Wal-Mart Case Study

III. External Environment: Opportunities and Threats A. Societal Environment 1. Wal-Marts normal environmental forces, which greatly impact the task environment, include technological, socio-cultural, economic, political, and licit forces. These forces tend to be challenging to identify and are modify both the corporation and the industries in which it competes. Because they are indirect forces, which for the roughly part are out of managements control, they whitethorn render threats and expose weaknesses. Some examples of environmental forces, which may present threats to Wal-Mart, are economic, political and legal forces. Being the worlds largest retailer means youre the target of competition, locally and internationally. As a global retailer, Wal-Mart is exposed to political problems in the antithetic countries it operates in, and also faces strict labor and employment laws. Intense legal injury competition is also a threat. Due to outsourcing to low- personify countries, manufacturing be have fallen as well as the cost of producing many consumer products. On the other hand, opportunities may arise from forces much(prenominal) as increased technology, a diversified workforce, and a easy economy.

Wal-Mart has diversified from large supercenters to local and mall-based sites, creating opportunities to exploit market development. Expanding consumer markets such as China and India have presented Wal-Mart with great opportunities to further globalize their operations. Summary of External Forces Economic: The recent financial crisis has had a negative impact on consumer using up. This disproportionate level of income and consumer spending in developing countries will impact Wal-Marts global economy. Currency has also had an effect on their income and will impact to be a threat. On the other hand, the fact that a lot of retail companies are struggling to maintain out-of-pocket to the drop in disposable incomes, and that inflation in US market diverts customers towards buying cheaper... If you want to get a all-embracing essay, order it on our website: Orderessay

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