Walmart: Business Environment and Organizational Analysis

This report provides a comprehensive analysis of Walmart's business environment. It begins with an introduction to the business environment and Walmart as a multinational retail organization. The report then explores the interrelationship of various organizational functions such as human resources, marketing, operations, R&D, and finance, highlighting their links to organizational objectives. It also examines the positive and negative impacts of macro-environmental factors (political, economic, social, technological, legal, and environmental) on Walmart's operations. The report includes internal (SWOT) and external (PESTLE) analyses to identify the strengths, weaknesses, opportunities, and threats facing Walmart, as well as the influence of external macro factors. Finally, the report discusses the interrelation of external macro factors with Walmart's strengths and weaknesses.

Business & Business Environment

Table of Contents
INTRODUCTION ..........................................................................................................................1
TASK 1............................................................................................................................................1
Covered in PPT...........................................................................................................................1
TASK 2............................................................................................................................................1
P3 Relationship among various organisational functions and link to organisational objectives 1
M2 Benefits and disadvantages of interrelationships between organisational functions............2
TASK 3............................................................................................................................................3
P4& M3 Negative and positive impacts of macro environment on business operations............3
TASK 4............................................................................................................................................5
P5& M4 Internal and external analysis of Walmart business firm.............................................5
P6 & D2 Strengths and weaknesses interrelate with external macro factors..............................7
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9
.........................................................................................................................................................9

INTRODUCTION
Business environment refers to the collection of person, business companies and some
other factors which can be and cannot under control of company. All these factors can put their
impact on growth, survival as well as profitability of a business firm. There are many different
kinds of companies which operate in various kinds of environment. Business environment is
regarded as a most necessary component of business management (Bagtasos, 2011). Walmart is
the biggest multinational retail organisation in world and it operates a chain of supermarkets,
hypermarkets, many departmental stores and many others. In the present report, various types of
organisations and their purposes will be explained. The relationship among different
organisational functions as well as their objectives will be discussed. On environment of
business, macro as well as micro both factors develop positive along with the negative impacts.
An external and internal analysis of particular organisations in context to determine strengths and
also weaknesses of Walmart organisation will be describe.
TASK 1
Covered in PPT
TASK 2
P3 Relationship among various organisational functions and link to organisational objectives
There are different kinds of functions of an organisation and these all are interrelated
with the objectives and goals of firm. These functions includes all activities which will be helpful
in accomplishing aims and goals of an organisations in an effective or appropriate manner
(Bhaduri and Ha-Brookshire, 2011). In Walmart organisation, there are different functions or
departments are working together on a common goal and these are human resource, production
and operations, marketing, Research & Development and also finance. This firm is having the
proper structure of an organisation which helps managers in proving duties and responsibilities.
An interrelationship of the organisational structure with its objectives and functions are given
below as above:
Human Resource- This department of Walmart business firm, work at all levels and it
helps in making coordination along with the cooperation between all team members. In order top
perform the work in a proper manner, this department gives the different advice and suggestions
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to other functions. This function is helpful in defining all roles of firm in a proper manner. The
main objective of this function is to implement plans and policies at workplace.
Marketing- IN Walmart, this function plays a necessary role. It is helpful in enhancing
products value and achieve competitive benefit at market place. From doing effective marketing
strategies, employers can attract more consumers through enhancing sales as well as profit level.
Operations and production- It is an important function and performed through
engagement of Walmart company which helps in attracting large number of consumers. This
firm produce better quality of products so that more consumers will purchase its products. It is
necessary that firm should make products according to consumer needs. With the help of this
firm can achieve its goals.
Research & development- This function of Walmart organisation conducts a research
about the market and also the value of existing products (Bovee and et. al., 2016). It helps in
regularly development of services and goods in order to executing policies and plans in an
effective manner.
Finance- The finance function of Walmart company provides all details and funds which
are necessary to company at regular basis. This department provides funds of each departments
so that they can do their activities in a proper manner. This function is helpful in running
business, developing assets, promote business etc.
The organisational structure are mentions below:
Divisional based structure- Under this, divisional structure is to be organised around
business which are the self- contained entities with the functional departments like for an
instance marketing, finance, human resource etc.
