Business Project Management: Walmart Business Environment and Strategy

This presentation offers a comprehensive analysis of Walmart, one of the world's largest retailers. It begins with an overview of the company, followed by an examination of its external environment using PESTLE analysis (political, economic, social, technological, legal, and environmental factors). The internal analysis covers Walmart's vision, mission, and organizational structure. The presentation identifies Walmart's competitive advantages, including its influence over suppliers and consumers, and low prices. It also explores Walmart's strengths, such as its eco-friendly initiatives, and weaknesses, such as unionization resistance. The conclusion outlines strategic opportunities, such as expanding in emerging markets, and risks, such as employment regulations. References to academic sources support the analysis, providing a well-rounded understanding of Walmart's business strategy and future sustainability. The presentation aims to give insights into Walmart's position in the market.

Business Project
Management

Introduction
• This presentation states about Walmart business environment and strategy,
one of the largest American retailer in the world.
• The presentation starts with a brief overview of the organisation followed by
external and internal analysis. Afterwards, the competitive advantage of the
company is being identified with using of significant frameworks and theories.
• It also includes Walmart strengths and weaknesses in relation with its future
sustainability.
• Finally, conclusion is being derived that outlines strategic opportunities and
risks.

About Walmart
• Sam Walton founded Walmart in 1962 and publicly traded to the New York
Stock Exchange in 1972.
• It is one of the fastest growing retailer listed in Fortune Global 500 with a
revenue of $500,342.
• The company also has more than 2.2 million employees all over the globe and
have 11000 plus stores offering wide varieties of products in various
categories range from health products, appliances (Belanger, 2018).

Walmart External Environment
• The external business environment of Walmart includes various macro
environmental factors influence Walmart strategic decision making and future
sustainability.
• Considering while formulating the business strategy help organisation to
develop proactive strategy in the dynamic and complex business environment
(Maon, Lindgreen and Swaen, 2009).

PESTLE analysis of Walmart
• Political Factors – These factors are associated with the government
policies. In every country, political stability differs and Walmart is required to
adapt to different political structures characterised under business landscape.
• Some of political macro environmental factors in Wal-Mart external
environment includes -
1. High political stability (Opportunity)
2. Political assistance for globalisation (Opportunity)
3. Political force of higher wages (Threat)

PESTLE analysis of Walmart
• Economical – Walmart performance and achievement also depends upon the
economic stability of the country. Some of the common economic factors
includes level of inflation, economic tax rates, tight credit plan, and so forth.
• Some of economical macro environmental factors in Wal-Mart external
environment includes -
1. Constant growth of emerging nations (opportunity)
2. Reducing unemployment in the US (opportunity)

PESTLE analysis of Walmart
• Social Factors – Being an renowned brand, Walmart has an immense
popularity that supports beliefs and lifestyle of people by known to be as one
stop destination. The growth of the online store of Walmart can also be seen
with the increasing number of shoppers and followers.
• Some of social macro environmental factors in Wal-Mart macro environment
includes -
1. Cultural diversity drift (opportunity)
2. Healthy lifestyle drift (opportunity)
3. Urban migration (opportunity)

PESTLE analysis of Walmart
• Technological Factors – Walmart has invested technological advancement
at various places for gaining many opportunities in the market business
environment.
• Some of technological macro environmental factors in Wal-Mart external
environment includes -
1. Rising automation in business (Opportunity)
2. Big data and Business analytics (Opportunity)
3. Higher usage of mobile device among customers (Opportunity)

PESTLE analysis of Walmart
• Legal Factors – The legal aspects bind many strategies of Walmart and its
rivals. Every nation have different laws relating to product, export,
employment and so on. It is must for Walmart to comply with all necessary
laws and regulations duly in order to ensure its sustainability for longer
period.
• Some of legal macro environmental factors in Wal-Mart external environment
includes -
1. Employment regulations (Opportunity)
2. Tax reforms (threats)

PESTLE analysis of Walmart
• Environmental Factors – Walmart is already focusing on various strategies
and steps in relation with environmental measures for raising energy
efficiency. This are included into their bottom line strategy line towards the
strategic mission of the company.
• Some of environmental macro factors in Wal-Mart external environment
includes -
1. Environment friendly products drift (Opportunity)
2. Corporate sustainability trend (Opportunity)

Internal analysis of Walmart
• The internal environment of Walmart includes its vision, value system,
mission, organisation structure, corporate culture, HR, physical resources and
technological competencies.

Internal analysis of Walmart
• The internal environment of Walmart is under the control of the management
unlike the external environment, however, it can impact corporate strategy
and other aspects known as internal factors.

Competitive advantage
identified
• The competitive advantage of Walmart includes their influence over suppliers
and consumers and Size also gives Walmart a competitive advantage.
• From a long time, the company has a ability to keep the prices low by using
outsourcing method. Walmart also resists the unionization of its employees.

Strengths and Weakness of
Walmart
Strengths
• Low pricing and loyal customers.
• Stores at prime locations.
• Operational scale.
• Wide range of products.
Weakness
• Criticism over wage policy.
• Higher employee turnover.
• Little differentiation.

Future sustainability
• Walmart is doing enough to become more sustainable. For instance, the
company has made a sustained efforts to develop its stores eco-friendly.
• The company also better track the carbon footprint of supply chain. It allows
the company to improve its brand image in eyes of community and
government.
• The company also promoting various ways to tighten their relationship with
suppliers and employees.

Conclusion
• Walmart is a retail organisation offering products at very low cost to its
customers. The company have a wide opportunity win relation with its internal
environment includes the resources and capabilities.
• However, there are risks related to safety and environmental issues which can
resolved by offering necessary training to the employees.
• From future perspectives, Walmart can be the biggest powerhouse if they
comprehend all these risks and opportunities proactively.

References
■ Belanger, L. (2018) 15 Crazy Facts About Walmart's History and Where It's
Headed Next[ONLINE] Available from:
https://www.entrepreneur.com/slideshow/309403 [Accessed 04/08/2019].
■ Bove, A.T. and Swartz, S. (2016) Starting at the source: Sustainability in
supply chains. McKinsey on Sustainability and Resource Productivity, 4(1),
pp.36-43.
■ Maon, F., Lindgreen, A. and Swaen, V. (2009) Designing and implementing
corporate social responsibility: An integrative framework grounded in theory
and practice. Journal of Business Ethics, 87(1), pp.71-89.
■ Rajan, N. (2018) Walmart Is Investing $41 Million In This New Online Grocery
Initiative Next[ONLINE] Available from: https://xtalks.com/walmart-is-
investing-41-million-in-this-new-online-grocery-initiative-1569/ [Accessed
04/08/2019].
■ Seago, J. (2016) A unified approach to compliance: businesses benefit from a
proactive partnership between internal audit and the compliance
function. Internal Auditor, 73(5), pp.49-54.

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