Showing Developmental Milestones 0-19 Years - 1112 Words

Table for section 1 - showing developmental milestones 0-19 years Age range in years Physical Communication and Language Social, Emotional and Behavioural 0 to 3 (Burnham Baker 2010 pg. 1- 4) . Crawling and rolling gross motor skills . Using cups and feeding themselves fine motor skills . Tries to communicate with other babies Language development . Enjoys songs and games . Forms strong bonds – mainly with primary care giver . Own identity formed 3 to 7 (C. Meggitt, 2012 pg.94 - 97) . Can construct elaborate models . Can use a variety of play equipment . Able to use past, present and future tense . Are mostly fluent and correct with grammar . Shows sympathy and can comfort a friend who is hurt . Can choose who they want†¦show more content†¦They will be delayed in their physical development due to difficulties with the lower brain which is responsible for balance and co-ordination. They may also have a difference in muscle tone and find it difficult to gauge how much to grip an object. This delay in physical development will have an impact on the child’s social and emotional development also as they may not get as much chance to play and interact with other children in their peer group. Socially, children with autism have a lot of difficulty with peers as they do not express as much empathy or social involvement as their classmates. Baron-Cohen (2002) refers to children with autism preferring less involved social interaction, saying that â€Å"(children)often engage in â€Å"parallel play† at the edge of a group rather than joining in cooperative play† This lack of social development is a big barrier to achieving all the PILES outcomes. Language is learned through conversing with others. Intellectual development is increased when learning together. Children learn a lot about the world through interacting with others and collaboration is a very important learning tool. 2.1. Describe with examples the kinds of influences that affect children’s development. 2.2. Describe with examples the importance of recognising and responding to concerns about children’s development There are a fewShow MoreRelatedChild Development 0 - 194617 Words   |  19 PagesUnit 2.1 Describe the expected pattern of children and young peoples development from birth to 19 years, to include: * Physical development * Communication and intellectual development * Social, emotional and behavioural development. All children are unique and a lot of their developmental milestones happen naturally as they get older, however some can be affected by different life factors, such as health, environment and background and more specific skills can be learnt and encouragedRead MoreUnderstand Sequence Rate of Each Aspect of Development from 0-19 Years3388 Words   |  14 Pages1.1 Explain the sequence amp; rate of each aspect of development that would normally be expected in children amp; young people from birth -19 years Development is what happens to every individual at every stage of his or her lives. Developing something means to learn different skills, physical aspects and involves gaining control of the body. For example, a baby will develop physically because it is still going to grow, which means the body will still be changing. 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Course Project Leadership and Organizational Behavior Free Essays

My course project is based on organization of Creative Images, Inc. Creative Images is a California based company in computer graphic design studio who’s affiliated with Hollywood movie production companies. Creative Images work very closely with their clients and well known clients are Pixar Animation Studios, Walt Disney Company, and many other animation movie makers. We will write a custom essay sample on Course Project: Leadership and Organizational Behavior or any similar topic only for you Order Now Numbers of intelligent computer graphic designers are working hard to meet the status quo on current animated production movies and projects for the customers in night and weekends. The company is all about providing highest quality of work to world giant animated movie production companies and its well getting recognized by their customers. But only problem is that employees’ at Creative Images are not satisfied with their current benefits of their job since many people are subject to provide the project status and meeting deadlines which it requires for them to work nights and weekends without getting over-time paid. I am a Human Resource analysis just recently got hired by Creative Images to provide the best quality assurance to employees so that all employees are satisfy with their jobs and benefits so that it increases employee’s morale. I will be reviewing current job duties and functionalities so that their compensation and benefits are competitive with current market as well as provide them with incentives and rewards so that it increases employee’s morale and reduce number of high turnovers. Problem Statement The problem that Creative Images faces employee’s compensation and benefits package which it makes the company is not competitive and enjoyable work place. According to Human Resource’s firm wide hiring analysis, they have been showing increases of job turnovers in the past 2-3 years. During their exit interview, number of employee reported complains of their stressful working hours and have not been compensated for their amount of work that they provided in after working hours. After working excessive hours, their team or department did not recognized their showmanship for delivering high quality work and company did not award them or no creases in bonuses either. Since Creative Images are known for proving highest quality of work to their customers, in seldom, several other design studios who’s competition to Creative Images are trying to offer a job to elite and talented individuals from Creative Images to get the best people of for them. It’s causing the huge headache to the firm since many of them who left company are key employees who bring revenue to the company. To avoid any high turnovers, we need to provide very competitive salaries, incentives as well as reward programs to keep the Creative Images employees and bring higher standards and morale. How to cite Course Project: Leadership and Organizational Behavior, Essay examples

