Answer To: BUS 499: business administrationusing the same corporation used in assignment XXXXXXXXXXwalmart inc)...
Parul answered on Nov 12 2021
Week 6 External and Internal Environments Assignment
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Week 6 External and Internal Environments Assignment
Student’s Full Name
BUS499 Business Administration Capstone
Professor’s Name
Date
Week 6 External and Internal Environments Assignment
By the virtue of this assignment, I have performed extensive analysis on Walmart, one of the leading retail organization all across the world. With more than 50 years from its inception in 1962, Walmart has survived the test of time and constantly update itself such that the brand thrives in future (Piercy, N., & Giles, W., 1989).
General Environment
Taking into consideration the macro-environmental factor that I think impact the most on the growth of the Walmart as well as how they manage their business operations. As a market leader in the retail industry, Walmart consistently withstand the negative effects of economic bubble burst as well as drastic advancement in technology (Barnes, S. J., 2002).
Economic Aspects
Walmart as retail giant is constantly under tremendous pressure because of several economic changes. Also, with this growing pandemic it has negatively impacted people and reduce their spending potential. Therefore, any changes in the economy can directly influence the revenue of the company. Applying the PESTLE framework, following are the highlights of the economic aspects and how it can influence the growth potential of the Walmart (Shabanova, L. B., Ismagilova, G. N., Salimov, L. N., & Akhmadeev, M. G., 2015).
1. Since emerging countries have developing economies hence it an opportunity for Walmart to establish a strong presence
2. Stability of primary economic power
3. Decrease in disposable income is a threat for Walmart since customers have less spending potential
4. Increase in the employability in developed economies like United States of America is opportunity
All these economic parameters showcases that Walmart can harness the economic opportunities all across the world. Focus needs to be on developing economies such that it can enhance the demand for consumer goods in retail outlets like Walmart. .
Technological Aspects
Second external factor that can be taken into consideration is the Technological Factors. Applying the PESTEL framework, it is evident technological aspects deeply impact Walmart and how the organize their business strategies (Bose, N., 2018).
1. Deep penetration of technology in the business
2. Emergence of (IoT) Internet of Things and Artificial Intelligence (AI)
3. Business Analytics and Big Data is a strong opportunity
4. Advancement of mobile device among consumers
Essentially, Walmart can focus on all the above four factors in other to leverage the potential of technology. In exploiting the technological aspects the growing presence of consumer on social media can be harnessed (Craighead, C. W., & Shaw, N. G., 2003). Overall external factors offers tremendous opportunities for the business to grow. Walmart needs to take proactive measures to harness the growing economic potential in developing countries. Essentially, exploiting the technical capabilities and leveraging advancement of technologies can offer Walmart an edge from the competition.
Five Forces of Competition
Walmart actually competes against primary firms in the retail domain like Whole Foods, Costco, eBay, Amazon.com Inc. Applying five forces model on Walmart, I have selected the key two forces that significantly impact the business operations and growth. Five Forces Model was proposed by Porter is one of the most strategic tool that evaluates the impacts of external factors on any organization and can be leveraged here to analysis which forces are strongest out of the five (Crain, D. W., & Abraham, S., 2008).
Force 1 - Competitive Rivalry
One of the strongest force that influences the organization is Competitive Rivalry. There is intense competition in the retail sector. There are numerous companies small...