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Internal and External Factors Paper The purpose of this paper is to explain how internal and external factors affect the four functions of management in the Wal-Mart Corporation. For any organization to survive, irrespective of its size, it must develop and implement its own management concept. Management is the process of working with people and resources to accomplish organizational goals (Bateman & Snell, 2011). The four traditional functions of management include planning, organizing, leading, and controlling. The Wal-Mart Corporation has managed to use the internal and external factors of these functions to their advantage. With their strategic goal of seriously and rapidly expanding, the company currently employs over 2.2 million associates, owns 8,500 stores, and serves 200 million customers weekly(“www.corporate.walmart.com”, 2012).Their strategies have minimized competitors making this company the world’s largest retailer. The following paper will describe how the Wal-Mart Corporation has found a successful way to use the functions with internal and external factors influencing globalization, technology, innovation, ethics, and diversity in business.
The globalization of Wal-Mart began in 1991 in Mexico. The economy was starting to affect Wal-Mart’s business and they had to figure out a way to bring the profit up before business was lost. They decided to branch out and open a store in Mexico and Wal-Mart currently has stores in eleven countries (Vijay Govindarajan and Anil K. Gupta 2002). By 1999, Wal-Mart had more than 130,000 employees working in 729 facilities outside the United States (Vijay Govindarajan and Anil K. Gupta 2002). There were many factors that played into Wal-Marts decision to globalize. The first being that it had already saturated most of the domestic markets, and the United States only accounts for just over four percent of the world’s
References: Alleyne, S. (2012, September). Second Act. Black Enterprise, 43(2), 82-88. Bateman, T.S. & Snell, S.A. (2011). Management: Leading & Collaborating in a Competitive World (9th ed.). New York, NY: McGraw- Hill Irwin. Boyle,M. Bloomberg Business Week. 2009. www.businessweek.com/managing/content/ovt2009/ca20091 Ethical Standards Program Vijay Govindarajan and Anil K. Gupta. Strategy + Business. Global Perspective. 2002. Fourth Quarter 1999. Issue 17. www.strategy-business.com/article/13866?gko=e19cb www.corporate.walmart.com