Pest Analysis Of Walmart

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Several years ago, I was the Director of HR Strategy for Walmart US. As a component of one of my early projects, and being fairly new to the organization, I was asked to conduct a PEST of the organization based on my team’s perspective. As a retail industry leader, Walmart continues to withstand the potential negative effects of threats in the political, economic, sociocultural, and technological (PEST) aspects of its business. However, this success requires continued evaluation of the retail industry environment and constant investment in risk mitigation strategies and processes.

These PEST factors also change over time, and since it has been years for me since being there, I fresh look is required. These constant changes may present new threats or opportunities that were otherwise not contemplated before (i.e. the Amazon effect). Walmart must exploit the opportunities and protect itself from threats. In using the PEST analysis, Walmart leaders and managers can determine which factors to prioritize in strategy development. Let’s look at each of the four factors in our further analysis.

Political Factors – “Are there any other political factors that are likely to change?” Walmart considers political factors in the retail and employment markets, usually pertaining to government policies and employment law. In the PEST analysis model, politically active interest groups are also significant in how Walmart reacts to this aspect. For the most part, politics that would
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