Business Environment Analysis Report: Walmart's UK Operations Review

This report provides a comprehensive analysis of Walmart's business environment, focusing on both internal and external factors. It begins with an introduction to the business environment and its impact on organizations, particularly Walmart's operations in the United Kingdom. The report then delves into the relationship between different organizational functions, such as research and development, marketing, manufacturing, human resource management, and accounting and finance, and how they link with organizational objectives and structure. A key aspect of the report is the identification of the positive and negative impacts of the macro environment, including political, economic, social, and technological factors, on Walmart's business operations. Furthermore, the report conducts an internal and external analysis using a SWOT framework to identify the company's strengths, weaknesses, opportunities, and threats, and explains how these interrelate with external macro factors. The report concludes with a summary of the findings and includes references to support the analysis.

Business Environment

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 and P2.....................................................................................................................................1
Covered in PPT............................................................................................................................1
TASK 2............................................................................................................................................1
P3 Relationship between different organisational functions that link with organisational
objectively and structure..............................................................................................................1
TASK 3............................................................................................................................................3
P4 Identification of positive and negative impacts of macro environment on business
operations.....................................................................................................................................3
TASK 4............................................................................................................................................4
P5 Conduct internal and external analysis to identify strength and weakness............................4
P6 Explain strength and weakness interrelate with external macro factors.................................5
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................8

INTRODUCTION
In an organisation, the business environment required to analysing two factors such
external and internal factors which directly or indirectly impact on business operations and its
functions in better manner. This has been considered as different components which are present
in the business environment and utilise for giving wast level of affect on whole factors which are
associated with units of the company, their nature, cost of effective products, standards,
administration and positioning and many more. In fact, growth and success of the business are
adopting appropriate growth and success in proper manner. They are operating and regulating
effective business operations and their functions for managing all activities (Cantwell and et. al.,
2010). It includes an external and internal component which does not controllable by
organisation and help in solving major issues and problems. The report is based on WALMART
company which is situated in united kingdom. In this assignment, there are various types of
company size, scope and legal structure of such companies. Apart from this, they are
determining the impact of macro and micro situations, swot and pestle analysis has been
conducted in effective manner.
TASK 1
P1 and P2
Covered in PPT
1

