Internal And External Factors Of Wal Mart

1176 WordsDec 17, 20155 Pages
Wal-mart has seen itself become a retail giant over the past decades. They have an enormous amount of control over both consumers and suppliers. Brands literally sacrifice profit margins to have shelf space within their stores. With the addition of grocery brands as well, Wal-mart has positioned itself as a “one-stop” destination for all consumer’s needs. However, 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 enhance the company’s success when used appropriately. Currently several factors are top of mind for management. They need to be concerned with in this era are globalization, new technologies, innovation, diversity, and ethics. Wal-mart is a big player in the nation and global market and must stay reactive to these internal and external factors to stay on top. Wal-mart is addressing each of these issues directly. Internal/External Factors: Strengths: • Efficient and effective use of resources. Wal-Mart has an enormous amount of resources. It can leverage distribution facilities, information systems, knowledge and other capabilities and skills, more efficiently and effectively over a large number of locations. • Economies of scale. Wal-mart offers a variety of products across its brands. The multitude of products allows the retailer to share costs across the product lines. • Knowledge gained from best practices. Using
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