EXECUTIVE SUMMARYWal-Mart is planning to introduce farm fresh department into its current model. It is already well established retail company into its industry. The main motto of Wal-Mart is to sell best items at low price. Introducing a new product line into its model will be challenging. The first problem will be whether it would be as successful as its current product line, what will be the potential cost and what target market it should focus and whether it will be able to catch the same potential customers that it has for its other line of products or departments.Another problem will be whether they would be able to follow their winning formula of stacking high and sell low. Wal-Mart is following economies of scale by buying at bulk and selling at low prices. Since farm fresh department includes fruits and vegetables, it would be difficult to implement this strategy. So based on decision model, they have to develop new strategy for introducing farm fresh.We have applied various models like decision analysis, regression and forecasting. Based on application, we recommend that Wal-Mart will make good profits and would be able to attract customers if it introduces new division of farm fresh at St Catharines.INTRODUCTIONWal-Mart"BUY IT LOW, STACK IT HIGH, SELL IT CHEAP"COMPANY PROFILEUSP: Everyday low price, Rollbacks Wal-Mart Global (NYSE: WMT : $52.77) (11/24/08 16:03:38 EST)Wal-Mart Stores, Inc. is both a domestic enterprise, as well as a international discount retailer. They operate retail stores domestically in the US and various international markets. Wal-Mart operates on an "Everyday Low Price" philosophy because they are able to maintain their low price structure through complete expense control. With this philosophy they have proven to be extremely profitable domestically and internationally. Their primary task is buying from suppliers at a low cost and then reselling the goods to customers at a low price, to achieve their company philosophy of low prices and great customer service. Their product line consists of clothing, electronics, toys, furniture, frozen food items, grocery (farm fresh at selected stores), photo lab services, mc Donald restaurant.Wal-Mart's GLOBAL ESTABLISHMENTS
HISTORY1962 - Wal-Mart beginsBefore opening Wal-Mart, Sam traveled the country studying everything he could about discount retailing. Sam and his wife Helen put up 95 percent of the money for the first Wal-Mart store in Rogers; Ark. EDLP has been a part of Wal-Mart since its first store opened in 1962.1972 - Wal-Mart goes publicDiscounters such as Kmart quickly expanded in the 1960s, while Sam only had enough money to build 15 Wal-Mart stores. In 1972, Wal-Mart stock was offered for the first time on the New York Stock Exchange.The 1980s - Wal-Mart comes of ageIn 1983, the first Sam's Club members-warehouse store opened. The first...