Internal and External Business Factors of Walmart

Internal and External Business Factors of Walmart

Paul Hostman, Lorren Mitchell, Remika Breda, Precious Tatum, Nichole Hyde  

MGT230

April 14, 2014

Christi Monk

Internal and External Business Factors of Walmart

        When most people think of Walmart, they picture the mega warehouse type retail structures that everyone has either shopped in or seen. Many do not realize that Walmart opened its first store in Roger, Arkansas in 1962. In a matter of 5 years, the company grew to 24 stores, with annual sales of $12.7 million (Walmart, 2008). One way they were able to accomplish this at such an early age was by recognizing the needs of the company and its employees. Recognition of these internal factors allowed Walmart to be proactive in its approach to the future. Another method that was employed was the determination of external factors that could affect the profitability of the company. By doing this, Walmart was able to preemptively position themselves against their competitors. Today, Walmart is a global leader in recognizing diversity, ethical needs, technological advances, innovative ideas, and the globalization of the corporation.        

As a global leader, Walmart has over 10,000 stores worldwide and employs over 22 million staff members (Yanrong, 2013). With their production happening worldwide, Walmart has positioned itself as a diverse place to work. Walmart has been able to diversify their organization and products all over the world to survive economic hardship and competition. Accordingly, diversity has impacted the four functions of management within the corporation. Prior to a manager organizing, leading, or controlling, they must plan to determine the direction of the organization. Internal diversity is a consideration in the planning process that determines the diversity in products, resources, and organizational structure. Once diversity is considered, management can use the four functions to drive the organization to success.  

        Having stores worldwide can add differences in the social and cultural perceptions of employees of the corporation. The branches around the world can make it challenging for management to lead and organize them towards achieving an effective and efficient strategic goal. To overcome this challenge, controlling internal processes and functions of the stores is critical. Allowing frontline managers to practice the four functions of management in each branch of the world, will allow them to meet diversity needs so the organization’s main goal is achieved.

Ethics is defined as a system of rules that governs the ordering of values and demands the integrity of management (Bateman, & Snell, 2011). Over the years, Walmart has been cursed with many critics that disapprove of their energy use for shipping, trucking, and distribution that is done at monumental scales (Bateman, & Snell, 2011).  However, they have proved through their Statement of Ethics that they are dedicated to responsible behavior. Walmart has always been a values-led, ethically based company, and their leadership is based on three basic principles (Walmart, 2008). Included in these beliefs is the respect for the individual, service to our customers, and striving for excellence (Walmart, 2008). With these beliefs in mind, managers have a vision to follow and can achieve all four functions of management effectively. Walmart’s Statement of Ethics provides managers with a framework of their responsibilities, including, leading by example, organizing solutions to ethical problems, controlling ethical issues by reporting them, and ultimately, putting ethics first (Walmart, 2008). Managers, associates, and customers will all benefit from strong ethical standards much like Walmart’s, and the success of management can be easily met by delivering strong values and integrity. Anita Roddick quoted, “I want to work for a company that contributes to and is part of the community. I want something not just to invest in, I want something to believe in” (Brainy Quotes, 2014). If managers have a strong ethics statement to believe in, they will be able to plan, organize, lead, and control in accordance to the vision of the company, and pass their values on to lower level associates who directly face the public daily.