Internal and External Factors
August 1, 2011
Wal-Mart stores serve millions of customers globally each day – and they do their best to make certain that the products on their shelves are a sign of the diverse needs and wants of their customers. Wal-Mart states they are focused on four strategies and the top one is becoming truly global. (Wal-Mart Stores Factsheets). In 2010, Wal-Mart reduced the plastic bag waste across their global operations by 47.95 million pounds, or approximately 3.5 billion bags. This represents a 21 percent reduction from our 2007 baseline. In Chine in 2010 reduced the waste by 84percent using 2007 as a baseline. Wal-Mart wants to stay on top globally where economics is concerned as well as employment, zero waste, lowest prices and the list goes on. Wal-Mart so far has stayed on top as having the lowest prices and having the highest profit by working with and training local people to work while helping to improve the lives of the local people. Wal-Mart has three basic beliefs within their company: Respect for the individual, Service to their customers and Striving for Excellence. In October 2010 Wal-Mart announced an acceleration of their global commitment to sustainable agriculture. By doing this they are matching farmers with markets, reducing food waste while motivating farmers to supply their chain. Through another program they work directly with the farmers to encourage safe cultivation of seasonal vegetables in an effort to reduce waste and improve the quality. Innovation
Wal-Mart being a major retailer and promising low prices is always looking for ways to be innovative. Wal-Mart holds a national sustainable packaging expo every year and in a statement from the senior director of packaging, Ron Sasine, he said, “We’re interested in innovation. That’s why we hold the event…” He goes on to say that Wal-Mart doesn’t just want something that is a dream but something they can use and commercialize. (WalmartHELP, 2011) Wal-Mart understands the need for innovation and that in order for them to stay ahead of the curve they must keep finding ways to make sure they have the lowest prices. Another way they have found a way to be innovative is through their packaging. They discovered that if the companies that were selling their own products through Wal-Mart, cut down on packaging both sides would see a gain in lower prices, which in turn will mean more profits; and it has. This is an innovation and a model that major supermarket chains and major retailers follow now. It is not important to have innovation for the success of Wal-Mart but to help with the success of other major companies. Ethics
Wal-Mart is a large retail corporation and ethics plays a huge role internally and externally with the four functions of management. When planning, the retailer must consider the employees, the store, and its customers. Planning is specifying the goals to be achieved and deciding in advance the appropriate actions needed to achieve those goals (Bateman & Snell, 2011, p. 15). Once the planning is in place, then management can begin organizing who will do what task to ethically reach the store’s goals. Ethics can affect organizing if the team does not have a strong ethical leader. Ethical leading is important to maintain a good workplace as well as a good place for customers to shop. Controlling is affected by ethics internally because the manager can oversee the job the employees are doing and be sure that they are working in an ethical manner. While employees have the opportunity to steal from the store, many will not because they are being watched and some just has good ethics. According to Walmart.com (n.d.), But, remember no guide or manual can give you a complete set of rules. So, in the end, we all must trust our own good judgment of right and wrong (Look inside the Statement of Ethics, para. 1).
Wal-Marts diverse environment...