Impact of Micro Environment on Wal-Mart in the US

RUNNING HEAD: Business Environment 0
wal-mart
Business Environment
(Student Name)
11/1/2018

Business Environment 1
Table of Contents
Introduction................................................................................................................................1
Micro Environment Issues.........................................................................................................2
Consumer Behaviour and their influences.............................................................................2
Competitor analysis................................................................................................................4
Government Regulation..........................................................................................................5
Public Opinion........................................................................................................................6
Porter Five Forces of Wal-Mart.................................................................................................7
Recommendation........................................................................................................................9
Conclusion................................................................................................................................10
References................................................................................................................................12

Business Environment 2
Introduction
The business environment comprises of various internal and external forces under
which companies or organizations operate. (Hilton & Platt, 2013). The successful companies
such as Wal-Mart know the importance of constantly watching and also adapting changes in
the environment of business (Pope & Pope, 2015). The business environment is categorised
into macro and micro environment. The macro environmental factors have an impact on
every organization at universal which are operating in a particular market such as economic
environment, political environment and so on (Khan & Quaddus, 2015). On the other side,
micro environment factors have an organization specific impact such as customers, suppliers
and so on (Turner, 2017).
Micro environment includes consumer behaviour, public opinion, government
regulation, and competitors which greatly affect performance of the company. The behaviour
of consumer greatly influences Wal-Mart. The company always trying to provide best
services and products to their customers but consumers has a tendency to compare their brand
with others. (Banai & Antipova, 2016).
In the following context, the focus will be done on evaluating the impact of the micro
business environment on the Wal-Mart based on U.S. The scope of the research has been
included the forces of micro environment with the factors affecting the company.

Business Environment 3
Micro Environment Issues
Consumer Behaviour and their influences
The bargaining power of consumers has greatly affected and influences the company
Wal-Mart. The company tried to do their best to satisfying their customers and keep prices at
minimum of the products which they have provided to their customers. But when the
products are of similar nature with the competitive companies, then customers mostly
compare their price of product among the different suppliers that increase competition as well
as force to reduce the price which affected the profits (Young, Russell, Robinson &
Chintakayala, 2018).
There are some factors that affecting Wal-Mart which is explained in below points:
Size and Number of customers
The demand of consumer greatly affected from the larger number of consumers which
influencing purchasing power over suppliers in the industry of retail. The demand of large
number of consumer depends on their lifestyle, urban migration, and cultural diversity. Wa-
Mart catered their products accordingly which enhance their brand image in the retail
industry
Consumer Mentality
Most of the consumers want to buy product with the reasonable price, they have a
mentality that the local suppliers would provide them the products at reasonable price rather
than the companies such as Wal-Mart. In such a situation, Wal-Mart offered discounted price
to gain the focus of the customers. It attracts maximum customers at greater level.
Purchase quantity and quality