Internal and External Factoers
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- Category: History
- Date Submitted: 02/05/2013 09:53 AM
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Internal and External Factors Paper
Many internal and external factors can effect a company. Organizations need to utilize the four functions of management in order to overcome these factors. The four functions of management are planning, organizing, leading and controlling. Wal-Mart has been able to effectively and efficiently apply these functions of management to become one of the largest companies in the world. Their ability to understand and react to factors like globalization, technology, innovation, diversity and ethics will keep them at the top.
Wal-Mart has pursued globalization aggressively since opening its first international store in 1991. They understood that they needed to make this step in order to survive as a company. Planning was crucial in their decision on what markets they were going to enter. During the first five years of its globalization, Wal-Mart concentrated heavily on establishing a presence in Mexico, Brazil, Argentina and Canada. They now have a retail presence in 27 countries across five continents. They then had to reorganize their brand and adapt their business model to the cultural differences of each region. Wal-Mart acquired Woolco in 1994 in order to enter the Canadian market and sent transition teams to train and lead the existing associates on their way of doing business. They turned Woolco profitable in two years and a year later they became the largest discount retailer in the country (Gupta, 2002). Wal-Mart’s control systems and management style allow them to manage their international stores successfully regardless of their location.
Technology is a marketplace for manufacturing goods and services, a distribution channel, an information service, and more in the organization of Wal-Mart Corporation. It is the successful planning and implementation of this technology into daily practices that has aided Wal-Mart in their quest to maintain the position of low cost leader. One of the most notable...
Many internal and external factors can effect a company. Organizations need to utilize the four functions of management in order to overcome these factors. The four functions of management are planning, organizing, leading and controlling. Wal-Mart has been able to effectively and efficiently apply these functions of management to become one of the largest companies in the world. Their ability to understand and react to factors like globalization, technology, innovation, diversity and ethics will keep them at the top.
Wal-Mart has pursued globalization aggressively since opening its first international store in 1991. They understood that they needed to make this step in order to survive as a company. Planning was crucial in their decision on what markets they were going to enter. During the first five years of its globalization, Wal-Mart concentrated heavily on establishing a presence in Mexico, Brazil, Argentina and Canada. They now have a retail presence in 27 countries across five continents. They then had to reorganize their brand and adapt their business model to the cultural differences of each region. Wal-Mart acquired Woolco in 1994 in order to enter the Canadian market and sent transition teams to train and lead the existing associates on their way of doing business. They turned Woolco profitable in two years and a year later they became the largest discount retailer in the country (Gupta, 2002). Wal-Mart’s control systems and management style allow them to manage their international stores successfully regardless of their location.
Technology is a marketplace for manufacturing goods and services, a distribution channel, an information service, and more in the organization of Wal-Mart Corporation. It is the successful planning and implementation of this technology into daily practices that has aided Wal-Mart in their quest to maintain the position of low cost leader. One of the most notable...