Internal and External Factors 1

Internal and External Factors

Steven Turlington, Dedric Baker, Tangela Chapman, Erica Cheek
MT! "#$
March "%, "$1#
Internal and External Factors "
Internal and External Factors
&hen &al'Mart (irst opened in 1)%" the store *as not the retail giant that it has gro*n to
+e in the past (e* ,ears- Toda, &al'Mart serves customers and mem+ers more than "$$ million
times per *eek at more than .,1/) retail units- &al'Mart emplo,s over "-1 million associates
*orld*ide and had sales o( 01$1 +illion during the "$$) (iscal ,ear 2&al'Mart, "$$)3- Based on
the annual sales and ne* locations constructed annuall,, the &al'Mart management team must
+e doing something more than 4ust clever marketing-
&al'Mart is an interest topic among management students +ecause although it is a
relativel, ,oung compan, it has alread, achieved tremendous success- Furthermore, the
compan, +oasts a desira+le corporate culture *here ever,one is treated as (amil,- The readers
can5t help +ut think that this compan, is an advocate o( diversit, and encourages decision
making among emplo,ees- This essa, evaluates internal and external (actors and ho* the,
a((ect the (our (unctions o( management- B, exploring these topics, the readers *ill +e a+le to
see ho* the organi6ation handles its operation and ho* it deals *ith its sta((s-
7ne o( the +iggest impacts on management in &al'Mart *ould have to +e planning and
organi6ing on ho* the, *ill price all their items in the store- &al'Mart has to look at all their
competitor5s prices and see ho* the, can +e more a((orda+le- 8ot onl, do the, need to take into
consideration the prices o( their competitor5s +ut the, also need to look at the revenue that the,
*ill +e gaining *ith the prices the, choose- &al'Mart strives to make the customer happ, +,
shopping in their store- 9Save Mone,- :ive Better; is *hat &al'Mart *ants ever, customer in
the store to gain- To do so, &al'Mart5s management needs to sta, on top o( planning and
organi6ing price drops-
Internal and External Factors #
7ther stores are competing *ith &al'Mart on their prices and the various items and
groceries that the, o((er- Man, o( &al'Mart consumers +elieve that &al'Mart is the one stop
shop- I( an item cannot +e (ound an,*here else the item can most likel, +e (ound at &al'Mart-
&al'Mart management needs to sta, on top o( that 97ne Stop Shop; title +, planning and
organi6ing items on the shelve and keeping those shelves stocked- <s the Christmas season
approaches stores are stocking up on varies items- 7ne o( the +iggest shopping da,s o( the ,ear
is coming up in 4ust a couple o( *eeks, 9Black Frida,-; Managers in all &al'Mart stores across
the nation are planning and organi6ing (or this +ig shopping da,- Management needs to prepare
(or long lines, inventor, pro+lems, more people in the store, and aggressive customers- The onl,
*a, to do this is to plan and organi6e training (or &al'Mart emplo,ees on *hat the, can do in
these situations- Management not onl, (ocuses on planning and organi6ing +ut the, also have to
deal *ith the leading and controlling aspect o( management-
&al'Mart is one o( the largest corporations in the *orld- Since its de+ut in 1)%", &al'
Mart has +een a success(ul and productive organi6ation and is continuousl, gro*ing, in spite o(
glo+al economic hardships 2&almart Stores, "$$)3- &al'Mart5s gro*th and continual success
can +e contri+uted to an e((ective management team- T*o (undamental (unctions o(
management, *hich pla, a signi(icant role in the success o( the organi6ation are leading and
controlling-
:eading is re(erred to as the motivation o( others to accomplish speci(ic organi6ational
goals and o+4ectives 2Bateman = Snell, "$$)3- E((ective leading in an organi6ation, as si6ea+le
as, &al'Mart re>uires a vast amount o( communication and the use o( internal in(luences, such
as the use o( human resources in encouraging the hiring o( disa+led and elderl, associates,
