Calculate return on equity for sears and wal-mar

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Reference no: EM132709997

Problem 1: In general, what are the retailing strategies of Sears and Wal-Mart? In answering this question, do not simply regurgitate the information in the case materials. Instead, consider the issues involved in assessing the business environment, the topics covered in your strategy course, and your personal knowledge of these companies and the retailing industry. Your answer does not require additional research beyond these sources and does not need to be lengthy, but it must be thoughtful.

Problem 2: Calculate return on equity (ROE) for Sears and Wal-Mart in fiscal 2002. Disaggregate ROE using the DuPont Model and show that ROE = Net Profit Margin × Asset Turnover × Financial Leverage. What is driving the performance of these two companies? In other words, how do Sears and Wal-Mart create value?

Problem 3: Which company utilizes its assets more efficiently? Determine the major causes of the overall difference in efficiency by examining turnover of significant categories of assets.

Reference no: EM132709997

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