Internal and External factors at Wal-Mart

1770 Words Jan 23rd, 2009 8 Pages
Internal and External Factors of Wal-MartIn 1962, Sam Walton opened the first Wal-Mart store and the retailing giant has been rising to success ever since. Various factors have played an integral role in the success of Wal-Mart, but without the strong execution of the four functions of management, Wal-Mart would have failed like many others. This paper will discuss in detail the how internal and external factors affect the four functions of management.

GlobalizationIn 1993 Wal-Mart formed their International Division which was crucial to their success because they needed to remain competitive with other industry giants. When Wal-Mart entered a new country, careful planning was conducted to meet the demands of that specific country. A
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The kiosks let shoppers create custom CDs that can hold up to 100 songs. The finished CD is then picked up at the one-hour photo center. In pharmacy, new technology allows personnel to retrieve a patient's prescription information at any location simply by knowing the patient's name and type of medication. The patient does not have to know his or her prescription number, insurance information or at what store the prescription was originally filled (Wal-Mart Technologies Enhance Visible and Behind-Scenes Services, July 2005).

InnovationWal-Mart's continued drive towards innovation sustains its global footprint. Wal-Mart continues to be a leader in the business world. It's evident that Wal-Mart strives continually to introduce new and different ways to market their business and uphold competitive advantage and introduce new ways to build relationships with employees, customers, and the humanitarian world.

Wal-Mart's resourcefulness is widely shown in their in-bound logistics. Wal-Mart's satellite network is the largest private satellite communication system in the United States, this along with its strategic locations for their distribution centers have given them another competitive edge. Unlike other competitors who house less than half of their inventory in distribution centers, Wal-Mart houses over 80 percent in their distribution center; this purpose being more sales space for the stores and 100 percent in-stock position. To cut
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