A Report on Internal and External Factors Influencing Walmart

This report provides a comprehensive analysis of Walmart's internal and external business environment. The internal factors are evaluated using SWOT analysis, highlighting strengths like a wide variety of products, an efficient supply chain, and an effective business strategy, alongside weaknesses such as poor working conditions and gender discrimination. Opportunities for business expansion in foreign markets and enhancing product quality are also discussed. The external environment is assessed through PESTEL analysis, covering political, economic, social, technological, environmental, and legal factors influencing Walmart's operations. The report concludes by emphasizing the dynamic nature of the business environment and the importance of managing both internal and external factors to maintain profitability and competitive advantage. Desklib offers this and other solved assignments to aid students in their studies.

Introduction
Business environment is the composition of all internal
and external factors which are responsible in influencing
the operations of business. The business environment
comprises internal factors which are operating within an
organisation and external factors which are operating
outside the industry and thus these factors influence the
managerial activities and functioning of the company. The
internal and external forces are responsible in in
influencing the abilities of the organisation and also
supports in maintaining strong customer relationship (Cao
and Chen, 2019). Walmart is one of the multinational
retail company which is operating as a hypermarket chain
in different countries. The company was started by Sam
Walton in the year 1962. The company operates in retail
industry and is currently operating globally. The study
will define the analysis of internal and external factors and
how organisation can manage influence of external
factors.
INTERNAL AND EXTRENAL FACTORS OF
WALMART
Weaknesses
Working condition: Poor working condition and inability to
maintain positive organisational culture has been another
weakness for the organisation and this also affected the
goodwill of the company.
Gender discrimination: This has been of the weakness for the
organisation as many women's faced gender inequality in
terms of salary, promotions, bonuses and treatment in the
organisation which has also hindered brand image of the
company in the industry.
Opportunities
Business expansion in foreign markets: The business can
expand their ventures into global markets which will help
them in increasing their revenues and maximizing their
profitability (Katz, Du Preez and Louw, 2016).
Enhancing the quality of products: By raising the quality of
products, it will helps the organisation in attracting
greater number of customers and can manage facing
competition and maintaining their competitive position in
the industry.
Threats
Political controversies and sensitive issues: There are many
issues and problems faced by the company which has
created an adverse impact on the goodwill of business.
Similar business strategy and model: As there are many
different companies which are operating in same industry
are also using the same business model and strategy
which creates huge competition for Walmart to sustain
their position in the retail industry.
Internal Factors
SWOT analysis
The internal factors are analysed with the help of SWOT
analysis through which internal factors of Walmart which
are responsible for creating an impact are identified and
discussed below:
Strengths
 Wide variety of products: The company offers wide
variety of product range which has been of the strength
and also supports the organisation in facing huge
competition in the industry.
 Efficient supply chain: Walmart have strong and reliable
supply chain management and the company focuses on
providing quality products at fair prices which has been of
the strength of the organisation.
 Effective business strategy: The business
model which has been used by Walmart is
economies of scale which hep the organisation
in driving cost advantages, decreasing the
prices and increasing the production
(Dmitrijeva and et.al, 2020).

Conclusion
From the above stated information, it can be summarized that business environment is dynamic
and comprises various factors such as internal and external factors which are responsible for
influencing different managerial activities and operations. It can be concluded that internal factors
are those determinates which are operating within the organisation and are the part of business.
Whereas, external factors are those responsible factors which are operating outside the
organisation and can influence business activities. It can be seen that various factors combined
together can be helpful in driving benefits and can also create an adverse impact on the
profitability of business.
References
Dmitrijeva, J and et.al., 2020. Context matters: how internal and external factors impact
servitization. Production Planning & Control. 31(13). pp.1077-1097.
Cao, H. and Chen, Z., 2019. The driving effect of internal and external environment on green
innovation strategy-The moderating role of top management’s environmental awareness.
Nankai Business Review International.
Katz, B. R., Du Preez, N. D. and Louw, L., 2016. Alignment of internal and external business
and innovation domains. South African Journal of Industrial Engineering. 27(1). pp.61-74.
How the company impact its context External
Environment
Political factors- By increasing the wages of the employees and implementation of all
governmental plans and policies supported Walmart in meeting all organisational objectives.
Economic factors- By offering prices at low prices, it will helps the business to sustain in industry
for longer time span. The company must be aware regarding the economic landscape in each
location where they operate as this will helps them in determining interest rate and revenues which
an be influenced.
Social factors- The company focuses on their e-commerce store through which they can face
competition and meet all needs of their customers on time. By offering organic and healthy food
range, the company was able to target health conscious customers too.
Technological factors- The use of Automation, robotics and digital transformation has supported
the company in managing their work effectively and meeting all organisational requirements on
time.
Environmental factors- The company planned to create ozone-friendly plans and projects
through which they can prevent harmful emission in the environment and support in maintaining a
healthy environment (Zinovieva and et.al, 2016).
Legal factors- For minimizing the negative impact of failures, the company implemented various
regulations and safety standards trough which they can maintain their position in the industry.
External Environment
PESTEL analysis
The external business environment factors which are responsible for influencing business
operations of Walmart are identified with the help of PESTEL analysis and discussed
underneath:
Political factors- Government interventions, political instability, plans and policies are some
of the political factors which were responsible for influencing the business operations of
Walmart. The policies formed by Government directly influenced manufactures and suppliers
of the company (Vlados and Chatzinikolaou, 2019).
Economic factors- Economic stability, economic landscape, interest rate, potential revenues
and taxes are some of the economic factors which are responsible for influencing business
operations of Walmart.
Social factors- Due to lack of interest cost, lack of customer interest has affected the brand
image, revenues and profitability of the company. The company was failing to position itself
io global audience.
Technological factors- Due to rapid technological advancements, the company have to adopt
various technologies which can help them in meeting all customer requirements and achieve
their organisational objectives.
Environmental factors- Poor dumping of pesticide and hazardous fertilizers, this has
affected the brand image of the company.
Legal factors- The failure to implement and follow laws and regulations, this has made
Walmart face huge loss. The various laws such as employment regulations, data protection
laws, labour laws and health and safety laws were some of the laws which were some of the
regulations which must be followed by the organisation and affected the continuity of
business (Zaynullina, 2020).