Trek’s External and Internal EnvironmentsToday in the United States, inflation, cost of materials, and unemployment are fairly low and are not increasing. Emerging economies are growing more rapidly than the U.S. economy in general. Foreign trade is relatively open, so manufacturers face intense international and local competition, with pressure to keep prices low and opportunities to utilize low-cost labor and raw materials from around the world. New manufacturing technologies, futuristic materials, and e-commerce are becoming more prevalent and affordable. The political–legal climate is favorable to business in the United States and most developing nations, whereas regulation is higher in the European Union. The standard of living is stable, the population is aging, and ethnic diversity is increasing.Today in the bicycle-manufacturing industry, manufacturers must invest very heavily in research and development (R&D) to compete effectively on a global scale. Domestically, the bicycle-manufacturing industry is fragmented, with the largest firm, Trek, controlling just 24 percent of sales. The industry’s customers are primarily local, independent bike retailers, a very fragmented group. The Internet, and eBay in particular, provides alternate channels for new and used bike sales. Bike riders, the ultimate purchasers, are interested in style, comfort, and high-tech features, as well as environmental and health issues. Suppliers of many bike components are small, local manufacturers located in developing countries. However, a few suppliers are more powerful, such as Shimano, an internationally known maker of bicycle components and cycling gear. Regulators are not a significant force for bicycle manufacturers, but Trek and others have numerous joint ventures. In one example, Trek teamed with AMD, Nike, and other companies to produce the high-performance cycle used by Lance Armstrong in the Tour de France and other races.Trek has excellent R&D capability and effectively utilizes low-cost manufacturers in producing the more affordable products in its broad line of bikes. However, its Wisconsin factory produces its high-end lines and can customize a bike to a customer’s exact specifications. Trek is beginning to push to improve the customer bike-buying experience. The company will limit the number of retailers it uses and requires retailers to stock a higher percentage of Trek products. In return, it will provide training and funds to improve in-store marketing and increase customer loyalty.Answer the 3 questions below: Based on the reading, conduct a SWOT analysis for Trek. What was the most challenging part of doing the SWOT analysis?Based on your analysis, how do you think the company is doing?

M4A1: Walmart Integrative Case 7.1 (Chapter 7 p.485)Grading and Mark Allocation:This assignment is graded out of 100% and specific point allocation for each part of the assignment is shown in brackets ([ ]) at the end of each question. For the calculation based questions all the steps need to be shown clearly.Required:1. Effectively capitalize the operating lease obligations. You must first choose and justify an interest rate. Assume that all cash flows occur at the end of each year and assume 10 periods for the ‘Thereafter’ period. You will need to indicate the Present value factor and the present value for each of the period(s) examined. One suggestion for the interest rate would be to divide the interest expense for the fiscal year ending January 31, 2016, by the average of the January 31, 2016, and January 31, 2015, interest-bearing debt. [Total 50 points: 40 points for capitalization and 10 points for justification of interest rates].2. Re-compute the long-term debt to long-term capital ratio using your capitalized operating leases. [30 points: 10 points for calculation of long-term debt to long-term capital without the capitalized operating lease and 20 points for calculation of long-term debt to long-term capital with the capitalized operating lease]3. Based on your results in (B) discuss what insights you have obtained regarding the financial position and risk of Walmart [20 points]***The portion below came from my book. It states to go on Walmart website to get the info. I don’t see the actual article in my book***INTEGRATIVE CASE 7.1 WalmartIt is common practice for retail outlets to lease their store locations and distribution centers. Walmart is no exception. Note 11 to Walmart’s consolidated financial statements for the fiscal year ending January 31, 2016 (found online at the text website or available for download in the investor relations section of Walmart’s website), provides information on future operating lease commitments.REQUIRED a. Effectively capitalize the operating lease obligations. You must first choose and justify an interest rate. Assume that all cash flows occur at the end of each year.b. Recompute the long-term debt to long-term capital ratio (see Chapter 5) using your capi-talized operating leases. Comment on the resultsCustomer files