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General environment factors affecting wal mart i e

Wal-Mart has 8500 stores in 15 countries, with 55 different names.

Economic Factors

The company operates under its own name in the United States, including the 50states. It has wholly-owned operations in Argentina, Brazil, and Canada.

Wal-Mart's investments outside North America have had mixed results: Overview of Company Wal-Mart is well-known American company that operating retail stores including grocery stores, Discounts warehouse clubs and combination of general merchandise store. Million of Wal-Mart customers witnessed the big reveal at grand reopening across the country. Wal-Mart are getting an extreme makeover, from the colour, spacing assortment of goods up to changes of merchandise with marks bigger and bolder sign age.

They launched project impact during financial crisis in US, they take advantage sag economy, and they had low prices to get more customers. Nature of Business Nature of business refers to the type or general category of business or commerce you are describing.

Walmart PESTEL/PESTLE Analysis & Recommendations

For example, if you work at Microsoft, then the nature of your business is software. If you work at a restaurant, the nature of your business is food services. In case of Wal-Mart nature of Business is to provide goods and services to customer. It is deal with wholesaler and retailer customers. Wal- mart is multidimensional in it nature of business.

You can say customer service or even point out the specific dept. Wal-mart business module is B2B and B2C. There is casual ambiguity and social complexity in the firm resources. The customers will purchase them and then bring in money to the business. It deals with online and offline in its own store. Wal-Mart provides large discount department stores and a chain of warehouse stores. Wal-Mart is the buying and selling of products and services by businesses and consumers over the Internet and through other electronic media.

This might include procuring goods and services, dealing with customers as well as selling products. Political Wal-Mart made sure that they knew of the political situation of every country they have operated in and the company has made sure that it has a good general environment factors affecting wal mart i e with regards to political issues.

Wal-Mart is every time ready to face any problems concerning the political sector. Some times Wal-mart spent money in political issues. Economic Wal-Mart is economically stable for the past years. Its economical environment is doing well so they can try to improve their products and able to give best to their clients.

It is not only the internal economic situation of the company should be taken in consideration but also consider the economy of the country, Wal-Mart checks first the economic status of the country they are operating in before they decide to open the branch in that country. The economic environment is a major factor in the strategies of discounts retailers.

Social Wal-Mart makes sure that the products they offer should be accepted by the society where they are operating in. Wal-Mart does not authorize the delivery of some products they know will cause outbursts or complains from different groups in the society.

Wal-Mart is maintaining very good relationship with different sectors in the society although some sectors have problems with them.

  • For example, if you work at Microsoft, then the nature of your business is software;
  • They launched project impact during financial crisis in US, they take advantage sag economy, and they had low prices to get more customers;
  • Social Wal-Mart makes sure that the products they offer should be accepted by the society where they are operating in;
  • Wal-Mart has developed certain regulations on what type of product they will sell in their store.

Wal-Mart also participates in social activities that tend to develop a better relationship between them, the clients and the society they are operating in. Technological Wal-Mart offered new innovations in its technological aspect and introduced new concepts with regards to its industry. Wal-Mart is using advanced cash register and better performing slot machines. Wal-Mart is using better security system.

Since technology rapidly changes Wal-Mart keeps updating to up to date technology and keep an eye on the technology how its changes.

If other companies use new technologies to provide services, Wal-Mart has a capability to adopt those technologies. Environmental Wal-Mart makes sure that the products they sell are proven to cause very less harm to the environment. Wal-Mart has developed certain regulations on what type of product they will sell in their store.

Wal-Mart has also introduced better waste management systems that aim to reduce pollutants and provide a cleaner environment for the future. Wal-Mart makes sure that its waste system is developed to prevent any mistakes from the personnel.

Legal Wal-Mart makes sure that it follows the different laws of a country where they are doing their transaction. Market Competition Wal-Mart is offering low price, low cost operations as well as their operational efficiency; Wal-Mart tops the list of retailers worldwide. While some retailers such as Dollar General offering a low price initiative with comparable low price offerings as Wal-Mart, Wal-Mart is still the leader in the retail market.

Bargaining power of Buyers The bargaining power of buyers highly influences Wal-Mart. Company is trying its best to keeps its prices low for the products and services they are providing. When the products are similar then the buyer will compare the price among suppliers which increases the competition and lead to lower prices and profits. Bargaining power of Suppliers The company makes sure that their suppliers have high bargaining power through helping them show their importance in the industry.

This will ensure that budgets will not be wasted. Wal-Mart holds a greater part of market share and suppliers general environment factors affecting wal mart i e that, so the power of suppliers is low in case of Wal-Mart. Influence of External Environment in Wal-Mart 1.

Political The political factor can negatively affect the Wal-Mart sales and profits because government can change the rules and the regulations at anytime which can be influenced Wal-Mart directly. For example; the sale of Wal-Mart in February, 2013 was lower than the expected due to delay in income tax refunds. The sale of Wal-Mart globally can be influenced by those issues. If these countries face any political instability or any problem, it can reduce the market share of Wal-Mart.

Economic Raise the price of products and services which cause to push inflation. This affects the performance of the entire company, not only on its relationship with the customers, but also affects the overall system.

  1. Wal-mart business module is B2B and B2C.
  2. The economic environment is a major factor in the strategies of discounts retailers. Market Competition Wal-Mart is offering low price, low cost operations as well as their operational efficiency; Wal-Mart tops the list of retailers worldwide.
  3. Others factors like higher transportation cost, foreign exchange rate fluctuation, healthcare and insurance, and other economic factors can raise the cost of general and administrative expenses and harmfully effect the operations of Wal-Mart.
  4. For example, if you work at Microsoft, then the nature of your business is software. Company is trying its best to keeps its prices low for the products and services they are providing.
  5. Economic Factors Walmart is under significant pressure from economic changes. If other companies use new technologies to provide services, Wal-Mart has a capability to adopt those technologies.

Purchasing power depends up on the economic condition. S and other countries higher fuel price, energy cost and higher interest rate, inflation, weak housing market, unemployment rate, higher debt and changes in tax law and overall economic slowdown could affect consumer demand for the services and products selling through Wal-Mart stores. Others factors like higher transportation cost, foreign exchange rate fluctuation, healthcare and insurance, and other economic factors can raise the cost of general and administrative expenses and harmfully effect the operations of Wal-Mart.

Technological The Internet and e-commerce greatly influence the overall performance of Wal-Mart. Thus, it results the company to launch its online stores which enables the company to be connected with the customers. Just like the employees, as of now, customers are also changing in demands, particularly in the ways of buying and availing products and services.

E-commerce or the process of buying and selling goods and services over the internet had opened a new way of connection between the buyers and the sellers.

Substitute product Customer mainly influenced by low prices. Therefore, if cost of switching the product is low then threat of substitutes is higher. Normally, there are three factors that can influence the customer to switch the product such as; willingness of buyers to switch the product, performance and price. On the other hand, if the buyers become loyal to the products then threat of substitute can be decreased.