Environmental scanning essay

The organization of choice for this particular assignment is Walmart Corporation, a multinational organization operating the hypermarkets, grocery stores and discount stores which has its headquarters at Bentonville, Arkansas. The research focuses on the creation of competitive advantage based on the environmental scanning, evaluation of the Walmart external environment, assessment of Walmart’s general environment and its operating environment. Creating Sustainable Competitive Advantage Competitive advantage allows the company to generate goods and services of higher quality at lower cost. Quality management is the core way of attaining the competitive advantage in the working organization (Elshaer & Augustyn, 2016). Environmental scanning facilitates the achievement of the competitive advantage in different ways; the three major ways include the benefit the product offer to the customers, the target market and competition.

Walmart often acts smartly to outshine the competitors by increasing their chain store across the world and supply the products to the customers at a cheaper price while maintaining their quality (Banerjee, 2015). Walmart External Environment The external environment sometimes known as the macro-environment encompass different factors that affect the operation in the company with the external factors. They are often referred to PESTEL that include the political, economic, social, technological factors among others. These factors affect the organization in one way or the other as examined below. The political factor entails how the Walmart stores fit into the political mode of the nation of the operation. The last factor as far as external factors affect business success is the legal factors.

Walmart responds effectively to the legal and regulatory requirement in the nations they operate in. These are not limited to obeying the employment regulations, taxation laws, and food safety regulations. General Environment Apart from the external environment examines above, another core environment in the business premises is the internal environment. The internal environment entails different aspects including corporate structure, management, the corporate culture, stakeholders among other factors. The corporation understands the influence of competition in the market. Since they supply commodities available in other stores, the corporation works as a market by selling vast goods to the customers at a fair price. They also sell quality products to meet comply with the economic market in the present era. Other significant operating environment include adopting the modern technology in their operation, complying with the regulations and meeting the environmental regulation standards.