External/Internal Factors Paper

Customers gain great savings from shopping with Wal-Mart. With lower prices, it allows Wal-Mart to have a strong position in the value network. Wal-Mart has achieved this position with their purchasing power. To continue to provide great value to the consumer, Wal-Mart provides none to minimal benefits to its employees. By not providing health benefits to its employees they save thousands, even millions, which gives them greater advantage in purchasing and selling at lower prices. These control mechanisms are effective for Wal-Mart because it has given them the title of being the biggest retailer in the industry. It has given them the power to buy large and sell cheap.

| Select an organization with which everyone in your Learning Team is familiar. Write a 1,050- to 1,400-word paper in which you explain how internal and external factors affect the four functions of management. In your paper, explain how the following internal and external factors affect the four functions of management. Include specific examples for each.GlobalizationTechnology InnovationDiversity EthicsInclude 1-2 peer-reviewed sources to support your ideas.Format your paper consistent with APA guidelines.

Wal-Mart’s management behaves immorally towards its employees. They do not value their employees’ needs, rights, or the labor laws that the US put into place to protect them. Wal-Mart’s low price on everyday household products is what sets them apart from other discount retailers. Their employees help make it possible for them to dominate their competitors in the

" Wal-Marts founder, Sam Walton, directly states that Wal-Marts purpose is to create profit rather than to provide satisfaction for their workers. Their corporation put aside the standard of living of their employees in order to remain on the charts as the richest corporation. While Wal-Marts stock price has raised two-thirds, its debt to equity ratio has decreased. Since minimum wage was increased Wal-Mart has decided to increase health insurance for only full-time workers, but workers who work 30 hours or less a week will receive no health insurance. Wal-Mart grows economically when its

Wal-Mart is a “Big Business” and they have held this title for many years. That is not to say they present a negative connotation to most Americans. Quite the contrary, Wal-Mart is a global leader in offering low cost merchandise, a variety of items to choose from, a clean environment in which to shop. Additionally, they are one the largest employers in America, they are still a private corporation, whom stocks rank first and second place. They promote within and they offer training and advancement for their associates (Fishman, 2006).

In 1945, Sam Walton opened his first variety store and in 1962, he opened his first Wal-Mart Discount City in Rogers, Arkansas. Now, Wal-Mart is expected to exceed “$200 billion a year in sales by 2002 (with current figures of) more than 100 million shoppers a week…(and as of 1999) it became the first (private-sector) company in the world to have more than one million employees.” Why? One reason is that Wal-Mart has continued “to lead the way in adopting cutting-edge technology to track how people shop, and to buy and deliver goods more efficiently and cheaply than any other rival.” Many examples exist throughout Wal-Mart’s history including its use of networks, satellite communication, UPC/barcode adoption and more. Much of the technology

“Consumption is the sole end and purpose of all production; and the interest of the producer ought to be attended to only so far as it may be necessary for promoting that of the consumer...” Adam Smith. Wal-Mart is a producer who has the sole purpose of promoting consumption of the consumer. Wal-Mart and its quest for capital improvement are playing a major and vital role in the evolution of economic life. Wal-Mart brings positive change to towns in the U.S. They increase competition between retailers, stimulating the economy, and they also bring more capital and tax revenue to at town, some of which desperately need a positive change.

As the world’s biggest retailer, the Wal-Mart’s history is a story about innovation, leadership and success. Sam Walton established the Wal-Mart in 1962 (Michael, 2009). On October 31, 1969, it was incorporated and listed on the New York Exchange in 1972 (Michael, 2009). Wal-Mart grew from a single store in Rogers, Arkansas in 1962 to the world’s largest retailer, which operates over 11,000 retail units under 71 banners in 27 countries (Wal-Mart’s official website, 2014). In addition, the Wal-Mart employs 2.2 million associates around the world, which equals to the population of 50 smallest countries combined (Andy, 2012). With its advanced cross-docking inventory system, good relationship with factories, Wal-Mart has achieve economics of scale and got a big market share.

There are various internal and external factors that affect the four functions of Management positively or negatively. Organizations need to pay close attention to these factors because it can

Walmart strengthen their network with the supplier through computerization. It allowed stores to manage their own stocks which led to reduction in the unwanted wasted inventory. It collaborated with Procter and Gamble and joined hands for an automatic re-ordering system. This way an efficient supply of goods was managed leading to higher customer satisfaction as their demands are being met. This further led to better communication hence reduction in costs. In addition to this, the employees were given a hand held computer that were used to track record of sales .Moreover, alothrimic system was used to forecast the future demand. This also helped to solve the problem of bulk items. Centralized inventory dates showed the position of a product at a given time. Walmart is known for having the largest computerized retail system due to all these cost minimization measures due to which goods and stock level were easily

Both internal and external factors can affect the four functions of management differently. Some of the obvious internal factors would be such things as the company’s own strengths and weaknesses, which could include values, goals, skills, and even the attitudes of manager and the workers in the organization. Other factors can include the different tasks that the organization chooses as well as their resources and even the technology can be an internal factors. The external factors that can affect the functions of management can be very different these factors can include relevant forces outside the organization’s boundaries. Many of these external factors can be unpredictable and

Wal-Mart is arguably the most dynamic corporation in the last 50 years in the United States, if not the world. Arising from its beginnings in Bentonville, Arkansas, it has grown to over 4,400 discount stores, super centers and corner markets worldwide. Wal-Mart continues to expand despite public criticism of its labor practices as well as complaints about their treatment of competitors. The many strengths of Wal-Mart, like their low cost production and marketing practices, will aid Wal-Mart as it continues to grow in the retail

In 1945, Sam Walton opened his first variety store and in 1962, he opened his first Wal-Mart Discount City in Rogers, Arkansas. Now, Wal-Mart is expected to exceed "$200 billion a year in sales by 2002 (with current figures of) more than 100 million shoppers a week…(and as of 1999) it became the first (private-sector) company in the world to have more than one million employees." Why? One reason is that Wal-Mart has continued "to lead the way in adopting cutting-edge technology to track how people shop, and to buy and deliver goods more efficiently and cheaply than any other rival." Many examples exist throughout Wal-Mart 's history including its use of networks, satellite communication, UPC/barcode adoption and more. Much of the

Wal-Mart is the largest retailer with the revenue that is larger than 28 countries’ GDP in the world. Wal-Mart now has more than 100,000 suppliers. To be the world’s largest retailer, Wal-Mart implements the low prices and highly efficient operation strategy. The main task for them every day is to balance the holding cost and the storage cost. Besides, for an international company, Wal-Mart has to amend their strategy in order to integrate into different markets.

Strengths of Wal-Mart include their ability to control operating costs, immediate restocking of shelves, and everyday low prices that they pass on to the consumer. Weakness of Wal-Mart includes the perception of crushing “mom and pop” stores in communities they enter and a lack of workers’ rights. These weakness are minor compared to their distinct advantages concerning cost, and are vigorously defended against. Wal-Mart’s bargaining power with suppliers is immeasurable. Whereas traditionally, retailers like Wal-Mart would make requests and wait for orders from suppliers, due to the sheer size and reach of Wal-Mart, they dictate to suppliers the terms, and often have increased clout concerning prices of units they wish to carry. Wal-Mart can make or break suppliers due to the reach they have with the American consumer. It is estimated that everyday one-third of Americans shop at Wal-Mart (Zimmerman 2008). Thanks in part to their dominance in the industry and