Internal and External Factors Critical Analysis

Internal and External Factors Paper XXXXXXXXXXXX MGT/230 xxxxxxxxx xxxxxxxx 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 customers find the products they are looking for more quickly and with more ease. The new tool uses machine learning and text mining techniques that assist the customer. If they are searching for something in particular it can bring up products that are similar even if those particular words were not searched (Leber, 2012).

This has caused eBay and Google to scramble to improve their e-commerce search results. The weakness for Wal-Mart is getting customers to start at their website as opposed to others like Amazon. The planning portion of Wal-Mart is particularly strong and is always coming up with new ways of competing and staying on top of what consumers want and need. Next, ethics is defined as the action of identifying the rules that should govern people’s behaviors and the “goods” that are worth seeking. With Business Ethics, corporations strive to uphold moral principles and standards that guide behavior in the business world (Bateman, 164).

Many organizations are finding it increasingly difficult to deal with the complexity of ethical issues hitting businesses today. As a large importer/exporter of foreign goods, Wal-Mart found itself dealing with an increasing issue of bad supplier ethics. From foreign owned to the United States outsourced companies, they needed to create a plan for setting up a standard for products that were received for sale in their stores. In 1992, Wal-Mart started their Ethical Standards Program (originally called Standards for Suppliers Program).

The Ethical Standards Program was established and exists to verify suppliers’ compliance with global standards, to strengthen the implementation of positive labor and environmental practices in factories producing merchandise for sale by Wal-Mart, and to bring opportunities for a better life in the countries where merchandise for Wal-Mart is sourced. The program’s vision was redefined in 2002 to meet public image issues, becoming the statement “sourcing ethically through a socially responsible program” (“Ethical Standards Program”, 2006).

The program works to train perspective suppliers in environmental, health, safety, and labor requirements to meet audit standards. Factories and companies on Wal-Mart’s supplier list are subject to unannounced audits to ensure they are meeting the standards set by the Ethic Committee. Through these organization and control measures, Wal-Mart has made great strides in correcting some of the worst conditions in many of the Asian countries they use as their suppliers. According to the “Ethical Standards Program” (2006) website the company also began the Factory Five Program in 2006.

The program serves as a forum in which factory management (from five factories per region in China) regularly meet with suppliers and the Ethical Standards team. Time is spent identifying and resolving complex issues of noncompliance identified by audits. They hope to share knowledge and changes that come out of this forum with others in the industry. Wal-Mart is working hard to show leadership in the ethics market and to pass knowledge and training onto others to encourage ethical practices in all heir stakeholder’s corporations. The ultimate company goal is to fully integrate labor compliance and social responsibility into all purchasing decisions done by Wal-Mart buyers. Finally, diversity is an equally tricky concept that comes into play in businesses today. As corporations expand to cover more global territory it is becoming increasingly important to have a strong diverse workforce and management team to work in this environment.

In 2002, Wal-Mart was struggling heavily under a bad public image as a corporation engaged in unsatisfactory and unfair work policies, resisting diversity practices, demonstrated social irresponsibility, and eroded economic opportunities for small local business. By 2004, management had hired a PR firm to manage the onslaught of bad press, and later restructured the company and made key management changes (Alleyne, 2012). Wal-Mart formed a number of internal affiliate groups for women, African Americans, Latinos, Asians, and the lesbian, gay, bisexual, and transgender community as part of its diversity practices.

According to Alleyne (2012), in recent years, Wal-Mart has been named among the BLACK ENTERPRISE 40 Best Companies for Diversity. By integrating a plan that showed support for diverse groups within their workforce, The company is making great progress in gaining new customer support and increasing consumer confidence in its corporation, people, and products through managers like, Rosalind Brewer, “Black Enterprise” 2012 Corporate Executive of the Year and the first African American woman chief executive officer (CEO) at Wal-Mart.