2

3

4

5

6

7

8

9

10

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TASK 2
P3 Relationship between different organisational functions that link with organisational
objectively and structure
Organisation could handle and emerge their structure of the company along with the
diverse operational environment. In an organisation, an individual completed their work for
fulfilling their organisation target and efficient pre-set targets (Cavusgil and et. al., 2014). For
controlling diverse division surroundings and helps in emerging sound link along with their
clients. There are diverse kinds of divisions that needs to handle communication and link via
Wal-Mart that are elaborated as mentioned:
Research and development department- This is crucial division of the Wal-Mart that
operates for assessing top level position of the market along with the support of implementing
various scientific tools and policies that totally based upon the research and development
projects. Remaining division of the firm organisation are completing work as per the need of the
research reports for productivity and profitability throughout an organisation
Marketing division:- Nowadays, reputation of different merchandise and services of
organization which will assume an essential part in making and keeping up capable connection
with clients by sharing and giving right data in regards to their successful items and
administrations for utilizing diverse strategies and channels Chavis, Klapper and Love, 2011). A
venture showcasing, deals, budgetary office and items which can conveyed by clients in given
day and age that incorporates promoting office, produce area which can-not give help towards
firm achievement and advancement for making high profit.
Manufacturing division: This is the most effective division of the cited organisation as
this would assist in forming various innovating products and offer to their pre-set consumers. If
the consumers return back the buying goods so that action would directly influence financial
development and sales. This will likewise influence on the purchasing ability towards
organisation’s innovative goods and services in an efficient manner. This would also lower
goods costs which directly influence on the organisation productivity.
Human resource management – It is very essential division of every firm because this
will play an important role in operating and regulating their business operations and functions in
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better manner. Along with this, human resource department creating and developing effective
environment in which staff members provide effective services and facilities for accomplishing
desired targets and goals in future period of time (Chesbrough, 2010). The major aim of this firm
is to conduct training for their employee which help them in increasing their skills and abilities in
better manner.
Accounting and finance department - It is another department in which company
manager operated and managed their all required data and information that are associated with
business operations and its major functions in effective manner. this is that division which mange
and operate all business activities and functions in the company that assist them in set accurate
priorities for providing them accurate finance as per their necessary needs and wants at the large
market place. On the other hand, they are perfuming effective activities and operations which
help them in giving best financial operational activities in the firm. This department works for
managing and controlling all cash flows and developing appropriate budget reports properly.
Along with this, the main motive of this division is to manage and maintain all financial budgets
in accurate way.
TASK 3
P4 Identification of positive and negative impacts of macro environment on business operations
In current time period, each firm is doing working as per the market demand and also
analyse external and internal environment which directly affect on employees as well as
organisation performance in better manner (Chow and et. al., 2011). Therefore this will affect the
decision in strategy which is making by company in effective manner. This involves different
types of factors such as political legal social environmental and technological. With the help of
this external risk are a major challenge which occurs within an organisation and create various
types of issues and problems. On the other hand such factors are help in providing correct
direction by which company will easily adopt potential growth and success level for the
company. The Wal-Mart is the glossary store and they are doing work for satisfying all
customers needs and wants in proper manner.
Political and legal factor - This type of factor mainly based on government strategies, activities
along with major changes which directly effect on company process and performance. In the
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current time period it can be identify the legal factor and look forward for government rules and
regulation.
Positive impact - These law and regulation provide stability in the country and reduce
negative approach.
Negative impact - Authority is such that regulate various protocol which assist company
in implementation of new process.
Economic factor - These are such factors which are based on economic condition of the country
and this is directly effect on their performance. This feature is straight force on administration
productivity and predictability (Commander and Svejnar, 2011). Financial issue includes price
rises, sales, tax rate, exchange rate, etc. Wal-Mart needs to increase and control their commerce
activities in other nation so that the company director requires maintain and supervision all
interior and outside factors in correct way.
Positive impact - The proper planning and strategy can assist and having income which
contribute in the growth of economy.
Negative impact - The inflation and tax rate is totally related with economical factor and
sometime it will directly impact on business process.
Social factor - It is those factors which helps in analysing the customer's needs and demands and
try to satisfy their requirements by the company (Drucker, 2017).
Positive impact - The accurate research of market assists Wal-Mart to satisfy their
customers' demands in better manner.
Negative impact - Sometime it is based on improper services and quality of products
which reduces the image of company in the large market place.
Technological factor - It is determined as essential factor of environment which adopts latest
technologies and methods for proper business operation and functions.
Positive impact - Modern technology helps in providing accurate direction to the
company and tries to satisfy their customers' needs and wants.
Negative impact - Untrained employees and poor knowledge is that which does not make
able to the firm for using different technologies in better manner.
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TASK 4
P5 Conduct internal and external analysis to identify strength and weakness
SWOT analysis is important for analysing essential areas so that the company will
develop and make accurate strategies and policies in effective manner. There are some internal
analysis which is mainly focus on internal forces that provide different advantages and
disadvantages for target whole market place. The SWOT analyses of walmart are as under -
Strength - The organisation mainly focus on using and adopting innovative ideas for
maintaining their business operations and functions (Gecevska and et. al., 2010). Company are
able to develop different strategies and policies which are directly associated with human
resource management. Along with this employees are main asset of an organisation who is doing
hard work for achieving desired goals and targets in proper manner. The firm will conduct
effective training and development program for increasing employee's skills and knowledge to
gain high amount of profit and income.
Weakness - The Company mainly deals with different types of product at large market
place. Such as food, clothes and stationery items provided to their customers. Wal-Mart has
various competitors in the market area such as Kmart. Along with this there are various other
rivals who are present in the market such as small retailers, primary stores and some more.
Opportunities - There are different opportunities which are available for the company is
to expand their business operation and function in other location where they easily target large
number of customers towards their products and services (Iskanius and et. al., 2010). They can
also focus on introducing new product and services for satisfy their customers' needs and wants
in effective manner.
Threats - In this consideration there are tough competitors of the company who are also
provide similar type of product and services to their customers which increasing their customer
base. The firm is mainly determined as international retailer so that there is large number of
environmental factors which directly effects on business operation.
P6 Explain strength and weakness interrelate with external macro factors
Macro environment impacted business environment of Wal-Mart company in both
positive and negative manner. External environment is uncertain so that this will directly effect
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on business operation. There are interrelationship between macro factors and organisation
strength that are as under-
Social factor - It is that factor which is based on demand and need of particular
customers by an organisation. Wal-Mart requires to develop effective marketing strategy for
examining various factors which are related to market as well as customers. All these factors are
directly impact on manufacturing process of an organisation. Social factors are associated with
economic factors of external environment that are affected each business activities and functions
in effective manner (Klapper, Lewin and Delgado, 2011). It is those factors which helps in
analysing the customer's needs and demands and try to satisfy their requirements by the
company.
Technological factors - It is that kind of factors which are related to changes that can be
done with the help of new techniques and methods. For Wal-Mart it is necessary that they
should manage and maintain their business activities as per making new ideas and thoughts in
this process they are using modern technologies and methods which help in improving employee
productivity and performance.
Environmental factors - Organisation need to regulate and operate in open area which
cause degradation within the environment. Wal-Mart is properly using their products and does
not waste raw material which create harm to the society.
Political and legal factor - This is that factor which are related to legal policies
regulations and rules are required to follow by company along with this such rules and
regulations help business smoothly run in the market place (Osterwalder and Pigneur, 2010).
This type of factor mainly based on government strategies, activities along with major changes
which directly effect on company process and performance. In the current time period it can be
identify the legal factor and look forward for government rules and regulation.
Economic factor - This factor is directly impact on organisation profitability and
predictability. Economic factor includes inflation, sales, tax rate, exchange rate, etc. Wal-Mart
need to expand and regulate their business activates in other nation so that the company manager
require maintaining and managing all internal and external factors in accurate manner. This will
help in stable the country economic growth and success level. There are various rules and
regulation which need to follow by company in proper manner (Storey and Greene, 2010). Also
they require developing effective strategies and policies for operating business operation within
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an organisation. These are such factors which are based on economic condition of the country
and this is directly effect on their performance.
CONCLUSION
From the above mentioned report it can be concluded that In an organisation, the business
environment required to analysing two factors such external and internal factors which directly
or indirectly impact on business operations and its functions in better manner. This is that type of
company which is regulated and operated by authorities so they can smoothly run the business
operation of public companies for providing effective job opportunities to the people and also
gain large number of profitability in better manner. Organisation could handle and emerge their
structure of the company along with the diverse operational environment. In current item period,
each firm is doing working as per the market demand and also analyse external and internal
environment which directly affect on employees as well as organisation performance in better
manner. With the help of this external risk are major challenges which occur within an
organisation and create various types of issues and problems. SWOT analysis is important for
analysing essential areas so that the company will develop and make accurate strategies and
policies in effective manner. Wal-Mart requires to develop effective marketing strategy for
examining various factors which are related to market as well as customers.
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REFERENCES
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