Function base structure- This structure is according to the functions of job which are
labelled as the departments such as purchasing, finance and many others (Budhwar and Debrah,
2013). In Walmart organisation there are many function working together on common goals.
Geographical structure- It structure is implied when a business firm ahas many locations.
The Walmart has many stores in different places or cities. The every location operates business
independently.
M2 Benefits and disadvantages of interrelationships between organisational functions
Advantages and disadvantages of interrelationship among the different functions are
define below:
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Advantages Disadvantages
Helps in formation of coordination Affects their independence in performance of
their functions
Helps in removal of confusion and fast
disbursement of the duties among employees
Make the functions more complex
TASK 3
P4& M3 Negative and positive impacts of macro environment on business operations
Business environment is changing in nature and it is necessary for a business firm to
make the performance level of an organisation better and effective. The business environment
divided in to two various factors and these are macro and micro (Charter, 2017). Micro factors
are related with internal components of an organisation to which firm can control easily but on
the other hand macro factors are related to outside of firm an d these are not controllable by
company. The external factors are given below as above:
Political factor- IT is that factor which is concerned with stability of government as well
as business policy. These both impacts on business firm. In addition to United Kingdom, it is
necessary that there should be more political stability in government so that firm can [promote its
business in a proper manner (Cheng and et. al., 2012). Walmart need to understand all situation
and then take decisions accordingly.
Positive impacts
 Stability of government. Effective policies can develop positive affect on business.
Negative impacts
 If government will be regularly change, then it can develop negative impacts on business.
 Increased tax rates.
Economic factor- In this includes employment situations, demand, GDP growth rate,
interest rates etc. These all can impact on the business. Like for an example- The government of
United Kingdom enhance an interest rate which can develop negative impact on the business of
Walmart firm in long run.
Positive impacts
 The buying power is high.
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 Increase in business operations and activities.
Negative impacts
 The loan rates are enhanced.
 Reduction in development of United Kingdom.
Social factors- In this various elements are involved like income group, population and
culture (David, 2011). It is necessary for Walmart company to determine and then understand
these all aspects and then manufacture products and services according to all these.
Positive impacts
 Conduct CSR activities. Provide quality products and services to consumers.
Negative impacts
 Not work for welfare of society.
 If Walmart will not maintain its infrastructure.
Technological factor- In order to make business successful, technology plays a
necessary role. It is necessary that Walmart should adopt and then use new and advanced
technology so that from this quality will be improved (Meiners and et. al., 2014). It helps in
giving the competitive advantage to business.
Positive impacts
 Reduce time as well as cost. Use upgrade and advanced technology.
Negative impacts
 Regularly change in technology.
 Obsolete technology will develop negative impacts on business.
Legal factors- There are different legal problems which Walmart firm faces like for an
instance labour rate, minimum wage, discrimination etc. It is a duty of cited company to follow
all policies and legal regulations of government. s
Positive impacts Walmart apply legislation at workplace.
Negative impacts
 Enhance in regulatory demands.
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Environmental factors- In this present time period, each business firm wants to use a
sustainable practice of business in its operations (Pikka and et. al., 2011). Under this, Walmart
starts ecological and eco- friendly nature nature. This firm conducts CSR activities in order to
meet with long as well as short term goals.
Positive impacts
 Produce Eco friendly products. Require to identify economic conditions.
Negative impacts
 Global warming
TASK 4
P5& M4 Internal and external analysis of Walmart business firm
For each business firm, it is essential to identify external as well as internal factors. These
can impact ion performance level of a company (Rose and et. al., 2013). The internal along with
the external factors can develop negative as well as positive impacts on business. In an internal
analysis includes SWOT Analysis and on the other hand involves PESTLE Analysis.
The SWOT Analysis of Walmart organisation given below:
Strengths Weaknesses
 It is regarded as a most powerful
sustaining brand globally.
 This business firm gives all facilities
which are necessary through consumers
so that they can sustain at workplace
for long time period.
 This firm developed tremendously at
the past years and also increase
business.
 It is a biggest retail firm but it present
only in 14 countries.