Reconceptualization of Competitive Strategy †MyAssignmenthelp.com

Question: Discuss about the Reconceptualization of Competitive Strategy. Answer: Introduction Australia is among the largest agricultural producer and exporter. Agricultural industry covers a huge market share in Australian market. As of February 2015, more than 325,300 are employed in this industry, fishing and forestry. In this country, agriculture and other related sectors generate $155 billion per year for having 12% share of Gross Domestic Product. The farmers in Australia have approximately 136,000 farms, which covers the 60% of the Australian Land. The country has the mix of dry land agriculture and irrigation. From all the sectors, beef industry is the leading agricultural sector in the country (Zott Amit, 2013). Australia is ranked number 2 in largest beef exporters after Brazil. In the industry, there are many players, which are generating profits, like; Australian Agricultural Company Ltd., Kidman Co., the Consolidated Pastoral Company and NAPCO. Australian Agricultural Company Ltd. (AAC) is the organization, which is taken into consideration for this discussion. It includes the environmental and strategic analysis of the company. AAC is a public company, which is ranked at number 523 among the top organizations in Australia. This organization generates its major share of the revenues from the meat processing in Australian industry (Bloomberg, 2017). In the year 2016, it generated the revenue of $781,399,000, inclusive of its sales and other revenues. The CEO of the company is Mr. Jason Strong, who is officially Managing Director Chief Executive Officer of the company. The AAC is a producer and seller of agricultural and beef products. It is engaged in the operations of farming and grazing properties, growing, breeding and dealing the beef cattle. This organization also provides the dry land and irrigated cotton, sorghum, chickpeas and wheat. There are so many brands, whose under the company markets its products, like; Takum i, Wagyu, Master Kobe, Kobe Cuisine, Brunette Downs and Premium Beef. It sells these products to hotels, restaurants, supermarkets and airlines in more than 21 countries. Currently, it operates 2 feedlots, 19 cattle stations and 3 farms. It runs its operations and beef processing across Western Australia, Queensland, Northern territory and New South Wales. The company separates its business operations into three categories, which are given below; Properties: This Company owns and manages the farms, properties and feedlots, where it is engaged growing, breeding and processing the cattle. It also cultivates the grains and crops for supporting thee cattle production. Cattle: It manages cattle and operates the rural properties across the country. Livingstone Beef: Company has located its beef processing facility in South of Darwin. Northern region has a daily production up to 1000 head of cattle. Now, Australian Agricultural Company Ltd. is engaged in expanding its sales and marketing activities in the international markets. Macro/ Micro environment analysis Australian Agricultural Company Ltd. was established in the year 1824 and it was the oldest company, which is continuously operating in Australia. It is positioned as a world leading producer of agriculture and beef products. One of the biggest strengths of the company is that it has implemented operating systems using the best practices in the world. It has established a record of using the land environmentally sensitive (Hahn Powers, 2010). It is the first company to hire their own field rangelands officer. AAC possess and runs strategic balance of farms, feedlots and properties including around 7 million hectares of land in Northern Territory and Queensland. This associates to approximately 1.1% of total land mass in Australia (Anderson, Narus, Narayandas, 2009). Moreover, The Company is vertically integrated and operates expanded agribusiness operations. This company has some weaknesses, like; it has a huge operating expenses. The major concern is that it has reported a net loss. Now, there is an increase in the processes and complexity to fulfill the requirements and formalities of animal rights forums. It is not considering the consumer behaviors, like; culture in distribution and purchasing (Landrum, Gardner Boje, 2014). If the company plans to expand its business, then it has to advertise the products in other countries, because it is not necessary that this brand will be popular in other country like Australia. Australia is the largest exporter of beef products, so it can expand its agribusiness to other countries also. It can develop its business in United States, because US is the largest market to consume the beef products. It should improve the quality of products, because the people in US are very concerned about their health and they consider the quality of beef at the first priority. AAC can respond to the health concerns of the customer behavior (Reardon, 2012). Expansion in meat processing facilities and marketing and selling of cattle will not occur more capital expenses to company. Implementation of more value added processes like; Branded Beef division of organization can be carried up to enhanced standards. This company is working in the field of beef processing and cattle trading activities, so outburst of diseases can influence the business of the company. It is offering the services in domestic and global markets, so trading and marketing is so much dependent on the policies and regulations of other countries economies (Morschett, Schramm-Klein, Zentes, 2015). The pricing policy of other players can pose a threat on this organization. At the time of expansion, it can face the threat from the local farmers, as they will grow more to compete with the exporter company, i.e. AAC. There may be a continued drought in Australia. PESTLE Analysis PESTLE analysis is conducted to analyze the external factors, which impact the company and all over industry. It includes various factors, like; political, economic, social, technological, legal and environmental factors. These are the different aspects, which need to be considered at the time expanding the business nationally or internationally. Australia country focuses on the free trade market, so this organization can have the competitive advantage by business expansion. Due to this reason, the law cannot prevent this company to make investment in other countries. The government in Australia is spending $1.8 billion on tax credit on research and development (Hill, Jones Schilling, 2014). The company may face problem from the political factors, as the Australian Government provides lowest subsidy support to the farmers. Australia is the worlds principal importer and trading nation. Australian agriculture sector helps in providing food for the country. Furthermore, it exports approximately 65% of agribusiness produces and contributes about 3% to GDP. In the year 2008, United States trade had the shortage of $695.9 billion. Then, it had imported the agricultural products from Australian companies; it increased the opportunities of business between Australia and US. The agricultural and beef products in Australia are the most competitive products in the world. The grain crops in Australia broke out all the records. The growth in this industry increases the job opportunities. AAC wants to hire more people for expanding their business. The economy of Australia is going downturn, so it can impact the business of AAC adversely. The prices of the companys product can also be regulated to a level by the foreign clients, who can consider macro-economic standards to control the import of beef. So, it can affec t the operations of the company. Australian Agricultural Company Ltd. had agricultural and beef products for a long time in the country. There are so many restaurants in the region, which include beef as the major ingredient in cooking, for example, Hamburger, i.e. the famous food service provider uses beef in food production. AAC supplies the products to various restaurants and hotels. Most of the people like to eat the beef, which is soft with the marbling (Zott Amit, 2013). The brands of AAC, i.e. Wagyu Beef and Kobe Beef have the quality and it is preferred especially for the taste. Most of the people in Australia relatively high income level, so they can afford the prices of beef and agricultural products. Technological factors AAC can use the new technologies for its business operations (Ho, 2014). Advancement in the technology can help in creating new processes and new products. The company can use the technologies to decrease the costs, enhance the quality of products and lead the organization to innovation. It can use the technologies for farming and beef processing activities (Moon, 2010). AAC can establish the new system in order to respond the demand and need of the customers and provide real time information to the suppliers and customers. Environmental factors are very important concern for AAC. It includes weather and changes in climate. If there will be changes in temperature, then it can impact the farming activities of company. The business environment in the country is not very much, so it impacts its operations. The situation of drought and flood can impact the crops. Business laws and trade restrictions may play an important role. In this process, the countries can impose restrictions on exports from Australia, which will not only hit the AAC but other players in the industry too (Pretorius, 2008). There may be some legal issues at the time of expansion. The foreign country will support its domestic farmers, so the price of exporters beef will be comparatively low. It will fall the competitive advantage of Australian Agricultural Company Ltd. because they have custom and transportation cost also. Competitive Advantage Competitive advantage allows the organization in getting the better position among its competitors by producing goods and services at lower prices. Australian Agricultural Company Limited is oldest company in the respective industry, so it is very popular by its operations. This is the major reason; it has strong competitive advantage over its rivals in the form of experience of many decades, knowledge and grants, which are very hard for other organizations to replace (Fleisher Bensoussan, 2015). It is working very well in the industry over its largest competitors like; S. Kidman Co., NAPCO, the Consolidated Pastoral Company and Baldy Bay. Recently, it has enhanced the quality of cattle and increased the herd by more than 38,000 head. This continued to produce high value beef and the sales of the company grew by 14%. It is planning to establish a new processing facility in Darwin with the capacity of 1000 cattle per day. It has good growth prospects in the industry. The investors a re also considering AAC to have the opportunity to directly invest in the agricultural produces. The competitive advantage of this company can be seen by looking at its revenues and sales, which are continuously increasing with an effective growth rate (Hunger Wheelen, 2011). Thus, of all the players in the Australian agriculture industry, AAC is with the strong competitive advantage. The key features, which are contributing to this advantage, include its wealth of agriculture land and emerging presence in Asian and American markets. If there will be boom in the foreign economies, then these markets can deliver AAC a time and cost advantage for its products in comparison to its key competitors. Companys generic strategies On the basis of Porters model, AAC used the generic strategies, which align with the growth strategies of the company. Especially, the growth strategy of market development is the key to meeting this generic strategy and supporting the success of AAC. The company is doing very different and better things from its competitors. It is targeting the countries with better economies. The company is positioned in the market as innovators in agribusiness (Kalkine, 2017). Implementing the cost leadership and product differentiation strategies is beneficial for the growth of the organization. It employs the cost leadership strategy in the predictable and stable environments. When there will be changes in the environment conditions, it will cause diseconomies for the company and overall agricultural industry for trying to implement a cost leadership strategy (Parnell, 2006). Although, the people, who love to eat beef do not think about the money or cost of the products. But still, AAC is able t o achieve the competitive advantage by providing the different products and low cost services via serving an individual market segment. It has launched the luxury and value added products to attract the target customers (Anwar, 2016). It is identified as the leading provider of beef, cattle and agricultural products from the year 1824. AAC is implementing different growth strategies for gaining competitive advantage in Australian agriculture industry. In order to take the benefits, the company is focusing on it operations and shareholders. The major strategy of the company is that it is making focus on branding and marketing of luxury branded beef business and supply chain and implantation of innovation and new technology in the industry. In addition, AAC has used market development strategy as its growth intensive strategy (Grey, Emer Sheng, 2014). It is creating new products and entering into new markets. The company has introduced new luxury brands of beef products, like; Wylarah and Westholme in Singapore in the end of 2016. It has controlled costs of products by 27%. It is making investment in cattle stock for ensuring the supply by using different techniques of supply chains. The group is gaining efficiency benefits, where 30% increase in Kilograms processed is recorded with 30% reduction in the conversion c ost. It is expanding the business in the countries, where it does not have its presence yet. The use of these strategies requires that different and unique products should be offered to the targeted market segment, i.e. economies, where the demand for agricultural products and beef is very high, for example; Asian countries (Long, 2014). The diversification and market development strategies will assist the company in growing its business in future also. Conclusion The report addressed different strategic aspects about a top ranked company, i.e. Australian Agricultural Company Ltd. It examined that agriculture industry in Australia is growing very fast and cover a huge market share in the country. It is the oldest company in the industry and doing very well by using different and effective growth strategies. It is using market development and cost leadership for enhancing its agribusiness in Australian market and other countries. The success of these strategies can be seen in the growth of the company. However, it is oldest company, but it is using various innovative and creative methods in farming and beef processing facilities. Thus, it is able to gain competitive advantage in the industry over its strong competitors. In future, it can achieve the business growth and expansion by implementing intensive growth strategies. However, AAC holds a strong position in Australian agriculture sector, but it can improve it by following some strategic recommendations. At functional level, it can use new and innovative technologies to improve its processing and agriculture activities. These techniques will assist in enhancing its strategic and financial performance among the competitors. It should implement the strategy, which supports its major business operations and activities. There should be an effective implementation of human resource management, funds and marketing activities. It is very necessary for establishing coordination among all the functions. Furthermore, this company is very strong in developing new products, now it should try to improve its performance in other countries. It should focus on market development and market penetration. If it will emphasize on these strategies, then it can improve the resilience of AAC against its competitors. References Anderson, J. C., Narus, J. A., Narayandas, D. (2009). Business market management: Understanding, creating, and delivering value. Pearson Prentice Hall. Anwar, K. (2016). Comparison between cost leadership and differentiation strategy in agricultural businesses. Cyprus International University. Bloomberg, (2017). Company Overview ofAustralian Agricultural Company Limited. Retrieved from https://www.bloomberg.com/research/stocks/private/snapshot.asp?privcapId=8745402. Fleisher, C. S., Bensoussan, B. E. (2015).Business and competitive analysis: effective application of new and classic methods. FT Press. Grey, E.M., Emer, O. Sheng, Y. (2014). Australian agricultural productivity growth. Australian Bureau of Agricultural and Resource Economics and Sciences. Hahn, W. Powers. T.L. (2010). Strategic plan quality, implementation capability, and firm performance. Academy of Strategic Management Journal, 9(1), 63-81. Hill, C. W., Jones, G. R., Schilling, M. A. (2014).Strategic management: theory: an integrated approach. Cengage Learning. Ho, J. K. K. (2014). Formulation of a systemic PEST analysis for strategic analysis.European academic research,2(5), 6478-6492. Hunger, D.J. Wheelen, L.T. (2011). Essentials of Strategic Management. New Jersey: Prentice Hall. Kalkine, T. (2017). Australian Agricultural Company Ltd. Growth based on Strategic Benefits. Retrieved from https://ausgrowth.com/2017/05/12/australian-agricultural-company-ltd-growth-based-on-strategic-benefits/. Landrum, N. E., Gardner, C., Boje, D. M. (2014). An integral foundation for international strategic management.Humanistic Perspectives on International Business and Management, 120-133. Long, M. (2014). The unfulfilled potential of Australian agriculture. Retrieved from https://www.abc.net.au/news/2014-11-19/long-the-unfulfilled-promise-of-australian-agriculture/5903074. Moon, H.C. (2010). Global Business Strategy:Asian Perspective, World Scientific Publishing Co Inc. Morschett, D., Schramm-Klein, H., Zentes, J. (2015).Strategic international management. Springer. Parnell, J. A. (2006). Generic strategies after two decades: a reconceptualization of competitive strategy.Management decision,44(8), 1139-1154. Pretorius, M. (2008). When Porters generic strategies are not enough: complementary strategies for turnaround situations.Journal of Business Strategy,29(6), 19-28. Reardon,T. (2012). AACo beefs of results. Retrieved from https://www.fool.com.au/2012/08/10/aaco-beefs-up-results/. Zott, C., Amit, R. (2013). The business model: A theoretically anchored robust construct for strategic analysis.Strategic Organization,11(4), 403-411.

