has been subject to “uncontrolled