Analyzing Walmart's Business Practices: A PESTEL and SWOT Analysis

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Part II 1
Course Name: Final Project - Research & Analysis Paper – Part II
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Summary
The research is all about Wal-Mart. It highlights the impact of internal and external
environment on business practices and operations. The research explains the goals of the
organization by studying the internal and external environment. The internal environment can
be defined by using SWOT analysis and the external environment can be studied by using
PESTEL analysis. It defines the organizational structure of the Wal-Mart used in order to
flow the directions of work to be done from the top level of the management to last lower
level of the organization. The Wal-Mart used effective organizational structure and culture to
retain large prospective customers for long time. The research study provides information
related to the stakeholders of the company. This research involves the ERG theory of
motivation which provides the support for improving the employee’s performance. The
recommendations and controls are specified in this project to make effective business policies
and strategies by the organization. Wal-Mart offers training and development programs in
order to develop their employees.
SWOT – Formulating Strategies
Strength: I analyzed that Wal-Mart is the leading product distribution organization, and its
reputation is popular among in 28 different countries. It helps to gain profit and build trust
among customers. The organization will also involve in high revenue and able to restructure
its functionality (Harrison, 2019).
Weakness:As per the reviewing of SWOT analysis, I observed that the company would face
financial instability. To avoid this weakness, the company needs to adopt more marketing
method, need to involve with e-commerce sites. Develop some new strategic plan which

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helps to increase the payroll of employees and establish a well sustainable organization
(Harrison, 2019).
Opportunities: Wal-Mart provides a low service product and service. It attracts a new
customer and builds new customer towards service (Nandonde, 2019). It helps to provide
efficient to the new customer and reduce the competitor rate in the existing market. New
stores maximize the customer rate as well.
Threat: Wal-Mart needs to improve its product quality. If Wal-Mart works on its product
quality, it will build strong trust among customer. It helps in reducing the competition rate
among the existing market. Tesco, Amazon etc.
Environmental Constraints
Political factor: As per the research of Wal-Mart, it identifies that the Canada government
support the retailer and supporting. It doesn’t change or modify the policies. It helps to build
growth in the same direction. Sudden changes did not occur on a regular basis, and it counts
in the advantage for the organization.
Economic Factor: After analyzing the existing retail market in Canada. It continuously
increases in demand and its GDP give a positive impact on the retail organization. It helps to
increases the customer rate, develop an interest in the local market towards the retail industry.
Social: As per changes in trend and demand of customer .Wal-Mart needs to follow the trend
as well. It affects the culture, social media, and recent trends on the customer. This factor
plays a significant role in the success of the organization.
Technology: In the retail industry, there is an extensive growth in the retail industry. It
improves the method in practices and process in the retail industry. The technology used in

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ordering the product, the transaction process is online, CCTV cameras etc. helps in building
the technology-friendly organization (Nandonde, 2019).
Legal factor: As per the studying the Wal-Mart laws. It applied all the laws which must be
applied in employees and customer laws. The Canadian government applied strict rules over
all the business. It increases the effectiveness of the business.
Environmental Factor: National and international community’s both impact on social
responsibilities. This factor motivates business to provide good quality product and services.
Stakeholders
Stakeholders are those individuals which help to run the business in proper order.
Employees are the most important stakeholder for the retail industry. They are the only one
which interacts with the customer. By their help only it increases the sales. If the employee
maintains a good relationship with the customer, they itself develop innovative and creative
ideas for selling the product. Their service decides to the customer, are they needed to
become a loyal customer of the company. Employees establish a strategy for achieving the
goal and objective of the organization. Their ideas and culture help an organization increases
the profitability of the organization.
Customer is again a most important stakeholder for Wal-Mart. It depends on the customer
that they like the service or not. Are they appreciate the service or not etc. They help the
organization to grow in the success direction. Customer needs to take service from more than
a single time because it describes the service and product of eth organization. They are the
only which are liable to all the decision.
As per my research, Employees need to give most priority in the list of stakeholder. The
reason behind this is if the employee provides qualitative and efficient service to its customer.