Unity Bank- Merger and Acquisition Essay Example

Unity Bank- Merger and Acquisition Essay Case Name: Unity Bank- Realizing value from an MA integration 2. Problem Statement The primary question of the case is: Unity Bank has acquired Delta to realize its dream of becoming the World No 1 provider of share registry services. The primary problem is â€Å"How to successfully integrate Unity Bank and Delta within the specified timeframe and simultaneously achieve the Target savings? † The secondary question of the case is: The integration posed multiple challenges but it was critical to infuse the integration without affecting the existing business processes of both companies. . Background a. Describe the acquirer company/department 1)History -Unity bank was founded in South Africa in 1982 and employed around 8000 people worldwide and had market capitalization of approximately $2 billion -Provider of global shareholder and employee management services -Manages 60 million shareholder accounts for over 10000 corporations across 12 countries on 5 continents -Unity bank pro vided full range of transfer agency services including share registry administration etc 2)Conditions -Unity bank envisioned to become the World no 1 provider of share registry services 3)Culture The bank had a professional workforce -The staff were given incentives and provided innovative projects -IT services of Unity bank were robust and effective. 4)Strengths -Few providers of global shareholder and employee management services -Large customer base -Provided full range of transfer agency services -Ability to manage most complex and largest corporate actions -Professionalism of staff members and nature of their expertise -Ability to attract talented operations and IT professionals and retain them over a ong term -Offered professional but family oriented work culture -Strong IT infrastructure providing sizable entry barrier and economies of scale -Robust enterprise system BLAIR providing great franchise value We will write a custom essay sample on Unity Bank- Merger and Acquisition specifically for you for only $16.38 $13.9/page Order now We will write a custom essay sample on Unity Bank- Merger and Acquisition specifically for you FOR ONLY $16.38 $13.9/page Hire Writer We will write a custom essay sample on Unity Bank- Merger and Acquisition specifically for you FOR ONLY $16.38 $13.9/page Hire Writer 5)Weaknesses -Small player in United States with only 5 % of the market share -BLAIR platform was outdated and the cost of maintenance and scalability would be high in the long run -Inability to attract clients with large shareholder bases. -Limited brand recognition b. Describe the acquired company/department 1)History -Delta Operates solely in United States. It offers a full range of transfer agency and employee plan administration services to over 15 companies in the Dow Jones industrial average -Delta has 1300 clients and provided services to 19 million shareholders 2)Conditions -Delta had several owners -Delta had multiple IT platforms 3)Strengths -Market leader in United States -Strong client portfolio with large shareholder bases -Strong brand recognition in United States 4)Weaknesses -Multiple IT systems -Low revenue realization from IT systems -Low degree of consolidation in IT systems c. Describe the industry situation -Customers: Spanning all corporate entities across the world but the integration mainly targets the United States corporate space. -Traditional Competitors: Other transfer agencies operating in the marketplace -New market entrants: The entry barrier is high therefore threat from new entrants low. The company has created a competitive edge through IT -Opportunities: Efficient IT integration can reduce cost hence improve the bottom line. Effective IT resource management could streamline the operations and also provide enormous cost benefits. New business offering can lead to increase in revenue. IPO’s offer new business opportunities. -Threats: Failure to integrate Delta successfully would hamper cost cutting and affect Unity’s competitiveness. The clients of Delta could be lost and fundamental aim of the acquisition would not be realized. 4. Key Issues a. How to successfully integrate Unity Bank and Delta within the specified timeframe and simultaneously achieve the target savings? i)Pre merger strategies and due diligence -The entities were operating in the same type of business hence a strategic fit was impeccable. The new entity could leverage the core competency and brand recognition in respective market segment. -Unity bank has a global footprint and Delta would provide the necessary opportunities in United States -The pricing offer for Delta had been properly negotiated and firm valuation was accurate -It was an ambitious acquisition for Unity bank because Delta had comparatively much bigger operation in United States but the key to this issue would lie in the integration result. ii)Software †¢Choosing the enterprise platform Unity has a proven system BLAIR which could address all the business needs of UNITY but new development has to be done to incorporate the service offerings of Delta. A development cost of 100 Weeks, 30 person team at $120 per hour has to be incurred to make BLAIR serviceable to Delta clients. The Unity IT staff is well versed with BLAIR hence in house competency is not an issue. But in the long run BLAIR can be a bottleneck for UNITY as it is written in COBOL. New IT professionals having COBOL competency are hard to find as it is an obsolete language and training cost of new professionals and also the end users for DELTA would be high. DELTA’s Leader is a new system which is not proven and had only been used for limited number of clients. But the strength of leader lies in its next generation vision which would enable the system to meet future business challenges in an efficient manner. In the short run Leader seem to pose multiple challenges in terms of implementation and cost but in the long run it seems to be a wise option. †¢Delta legacy systems -Multiple legacy systems of Delta like CARMS, GOSP and AORTA needs to be consolidated. How to implement the consolidation on a common platform and which enterprise system would facilitate this consolidation? -How to resolve the data issues in terms of incompatibility like date formats and report formats? iii) Infrastructure -How to integrate the infrastructure of Unity and Delta with huge gaps in terms phone systems, networking hardware, office servers and PC systems? iv) Organizational structure -How to develop a organizational hierarchy in the new entity which address the responsibility needs of the employees drawn from both companies? ) Compensation and benefits -How to rationalize the compensation and benefits of employees from both organization which would help in retaining talent and be in line with company’s compensation policies? vi) Change management -How to motivate the employees in this period of uncertainty and confusion? -How to identify Star performers in the short span and maintain a high stock of talent pool? -How to percolate the change in the organization in the most effective way which would face minimum resistance? b. How to infuse integration change without affecting BAU for both companies? How to integrate the systems of both companies and meet the client requirements at the same time would be crucial like the Triton takeover of Clear communications? 5. Relevant Areas, Facts, Conclusions a. Relevant areas for Issue #1 1)Financial impact -The integration would result approx 60 million savings for the company -Implementation of the system would help in cutting cost in terms of hardware, networks, data centers, employees. -Conclusion: The integration would have substantial cost saving for the company which would justify the acquisition of Delta. )Capacity utilization -Integration would help in better capacity utilization in terms of hardware, infrastructure and human resource. -Conclusion: The capacity utilization can be maximized and economies of scale could be achieved. 3)Monitoring -The monitoring of IT infrastructure would significantly improve hence provide relevant data points for mid level managers to effectively communicate with high level management in terms of resource planning. -Conclusion: The accountability can be established in terms of IT monitoring 4)Risks The risks like disruption of current operation, lack of benchmarking of the methodology, ineffective adoption of new implementation, bottleneck in new application deployment, change management, etc are a few risks which would affect the integration of Unity and Delta -Conclusion: The risk area makes the decisions how to prioritize the options in integration process tough and a roadmap has to be put forth before proceeding with the integration. If the risk area’s identified actually disrupt the current operation then contingency plan to minimize damage should be in place so that the integration does not falls apart. . Relevant areas for Issue #2 1)Loss of clientele -BAU if hamp ered by any of the integration activities would mean loss of clients which in turn would hamper the prospect of the company to secure future business from big clients -Conclusion: The prime objective of securing big ticket clients would not met if integration hampers any Service level agreements. 6. Recommendations a. Recommendation for Issue #1: I would recommend Unity bank to go in for a phased integration with milestones for every phase completion, they should prioritize their integration activities as – -Determination of enterprise platform Creation of organizational structure -Optimizing infrastructure -Attracting Star performers -People My assessment is based on the fact that savings can be divided into two categories – (Software, hardware, infrastructure) and Human resource. Targeting the first category (Software. hardware, infrastructure) we are focusing ourselves on a major cost saving chunk and at the same time buying time to allay the employee fears and confusion. In an integration process Change management plays a vital role in ensuring success. Human resource lies in the critical path and by prioritizing as above the risks associated with human resource are mitigated to the maximum extent because the first four activities would ensure the employee involvement and motivate them. More corporate communication would ensure high motivation levels for the employees and ensure smooth integration. The announcement of termination should be delayed to the maximum possible extent as an upfront termination would severely affect the morale of the employees and would derail the integration process. I would recommend the Leader platform as the enterprise platform as it would prove beneficial to Unity in the long run due to easy and less expensive scalability. The risks and costs associated with finding talent and training are also mitigated by the choice of Leader. Attracting star performers is very crucial for Unity as it would add intrinsic value of Unity and would be in line with the company policy of maintaining high stocks of talented and skilled staff. Another advantage of having these performers would be that the competency of Delta is ot decimated and could be used in phasing out legacy systems. Identification of such talents could be done by assessing their past performance and also involving them in the integration activity and monitor their performance. To retain the star performers Unity should tailor make a Compensation package and also involve these professionals in turnkey projects. b. Recommendation for Issue #2: I recommend that there should be partial involveme nt of BAU team of both companies so that existing business is not affected. To accomplish this, phased integration would be right way ahead. Triton corporate action should be handled with complete focus as they are a big ticket client and successful handling of the account would help in gaining confidence of other stakeholders. The systems and employees involved in the Triton corporate action should not be involved in the integration process for the time being and allowed to focus on the corporate action of Triton. After the cutoff date these resources should also be involved in the integration blueprint.

Financial Analysis in the articles Inquiries galore and A Long

Financial Analysis in the articles Inquiries galore and A Long In the article Inquiries galore Victoria Papandrea analyses the changes that may happen due to an effect of the commonly known the Ripoll, Henry and Cooper reviews that discusse the financial products, taxation and superannuation. Papandrea (2009) indicates that the main purpose of those reviews is ‘a profound effect on the financial services industry.’Advertising We will write a custom essay sample on Financial Analysis in the articles Inquiries galore and A Long-term Plan for Australian tax Reform specifically for you for only $16.05 $11/page Learn More Analyzing the Ripoll Review, Papandrea says about the priorities of the role of adviser, commissions, banks, marketing and advertising campaigns, licensing, financial literature, etc. in the development of the current economical situation. However, nowadays, those changes seem like an anomaly. The government tries to change the system and support licensees and advisers, rather than provide a ne cessary reforms and complex regulations and restrictions. Writing about the Henry review, Papandrea indicates its main idea as the recommendations that can improve the current financial situation. It is the opportunity for government to regulate the tax system. The Cooper review, according to Papandrea (2009), is full of the expectations about the ‘greatest potential of the Australian superannuation system for future generation.’ Papandrea emphasizes the importance of the early realization of the preliminary recommendations in response to cover a number of problems within the current economic situation. Thompson in his research analyses the report of the Henry Review of the Australian taxation and transfers system that was proposed by the Labor Party in 2007. The key moments of the author’s analysis are the current 125 taxes in Australia. However, the author emphasizes that 90 per cent of the total number are based on ten of those taxes that leads to the discussi ons about its capacity and the real expediency. Describing the discussions around the governmental programs, Thompson (2010, p.305) indicates that the majority of the commentators criticize the government for adopting only a few of the tax programs.Advertising Looking for essay on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More Exploring the Henry Report, Thompson (2010, p.305) says about such fundamental recommendations as the personal income tax, business income, private consumption and economic rents, while the other taxes should be maintained only in case of its real efficiency. Thompson analyses the government’s response to the Henry Review, indicating the high level of ineffective misinterpretations. However, the measures announced in the 2011 Budget include the recommendation of the Review such as the tax paid by the financial institutions on offshore borrowings. Thompson concludes that the Austral ian government fixing the tax system should proceed to the recommendations in order to develop Australia’s position in the context of global markets. Reference List Papandrea, V 2009, ‘Inquiries galore’, Investor Daily. Web. Thompson, W. D 2010, ‘A Long-term plan for Australian tax reform – the Henry Report and the government’s response’, Keeping good companies, June, pp. 305-308.

Sinclair Lewis Biography

Sinclair Lewis Biography Harry Sinclair Lewis was born on February 7, 1885, in Sauk Centre, Minnesota, the youngest of three boys. Sauk Centre, a bucolic prairie town of 2,800, was home to mainly Scandinavian families, and Lewis said he â€Å"attended the ordinary public school, along with many Madsens, Olesons, Nelsons, Hedins, Larsons,† many of whom would become the models for characters in his novels. Fast Facts: Sinclair Lewis Full Name: Harry Sinclair LewisOccupation: NovelistBorn: February 7, 1885 in Sauk Centre, MinnesotaDied: January 10, 1951 in Rome, ItalyEducation: Yale UniversityKey Accomplishments: Noble Prize in Literature (1930). Lewis was also awarded the Pulitzer Prize (1926), but he declined it.Spouses: Grace Hegger (m. 1914-1925) and Dorothy Thompson (m. 1928-1942)Children: Wells (with Hegger) and Michael (with Thompson)Notable Quote: â€Å"It has not yet been recorded that any human being has gained a very large or permanent contentment from meditation upon the fact that he is better off than others.† Early Career Lewis enrolled at Yale Univesity in 1903 and soon became involved in literary life on campus, writing for the literary review and the university newspaper, as well as working as a part-time reporter the Associated Press and the local newspaper. He didn’t graduate until 1908, having taken some time off to live in Upton Sinclair’s collaborative Helicon Home Colony in New Jersey and traveled to Panama. For some years after Yale, he drifted from coast to coast and from job to job, working as a reporter and editor while also working on short stories. By 1914, he was consistently seeing his short fiction in popular magazines like the Saturday Evening Post, and began working on novels. Between 1914 and 1919, he published five novels: Our Mr. Wrenn, The Trail of the Hawk, The Job, The Innocents, and Free Air. â€Å"All of them dead before the ink was dry,† he later said. Main Street With his sixth novel, Main Street (1920), Lewis finally found commercial and critical success. Recreating the Sauk Centre of his youth as Gopher Prairie, his searing satire of the narrow-minded insularity of small-town life was a hit with readers, selling 180,000 copies in its first year alone. Lewis reveled in the controversy surrounding the book. â€Å"One of the most treasured American myths had been that all American villages were peculiarly noble and happy, and here an American attacked that myth,† he wrote in 1930. â€Å"Scandalous.† Main Street was initially chosen for the 1921 Pulitzer Prize in fiction, but the Board of Trustees overruled the judges because the novel didn’t â€Å"present the wholesome atmosphere of American life† dictated by the rules. Lewis didn’t forgive the slight, and when he was awarded the Pulitzer in 1926 for Arrowsmith, he declined it. Nobel Prize Lewis followed up Main Street with novels like Babbitt (1922), Arrowsmith (1925), Mantrap (1926), Elmer Gantry (1927), The Man Who Knew Coolidge (1928), and Dodsworth (1929). In 1930, he became the first American awarded the Nobel Prize in Literature for his vigorous and graphic art of description and his ability to create, with wit and humor, new types of characters.† In his autobiographical statement to the Nobel committee, Lewis noted he had traveled the world, but â€Å"my real travelling [sic] has been sitting in Pullman smoking cars, in a Minnesota village, on a Vermont farm, in a hotel in Kansas City or Savannah, listening to the normal daily drone of what are to me the most fascinating and exotic people in the world- the Average Citizens of the United States, with their friendliness to strangers and their rough teasing, their passion for material advancement and their shy idealism, their interest in all the world and their boastful provincialism- the intricate complexities which an American novelist is privileged to portray.† Personal Life Lewis married twice, first to Vogue editor Grace Hegger (from 1914-1925) and then to journalist Dorothy Thompson (from 1928 to 1942). Each marriage resulted in one son, Wells (born 1917) and Michael (born 1930). Wells Lewis was killed in combat in October 1944, at the height of World War II. Final Years As an author, Lewis was extremely prolific, penning 23 novels between 1914 and his death in 1951. He also authored over 70 short stories, a handful of plays, and at least one screenplay. Twenty of his novels were adapted into movies. By the late 1930s, years of alcoholism and depression were eroding both the quality of his work and his personal relationships. His marriage to Dorothy Thompson failed in part because he felt her professional success made him look small by comparison, and he was increasingly jealous that other writers were becoming literary legends while his body of work was falling into relative obscurity. His heart weakened by heavy drinking, Lewis died in Rome on January 10, 1951. His cremated remains were returned to Sauk Centre, where he was buried in the family plot. In the days after his death, Dorothy Thompson wrote a nationally-syndicated eulogy for her former husband. â€Å"He hurt a great many people very much,† she observed. â€Å"For there were great hurts in himself, which he sometimes took out on others. Yet, in the 24 hours since his death, I have seen some of those he hurt most dissolved in tears. Something has gone- something prodigal, ribald, great, and high. The landscape is duller.†Ã‚  Ã‚   Sources Hutchisson, J. M. (1997).  The rise of Sinclair Lewis, 1920-1930. University Park, Pa: Pennsylvania State University Press.Lingeman, R. R. (2005).  Sinclair Lewis: Rebel from Main Street. St. Paul, Minn: Borealis BooksSchorer, M. (1961).  Sinclair Lewis: An American life. New York: McGraw-Hill.

