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(doc) Business Organisations and Environments in a Global Context Assignment

   

Added on  2021-02-20

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BUSINESS ORGANISATIONS ANDENVIRONMENTS IN A GLOBALCONTEXT

TABLE OF CONTENTSINTRODUCTION...........................................................................................................................3BACKGROUND INFORMATION OF WALMART....................................................................3BACKGROUND INFORMATION ON BUSINESS ENVIRONMENT IN CANADA................5Pestle Analysis.............................................................................................................................5ANALYSIS OF BUSINESS SCENARIO.......................................................................................8Porter’s Five Force......................................................................................................................8Demand- Supply Scheme..........................................................................................................11CONCLUSION..............................................................................................................................12REFERENCES..............................................................................................................................13

INTRODUCTIONBusiness organisation refers to structured corporation which are designed to improve societyand earn profits by accomplishing specific goals. Global business environment suggests differentworking condition and exogenous factors in comparison to home environment of enterprisewhich influence resource capabilities, use and decision making. When expanding businessoperation, the foremost consideration of firm is to seek opportunity for foreign direct investment(FDI). FDI is form of controlled ownership in a company in one country by enterprise based inanother country (Prajogo, 2016). The present study is based on assessing foreign direct investment opportunity for Walmart inCanada. Walmart is American multinational retail company which operates in chain ofsupermarkets, grocery stores and discount departmental outlets. The company owns 11368 storesacross globe and with 2.2 million employees worldwide. Expansion of Walmart in Canada isfocused on increasing number of stores and FDI in Canada is an opportunity as the country hasdynamic economy with market of 30 million consumers and qualified workforce. The report will outline overview of Walmart which will help in understanding favourablecondition for expansion like financial performance, current international performance, ownershipand size. Further, it will cover information of business environment of Canada with the help ofPestle analysis.BACKGROUND INFORMATION OF WALMARTSize of Walmart in Canada:Walmart is worlds largest retail company with total revenue of 514.41 billion of U.S.Dollars in 2019. The Walmart is founded by Sameul Waltson in Bantonvile Arkansas in 1962and its the headquarter of the Walmart retail company. However Walmart was establish inCanada in early 90 when the company obtain 122 Woolco stores in Canada. And now 31 January2019 company operated 411 stores of Walmart at the different location in Canada. The companyalso includes Walmart discount stores, super centres and Sam's club stores (Hillary, 2017). TheWalmart stores has 80 thousand current employees in Canada and it is the largest privatecompany in Canada. The total Stores of Walmart in whole world are 11,386 with 2.2 millionemployees ( 1.5 million in US & 700,000 at internationally).Financial Performance of Walmart in Canada:3

That we know the Walmart is largest retail company in world and have numbers of storesin the world. The financial performance of Walmart is increasing day by day. We can measurethe financial performance of Walmart from last five year of financial reports,. We measure theperformance of Walmart from the 2015-2019. In 2015 the total revenue of Walmart is 485,651US dollars and the operating income was 27147 us dollars. In 2016 company total revenue was482,130 us dollars and operating income is 24105 us dollars. In 2017 the company total revenuewas 485,873 us dollars and the operating income is 27764. 2018 has the total revenue is 500343and the operating income is 20437 and in current scenario company dealing with 514.4 billion usdollar total revenue and 21.96 billion is operating income (Belás and et.al., 2015). The companynet income till date is 6.67 billion and its also increasing day by day. The sales and profitrevenue of Walmart is 138.8 billion and an increase 2.5 billion us dollars. The sales growth inCanada is 32.3 billion us dollars (Walmart, 2019).Legal rights and organisation structure of Walmart in Canada:The Walmart follow the Functional organisation structure in that type of structurecompany employees are different segment for specific task and role. Walmart also follow thesame structure in this structure the CEO of Walmart gives the directions of the differentdepartments like CFO, marketing, HR, admin, ethics and compliance and the operations andsupply chain. That all department also have their sub- department who follow the order anddirections of middle management. Its provide health and safety act, for their employees, alsomange the discriminations at work place. Company is also register under New York stockexchange (Kozubíková, Homolka and Kristalas, 2017).International operations of Walmart :The Walmart of Canada provide so many services to their customers not only in nationalboundaries but also at internationally. The company have 11383 stores at international level.That all stores are dealing with many kinds of products and services like electronics, movies andmusic, home and furniture’s, grocery, home improvement, clothing, footwear, jewellery, healthand beauty, pet supplies, photo finishing, craft, party supplies etc. its also provides Walmart -2-Walmart, Walmart money card, pick up today, Walmart.com, Walmart pay types of services totheir international customers (Eling and Schaper, 2017). Walmart follow some strategies for4

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