appropriate delegation and the usage o( incentive programs that promote a positive and
Internal and External Factors 1
productive *ork environment- &al'Mart uses external (actors such as competitive pricing,
communit, (ocused pro4ects and glo+al a*areness-
The managerial (unction o( controlling ensures that organi6ation per(ormance does not
di((er (rom the compan,5s standards- Controlling esta+lishes per(ormance expectations,
compares per(ormance against organi6ational standards and uses corrective action *hen
necessar, 2Bateman = Snell, "$$)3- &ith an organi6ation as vast as &al'Mart, control is
essential in maintaining success-
&al'Mart incorporates the use o( +oth internal and external in(luences in its control
process- Internal controls include the use o( an inventor, tracking s,stem, implementation o(
*ork'related policies and procedures, usage o( cameras, and *ork per(ormance revie*s- 7ther
internal and external (actors that impact the control (unction o( management (or &al'Mart
include (inancial statements, sales reports, production results, customer satis(action, (ormal
per(ormance appraisals, changes in the market, politics, and changes in economics- The
compilation and anal,sis o( such in(ormation is used to monitor and manage 2control3 the
organi6ation5s progress and ensure a success(ul outcome-
The (our (unctions o( management are a((ected +, outside in(luences especiall, (or larger
corporations such as &al'Mart- These outside in(luences have an impact on all aspects o(
management +ut especiall, on the planning and organi6ation o( the compan,- &hen considering
the planning and organi6ation (unctions o( management man, inputs and external environmental
(actors should +e considered-
lo+ali6ation is an issue that has presented itsel( as a ma4or consideration (or companies-
lo+ali6ation descri+es the process in *hich economies and cultures +ecome integrated through
communication and exchange- For a compan, such as &al'Mart that is +eing met *ith adversit,
Internal and External Factors /
to expansion in territories such as Mexico and India as descri+ed in articles, 9&al'Mart in India?
a success or (ailure@; ; Mexican Court Aules against &al'Mart,; and 9&al'Mart Expands into
7ther Countries; glo+ali6ation and organi6ation comes *ith heav, considerations-
<long *ith expansion into other territories special attention is paid to the ethics and the
diversit, that is associated *ith moving the +usiness into other countries- Ethics and diversit, are
associated *ith the expansion +ecause o( la+or la*s and di((erences in regulations in di((erent
countries- < strict ethical code is essential to success(ul planning and organi6ation (or &al'Mart-
The lack o( ethical treatment *ill +e met *ith opposition as descri+ed in the article 9Mexican
Court Aules against &al'Mart-;
The planning and organi6ation (unction is not limited to glo+ali6ation, ethics and
diversit, though- Blanning and organi6ation also include technolog, and innovation- Technolog,
a((ects planning and organi6ation +ecause in countries such as India *here an, outside compan,
ma, not o*n an, land, &al'Mart has to have technological and innovative advancements to run
the +usiness- B, partnering *ith a local +usiness the, have expanded into Indian territories
success(ull,- &ith the development o( technolog, and innovations the planning and organi6ation
(or the operations o( those locations has +ecome managea+le-
&ith &al'Mart5s si6e and po*er, &al'Mart has led to ma4or changes in the retail
industr, through glo+ali6ation, technolog,, innovation, diversit,, and ethics- &al'Mart entered
the glo+al market in the earl, 1))$s 2&al'Mart, "$$)3- <t (irst, &al'Mart made some mistakesC
ho*ever, +, >uickl, learning (rom its mistakes &al'Mart has success(ull, penetrated a num+er
o( (oreign markets and is no* the largest retailer in the *orld- &al'Mart5s technological and
innovational advances such as the universal +ar code and the use o( radio (re>uenc,
identi(ication technolog, 2AFID3 has +oth increased &al'Mart5s productivit, and altered ho*