Political Corruption Essay Example | Topics and Well Written Essays - 3000 words

Political Corruption - Essay Example But it is more often assumed than tested and proven. And on the politics political scandal is a black spot which restrain the flow of development and create a haphazard situation on the society breaking the peace and harmony. Corruption is a disease, a cancer that eats into the cultural, political and economic fabric of society, and destroys the functioning of vital organs. In the words of Transparency International, "Corruption is one of the greatest challenges of the contemporary world. It undermines good government, fundamentally distorts policy, leads to the misallocation of resources, harms the private sector and private sector development and particularly hurts the poor" (TI,1998). Corruption is found almost everywhere, but it is stubbornly entrenched in the poor countries of Sub-Saharan Africa, it is widespread in Latin America, it is deep-rooted many of the newly industrialized countries, and it is reaching alarming proportions in several of the post-communist countries. The issue of corruption has to some extent entered the political and economic sciences from the new interest in the role of the state in the developing world, and in particular from the idea that the state is an indispensable instrument for economic development. The 1997 World Development Report stated that An effective state is vital for the provision of... An effective state is vital for the provision of the goods and services - and the rules and institutions - that allow markets to flourish and people to lead healthier, happier lives. Without it, sustainable development, both economic and social is impossible (The World Bank 1997). Political corruption not only leads to the misallocation of resources, but it also affects the manner in which decisions are made. As political corruption is the operation of illegal procedure of the various offices, it affects the institutions of the government as well as the political system and political ideology. Political corruption is more than a divergence from formal legal form of justice. It occurs when misdeeds and wrong doings take place in the proceedings and the ideology of the politics of a country. Some definitions of corruption also emphasize the point that the rulers as a group or class, or as an institution or organization, make unjustified use of their influence to extract resources for the benefit of the group as such. Many well-known and well documented cases of grand corruption have involved political parties (ruling parties in particular, but also prospective ruling parties), entire administrative bureaus, and national governments. 3. Scandal Etymologically Scandal means a behavior or an event that people think it morally or legally wrong and causes public feelings of shock or anger. It may be an action, work or event of a particular person and that work is regarded in the society as a wrong doing or it is seen from a negative angle. There is divergence of scandals and different philosophies exist regarding this matter. A scandal is a widely publicized occurrence involving allegations of bad behavior, dishonor, or moral infuriate. A scandal may be based on

Advanced Marketing Essay Example | Topics and Well Written Essays - 250 words - 5

Advanced Marketing - Essay Example McDonalds’ is an exemplary example of expertly exploiting the changing demands of the public and now includes healthy food with salads, fruits and energy drinks in its menu. This helps the organizations to effectively meet the needs of the individual segments of the masses and thereby develop more lasting relationship with its customers. Tesco extensively use the database to customize their service and win trust of their customers. The database of customer also promotes in identifying the products that have niche market position and thereby helps to promote brand creation to maintain its position. Levi’s, L’Oreal, Gucci etc. are major brands whose major strength is value positioning. It helps to gauge the flow of customers at different times of the day and helps in sales forecast. They can ensure inventory of products that are more in demand. Samsung extensively uses the customer database to manufacture its products as per the sales demand so that they can come up with new value added products without incurring loss on huge unsold

Native Americans Essay Example for Free

Native Americans Essay Native Americans were the first people living in the United States until Europeans arrived, sought to colonize and take over. During this time, Native Americans were subjugated to warfare, new government and losing their lands. Forced to submit to White settlers, many Native Americans have had to choose between assimilating into a White culture or preserving their heritage and ancestry. This essay will discuss public policy regarding Native Americans and provide some examples pertaining to ethnocentrism and cultural relativity. Public Policy and Ethnocentrism. From early on, Native American culture has been on a collision with White society. During the colonial period, the government did not want to have any issues with settlers and Native Americans. Schaefer mentions that Whites were to take precedence regardless of the needs or interference by tribes (150). The secretary of war was put in charge of the Native Americans with regard to any Federal communications. Later in 1824 the Bureau of Indian Affairs was created as an intermediary between the Native Americans and the government (Schaefer 150). As White settlers started to move west, they had felt that Native Americans were blocking their progress. This led to the Indian Removal Act that was passed in 1824 which forced several tribes to leave their ancestral lands. Schaefer also mentions, â€Å"the federal 2 government enacted legislation that affected them with minimal consultation† (151). The government’s goal was to weaken tribal institutions so that Native Americans would assimilate. The government still tried to make Native Americans become more like White homesteaders. In 1887 the government passed the Allotment Act which would turn tribal members into land owners. While each family was given 160 acres, there were some stipulations. Schaefer mentions that â€Å"the act prohibited Native Americans from selling the land for 25 years† (153). The other issue was with the Native Americans not knowing how to farm or utilize the land. They also did not receive assistance or training from the government and as a result, did not do well with homesteading. Since the land could not be legally sold, the Bureau of Indian Affairs ended up leasing the land to White landowners (Schaefer 153). During this time, it was believed that Native Americans should put aside tribal identities and assimilate into White culture. As time progressed, the Indian Reorganization Act which was also known as the Wheeler-Howard Act was passed in 1934 (Schaefer 153). This act was supposed to recognize tribal identity but still pushed for assimilation. Tribes would be allowed to create a constitution and elect leaders within reservations. The Reorganization Act did allow Native Americans to have more control over actions taken on their behalf. Schaefer mentions that this act had tried to unite government agencies with tribal dealings by immersing Native Americans in procedures common to White society (153). However, the act still allowed for non-Native Americans to control issues regarding reservations. Schaefer states that, â€Å"The Reorganization Act sought to assimilate Native Americans into the dominant society on the dominant group’s terms† (153). Moving Towards Cultural Relativity 3 After years of the United States government trying to force Native Americans to Assimilate, they have started to realize that their efforts were not facilitating pluralism. Schaefer mentions the Termination Act of 1953 â€Å"which was considered a controversial government policy towards Native Americans† (156). This act cancelled federal services such as medical care, schools, and road equipment that took effect immediately. There was no coordination between tribes or government agencies which affected the tribes in a disastrous manner. They were not able to perform some basic services such as road repair or fire protection without the government. While this policy was supposed to give Native Americans the ability to self-govern it was viewed as a way to reduce services and save money. With life on an Indian reservation being economically depressed, the government decided to try to lure Native Americans away from the reservations. In 1952 the Bureau of Indian Affairs had started programs to relocate Native Americans to urban areas. In 1962 one of the programs was called the Employment Assistance Program. Schaefer states, â€Å"the purpose was to relocate individuals or families at the government’s expense to urban areas where the job opportunities were† (157). This program was not successful as many Native Americans returned back to their reservations. Schaefer also mentions that this program had some unintended consequences where the Native Americans who left were better educated and created a brain-drain (157). This also caused many of them to understand the predicament that they were faced with in both the city and federal reservations. Through all that they have been through, Native Americans have managed to work collectively through Pan-Indianism intertribal social movements. It has caused them to unite within a common identity because of political goals. In 1944 The National Congress of 4 American Indians was formed in Denver, Colorado and registered itself as a lobby in Washington, D. C. (Schaefer 157). Their goal was to raise issues with regard to the Native. American perspective as it operated similar to the NAACP. This group was able to create the Indian Claims Commission and force the Bureau of Indian Affairs to stop the practice of termination. In 1968 the American Indian Movement was created to monitor police actions and document charges of police brutality (Schaefer 157). Schaefer states that â€Å"sovereignty which refers to tribal self-rule is supported by every U. S. president since the 1960’s† (160). This is a very complex legal relationship since there are numerous legal cases where the Supreme Court has to rule which tribes may rule themselves and where they might be subject to state and federal laws. Tribal members pay federal income, social security, unemployment and property taxes but do not pay state income tax if they live and work on reservations (Schaefer 160). Sovereignty links the actions of the federal government with individual American Indians. Schaefer argues that the government acts as a gatekeeper in determining which tribes are recognized (161). In 1978 the Department of the Interior established the â€Å"acknowledgement process† to decide if more tribes could qualify for a government to government relationship. Conclusion With all that the Native Americans have been through over the years it would seem that many of the early policies were not effective because they did not produce the desired results of forced and immediate assimilation. The only thing that the government was able to do was drive these people off their lands, relocate them and create a sense of distrust. I do feel that the 5 Employment Assistance program did contribute to having some Native Americans move out of their comfort zone and seek out other opportunities. It did cause many Native Americans to take collective action and form groups to lobby for their rights. With regard to sovereignty, it seems that Native Americans are trying to assimilate themselves by working with the government to gain recognition and reap the economic benefits. Today it seems that Native Americans are slowly assimilating into White society because of their involvement in protests, lobbying, politics and business. While Native Americans might not have achieved complete pluralism, they are still trying to adapt to contemporary society. References 6 Schaefer, R. (2012). Native Americans: The First Americans (13th ed), Chapter 6 (pp. 147- 171). Upper Saddle River, New Jersey: Pearson.