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Sales and customer rate automatically increases. So, the organization provides significant
features to its employees (Nandonde, 2019).
Organizational Structure and Design
Wal-Mart is a multinational organization. This research is specifically analyzed over Canada.
The CEO is the highest authority of the organization which takes all the important decision. It
took the decision over expansion, joint venture and regarding new stores.
Other departments are included in the organization are admin, marketing, supply chain,
operations, ethics, human resource and e-commerce etc. These all department plays
significant role in the functionality and practices. Admin depart is concern about all the client
details and customer opinion. Marketing department analyses what are the expectation of
customer from the organization and what strategies they require to fulfil the expectation of
the customer. The subordinates of this report are high authorities involve in the organization
and its functional activities take care of the concerned department. The structure divides the
job responsibilities in the same organization and improves employee performance (Harrison,
2019).

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Figure 1:Organizational Structure
Source : Officialboard., (2019)
Wal-Mart segregates the department according to the job responsibilities. Every department
motivates and encourages their team to maximize its productivity and improve quality. All
the team must work according to achieve eth common goal of the organization and develop
the strategy which will be helpful to maximize the profitability (Officialboard, 2019).
Motivating Employees
Wal-Mart uses the ERG theory of motivational theories for its employees. It encourages or
motivates the employee to maintain a good relationship with the workplace colleagues and
retain survival in the existing workplace (Singh, 2019). This theory includes three factors, i.e.
existence, relatedness and growth. According to this theory, if the organization will satisfy
the need of its employee, it will be a greater impact on the organization on its profitability
and on its growth. This theory is the upgraded version of the Maslow theory of motivation.

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Existence: It includes psychological and safety need. By this theory, the organization need to
work on its employee physical and safety need. Provide insurance and medical support by the
organization to its employees.
Relatedness: In this section, social and self-esteem need from the employer to its employees.
In this organization provide support to maintain good relation with the colleagues and co-
worker in the company.
Growth: This part of ERG theory, self-actualization need is considered. In this section,
employee reaches on its potential level of its desired.
Recommendation
After reviewing the report over Wal-Mart research. It requires managing its operational
activity in the organization on behalf of its productivity and quality. The admin department
needs to maintain good relations with the client. The organization needs to improve its
leadership style. They need to applied democratic leadership style. Employees must need to
involve in decision making strategy. Wal-Mart needs to provide a quality product, and they
need to involve product according to the recent trend. The organization needs to involve a
branded product, which enhances the trust among customer. Wal-Mart needs to initiate some
innovative and creative strategy which maximize sales rate (Shane& Heckhausen,, 2019).
Controls and Recommendations
In the research Wal-Mart used process to monitor its business activities and make plans
accordingly. Wal-Mart made formulating strategies by using SWOT analysis. The
organization analyzed the external environment by identifying PESTEL. It used feedback
controls to monitor the activities of the business and its employees. The concurrent and
feedback controls will be used by the organization to track the employee performance and

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monitor them. The Wal-Mart used Management Information System to store and protects the
data and information related to its employees and the working people of the work place. The
research highlights how to measure the effectiveness and progress of the recommendations
used by the organization. Wal-Mart reduces price of its products to meet customers’ needs
and to increase sale volume of products by providing quality services to them. Wal-
Martmakes plans to motivate its employees by using motivational theory of Maslow. Wal-
Mart used divisional organizational structure.

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References
Harrison, J. A. (2019). Working for Respect: Community and Conflict at Walmart. Social
Forces.
Nandonde, F. A. (2019). A PESTLE analysis of international retailing in the East African
Community. Global Business and Organizational Excellence, 38(4), 54-61.
Officialboard., (2019). Walmart Canada[Online]. Officialboard.,Available at:
https://www.theofficialboard.com/org-chart/walmart-canada [Accessed on: 7th August 2019]
Shane, J., & Heckhausen, J. (2019). Motivational theory of lifespan development. In Work
Across the Lifespan (pp. 111-134). Academic Press.
Singh, H. P. (2019). EXPLOITING RFID FOR BUSINESS TRANSFORMATION: A
STRATEGIC ANALYSIS VIS-À-VIS AGRICULTURAL BANK OF CHINA.