Tom is the president of the Chamber of Commerce in Park Falls, Wisconsin. Tom wo
ID: 3818258 • Letter: T
Question
Tom is the president of the Chamber of Commerce in Park Falls, Wisconsin. Tom would like to bring more retail in the area and is considering three companies: Wal-Mart, Costco and Target. He was able to locate some revenue data – found in the data below. Tom is interested in what all these data tell him. He has asked you to analyze the data for him and tell him what you discover. Compare and contrast the three companies. Some questions you can ask: Which company is growing at the fastest rate? there any evidence of any of the company’s growth leveling off? Are seasonal fluctuations an issue in these sales figures? Which company is the most affected by seasonality. Predict revenue for each of the companies through 2018. What recommendations do you have for Tom based on revenue?
INSTRUCTIONS
Analyze the Data
Quarterly Sales Values in Millions of Dollars
Lowes Home Depot Walmart
Fiscal 1999 Q1 $ 3,772 $ 8,952 $ 29,819
Q2 $ 4,435 $ 10,431 $ 33,521
Q3 $ 3,909 $ 9,877 $ 33,509
Q4 $ 3,789 $ 9,174 $ 40,785
Fiscal 2000 Q1 $ 4,467 $ 11,112 $ 34,717
Q2 $ 5,264 $ 12,618 $ 38,470
Q3 $ 4,504 $ 11,545 $ 40,432
Q4 $ 4,543 $ 10,463 $ 51,394
Fiscal 2001 Q1 $ 5,276 $ 12,200 $ 42,985
Q2 $ 6,127 $ 14,576 $ 46,112
Q3 $ 5,455 $ 13,289 $ 45,676
Q4 $ 5,253 $ 13,488 $ 56,556
Fiscal 2002 Q1 $ 6,470 $ 14,282 $ 48,052
Q2 $ 7,488 $ 16,277 $ 52,799
Q3 $ 6,415 $ 14,475 $ 52,738
Q4 $ 6,118 $ 13,213 $ 64,210
Fiscal 2003 Q1 $ 7,118 $ 15,104 $ 51,705
Q2 $ 8,666 $ 17,989 $ 56,271
Q3 $ 7,802 $ 16,598 $ 55,241
Q4 $ 7,252 $ 15,125 $ 66,400
Fiscal 2004 Q1 $ 8,681 $ 17,550 $ 56,718
Q2 $ 10,169 $ 19,960 $ 62,637
Q3 $ 9,064 $ 18,772 $ 62,480
Q4 $ 8,550 $ 16,812 $ 74,494
Fiscal 2005 Q1 $ 9,913 $ 18,973 $ 64,763
Q2 $ 11,929 $ 22,305 $ 69,722
Q3 $ 10,592 $ 30,744 $ 68,520
Q4 $ 10,808 $ 19,489 $ 82,216
Explanation / Answer
In the question you have mentioned Walmart, Costco, and Target. But in the data provided it is stated as Lowes, HomeDepot and Walmart.
Let me proceed further by considering the three companies as Lowes, HomeDepot and Walmart.
Now the illustration is as follows:
In Fiscal 1999, Lowes has increase in $663 Million in Q2 compared to Q1, and Decrease in $526 Million in Q3 to that of Q2, and also Decrease in $120 Million compared to Q3 in Q4.
Where as HomeDepot has increase in $1479 Million in Q2 compared to Q1, and Decrease in $554 Million in Q3 to that of Q2, and also Decrease in $703 Million compared to Q3 in Q4.
Where as Walmart has increase in $3702 Million in Q2 compared to Q1, and Decrease in $12 Million in Q3 to that of Q2, and again Increase in $7276 Million compared to Q3 in Q4.
By seeing the above indications we can come to know that first two companies revenue has gradually Decreased in Q3 and Q4 where as Walmart has a Increase in Q4.
Similarly by assessing each and every quarterly results of each fiscal we are aware that none of the companies revenues are gradually increasing or decreasing throughout all the years in all the Quarterly reports but they are very much fluctuating.
1) We can clearly say that the first Company Lowes is growing fast when compared to other two companie, as it has recorded 186.5% growth till 2005, where as Home Depot and Walmart has recorded 117.7% and 175.7% Respectively.
2) Seasonal fluctuations are very much there in the above provided data and Walmart is the company which is highly affected due to seasonality. have a look at the company revenues Q4 and subsequent year's Q1.
Where as remaining are also affected but not that extent of Walmart.
As multiple questions are there in the given question only first Two will be answered according to Chegg Policy. Please repost the question with remaining subparts.