Polygamy in America Today :: Marriage Mormon

Polygamy is a common, well-buried secret that is often hard to leave and still exists throughout the country today. The Encyclopedia Americana defines polygamy as the form of marriage that permits a person to have more than one husband or wife (Encyclopedia Americana). It has been known to exist at various times in certain societies. Polygamy is more common that most people realize. In the Paper â€Å"Polygamy and Same Sex Marriage,† David Chambers states â€Å"that in the history of the country, by far the most significant and widespread practice of polygamy occurred among the Mormons during the later half of the 19th century.† the Mormons believe that plural marriage is biblical and approved of by God. In the New Testament, it was never deemed to be immoral or even inferior in any way to monogamous onions. More Americans are practicing polygamy than one might think. Even more interesting, more than half of nonindustrialized societies still permits it. For both married men and women, sexual relationships outside of the marriage are regarded as deeply sinful. Polygamy is a way around this. It is not a sin to sleep with your wife. It is understood that any Christian should not have more than one marriage registered with the state. Such actions would surely violate tax codes and many other legal situations. Many do believe, however, that all United States laws, which make registered plural marriage illegal, are unconstitutional and should be repealed. Carmen Thompson, former polygamist and author of â€Å"Memories of a Plural wife,† wrote â€Å"that because plural marriage is against the law, those that still embrace it have, for decades, kept their practice well hidden.† According to Andrew Murr in his article, â€Å"Secrets in the desert,† â€Å"Utah banned polygamy as a precondition of statehood in 1890, but the practice of taking multiple wives has never disappeared (1).† Thompson wrote that there is an estimated 30,000 polygamists living in the states of Utah, and an equal number scattered around the rest of the United states (118). With so many involved in this lucid crime it is only a matter of time before those who are trying to stay hidden are

