Evaluation of Walmart in Africa Case Study

Running head: EVALUATION OF WALMART IN AFRICA CASE STUDY
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Evaluation of Walmart in Africa Case Study
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EVALUATION OF WALMART IN AFRICA CASE STUDY
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Introduction
The Purpose
The paper will address the internal environment of Walmart Inc. in relation to its operations. The
major part is concerned with Walmart Inc. in the African continent and the several strategies it
employed to thrive on the global market. The internal analysis, however, will include the
company internal structure, resources, culture, employees and its strengths and weaknesses.
Key Definition
According to the business definition, internal environment refers to the company environmental
surrounding conditions, factors, events and entities within its structure that influences its daily
operations. The influence is on employee behavior throughout their duties and operations in the
organization. This also incorporates the company’s leadership styles, mission statement, and its
operational organizational culture.
History of Walmart Company
Walmart Inc. is a leading American based retail multinational firm that mainly operates in
different stock operations including hypermarkets among others. The firm was established by
Sam Walton in the year 1962 who initially owned some large retail business including Ben
Franklin. The expiry of the lease triggered him to begin his own Dime and Walton Five that later
resulted in the emerging of Walmart Company. The company has gained international
experiences through its subsidiaries and joint venture operations in several countries such as
Argentina, Mexico, China, and Canada among others.

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The company provides quality services to consumers which have attracted many potential
customers through its customer-centered strategy. Walmart Inc. The company faces competition
from various other global companies such as Amazon, Lowe’s Home Depot, eBay, Alibaba,
Costco among other well-established firms. In most cases, the company has fully utilized its
supply chain management strategy to override other competitors on the market structure with
several sustainable competitive advantages which include but not limited to lower costs of
production, in-store variety selection, and improvement, inventory carrying cost reduction as
well as consumer high competitive pricing.
Internal Environment Analysis
Internal factors are major contributors of organizational moves both as the response to the
external environment and its self-sustainability. The factors, however, include the company
mission statement, leadership, communication strategies, organizational culture and structure,
and employees.
Walmart Mission Statement: “To save people money so that they can live better”.
The mission statements reveal the ideals of the founder of the company who was Sam Walton.
Looking at this statement keenly one will realize the company is majorly a customer-centered
platform which encourages their less expenditure with surety of good living. For example, in the
case study of Walmart in Africa, despite the numerous challenges the company faced to
penetrate the global market, it still emerged a winner at the end through its suitable strategic
measures according to Bezuidenhout, & Kleynhans, (2015). The dwindled opportunities on the
local market due to the 2018 crisis made possible for the company to sail through the global
African market. There were several external factors which seemed challenging to the company

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including poor economic conditions and political instabilities among African countries. The
company only focused on delivering quality services and products to customers through its
ideological needs to enhance its performance.
The company Internal Environment
Reputation with customers
The company has maintained its good rapport with customers through the provision of its goods
and services at lower prices. This has left customers more satisfied as they are in a better position
to save especially those in rural areas. The company has also become powerful by selling well-
known product brands to the market at affordable prices which is a superior value of attracting
and maintaining potential customers.
Organizational capabilities
The remote frequency devices are well linked with consumer preferences providing the company
with first-hand information about their preference. The technology enables tracking products
sold from the store for effective accountability. The presence of an electronic data interchange
device has improved transaction efficiency between the company and customers that majorly
help in tracking business-related transactions within the firm.