Walmart also has had battles dealing with sexual discrimination regarding women and as well as members of the LGBT community. Another big issue affecting the welfare of the human population, which is crucial in the development of a stable society and ecosystem, are the work labor issues involved in Chinese factories. Taking a closer look at the issues will hopefully develop an idea of how hurtful Walmart truly is to the environment. From economic, developmental and environmental standpoints, Walmart is not the savior they claim to be.
The use of PEST analysis can be seen effective for business such as their strategic planning, marketing, and product development. Furthermore, PEST ensures that company`s performance is aligned positively with the powerful forces of change that are affecting business environment (Porter, 1985). PEST have four factors which are Political, Economic, Social, and Technological. However, we use these factors to check how they interplay to the business or the activity of an organization.Using PEST analysis is important when a company decided to enter its business operation into new markets and new countries. In this case, using PEST will help to adapt effectively to the realities of the new environment and to make contingency plans for threats by preparing business and strategic plans (Byars, 1991; Cooper, 2000).
A department store (NAICS 45211) is a retail establishment that offers the customers a wide range of consumers goods in different product categories known as departments. This industry is engaged in selling apparel, appliances, home furniture, and diverse items such as paint, cosmetics, furniture, toys, and sporting goods. In this industry, merchandises are separated by departments. Major companies in this industry are Dillard’s, JCPenney, Macy’s and Sears. According to Hoovers.com the department store sales have been strongest in Europe, Japan and the US, also the US department stores comprises about 20 companies that operates about 3,250 stores with a combine revenue around $55 billion. The Global department store market is forecast to grow at an annual rate of 5.4% between 2015 and 2020. The profitability of the retail companies depends on the effective merchandising, marketing and high customer traffic (Hoover.com), also the department stores sales are highly seasonal increasing during holiday shopping. The department stores sales have been decline in the past decade due to competition with discount stores, specialty stores and the internet are making shopping so much easier. The industry is highly concentrate.
PESTEL is the acronym for political, economic, sociocultural, technological, ecological and legal, and theses are external forces at the macro legal divided into six segments. These forces embedded in the global environment can create both opportunities and threat, so managers must monitor them closely. Managers must be aware of changes, like new competitors entering their market, in order to stay competitive in the business environment/marketplace.
With over two-million people employed and an annual revenue of nearly 486 million dollars for 2015, it is no surprise that Walmart is one of the world’s largest retail companies (Walmart Stores Inc.). Walmart is an expanding company, one who is constantly looking for opportunities for new stores. With all this in mind, it easy to see why Walmart has such a large impact on America’s economy. This is why America’s societies should limit their dependencies on Walmart stores and subsidiaries. It is important to do this based on how quickly Walmart came to be the economic power it is, the poor treatment of employees, and the impact on small businesses.
Political Factors: This element of the analysis reveals the legislative impact on the grocery market and organic foods industry. With respect to WFM, the following are key political factors affecting the macro-environment.
The key facts and critical issues in the Wal-Mart Revised Its Marketing Strategy, is that Wal-Mart must do better with their pricing. Wal-Mart is declining sales and reducing profits. If Wal-Mart wants their loyal customer to return, things need to change. Wal-Mart has been ranked the number one non–oil company on the Fortune500 for the past nine years (Huang, Hansen, Anderson 2012). Critical issues are that the CEO is looking at other grocery chains. Wal-Mart promise to keep its everyday low prices. The company is looking to increase its promotion. For example, radio advertising increase, radio messages, and invest more in social media. Some key facts are Wal-Mart competitors are trying to compete. The company has even change their shelf space
In closing, Team C has evaluated Walmart’s annual report to identify relevant strategic planning initiatives as well as to gain a better understanding of how the Walmart organization uses strategic planning to their benefit. We have discovered the extreme efficiency of using such a tool as cost leadership, and how Walmart uses this tool to dominate the competition and strive as the industry leader in providing quality products at discount prices. This combination proves to maximize profits as Walmart continues to effectively utilize global sourcing policies while minimizing the collective risk associated within.
Having worked for a huge company like Walmart I know all too well of its buying power, affect in our communities and its tremendous financial other retail stores globally and domestically. I feel that the changes in technology has only catapulted the company to a new level of success. I’ve seen where the changes in information technology have helped Wal-Mart streamline its supply chain and reduce costs by tracking deliveries. Technology has also made it easier for Wal-Mart to source its products to different parts of the world, which I feel has also helped in tracking consignments and reducing inventory costs. Since Walmart has grown exponentially it has been able to reach more customers than ever. Through online retailing, Walmart sells
1. The Seller is "firm" with our prior agreement of keeping the earnest money at an escrow account of the Seller's choosing. Therefore, Paragraph #3 and Paragraph #15 remains the same per our originally agreement.
Are any changes taking place in the macro-environment that might have a positive or negative impact on the industry in which your company is based? Apply the PESTEL framework to identify which factors may be the most important in your industry. What will be the effect on your industry?
The goods and services in the competitive environment is what triggered Wal-Mart to analyze their current marketing targets and strategy. Target was their biggest competitor and the economy dropped was perfect timing for Wal-Mart to revise their goods and services for the middle class consumers. Wal-Mart identified that they were selling skinny jeans to their customers who the vast majority averaged a size fourteen. This was not smart marketing from a consumer based standpoint. Wal-Mart revised their target mix and then identified what needed to be revised in their marketing mix that would be beneficial to the organization.
This paper will discuss the macro environment of the Kroger Company. Using the PESTEL analysis political, economic condition, sociocultural forces, technological factors, environmental forces, legal and regulatory factors will determine which of the six components of PESTEL are most relevant at present. The five forces model will decide which of the five forces is giving the company its strongest competitive pressure. The VRIN test will determine the company’s sustainable competitive advantage by examining their tangible and intangible resources. Conducting a SWOT analysis will show the company’s strengths, weaknesses, opportunities and threats will determine how the company should move forward (Bethel University,2017).
With this in mind, the PESTEL model was developed to give researchers and practitioners a framework in which to consider the broader business environment. PESTEL stands for Political, Economic, Social, Technological, Environmental and Legal. Furthermore, a PESTEL analysis is a technique that evaluates the potential impact of political, economic, social, technological, environmental, legal factors on an organization. This set of factors represents a broad set of industry and environmental considerations that any organization should make when designing strategic goals