Wal Mart Annual Report Analysis

EXECUTIVE OFFICERS Eduardo Castro-Wright Vice Chairman, Wal-Mart Stores, Inc. M. Susan Chambers Executive Vice President, Global People Brian C. Cornell Executive Vice President, President and Chief Executive Officer, Sam’s Club 2 010 Financial Report 15 Five-Year Financial Summary 16 Management’s Discussion and Analysis of Financial Condition and Results of Operations 30 Consolidated Statements of Income 31 Consolidated Balance Sheets 32 Consolidated Statements of Shareholders’ Equity 33 Consolidated Statements of Cash Flows 34 Notes to Consolidated Financial Statements 52 Report of Independent Registered Public Accounting Firm 3 Report of Independent Registered Public Accounting Firm on Internal Control Over Financial Reporting Thomas M. Schoewe Executive Vice President and Chief Financial Officer 54 Management’s Report to Our Shareholders 55 Fiscal 2010 End-of-Year Store Count H. Lee Scott, Jr. Chairman of the Executive Committee of the Board of Directo rs 56 Corporate and Stock Information Leslie A. Dach Executive Vice President, Corporate Affairs and Government Relations Michael T. Duke President and Chief Executive Officer Rollin L. Ford Executive Vice President, Chief Information Officer Thomas D. Hyde Executive Vice President, Legal, Ethics, nd Corporate Secretary C. Douglas McMillon Executive Vice President, President and Chief Executive Officer, Walmart International S. Robson Walton Chairman of the Board of Directors Steven P. Whaley Senior Vice President and Controller 14 Walmart 2010 Annual Report 107077_L01_FIN_02. indd 14 4/6/10 12:10:45 AM 2010 FINANCIAL REVIEW Five-Year Financial Summary (Amounts in millions except per share and unit count data) As of and for the Fiscal Years Ended January 31, 2010 2009 2008 2007 2006 (1) Operating Results Net sales Net sales increase Comparable store sales in the United States (2) Walmart U. S.Sam’s Club Gross pro? t margin Operating, selling, general and administrative expens es, as a percentage of net sales Operating income Income from continuing operations attributable to Walmart Per share of common stock: Income from continuing operations attributable to Walmart, diluted Dividends $405,046 1. 0% -0. 8% -0. 7% -1. 4% 24. 8% $401,087 7. 3% 3. 5% 3. 2% 4. 9% 24. 2% $373,821 8. 4% 1. 6% 1. 0% 4. 9% 24. 0% $344,759 11. 6% 2. 0% 1. 9% 2. 5% 23. 4% $308,945 9. 8% 3. 4% 3. 0% 5. 0% 23. 1% 19. 7% $ 23,950 14,414 19. 3% $ 22,798 13,254 19. 0% $ 21,952 12,863 18. 5% $ 20,497 12,189 18. 0% $ 18,693 1,386 3. 72 1. 09 $3. 35 0. 95 $3. 16 0. 88 $2. 92 0. 67 $2. 72 0. 60 $ 33,160 102,307 170,706 36,401 70,749 $ 34,511 95,653 163,429 34,549 65,285 $ 35,159 96,867 163,514 33,402 64,608 $ 33,667 88,287 151,587 30,735 61,573 $ 31,910 77,863 138,793 30,096 53,171 Unit Counts Walmart U. S. Segment International Segment Sam’s Club Segment 3,708 4,112 596 3,656 3,605 602 3,550 3,098 591 3,443 2,734 579 3,289 2,158 567 Total units 8,416 7,863 7,239 6,756 6,014 Financia l Position Inventories Property, equipment and capital lease assets, net Total assets Long-term debt, including obligations under capital leasesTotal Walmart shareholders’ equity $ (1) In connection with the company’s ? nance transformation project, we reviewed and adjusted the classi? cation of certain revenue and expense items within our Consolidated Statements of Income for ? nancial reporting purposes. Although the reclassi? cations impacted net sales, gross margin and operating, selling, general and administrative expenses, they did not impact operating income or income from continuing operations attributable to Walmart. The changes were effective February 1, 2009 and have been re? ected for ? scal years 2010, 2009 and 2008. 2) Comparable store and club sales include fuel. For ? scal 2006, we considered comparable sales to be sales at stores and clubs that were open as of February 1st of the prior ? scal year and which had not been converted, expanded or relocated since that date. Fiscal 2008 and ? scal 2007 comparable sales includes all stores and clubs that have been open for at least the previous 12 months. Additionally, for those ? scal years, stores and clubs that are relocated, expanded or converted are excluded from comparable sales for the ? rst 12 months following the relocation, expansion or conversion.Fiscal 2010 and 2009 comparable sales include sales from stores and clubs open for the previous 12 months, including remodels, relocations and expansions. Fiscal 2008 and prior ? scal years’ comparable sales do not re? ect reclassi? cations effective February 1, 2009, as noted above. Walmart 2010 Annual Report 15 107077_L01_FIN_02. indd 15 4/6/10 12:10:45 AM Management’s Discussion and Analysis of Financial Condition and Results of Operations Overview Wal-Mart Stores, Inc. (â€Å"Walmart,† the â€Å"company† or â€Å"we†) operates retail stores in various formats around the world and is committed to saving people money so they can live better.We earn the trust of our customers every day by providing a broad assortment of quality merchandise and services at every day low prices (â€Å"EDLP†), while fostering a culture that rewards and embraces mutual respect, integrity and diversity. EDLP is our pricing philosophy under which we price items at a low price every day so that our customers trust that our prices will not change under frequent promotional activity. Our focus for Sam’s Club is to provide exceptional value on brand name merchandise at â€Å"members only† prices for both business and personal use.Internationally, we operate with similar philosophies. Our ? scal year ends on January 31 for our U. S. , Canada and Puerto Rico operations. Our ? scal year ends on December 31 for all other operations. We intend for this discussion to provide the reader with information that will assist in understanding our ? nancial statements, the changes in certain key items in those ? nancial statements from year to year, and the primary factors that accounted for those changes, as well as how certain accounting principles affect our ? nancial statements.We also discuss certain performance metrics that management uses to assess our performance. The discussion also provides information about the ? nancial results of the various segments of our business to provide a better understanding of how those segments and their results affect the ? nancial condition and results of operations of the company as a whole. This discussion should be read in conjunction with our Consolidated Financial Statements as of January 31, 2010, and the year then ended, and accompanying notes. Our operations comprise three business segments: Walmart U.S. , International and Sam’s Club. The Walmart U. S. segment includes the company’s mass merchant concept in the United States, operating under the â€Å"Walmart† or â€Å"Wal-Mart† brand, as well a s walmart. com. The International segment consists of the company’s operations outside of the 50 United States. The Sam’s Club segment includes the warehouse membership clubs in the United States, as well as samsclub. com. Sales By Segment Net sales in ? scal 2010 were a record $405. 0 billion, up 1. 0% from ? scal 2009. Sam’s Club 11. 5% International 24. 7%Throughout this Management’s Discussion and Analysis of Financial Condition and Results of Operations, we discuss segment operating income and comparable store sales. The company measures the results of its segments using, among other measures, each segment’s operating income which includes certain corporate overhead allocations. From time to time, we revise the measurement of each segment’s operating income, including any corporate overhead allocations, as dictated by the information regularly reviewed by our chief operating decision maker.When we do so, the segment operating income for each segment affected by the revisions is restated for all periods presented to maintain comparability. In connection with the company’s ? nance transformation project, we reviewed and adjusted the classi? cation of certain revenue and expense items within our Consolidated Statements of Income for ? nancial reporting purposes. The reclassi? cations did not impact operating income or consolidated net income attributable to Walmart. The changes were effective February 1, 2009 and have been re? ected in all periods presented.Comparable store sales is a measure which indicates the performance of our existing U. S. stores and clubs by measuring the growth in sales for such stores for a particular period over the corresponding period in the prior year. In ? scal 2008, our method of calculating comparable store sales included all stores and clubs that were open for at least the previous 12 months. Additionally, stores and clubs that were relocated, expanded or converted were exclud ed from comparable store sales for the ? rst 12 months following the relocation, expansion or conversion. During ? scal year 2008, the company reviewed its de? ition of comparable store sales for consistency with other retailers. As a result of that review, since February 1, 2008, Walmart’s de? nition of comparable store sales includes sales from stores and clubs open for the previous 12 months, including remodels, relocations and expansions. Changes in format continue to be excluded from comparable store sales when the conversion is accompanied by a relocation or expansion that results in a change in square footage of more than ? ve percent. Since the impact of this revision is inconsequential, the company will not restate comparable store sales results for previously reported years.Comparable store sales are also referred to as â€Å"same-store† sales by others within the retail industry. The method of calculating comparable store sales varies across the retail indus try. As a result, our calculation of comparable store sales is not necessarily comparable to similarly titled measures reported by other companies. In discussions of our consolidated results and the operating results of our International segment, we sometimes refer to the impact of changes in currency exchange rates. When we refer to changes in currency exchange rates or currency exchange rate ? ctuations, we are referring to the differences between the currency exchange rates we use to convert the International segment’s operating results from local currencies into U. S. dollars for reporting purposes. The impacts of currency exchange rate ? uctuations are typically calculated as the difference between current period activity translated using the current period’s currency exchange rates and the comparable prior year period’s currency exchange rates, respectively. We use this method for all countries where the functional currency is not U. S. denominated. Walmar t U. S. 63. 8% 16 Walmart 2010 Annual Report 107077_L01_FIN. ndd 16 4/6/10 8:25:50 PM Management’s Discussion and Analysis of Financial Condition and Results of Operations The Retail Industry We operate in the highly competitive retail industry in both the United States and the countries we serve internationally. We face strong sales competition from other discount, department, drug, variety and specialty stores, warehouse clubs, and supermarkets, many of which are national, regional or international chains, as well as internet-based retailers and catalog businesses. We compete with a number of companies for prime retail site locations, as well as in attracting and retaining quality employees whom we call â€Å"associates†). We, along with other retail companies, are in? uenced by a number of factors including, but not limited to: general economic conditions, cost of goods, consumer disposable income, consumer debt levels and buying patterns, consumer credit availabili ty, interest rates, customer preferences, unemployment, labor costs, in? ation, de? ation, currency exchange ? uctuations, fuel and energy prices, weather patterns, climate change, catastrophic events, competitive pressures and insurance costs. Further information on risks to our company can be located in â€Å"Item 1A.Risk Factors† in our Annual Report on Form 10-K for the ? scal year ended January 31, 2010. Company Performance Metrics The company’s performance metrics emphasize three priorities for improving shareholder value: growth, leverage and returns. The company’s priority of growth focuses on sales growth; the priority of leverage encompasses the company’s metric to increase our operating income at a faster rate than the growth in net sales by growing our operating, selling, general and administrative expenses (â€Å"operating expenses†) at a slower rate than the growth of our net sales; and the priority of returns focuses on how ef? ientl y the company employs our assets through return on investment (â€Å"ROI†) and how effectively the company manages working capital through free cash ? ow. Growth Net Sales Fiscal Years Ended January 31, (Dollar amounts in millions) 2009 2010 Percent increase Net sales Percent of total 2008 Percent increase Net sales Percent of total Net sales Percent of total Walmart U. S. International Sam’s Club $258,229 100,107 46,710 63. 8% 24. 7% 11. 5% 1. 1% 1. 3% -0. 4% $255,348 98,840 46,899 63. 7% 24. 6% 11. 7% 6. 9% 9. 1% 5. 8% $238,915 90,570 44,336 63. 9% 24. 2% 11. 9% Net Sales $405,046 00. 0% 1. 0% $401,087 100. 0% 7. 3% $373,821 100. 0% O ur net sales increased by 1. 0% and 7. 3% in ? scal 2010 and 2009, respectively, when compared to the previous ? scal year. Net sales in ? scal 2010 increased due to increased customer traf? c, continued global expansion activities and the acquisition of our Chilean subsidiary, Distribucion y Servicio (â€Å"D&S†) in January 2009 , offset primarily by a $9. 8 billion unfavorable currency exchange rate impact in our International segment and price de? ation in certain merchandise categories in our Walmart U. S. segment. Net sales in ? cal 2009 increased due to our global expansion activities and comparable store sales increases, offset by a $2. 3 billion unfavorable currency exchange rate impact. Despite the unfavorable impact of currency exchanges rates, the International segment’s net sales as a percentage of total company net sales increased in ? scal 2010 and 2009, respectively. Volatility in currency exchange rates may continue to impact the International segment’s net sales in the future. Comparable Store Sales Comparable store sales is a measure which indicates the performance of our existing U. S. tores by measuring the growth in sales for such stores for a particular period over the corresponding period in the prior year. Comparable store sales in the United States decreased 0. 8% in ? scal 2010 and increased 3. 5% in ? scal 2009. Although customer traf? c increased in ? scal 2010, comparable store sales in the United States were lower than ? scal 2009 due to de? ation in certain merchandise categories and lower fuel prices. Comparable store sales in the United States in ? scal 2009 were higher than ? scal 2008 due to an increase in customer traf? c, as well as an increase in average transaction size per customer.As we continue to add new stores in the United States, we do so with an understanding that additional stores may take sales away from existing units. We estimate the negative impact on comparable store sales as a result of opening new stores was approximately 0. 6% in ? scal 2010 and 1. 1% in ? scal 2009. With our planned slower new store growth, we expect the impact of new stores on comparable store sales to stabilize over time. Fiscal Years Ended January 31, 2010 2009 2008 Walmart U. S. Sam’s Club (1) -0. 7% -1. 4% 3. 2% 4. 9% 1. 0% 4. 9% Total U . S. -0. 8% 3. 5% 1. 6% (1) Sam’s Club comparable club sales include fuel.Fuel sales had a negative impact of 2. 1 percentage points in ? scal year 2010, and positive impact of 1. 2 and 0. 7 percentage points in ? scal years 2009 and 2008, respectively, on comparable club sales. Walmart 2010 Annual Report 17 107077_L01_FIN_02. indd 17 4/6/10 12:10:46 AM Management’s Discussion and Analysis of Financial Condition and Results of Operations Leverage Fiscal Years Ended January 31, (Dollar amounts in millions) 2009 2010 Operating income Percent of total Percent increase Operating income 2008 Percent of total Percent increase Operating income Percent of total Walmart U.S. International Sam’s Club Other $19,522 5,033 1,512 (2,117) 81. 