Business Environment | Case Study Report | Walmart

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Business Environment 1
Contents
Introduction......................................................................................................................................1
Functional Areas of Walmart...........................................................................................................1
Internal and External Stakeholders..................................................................................................3
Roles............................................................................................................................................3
Nature and degree of main stakeholders’ interests, and implications of conflicting interests.....4
Level of Main Stakeholder’s Influence.......................................................................................5
Stakeholder Matrix......................................................................................................................6
Comparison of two Industries..........................................................................................................7
Conclusion.......................................................................................................................................7
References........................................................................................................................................9

Business Environment 2
Introduction
The purpose of this report is to guide the reader regarding the details about the company
Walmart. The company Walmart is an American multinational retail organization that operates
its business in hypermarkets, grocery stores and discount departments as well. The company is
headquartered in Bentonville, Arkansas. The organization was found in the year 1962 by Sam
Walton and incorporated in the year 1969. The company is present in the retail sector and serve
its products and services to the complete world. Further, it should be noted that the retail industry
is one of largest industry present in the world as the industry serve goods and services that are
required by the people on a regular basis. This industry serves consumer goods to the people that
are required by them regularly (Obeng, 2019). The below mentioned report details the viewers
about the stakeholder analysis of the company Walmart. Functional areas of the company along
with the details about the external and internal stakeholders are discussed in the paper. Further,
the roles, nature and level of influence of these stakeholders on the performance of the company
in explained in the report. The stakeholder matrix and the comparison with other industry is
conducted so as to provide a view of difference in stakeholders of both the industries (Gulati, R.,
Mayo, & Nohria, 2016). Further, more details about the stakeholders of the company Walmart
are mentioned below:
Functional Areas of Walmart
A business is nothing without its departments and appropriate functions conducted in the
environment. The key elements that a business requires to grow in the environment involve the
functional areas. These are the areas that work together to make the organization successful in
the external environment (Zahller, & Beranek, 2017). The company has various organizational
functions like human resource management, finance, operations, marketing, legal and
information technology. Below mentioned is the further elaboration of these departments of the
company Walmart:
Human Resource Management: The Company Walmart works with more than 2.2 million people
in the worldwide market under which more than 1.5 million people are employed in US and rest
are placed in different parts of the world. The company manages the interest of employees in an

Business Environment 3
efficient manner because they have millions of employees spread in the world who work to
achieve the objectives of Walmart (Frynas, & Mellahi, 2015). Walmart is one of the biggest
organizations present in world in terms of organizational size and financial performance. The
organization focuses on its internal activities and how they affect the satisfaction of employees in
the environment so that growth is effectively achieved. The business address the job design of
the employees and analyse how they contribute in increasing the performance of the employees.
The company believes that the employees are the biggest asset of the company who help the
business to organize other functions and effectively achieve profitability as well. Thus, it is
important for the business to conduct activities that maintain their level of satisfaction in the
environment (Ng, & Thosuwanchot, 2019).
Finance: The company earned a net income of US$6.67 billion in the first fiscal year of 2019.
The international operations of Walmart accounted $120.824 billion, so it can be assumed that
the company operate large scale financial transactions in the environment. The company operates
the functions in finance department by crunching massive ratios and amounts with the help of
appropriate strategies in the environment. Mitigation of risk is one of the major focuses on the
finance department of the company. This department of the company helps the organization give
action to the strategies by investing in the production and other activities of the company (Le,
Stathopoulos, Van Woensel, & Ukkusuri, 2019).
Operations: The operations management activities of the company focuses on various
approaches in the environment of managing and supporting the supply chain and inventory
system of the company. The success of Walmart is partially based on the effective performance
strategies of operations management of the company. There are total ten decision on which the
company focuses so as to attain complete grip on the operating functions of the company
Walmart. The top 10 decision making area are, design of the products and services, design of the
process and capacity analysis, quality management of goods, location strategy, human resource
and job analysis, layout design and strategy, inventory management, supply chain management,
maintenance and lastly scheduling. These are the top ten decision making areas present in the
operations system of the Walmart company on the basis of which productivity is attained to the
business (Gibson, 2017).