As Alleyene (2012) says, Brewer is holding one of the most powerful positions in corporate America and making big changes in the leadership of the Wal-Mart Corporation. In conclusion, this corporation has effectively used the four functions of management and the effects of globalization, technology, innovation, ethics, and diversity on these functions. Through adversity the top-level management has shown their ability to plan strategically and overcome obstacles.

Wal-Mart’s key strategy is to dominate the retail market and with the proper implementation of these functions this organization continues to be one of the largest retailers in the world. 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. (2006). Retrieved from http://walmartfacts. om/reports/2006/ethical_standards/building. html Leber, J. (2012, October). Wal-Mart dives into search technology. Retrieved from www. technologyreviews. com Salter, C. (2012, July). #9 Wal-Mart. www. fastcompany. com, (). 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. (2012). Retrieved from http://corporate. walmart. com/our-story/our-stores www. todaro. posterous. com. (2010). Retrieved from http://http. //todaro. posterous. com

Calculate the price
Make an order in advance and get the best price
Pages (550 words)
$0.00
*Price with a welcome 15% discount applied.
Pro tip: If you want to save more money and pay the lowest price, you need to set a more extended deadline.
We know how difficult it is to be a student these days. That's why our prices are one of the most affordable on the market, and there are no hidden fees.

Instead, we offer bonuses, discounts, and free services to make your experience outstanding.
How it works
Receive a 100% original paper that will pass Turnitin from a top essay writing service
step 1
Upload your instructions
Fill out the order form and provide paper details. You can even attach screenshots or add additional instructions later. If something is not clear or missing, the writer will contact you for clarification.
Pro service tips
How to get the most out of your experience with MyStudyWriters
One writer throughout the entire course
If you like the writer, you can hire them again. Just copy & paste their ID on the order form ("Preferred Writer's ID" field). This way, your vocabulary will be uniform, and the writer will be aware of your needs.
The same paper from different writers
You can order essay or any other work from two different writers to choose the best one or give another version to a friend. This can be done through the add-on "Same paper from another writer."
Copy of sources used by the writer
Our college essay writers work with ScienceDirect and other databases. They can send you articles or materials used in PDF or through screenshots. Just tick the "Copy of sources" field on the order form.
Testimonials
See why 20k+ students have chosen us as their sole writing assistance provider
Check out the latest reviews and opinions submitted by real customers worldwide and make an informed decision.
Social Work and Human Services
Great work I would love to continue working with this writer thought out the 11 week course.
Customer 452667, May 30th, 2021
Business and administrative studies
great job as always
Customer 452773, February 26th, 2023
Business and administrative studies
Excellent work ,always done early
Customer 452773, February 21st, 2023
Nursing
thank you so much
Customer 452749, June 10th, 2021
Business and administrative studies
excellent paper
Customer 452773, March 3rd, 2023
Business and administrative studies
looks good thank you
Customer 452773, March 3rd, 2023
Management
Thank you!!! I received my order in record timing.
Customer 452551, February 9th, 2021
Human Resources Management (HRM)
excellent
Customer 452773, July 11th, 2023
BUSINESSADMINECO535
excellent work
Customer 452773, October 6th, 2023
LEADERSHIP
excellent job
Customer 452773, August 12th, 2023
Philosophy
Thank you
Customer 452811, February 17th, 2024
Human Resources Management (HRM)
excellent
Customer 452773, June 25th, 2023
11,595
Customer reviews in total
96%
Current satisfaction rate
3 pages
Average paper length
37%
Customers referred by a friend
OUR GIFT TO YOU
15% OFF your first order
Use a coupon FIRST15 and enjoy expert help with any task at the most affordable price.
Claim my 15% OFF Order in Chat
Close

Sometimes it is hard to do all the work on your own

Let us help you get a good grade on your paper. Get professional help and free up your time for more important courses. Let us handle your;

  • Dissertations and Thesis
  • Essays
  • All Assignments

  • Research papers
  • Terms Papers
  • Online Classes
Live ChatWhatsApp