5% 21. 0% 6. 3% -8. 8% 5. 2% 1. 9% -8. 1% -9. 9% $18,562 4,940 1,646 (2,350) 81. 4% 21. 7% 7. 2% -10. 3% 6. 8% 4. 6% -0. 1% 30. 3% $17,383 4,725 1,648 (1,804) 79. 2% 21. 5% 7. 5% -8. 2% Total operating income $23,950 100. 0% 5. 1% $22,798 100. 0% 3. 9% $21,952 100. 0% We believe growing operating income at a faster rate than net sales growth is a meaningful measure because it indicates how effectively we manage costs and leverage operating expenses. Our objective is to grow operating expenses at a slower rate than net sales. nd ending total assets of continuing operations plus accumulated depreciation and amortization less accounts payable and accrued liabilities for that period, plus a rent factor equal to the rent for the ? scal year multiplied by a factor of eight. Operating Expenses In ? scal 2010, operating expenses increased 2. 7% when compared to ? scal 2009, while net sales increased 1. 0% over the same period. Operating expenses grew at a faster rate than net sales due to higher health bene? t costs, restructuring charges and higher advertising expenses. In ? scal 2009, operating expenses increased 9. % compared to ? scal 2008 while net sales increased 7. 3% over the same period. Operating expenses grew at a faster rate than net sales in ? scal 2009 primarily due to higher utility costs, legal matters, higher health bene? t costs and increased corporate expenses. ROI is considered a non-GAAP ? nancial measure under the SEC’s rules. We consider return on assets (â€Å"ROA†) to be the ? nancial measure computed in accordance with GAAP that is the most directly comparable ? nancial measure to ROI as we calculate that ? nancial measure. ROI differs from ROA (which is income from continuing operations for the ? cal year divided by average total assets of continuing operations for the period) because ROI: adjusts operating income to exclude certain expense items and adds interest income; adjusts total assets from continuing operations for the impact of accumulated depreciation and amortization, accounts payable and accrued liabilities; and incorporates a factor of rent to arrive at total invested capital. Operating Income For ? scal 2010, we met our objective of growing operat ing income at a faster rate than net sales. Our operating income increased by 5. 1% when compared to ? cal 2009, while net sales increased by 1. 0% over the same period. Our Walmart U. S. and International segments met this objective. Our Sam’s Club segment fell short of this objective primarily due to a $174 million charge to restructure its operations, including the closure of 10 clubs. For ? scal 2009, we did not meet our objective because our operating income increased by 3. 9% when compared to ? scal 2008, while net sales increased by 7. 3% over the same period. The Walmart U. S. and Sam’s Club segments fell short of this objective due to increases in operating expenses.The International segment fell short of this objective due to accruals for certain legal matters and ? uctuations in currency exchange rates. Although ROI is a standard ? nancial metric, numerous methods exist for calculating a company’s ROI. As a result, the method used by management to cal culate ROI may differ from the methods other companies use to calculate their ROI. We urge you to understand the methods used by another company to calculate its ROI before comparing our ROI to that of such other company. Wal-Mart Stores, Inc. Operating Income (Amounts in millions) 24,000 Returns Return on Investment Management believes return on investment is a meaningful metric to share with investors because it helps investors assess how effectively Walmart is employing its assets. Trends in ROI can ? uctuate over time as management balances long-term potential strategic initiatives with any possible short-term impacts. ROI was 19. 3 percent for both ? scal years ended January 31, 2010 and 2009. $18,000 Wal-Mart Stores, Inc. operating income increased 5. 1% in ? scal 2010, driven by a 5. 2% increase in Walmart U. S. $12,000 $ 6,000 We de? e ROI as adjusted operating income (operating income plus interest income, depreciation and amortization and rent expense) for the ? scal year divided by average invested capital during that period. We consider average invested capital to be the average of our beginning 0 08 09 10 Fiscal Years 18 Walmart 2010 Annual Report 107077_L01_FIN. indd 18 4/6/10 10:19:20 PM Management’s Discussion and Analysis of Financial Condition and Results of Operations The calculation of ROI along with a reconciliation to the calculation of ROA, the most comparable GAAP ? nancial measurement, is as follows: For the Years Ended January 31, Dollar amounts in millions) 2010 2009 Numerator Operating income (1) + Interest income (1) + Depreciation and amortization (1) + Rent (1) $ 23,950 181 7,157 1,808 $ 22,798 284 6,739 1,751 = Adjusted operating income $ 33,096 $ 31,572 Denominator Average total assets of continuing operations (2) + Average accumulated depreciation and amortization (2) – Average accounts payable (2) – Average accrued liabilities (2) + Rent x 8 $166,900 38,359 29,650 18,423 14,464 $162,891 33,317 29,597 16,9 19 14,008 = Average invested capital $171,650 $163,700 CALCULATION OF RETURN ON INVESTMENT Return on investment (ROI) 19. 3% 19. 3%CALCULATION OF RETURN ON ASSETS Numerator Income from continuing operations (1) $ 14,927 $ 13,753 Denominator Average total assets of continuing operations (2) $166,900 $162,891 Return on assets (ROA) 8. 9% 8. 4% As of January 31, 2010 Certain Balance Sheet Data (1) Total assets of continuing operations Accumulated depreciation and amortization Accounts payable Accrued liabilities 2009 2008 $170,566 41,210 30,451 18,734 $163,234 35,508 28,849 18,112 $162,547 31,125 30,344 15,725 (1) Based on continuing operations only and therefore excludes the impact of closing 23 stores and the divesture of other properties of The Seiyu, Ltd. now Walmart Japan) pursuant to a restructuring program adopted during the third quarter of ? scal 2009. All of these activities have been disclosed as discontinued operations. Total assets as of January 31, 2010, 2009 and 2008 in the table above exclude assets of discontinued operations that are re? ected in the Consolidated Balance Sheets of $140 million, $195 million and $967 million, respectively. (2) The average is based on the addition of the account balance at the end of the current period to the account balance at the end of the prior period and dividing by 2. Walmart 2010 Annual Report 19 107077_L01_FIN_02. indd 19 /6/10 12:10:47 AM Management’s Discussion and Analysis of Financial Condition and Results of Operations Free Cash Flow We de? ne free cash ? ow as net cash provided by operating activities of continuing operations in a period minus payments for property and equipment made in that period. We generated positive free cash ? ow of $14. 1 billion, $11. 6 billion and $5. 7 billion for the years ended January 31, 2010, 2009 and 2008, respectively. The increase in our free cash ? ow is primarily the result of improved operating results and inventory management. The following table sets fort h a reconciliation of free cash ? w, a nonGAAP ? nancial measure, to net cash provided by operating activities of continuing operations, a GAAP measure, which we believe to be the GAAP ? nancial measure most directly comparable to free cash ? ow, as well as information regarding net cash used in investing activities and net cash used in ? nancing activities. Fiscal Years Ended January 31, (Amounts in millions) Free cash ? ow is considered a non-GAAP ? nancial measure under the SEC’s rules. Management believes, however, that free cash ? ow, which measures our ability to generate additional cash from our business operations, is an important ? ancial measure for use in evaluating the company’s ? nancial performance. Free cash ? ow should be considered in addition to, rather than as a substitute for, income from continuing operations as a measure of our performance and net cash provided by operating activities as a measure of our liquidity. Additionally, our de? nition of free cash ? ow is limited, in that it does not represent residual cash ? ows available for discretionary expenditures due to the fact that the measure does not deduct the payments required for debt service and other contractual obligations or payments made for business acquisitions.Therefore, we believe it is important to view free cash ? ow as a measure that provides supplemental information to our entire statement of cash ? ows. Although other companies report their free cash ? ow, numerous methods may exist for calculating a company’s free cash ? ow. As a result, the method used by our management to calculate free cash ? ow may differ from the methods other companies use to calculate their free cash ? ow. We urge you to understand the methods used by another company to calculate its free cash ? ow before comparing our free cash ? ow to that of such other company.We generated positive free cash flow of $14. 1 billion, $11. 6 billion and $5. 7 billion for the years ended Jan uary 31, 2010, 2009 and 2008, respectively. The increase in our free cash flow is primarily the result of improved operating results and inventory management. Net cash provided by operating activities Payments for property and equipment Free cash ? ow Net cash used in investing activities Net cash used in ?nancing activities 2010 $26,249 (12,184) $ 14,065 2009 2008 $ 23,147 $ 20,642 (11,499) (14,937) $ 11,648 $ 5,705 $(11,620) $(10,742) $(15,670) $(14,191) $ (9,918) $ (7,422)Results of Operations The following discussion of our Results of Operations is based on our continuing operations and excludes any results or discussion of our discontinued operations. Unusual or infrequent items that impacted our income from continuing operations during the ? scal years ended 2010, 2009 and 2008 were as follows: †¢ In ? scal 2010, the company announced several organizational changes, including the closure of 10 Sam’s Clubs, designed to strengthen and streamline our operations. As a result, we recorded $260 million in pre-tax restructuring charges. †¢ In ? cal 2010, we recorded $372 million in net tax bene? ts primarily from the repatriation of certain non-U. S. earnings that increased U. S. foreign tax credits. †¢ In ? scal 2009, the company settled 63 wage-and-hour class action lawsuits. As a result of the settlement, the company recorded a pre-tax charge of approximately $382 million during the fourth quarter of ? scal 2009. †¢ In ? scal 2008, we reduced our accrued liabilities for our general liability and worker’s compensation claims. As a result, operating expenses were reduced by a pre-tax amount of $298 million. 20 Walmart 2010 Annual Report 07077_L01_FIN. indd 20 4/7/10 12:14:15 AM Management’s Discussion and Analysis of Financial Condition and Results of Operations Consolidated Results of Operations Fiscal Year Net Sales (1) % Change from Prior Fiscal Year 2010 2009 2008 $405,046 401,087 373,821 1. 0% 7. 3% 8. 4% Operating Income (1) Operating Income as a Percentage of Net Sales Comp Sales Unit Counts Square Footage (2) $23,950 22,798 21,952 5. 9% 5. 7% 5. 9% -0. 8% 3. 5% 1. 6% 8,416 7,863 7,239 952,204 918,008 867,448 (1) Amounts in millions (2) Amounts in thousands Our consolidated net sales increased by 1. 0% and 7. 3% in ? cal 2010 and 2009, respectively, when compared to the previous ? scal year. Net sales in ? scal 2010 increased due to increased customer traf? c, continued global expansion activities and the acquisition of D&S in January 2009, offset primarily by a $9. 8 billion unfavorable currency exchange rate impact in our International segment and price de? ation in certain merchandise categories in our Walmart U. S. segment. Net sales in ? scal 2009 increased due to our global store expansion activities, comparable store sales increases, offset by a $2. 3 billion unfavorable currency exchange rate impact.Volatility in currency exchange rates may continue to impact the International segme nt’s net sales in the future. Our gross pro? t, as a percentage of net sales, (our â€Å"gross pro? t margin†) was 24. 8%, 24. 2% and 24. 0% in ? scal 2010, 2009 and 2008, respectively. Our Walmart U. S. and International segment sales yield higher gross pro? t margins than our Sam’s Club segment. In ? scal 2010, gross pro? t margin increased primarily due to the continued focus on enhanced merchandising strategies and better inventory management in our Walmart U. S. and Sam’s Club segments. The gross pro? margin increase in ? scal 2009 compared to ? scal 2008 was primarily due to lower inventory shrinkage and less markdown activity as a result of more effective merchandising in the Walmart U. S. segment. Operating expenses, as a percentage of net sales, were 19. 7%, 19. 3% and 19. 0% for ? scal 2010, 2009 and 2008, respectively. In ? scal 2010, operating expenses increased primarily due to higher health bene? t costs, a pre-tax charge of $260 million rel ating to the restructuring of U. S. operations and higher advertising expenses. In ? scal 2009, operating expenses increased rimarily due to higher utility costs, a pre-tax charge of approximately $382 million resulting from the settlement of 63 wage-and-hour class action lawsuits, higher health bene? t costs and increased corporate expenses compared to ? scal 2008. Our effective income tax rate was 32. 4% for ? scal year 2010 and 34. 2% for ? scal years 2009 and 2008. The ? scal 2010 effective tax rate decreased compared to ? scal 2009 due to $372 million in net tax bene? ts that primarily resulted from the repatriation of certain non-U. S. earnings that increased our utilization of U. S. foreign tax credits.As a result of the factors discussed above, we reported $14. 9 billion, $13. 8 billion and $13. 3 billion of income from continuing operations for the ? scal years ended January 31, 2010, 2009 and 2008, respectively. Walmart U. S. Segment Fiscal Year Net Sales (1) % Change from Prior Fiscal Year 2010 2009 2008 $258,229 255,348 238,915 1. 1% 6. 9% 5. 6% Operating Income (1) Operating Income as a Percentage of Net Sales Comp Sales Unit Counts Square Footage (2) $19,522 18,562 17,383 7. 6% 7. 3% 7. 3% -0. 7% 3. 2% 1. 0% 3,708 3,656 3,550 602,908 589,299 566,629 (1) Amounts in millions (2) Amounts in thousands The segment net sales growth in ? cal 2010 resulted from an increase in customer traf? c and strength in our grocery and health and wellness categories, as well as our continued expansion activities. In ? scal 2009, the segment net sales growth resulted from a comparable store sales increase of 3. 2%, in addition to our expansion activities. Strength in the grocery, health and wellness and entertainment categories, as well as strong seasonal sales throughout the year also contributed to the ? scal 2009 net sales increase. The segment net sales growth in fiscal 2010 resulted from an increase in customer traffic and strength in our grocery and health and ellness categories, as well as our continued expansion activities. Walmart 2010 Annual Report 21 107077_L01_FIN. indd 107077_L01_FIN. indd 21 4/6/10 8:25:51 PM Management’s Discussion and Analysis of Financial Condition and Results of Operations Comparable store sales were lower in ? scal 2010, despite increased customer traf? c, due to a decrease in average transaction size per customer driven by price de? ation in certain merchandise categories. Comparable store sales were higher in ? scal 2009 due to an increase in customer traf? c, as well as an increase in average transaction size per customer. In ? scal 2010, gross pro? margin increased 0. 7 percentage points compared to the prior year due to more effective merchandising, better inventory management and lower inventory shrinkage. In ? scal 2009, gross pro? t margin increased 0. 4 percentage points compared to the prior year primarily due to decreased markdown activity and lower inventory shrinkage. The improvements in b oth years were attributable to merchandising initiatives that have improved space allocation, enhanced our price leadership and increased supply chain ef? ciencies. Segment operating expenses, as a percentage of segment net sales, increased by 0. 