External/Internal Factors Paper
External/Internal Factors Paper
Walmart is the low price leader. Walmart is the low price leader in America and across the globe. Walmart’s managers have had to plan, organize, lead, and control to accomplish this goal. Walmart is one of the most competitive retail stores in the world. The one thing that this chain has done so much better than the others is cost competiveness. “Walmart’s efforts are aimed at cost competiveness, which means keeping costs low enough so that the company can realize profits and price its products (goods or services) at levels that are attractive to consumers” (Bateman & Snell, 2009, p. 16). Walmart uses innovation to benefit the company. For example, the store in Stockton, CA has a McDonald’s inside the store. This store has a nail salon, portrait studio, vision center, hair salon, food center, and a money center. In the money center bills can be paid and checks cashed. They even cash income tax returns up to 5,000 dollars for a minimal fee of three dollars. Now that’s innovation. This company is always one- step ahead of the competition. Internal Factors that Affect the Four Functions of Management Walmart has been leading the retail market. They have some internal factors that affect their management functions. Walmart has had issues with their human resources, in particular, their employees. The discount retail giant has been involved in class action lawsuits by employees. Walmart has been accused of sexual discrimination as well as forcing employees to work without breaks. Walmart agreed to pay $35 million to 88,000 people who worked for the company in Washington for being forced to skip meals and breaks or work off the clock (MMR, 2009). Although Walmart is portrayed in the media as unethical, the company continues to profit. The question is how a company continues to grow when the employees are not treated ethically. The planning of the management is the reason for their success. They came up with a mission to sell products at low prices. Consumers look for ways to save money. Walmart is a big part of the savings. People are willing to go to a store that employees are unhappy to save money. Sometimes customer service is sacrificed so the community can save a few dollars. If Walmart works on the organizing part of management they would win everyone over. They need new programs that help lead their employees and motivate them for greatness. One thing is to respect the people who work hard to make the company what Walmart has become. Part of the management control is to show the community they care. The Walmart Corporation is trying to make things better. They try through charitable giving including volunteer services in the communities they are part of (walmartstores.com 2010). So far their plans have helped them become a giant in the retail industry. If they continue on this path, will a competitor step in with happy employees and take over the market? Internal Factors that Affect the Four Functions of Management Wal-Mart continues to lead the competition and offer lower prices to the public. This would not be the case if there were not the well established levels of management within the company. Considering the history of Wal-Mart and the controversy in the past, society has seen the many external factors that are affected by the power-house corporation. Within the management functions, Wal-Mart considers the external affects of the company’s ethics, globalization, and innovation Globalization affects the four functions of management
Walmart is known for their slogan “Everyday Low Prices.” But how do they stand behind those words. The management team at Walmart continues to work globally and use the latest technology to improve customer service around the world. The goal is to please the consumer; this is why Walmart introduced the Electronic Product Codes EPC system. The creation of this system is to make shopping easier for the...
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