Walmart internal environmental analysis

Document Type:Essay

Subject Area:Management

Document 1

The mission and the vision statement of the company speak a lot to the organizational culture; therefore the two are an important part of the internal environment. As opposed to the external factors, the internal environmental factors are pressure from the organization affecting the institution. The research focusses on the internal environmental assessment of the Walmart Corporation, the strength, and weaknesses of the institution and the organization’s competitive analysis. Walmart Internal Environment Walmart operates within a distinct and better inclusion of the internal environment that factor in several items. The crucial internal factors that affect Walmart business operations include values system, mission, and objectives, labor union, corporate culture among others. The company mission, vision, and objectives are geared at satisfying the need of the customers that ultimately benefit the company through the maximized sale and increased profit.

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The organizational structure also adds value to the internal environment of the organization. An organizational structure influences the decision made in the organization that later determines the success or failure of the business. Walmart has a hierarchical functional structure where all employees are superior and can equally contribute to decision making whenever needed (Lombardo, 2018). Every employee understands their role in the organization, and despite being involved in decision making, they perform effectively at their levels. The company benefits from the economy of scale and offers the customers goods at lower prices. A wide range of the product is another strength of the company. The resources offered by the company to the customers include grocery, electronics, wellness, and many other products. The wide range of the products makes the company more similar to a market.

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The company also gained its strength from the competitive advantage in the information system. As highlighted earlier, the company has a mission of saving the customer’s expenses while satisfying the customers’ needs. The culture on the other hand factor in the interest of the employees, striving to excellence and promoting respect among people. The mission of the company affects the external environment differently. The satisfaction of the customers by selling their goods at fair prices increases the dale of the company consequently the profit thereby increasing the economic value of the firm. The economy is a more significant part of the external environmental factor that ensures the company make a good sale and earn economic value in the competitive market.

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This is one way the Walmart Corporation get outsmarted by Amazon Company. Another crucial aspect important in competitor analysis is the strength of the competitor. Amazon, for instance, has a positive image and reputation across the globe. As opposed to Walmart that has had issues with employees particularly on working conditions, Amazon cares for their employees. The only opportunity the competitors create to Walmart is the higher prices they set for their merchandise, this leaves Walmart with an opportunity of selling their items at a lower price. One is the strength in store and online grocery sales. Customers in all Walmart stores across the world are capable of shopping from the stores and online where they make request and goods be delivered right to their places of residence.

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