4 percentage points in ? cal 2010 compared to ? scal 2009 due to lower segment net sales increases compared to the prior year, higher health bene? t costs, higher advertising expenses and a pre-tax charge of $73 million relating to the restructuring of Walmart U. S. operations. Segment operating expenses, as a percentage of segment net sales, increased 0. 4 percentage points in ? scal 2009 compared to the prior year due to hurricane-related expenses, higher bonus payments for store associates, higher utility costs and an increase in health bene? t costs. International Segment Net Sales (1) 2010 2009 2008 Operating Income (1) Operating Income a s a Percentage f Net Sales Unit Counts Square Footage (2 ) $100,107 98,840 90,570 Fiscal Year % Ch ange from Prior Fiscal Year 1. 3% 9. 1% 17. 8% $5,033 4,940 4,725 5. 0% 5. 0% 5. 2% 4,112 3,605 3,098 269,894 248,803 222,583 (1) Amounts in millions (2) Amounts in thousands At January 31, 2010, our International segment was comprised of our wholly-owned subsidiaries operating in Argentina, Brazil, Canada, Japan, Puerto Rico and the United Kingdom, our majority-owned subsidiaries operating in ? ve countries in Central America, and in Chile and Mexico, our joint ventures in India and China and our other controlled subsidiaries in China.The ? scal 2010 increase in the International segment’s net sales primarily resulted from our expansion activities and the inclusion of the results of D&S, acquired in January 2009, offset by the unfavorable impact of changes in currency exchange rates of $9. 8 billion. For additional information regarding our acquisitions, refer to Note 9 to the Consolidated Financial Statements. The ? scal 2009 increase in the International segment’s n et sales was primarily due to net sales growth from existing units and our international expansion program, offset by the unfavorable impact of changes in currency exchange rates of $2. billion. The fiscal 2010 increase in the International segment’s net sales primarily resulted from our expansion activities and the inclusion of the results of D&S, acquired in January 2009, offset by the unfavorable impact of changes in currency exchange rates of $9. 8 billion. In ? scal 2010, the International segment’s gross pro? t margin increased 0. 2 percentage points compared to the prior year. The increase was primarily driven by currency exchange rate ? uctuations and the inclusion of D&S. In ? scal 2009, the International segment’s gross pro? t margin decreased 0. percentage points compared to the prior year. The decrease was primarily driven by growth in lower margin fuel sales in the United Kingdom and the transition to EDLP as a strategy in Japan. Segment operating e xpenses, as a percentage of segment net sales, increased 0. 3 percentage points in ? scal 2010 compared to the prior year primarily as a result of the inclusion of D&S, acquired in January 2009. Segment operating expenses, as a percentage of segment net sales, in ? scal 2009 were consistent with ? scal 2008. In ? scal 2010, currency exchange rate changes unfavorably impacted operating income by $540 million.In ? scal 2009, currency exchange rate changes unfavorably impacted operating income by $266 million. Volatility in currency exchange rates may continue to impact the International segment’s operating results in the future. 22 Walmart 2010 Annual Report 107077_L01_FIN. indd 107077_L01_FIN. indd 22 4/6/10 8:25:51 PM Management’s Discussion and Analysis of Financial Condition and Results of Operations Sam’s Club Segment Fiscal Year Net Sales (1) % Change from Prior Fiscal Year Operating Income (1) Operating Income a s a Percentage of Net Sales Comp Sales Unit C ounts Square Footage (2 ) $46,710 46,899 44,336 0. 4% 5. 8% 6. 6% $1,512 1,646 1,648 3. 2% 3. 5% 3. 7% -1. 4% 4. 9% 4. 9% 596 602 591 79,401 79,906 78,236 2010 2009 2008 (1) Amounts in millions (2) Amounts in thousands The decrease in net sales for the Sam’s Club segment in ? scal 2010 primarily resulted from lower fuel prices compared to the previous ? scal year. In ? scal 2009, the segment net sales growth resulted from a comparable club sales increase, including fuel, of 4. 9% and continued club expansion activities. Membership and other income, as a percentage of segment net sales, decreased slightly for ? scal 2010 when compared to ? scal 2009.Membership and other income, as a percentage of segment net sales, decreased slightly for ? scal 2009 when compared to ? scal 2008. Liquidity and Capital Resources Comparable club sales decreased during ? scal 2010 due to the negative impact of 2. 1 percentage points from lower fuel prices when compared to the previous ? scal year, partially offset by sales increases in fresh food, consumables and certain health and wellness categories. In ? scal 2009, comparable club sales increased due to growth in food, pharmacy, electronics and certain consumables categories, as well as an increase in both member traf? and average transaction size per member. Fuel sales had a positive impact of 1. 2 percentage points in ? scal 2009 on comparable club sales. Gross pro? t margin increased 0. 6 percentage points during ? scal 2010 compared to the prior year due to continued strength in sales of consumable, fresh food and other food-related categories. Gross pro? t margin increased 0. 1 percentage points during ? scal 2009 compared to the prior year due to strong sales in fresh food and other food-related categories, consumable categories and the positive impact of a higher fuel gross pro? t rate.Segment operating expenses, as a percentage of segment net sales, increased 0. 8 percentage points in ? scal 2010 compared to the p rior year due primarily to a pre-tax charge of $174 million related to the restructuring of Sam’s Club operations, including the closure of 10 clubs. Segment operating expenses, as a percentage of segment net sales, increased 0. 2 percentage points in ? scal 2009 compared to the prior year. In ? scal 2009, operating expense increases were impacted by higher utility and health bene? t costs and hurricane-related expenses. Cash flows provided by operating activities upply us with a significant source of liquidity. We use these cash flows, supplemented with long-term debt and short-term borrowings, to fund our operations and global expansion activities. Generally, some or all of the remaining free cash flow funds the dividends on our common stock and share repurchases. Cash ? ows provided by operating activities supply us with a signi? cant source of liquidity. We use these cash ? ows, supplemented with long-term debt and short-term borrowings, to fund our operations and global expansion activities. Generally, some or all of the remaining free cash ? w funds the dividends on our common stock and share repurchases. Fiscal Years Ended January 31, (Amounts in millions) 2010 Net cash provided by operating activities Payments for property and equipment Free cash ? ow 2009 2008 $ 26,249 $ 23,147 $ 20,642 (12,184) (11,499) (14,937) $ 14,065 $ 11,648 $ 5,705 Net cash used in investing activities Net cash used in ?nancing activities $(11,620) $(10,742) $(15,670) $(14,191) $ (9,918) $ (7,422) Cash ? ow provided by operating activities was $26. 2 billion, $23. 1 billion and $20. 6 billion for the years ended January 31, 2010, 2009 and 2008, respectively. The increases in cash ? ws provided by operating activities for each ? scal year were primarily attributable to an increase in income from continuing operations and improved working capital management. Working Capital Current liabilities exceeded current assets at January 31, 2010, by $7. 2 billion, an increase of $7 89 million from January 31, 2009. Our ratio of current assets to current liabilities was 0. 9 at January 31, 2010 and 2009. We generally have a working capital de? cit due to our ef? cient use of cash in funding operations and in providing returns to shareholders in the form of stock repurchases and payment of dividends.Walmart 2010 Annual Report 23 107077_L01_FIN. indd 107077_L01_FIN. indd 23 4/7/10 1:06:36 AM Management’s Discussion and Analysis of Financial Condition and Results of Operations Capital Resources During ? scal 2010, we issued $5. 5 billion of long-term debt. The net proceeds from the issuance of such long-term debt were used for general corporate purposes. During ? scal 2009, we issued $6. 6 billion of long-term debt. Those net proceeds were used to repay outstanding commercial paper indebtedness and for other general corporate purposes. Management believes that cash ? ws from continuing operations and proceeds from the issuance of short-term borrowings will be suf? cient to ? nance seasonal buildups in merchandise inventories and meet other cash requirements. If our operating cash ? ows are not suf? cient to pay dividends and to fund our capital expenditures, we anticipate funding any shortfall in these expenditures with a combination of short-term borrowings and long-term debt. We plan to re? nance existing long-term debt as it matures and may desire to obtain additional long-term ? nancing for other corporate purposes. We anticipate no dif? culty in obtaining long-term ? ancing in view of our credit ratings and favorable experiences in the debt market in the recent past. The following table details the ratings of the credit rating agencies that rated our outstanding indebtedness at January 31, 2010. The rating agency ratings are not recommendations to buy, sell or hold our commercial paper or debt securities. Each rating may be subject to revision or withdrawal at any time by the assigning rating organization and should be evaluated independently of any other rating. Global Expansion Activities Cash paid for property and equipment was $12. 2 billion, $11. 5 billion and $14. billion during the ? scal years ended January 31, 2010, 2009 and 2008, respectively. These expenditures primarily relate to new store growth, as well as remodeling costs for existing stores. We expect to incur capital expenditures of approximately $13. 0 billion to $15. 0 billion in ? scal 2011. We plan to ? nance this expansion and any acquisitions of other operations that we may make during ? scal 2011 primarily from cash ? ows from operations. Fiscal 2011 capital expenditures will include the addition of the following new, relocated and expanded units in the U. S. : Fiscal Year 2011 Projected Unit Growth Walmart U.S. Segment Sam’s Club Segment 145-160 5-10 150-170 Total U. S. Additionally, the International segment expects to add more than 600 units during ? scal year 2011. The following represents an allocation of our capital expe nditures: Rating Agency Commercial Paper Standard & Poor’s Moody’s Investors Service Fitch Ratings DBRS Limited Long-term Debt A-1+ P-1 F1+ R-1(middle) AA Aa2 AA AA To monitor our credit ratings and our capacity for long-term ? nancing, we consider various qualitative and quantitative factors. We monitor the ratio of our debt to our total capitalization as support for our long-term ? nancing decisions.At January 31, 2010 and January 31, 2009, the ratio of our debt to total capitalization was 36. 9% and 39. 3%, respectively. For the purpose of this calculation, debt is de? ned as the sum of short-term borrowings, long-term debt due within one year, obligations under capital leases due in one year, long-term debt and long-term obligations under capital leases. Total capitalization is de? ned as debt plus total Walmart shareholders’ equity. Our ratio of debt to our total capitalization decreased in ? scal 2010 primarily due to a decrease in short-term borrowings. W e expect to incur capital expenditures of approximately $13. 0 billion to $15. billion in fiscal 2011. We plan to finance this expansion and any acquisitions of other operations that we may make during fiscal 2011 primarily from cash flows from operations. Allocation of Capital Expenditures Projected Capital Expenditures New stores, including expansions and relocations Remodels Information systems, distribution and other Total U. S. International Total Capital Expenditures Actual Fiscal Year 2011 Fiscal Year Fiscal Year 2010 2009 31% 15% 29% 17% 34% 10% 21% 23% 20% 67% 69% 64% 33% 31% 36% 100% 100% 100% Common Stock Dividends We paid dividends of $1. 09 per share in ? scal 2010, representing a 15% increase over ? cal 2009. The ? scal 2009 dividend of $0. 95 per share represented an 8% increase over ? scal 2008. We have increased our dividend every year since the ? rst dividend was declared in March 1974. On March 4, 2010, the company’s Board of Directors approved an increase in the annual dividend for ? scal 2011 to $1. 21 per share, an increase of 11% over the dividends paid in ? scal 2010. The annual dividend will be paid in four quarterly installments on April 5, 2010, June 1, 2010, September 7, 2010 and January 3, 2011 to holders of record on March 12, May 14, August 13 and December 10, 2010, respectively. 4 Walmart 2010 Annual Report 107077_L01_FIN. indd 107077_L01_FIN. indd 24 4/6/10 8:25:52 PM Management’s Discussion and Analysis of Financial Condition and Results of Operations Company Share Repurchase Program From time to time, we have repurchased shares of our common stock under a $15. 0 billion share repurchase program authorized by our Board of Directors on June 4, 2009 and announced on June 5, 2009, which replaced and terminated a $15. 0 billion share repurchase program approved by our Board of Directors on May 31, 2007 and announced on June 1, 2007.As was the case with the replaced share repurchase program, the new program has no exp iration date or other restrictions limiting the period over which we can make our share repurchases, and will expire only when and if we have repurchased $15. 0 billion of our shares under the program or we terminate or replace the program. Any repurchased shares are constructively retired and returned to unissued status. We spent $7. 3 billion, $3. 5 billion and $7. 7 billion in share repurchases during ? scal year 2010, 2009 and 2008, respectively.We consider several factors in determining when to execute the share repurchases, including among other things, our current cash needs, our capacity for leverage, our cost of borrowings and the market price of our common stock. As of January 31, 2010, the program had approximately $9. 2 billion remaining authorization for share repurchases. Contractual Obligations and Other Commercial Commitments The following table sets forth certain information concerning our obligations and commitments to make contractual future payments, such as debt and lease agreements, and contingent commitments:Payments Due During Fiscal Years Ending January 31, (Amounts in millions) Recorded contractual obligations: Long-term debt Short-term borrowings Capital lease obligations Unrecorded contractual obligations: Non-cancelable operating leases Interest on long-term debt Trade letters of credit Purchase obligations Total commercial commitments Additionally, the company has approximately $11. 2 billion in undrawn lines of credit and standby letters of credit which, if drawn upon, would be included in the liabilities section of the Consolidated Balance Sheets.Purchase obligations include legally binding contracts such as ? rm commitments for inventory and utility purchases, as well as commitments to make capital expenditures, software acquisition/license commitments and legally binding service contracts. Purchase orders for the purchase of inventory and other services are not included in the table above. Purchase orders represent authorizati ons to purchase rather than binding agreements. For the purposes of this table, contractual obligations for purchase of goods or services are de? ned as agreements that are enforceable and legally binding and that specify all signi? ant terms, including: ? xed or minimum quantities to be purchased; ? xed, minimum or variable price provisions; and the approximate timing of the transaction. Our purchase orders are based on our current inventory needs and are ful? lled by our suppliers within short time periods. We also enter into contracts for outsourced services; however, the obligations under these contracts are not signi? cant and the contracts generally contain clauses allowing for cancellation without signi? cant penalty. Total 2011 2012-2013 2014-2015 Thereafter $37,281 523 5,584 $ 4,050