Cost Behavior

Cost Behavior

Introduction

Wal-Mart Stores operates retail stores in a range of formats. Its operations are comprising of three business segments: First is Walmart U.S., which is based on retail stores in different formats in the U.S. under the Walmart or Wal-Mart brand, as well as Walmart's online retail operations, walmart.com; International, which consists of retail operations in 14 countries, and comprises of retail stores and restaurants including discount stores, supercenters and Sam's Clubs; and Sam's Club, which consists of membership warehouse clubs in the U.S. and the segment's online retail operations, samsclub.com. As of Jan 31 2011, Wal-Mart Stores had a total of 4,413 domestic stores and 4,557 international stores (Wal-Mart, 2011).

In comparison to Wal-mart, Target store operates as two reportable segments. Target store's Retail Segment includes its merchandising operations, including its online business, Target.com. Target store's Credit Card Segment provides the Target Visa and the Target Card credit cards, as well as the Target Debit Card. Target store operates Target general merchandise stores and SuperTarget® stores, providing a range of general merchandise and food. Target store's merchandise includes household products, hardlines, apparel and accessories, home furnishings and décor, and food and pet supplies. Target store's food product includes some perishables and some additional dry, dairy and frozen items. At Jan 29 2011, Co. had 1,750 stores in 49 states and the District of Columbia.

Financial Analysis

This paper focuses on the financial status of Wal-Mart Stores and Target stores for 2 years that are from 2010 to 2011. This study will describe the importance of choosing the right strategy. Internal and external analysis of Wal-Mart Stores and Target stores are made in order to maintain the status as the low cost retail store. It includes the model of the strategy in use. The strategic choice of Wal-Mart Stores and Target stores make ...