Business Environment Analysis of Walmart

Running head: BUSINESS ENVIRONMENT ANALYSIS OF WALMART
An Analysis and Evaluation of the Changes in Wal-Mart’s External Environment and Its Impact
on Its Business Strategy
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1BUSINESS ENVIRONMENT ANALYSIS OF WALMART
Executive Summary
Carrying out effective internal and external business environment analysis, certain renowned
strategic management tools are employed by the company in order to analyse the strategic
position of the organizations in the fiercely competitive business environment caused due to US/
China trade war. The research objective is focused on analysing the business environment of
Wal-Mart in order to develop effective strategic recommendations for the company. The research
provided necessary implications that for carrying out effective internal and external business
environment analysis, certain renowned strategic management tools are employed by the
company in order to analyse the strategic position of the organizations in the fiercely competitive
business environment. Wal-Mart is facing issues such as foreign exchange risks and increased
business market competition because of high tariffs imposed on imported goods from China due
to US/ China trade war. Increasing presence of online retailers such as Amazon along with
national, regional and local operators are imposing threats as the e-retailers are expanding their
presence to gain increased consumer base. Another recommendation that is offered to Wal-Mart
in attaining sustainable competitive edge is through developing remodelling strategy. In this
strategy rather than focussing on opening new stores, the company can take the strategic decision
to remodel its existing outlets in a manner for offering simpler and faster shopping experience to
all its consumers. Strategy of tapping into e-commerce market is recommended to keep on
providing consumers with products with low prices despite high taxes on imports due to US/
China trade war.

2BUSINESS ENVIRONMENT ANALYSIS OF WALMART
Acknowledgement
I would like to express the deepest appreciation to my committee chair Professor, who has the
attitude and the substance of a genius: he continually and convincingly conveyed a spirit of
adventure in regard to research and scholarship, and an excitement in regard to teaching. Without
his guidance and persistent help this dissertation would not have been possible.

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Table of Contents
Chapter 2: Literature Review...........................................................................................................4
2.1. External and Internal Environment Analysis Tools..............................................................4
2.2. Strategic Direction and basis of Competitive Strategy.........................................................5
2.3. Strategy Evaluation and Selection........................................................................................6
Chapter 3: Methodology..................................................................................................................7
3.1. Applying Triangulation Method...........................................................................................7
3.2. Qualitative and Quantitative Methods..................................................................................8
3.3. Data Collection Methods......................................................................................................8
3.4. Data Analysis Method..........................................................................................................9
Chapter 4: Presentation of Findings................................................................................................9
4.1. PESTLE Analysis of Wal-Mart............................................................................................9
4.2. SWOT Analysis of Wal-Mart.............................................................................................12
4.3. Porter’s Five Forces Analysis.............................................................................................14
Chapter 5: Reflection.....................................................................................................................16
Chapter 6: Recommendations and Conclusion..............................................................................17
6.1. Conclusion..........................................................................................................................17
6.2. Recommendations...............................................................................................................20
References......................................................................................................................................23

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5BUSINESS ENVIRONMENT ANALYSIS OF WALMART
Chapter 2: Literature Review
2.1. External and Internal Environment Analysis Tools
Spicer and Hyatt (2017) indicated that the global business environment has rapidly
changed and to thrive in the global business environment, the companies are observed to be in
constant need of management strategies that can facilitate in better organizational development.
Epstein (2018) revealed that for carrying out effective internal and external business environment
analysis, certain renowned strategic management tools are employed by the company in order to
analyse the strategic position of the organizations in the fiercely competitive business
environment. These reasechers also stated that the most common strategic management tools
those are employed by the organizations in attaining strategic insight on its market position
includes porter’s five forces analysis, PESTLE analysis and SWOT analysis. Fahy (2017)
indicated that these strategic management analysis tools facilitate the managers in segmenting
goals into manageable parts. This can be done through evaluating the use of company resources
for generating strategic advantages of cost saving, business growth along with consumer
satisfaction.
 Porter’s five forces analysis: Tan (2017) stated that this is a strategic management tool
developed by Michael E. Porter that facilitates the managers in analysing the external
business environment based competitive forces impacting the company’s strategic
position in the market. It is also gathered that relied on this analysis, the managers can
analyse the threat of entrants, the bargaining power of buyers and consumers, threat of
substitutes, rivalry knowledge and the competitive forces. These researcher also revealed
that through employing this analysis tool the organizational leaders to analyse the impact