Internal and External Factors Paper
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 population. Emerging markets with their lower levels of disposable income offered huge platforms for growth in discount retail (Vijay Govindarajan and Anil K. Gupta 2002). Since the globalization of this corporation, Wal-Mart currently ranks among the top five global retailers (Matthew Boyle 2009). Although there were bad results in some countries, there are now 3,805 stores operating under 53 distinct banners in 15 markets (Matthew Boyle 2009). Wal-Marts strategic decision to globalize has allowed a continual rise in sales and profits, and has allowed the corporation to remain successful. Wal-Mart has used the four functions of management to grow and maintain a successful company through innovation, as well. For example, as the largest retailer, Wal-Mart decided to go green and make the entire operation recyclable and reusable. In 2005, CEO Lee Scott announced the company would create zero waste and use renewable energy and products that sustain the environment. Wal-Mart proposed that the stores and clubs would use greener light bulbs, alternative energy, and better store designs to reduce waste, and reusable bags to start what is called a supply chain. The company announced the sustainability initiative which was used to track the life cycle of every product it sells by measuring the water usage, greenhouse gas emissions and fair labor practices ("Www.todaro.posterous.com", 2010).Wal-Mart is currently hosting industry by industry meetings to debate how this customer label appears. Wal-Mart can only continue to grow their company by coming up with a plan and using the management from the top to the frontline managers to make changes to their company and enforce new ideas and innovations.
Similarly, technology is another factor that Wal-Mart seems to excel at and stay on top of concerning planning and implementing the four functions of management. The company continues to improve their electronic commerce site Walmart.com and has come up with a search engine to help...
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
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