 An economy of United Kingdom has
many policies and the wages of this
country is minimum as comparison to
the other countries.
Opportunities Threats
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 It can increase its business in to the
new countries.
 Make improvement in its human
resources practices ( Sass and Fifekova,
2011).
 Rising quality standard.
 More competition in retail market.
 People do the online selling.
 Trend of healthy lifestyle.
PESTLE ANALYSIS of Walmart are mention below as above:
Factors Analysis
Political  More stability in politics.
 In United Kingdom, VAT enhanced from 18% to 21%.
 The political risk is more.
Economical  Walmart company faces an economic crisis.
 It has more unemployment rate around 24.6% in an economy of
United Kingdom.
Social  The trend of healthy lifestyle.
 Urban migration.
 Impact on profit level of global business.
 This factor develops an impact on the purchasing behaviour of
Walmart consumers (Scheer, 2012).
Technological  Enhancing automation in business.
 In this present time period, people purchase products from online
websites.
 Walmart business firm uses latest technology.
Legal  Applied all rules and regulations at workplace.
 Firm is not allowed to sell its products below cost.
Environmental  Minimise consumption of energy through 5.2%.
 Walmart firm produce eco- friendly goods.
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P6 & D2 Strengths and weaknesses interrelate with external macro factors
Walmart is the multinational company which deals in large number of products like
electronic, home and furnitures, footwear, jewellery, toys etc. This organisation has large number
supermarkets in more than 28 countries. All the functions of company are depends upon the
business environment which prevails in country. There are many external factors which are
present in external macro environment which becomes the strength and weaknesses of the
Walmart in providence of their functions (Turban, Sharda and Delen, 2011). The external
factors which are present in business environment includes political, economical, social,
technological, legal, environmental. It is the duty of the management has to consider the impact
of such factors and prepare policies according to that. Interrelation of external macro factors with
the strengths and weaknesses of Walmart are mentioned below:
 Political: This factor includes about the political condition and policies which is present
in different countries. It becomes the strength and weakness of organisation depends
upon the political condition which is present in country. In Asian countries like India and
China have the strict policies regarding operation of business as it considered as
weakness and in turn US have the favourable policies becomes the strengths have large
number of stores.
 Economical: US and UK are developed countries having good flow of income and large
number of sources are present for funding the different activities of business becomes the
strength of Walmart. On the other hand, Asian countries are developing nations which
have moderate flow of income which raise difficulties in performance of their function
such countries and becomes the weakness.
 Social: This factor includes consumer behaviour, education, occupation etc. have large
number of effect on the business operation of Walmart (Wheelen and Hunger, 2011).
Favourable consumer behaviour and high education level becomes the strength and helps
in improving the business activities and profitability and vice versa.
 Technological: This factor includes advanced technology and techniques in providence
of business functions. Like use of online technology has great importance on the
improvement of the business operations and sales because this option has wide reach.
Non acceptance of such technologies becomes the weakness for Walmart.
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 Legal: This includes the factors related to legal laws provide by government of countries.
It is the duty of the management of has to fulfil all regulation otherwise they have to face
penal actions (Zsambok, 2014). This will becomes the loss of image in market and
financial loss. This will becomes the weakness of the Walmart. Fulfilment of the laws
helps in getting the support of government and different stakeholder in the performance
of their business functions and converted in to the strength of organisation.
 Environmental: This includes the factors which have the effect on the environment and
society. It is the duty of the management is to provide CSR activities and prevent
environment. This will become the strength which helps in creation of the good image of
company in between the society. On the other hand, adverse impact of the business
operations on society turn into the weakness.
CONCLUSION
It has been concluded from the above given report that business environment is helpful in
gaining more profit as well as growth of a business firm. If the working environment of an
organisation will be positive then all staff members will work together in order to achieve their
organisational objectives with in a given period of time. Under this given report studied about the
private, public and voluntary organisations and also their different purposed. The scope and size
of every firm is based on type of business. An interrelationship among the various functions of
Walmart firm which are linked with the organisational structures has been studied under this
given business report.
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REFERENCES
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Online
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<http://panmore.com/walmart-pestel-analysis-recommendations-case-study>.
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