Report on Internal and External Factors Affecting Walmart's Business

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Added on  2022/12/15

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This report provides an analysis of Walmart's internal and external factors that influence its business operations and success. It examines key internal elements such as business practices, company culture, and financial strategies. The report also explores external factors, including political and technological influences. Walmart's organizational structure, encompassing Walmart Stores USA, Sam's Club, and Walmart International, is discussed, along with the company's adaptation to market changes, including online shopping and mobile applications. The analysis includes an overview of Walmart's strategies for maintaining a competitive edge, managing costs, and responding to industry challenges. The report includes an overview of various factors such as internal and external which has its own impact on the company. It also explores the use of automation and robotics, government regulations, and the impact of technological advancements, such as online shopping. The report concludes with a synthesis of the key factors and their impact on Walmart's overall performance and growth, along with the references.
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Introduction
To ensure the success and to achieve its objective efficiently
various business practices are run by the organisation.
Practices relates to the term strategies and tactics used in the
business. The organisation sets the rules for their employees
to ensure their functioning in the work and abide with the
laws. It includes team efforts, seeks clarity, regulatory
awareness, branding and marketing efforts etc.
Internal and External factors
Finance
Walmart considers the finance as backbone because it is
an intrinsic factor which helps in the determination of
the investment and increase the growth. It affects the
operations of the business. Walmart was facing the
weakness of increase in long term debt, fall in stock
price, low return on assets.
Internal factors affecting
Walmart
It includes within the boundaries of the company some of
tangible are physical facility, technology, etc. and intangible
are communication, rewards, performance etc. all these
resources creates and provides value to the customers.
Company Culture
Walmart comprises of the values, beliefs, attitudes for
the employees where the structure runs form top to
down for keeping itself as giant store. The culture
affects the company success as they should be treated
well and rewarded for their performance. Every
employee competes with each other which creates
different environment for the walmart and leads to
increase in collaboration & teamwork.
Overview of WALMART
WALMART is a multinational retail company operating in
hypermarkets, grocery and department stores. It is
headquartered in Bentonville,Arkansas.Sam Walton
established the company in 1962 and incorporated in October
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External factors
It defines the conditions, situations that the company does not
have control on the decisions taken by the stakeholders, owners.
These forces affects the company ability and growth. It includes
the intervention of the government policies.
Internal and External factors
Political factors
It relates to the government how it intervenes in the economy
which includes the government policy, foreign trade policy,
tax policy labour law etc. The factors affected the walmart
were pressure for higher wages because of cost minimization.
The company was affected with the operations as there was
interruption of not operating the political stability.
Technological factors
It determines the barriers to entry which affect the marketing
and management in different ways such as new ways of
producing and distributing goods and services. walmart has
developed the automation and robotics which helps in
fulfilling the orders and keeping stores clean. Efficient
business process is created by using automation. Walmart
also start using mobile applications which provides the
feature of online shopping to the customers and helping them
for tracking different types of goods.
References
Abdulghaffar and et. al., 2021. Internal and external barriers to entrepreneurship in Saudi Arabia. Digest of Middle East
Studies.
Almazroui and et. al., 2018. Characteristics of the internal and external sources of the Mediterranean synoptic cyclones for
the period 1956–2013. Theoretical and Applied Climatology, 133(3), pp.811-827.
Conclusion
It has been conclude that walmart formulated greater
workplace environment for the competition. To
increase the profit margin it adopted the low cost
strategy for attracting more customers. As a growing
industry in developing area it provides the variety of
services. Walmart is public corporation structured into
3 business units walmart stores USA, Sam's club, and
walmart international. The company should consider
the opportunities and threats of the external
environment for increasing the profitability and
performance. Due to change in the environment and in
retail industry walmart should analyse the industry
changes to cope up with the competition and
safeguarding from external environment.
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