Walmart External Environment Analysis

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This report presents answers for two questions. The first question asks about an analysis of external environment impact on retail companies like Circuit City and Wal-Mart. It also discusses the tools and techniques that can help managers to identify and evaluate the external influences on strategy. In second question, I should choose a company and presents its resources and capabilities and the steps the company should take to exploit its strengths and to correct its weaknesses in relation to its current and future strategy.
I organized this report into the following sections; introduction, Answers for the questions in the TMA, and the references.

The answers of Questions
Question 1:

A. The external environment
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These factors changes may present threats or opportunities and Walmart managers can determine which factors to prefer in strategy development. By analyzing the social factors that affect Walmart such as healthy lifestyle trend , and cultural diversity trend , we can say that these factors present opportunities for Walmart that enable it to offer healthy products and satisfy various cultural preferences. Technologies affect the retail industry’s competitive landscape such as; increasing business automation, business analytics or big data, increasing mobile device usage among consumers that help Walmart to boost its online marketing and selling which increase Walmart’s revenues. Walmart is under pressure from economic changes because any change directly leads to changes in the company’s revenues. All of the economic factors like stability of major economies, continued growth of developing countries, and decreasing unemployment in the United States show that Walmart has exploit opportunities around the world. Business sustainability trend and environmentally friendly products trend are the ecological external factors in Walmart’s environment that gives it opportunities to increase the success. Walmart considers political factors like; High stability of politics, political support …show more content…
It is constantly experiencing growth and change and is substantial in size. There is high fights and competition on location, pricing, store size, layout and environment, merchandise mix, technology and innovation, and overall image. Top retailers as Walmart integrate many functions, such as manufacturing, purchasing, advertising, and shipping. Walmart’s top competitors are Target and Circuit City. Respondents for a survey on 2013 showed Walmart offered lower prices , good quality, and better variety and selection. Walmart’s stakeholder groups are satisfied by this strategy. These stakeholder groups: Investors, Customers, Employees, Suppliers; have different levels of preference, based on the company’s beliefs and policies. The investors are the highest priority stakeholder group with Walmart, while the suppliers have the lowest priority. However, all of these stakeholder groups are considered in the company’s decision-making process. Investors are mainly interested in profits as they want Walmart to have more dividends or earnings per share. Walmart's customers are interested in low prices and high quality products. Walmart is effective and successful in satisfying the interests of customers. Walmart’s employees are a significant consideration in the company’s managerial decision-making as they have two main interests: job security and higher wages. Job security gives them the guarantee that Walmart will keep them

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