Internal and External Factors %
the industr, operates 2&il+ert, "$$)3- 9The universal +ar code (orced manu(actures to adopt
common la+eling-;
Aecentl, &al'Mart has (aced some issues concerning diversit, and ethics such as the
discrimination o( *omen and (orcing emplo,ees to *ork overtime *ithout pa,- Due to these
issues &al'Mart has developed a diversit, o((ice and a glo+al ethics o((ice- 9Competitors
emulate D&al'Mart5sE highl, productive processes; 2Bro*n, n-d-3-
&al'Mart has a great deal o( control over the retail industr, and their manu(acturers and
suppliers +ecause o( their massive si6e- &al'Mart 9has driven smaller retailers out o( +usinessC
(orced manu(acturers to +e more e((icient, o(ten leading these suppliers to move manu(acturing
4o+s overseasC and changed the *a, that even large and esta+lished industries do +usiness;
2&il+ert, "$$)3- For instance, *hen &al'Mart decided to green its suppl, chain the retailing
giant incorporated ne* technologies and innovated ne* *a,s to reduce their environment
(ootprint 2Blam+eck, "$$F3- &al'Mart no* uses h,+rid diesel'electric trucks to reduce C7"
emissions- Due to &al'Mart5s green initiative, suppliers and (armers are +ecoming greener
through more energ, e((icient practices and products and gro*ing certi(ied organic (oods or
cotton- Through glo+ali6ation &al'Mart no* controls the retailing industr, not onl, in the
Gnited States +ut also in Bra6il and other (oreign countries-
&al'Mart5s diversit, o((ice, glo+al ethics o((ice, and ethical sourcing program ensure that
&al'Mart and its suppliers and manu(acturers maintain ethical standards and a diverse and
ethical *ork(orce- For example, through the ethical sourcing program &al'Mart monitors and
implement changes *hen need +e to la+or and environmental practices in the (actories &al'Mart
does +usiness *ith 2&al'Mart, "$$)3-
Internal and External Factors F
Based on the a+ove discussion, the (ollo*ing conclusion a+out &al'Mart can +e dra*n-
The organi6ational motivation is >ualit,, pro(it and dominionC it +elieves that success is +rought
a+out +, excellent and *ell trained emplo,ees- Emplo,ee motivation includes career
advancement, handsome +ene(its and democratic corporate culture that can +e likened to a
(amil,- These are desira+le traits o( an organi6ation and no dou+t, these traits have contri+uted
to the compan,5s success-
Internal and External Factors .
Ae(erences
Bateman, T- S-, = Snell, S- <- 2"$$)3- Management: Leading & Collaborating in a
Competitive World, Eighth Edition. 8e* Hork? Mcra*'Iill-
Bro*n, A- 2n-d-3 &al'Mart and glo+ali6ation- Aetrieved (rom http?!!F1-1"/-11#-1#"!search@
>Jcache?*e<KD1LAtpIM?***-usd-edu!Nr+ro*n!&al'Mart
O"/"$O"%O"/"$lo+ali6ation-pptP*al'
martPglo+ali6ation=cdJ#=hlJen=ctJclnk=glJus=clientJ(ire(ox'a
Ialepete, Ma,a, Seshadri l,er, K-Q-, Bark, Soo Chul- 2"$$.3- &al'Mart in India? a success or
(ailure@- International Journal of Retail & Ditribution Management, #%2)3, F$1'F1#-
8e((, M- 2"$$)3- &almartRs shopper'(riendl, redesign takes toll on sales- !dvertiing !ge, "#2#/3,
1'"#-
Blam+eck, E- 2"$$F3- The greening o( &al'Mart5s suppl, chain- Aetrieved (rom
http?!!***-scmr-com!article!#").")'TheSreeningSo(S&alSMartSsSSuppl,SChain-php
Aeuters- TMexican Court Aules <gainst &al'Mart-2Foreign Desk32Brie( article3-T $he %e& 'or(
$ime. 1/F- /11"/ 2Sept %, "$$.3? <F2:3-
&al'Mart Expands into 7ther Countries 2side+ar3-T Iue & Controverie )n *ile: n- pag-
Iue & Controverie- Facts 7n File 8e*s Services, 1" Ma, "$$%- &e+- F 8ov- "$$)-
Aetrieved (rom http?!!***-"(acts-com!article!i+11$"11
Walmart +tore- 2"$$), 8ovem+er3- Aetrieved (rom &almartstores-com?
http?!!***-*almartstores-com
Internal and External Factors )
&al'Mart Stores- 2"$$)3- <+out us- Aetrieved (rom
http?!!*almartstores-com!<+outGs!
&al'Mart Stores- 2"$$13- Wal,Mart- Aetrieved (rom
***-*almartstores-com
&il+ert, C- 2"$$)3- Io* &al'Mart *orks- Aetrieved (rom
http?!!mone,-ho*stu((*orks-com!*al'mart-htm!printa+le