Wal-Mart Inc. is known as a multinational company in America that is in the retail type of business. Walmart operates several hypermarkets, grocery stores, and several other hypermarkets. This well-off company was established in July 1962 by Sam Walton, and the current owner is the Walton family. In the Fortune 5 companies, Wal-Mart Inc. is the largest when it comes to revenue (Waddell et al., 2007). This article will look at the organizational environment assessment of Wal-Mart stores. The components that will be discussed will be from general environment-Technology regarding knowledge, tools, and techniques. The other elements will be from task environment-competitors and customers. The final component will be advocacy groups and how they affect Wal-Mart business.
General Environment: Technology
Technology has essential effects on business, and the way trade is conducted. It does not matter the size of the company but what is evident is that technology has both intangible and tangible benefits that can-do business to make money as it meets the demands of a customer. Technological infrastructure is known to affect the efficiency, culture, and relationships within a company. When it comes to technology, many characteristics come with this component. One of them is the software that is needed to have a good running of the data that is within a business. There are various types of software within a business (Miller, 2014). Some of them are useful when it comes to marketing, and others are useful in the payment of employees and even maintaining the security of a business. Social media is the other characteristic that is within technology. This is a tool that cannot be despised as it works wonders when it comes to business. Social media examples are; Facebook, Instagram, Twitter and Instagram among many others.
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Wal-Mart is one of the most searched online retailers when it comes to business in the US. Wal-Mart has been able to establish a digital relationship with its customers, and for that reason, technology plays an important role when it comes to how the organization does its business. Technology plays a vital role in that it has impacted the lives of customers directly since there is convenience provided to them as they can be able to shop easier and faster. Technology plays an important role when it comes to building a high-quality e-commerce experience whereby it is utilized to satisfy the needs of customers (Miller, 2014). By offering online shopping customers get confident in trading with the organization. Mobile apps are the other form whereby technology has impacted Wal-Mart. According to data from the company, about 24 million customers are using Walmart’s app every month. Walmart app has been able to save money as it can refill a customer’s prescription meaning technology has been useful in saving time for customers within Wal-Mart.
Task Environment: Competitors
Competition in a market can be said to be purely monopolistic where there is a single company controlling all the business. In this case, competition can be monopolistic when it is only Wal-Mart engaging in the activity of retail in America. That is however not the case as many other competitors have tried to eat into Wal-marts space. These are the likes of Amazon, Alibaba, and Home Depot among others (Waddell et al., 2007). When it comes to competitors, there are many characteristics within which makes a business to behave the way it does. One of the attributes of competitors is copying and imitating. When Walmart starts a new way of selling its products, there is no doubt that Amazon may copy such a way but get to do it differently. A good example is how Walmart uses its system of pickup and delivery, and on the other hand, Amazon has its service of Amazon Fresh where food products are delivered to customers. The other characteristic of competitors is dealing with similar products. These are known as homogeneous products as they can be found within the different companies. For instance, when it comes to the retail business, both Walmart and Amazon deal with groceries.
In business, there is no doubt that competitors have a significant influence on the way business is conducted. For instance, Walmart will typically feel the pinch when Amazon launches a new product that may be though to eat to Walmart’s customers. In recent times, Walmart has blamed many external factors for the lacklustre results that are financially witnessed within the company. Due to the increase in measures put up by Home Depot, the market share for Walmart has been shrinking and for that reason trends are not suitable for Walmart as it market is being consumed (Meyershon, 2018). That has made Walmart invest more of its money so that it can be able to lower prices for its clients. In all these, there is no doubt that competitors have a direct influence on how a company gets to do its business. Walmart has been cutting prices for its products to attract more customers.
Task Environment: Customers
The 21st Century is a new world of doing business. Through the spread and development of mobile and social activities, the customer of today has had a great way of how companies engage in their business. Today’s customer is well connected, has a lot of opinions, always moving and very sophisticated. One of the significant characteristic of a customer today is that they are well connected. A customer knows a lot about products and people, and for that reason, every new information is on their figure tips (Thomas, 2014). The other characteristic of a customer is that they are always on the move. They can be found in the stores, on the web conversing with other customers by use of mobile phones or even in social places. Today’s customer is also very demanding as they do not only insist on low prices but quality. When a customer asks a question, they need to be answered as first as possible.
Customers have a big way on how they affect business dealings of an organization like Walmart. For instance, Walmart has had to lower its prices to attract more and more customers. Despite all the efforts by Walmart, there is still no traffic. Walmart as a retail store gets to act in a way that it can appeal to its customers. Take a good example of how Wal-Mart moms that shop on Friday and Saturday when they have money, but they do not shop on Monday and Tuesday (Thomas, 2014). Walmart has tried its best to customize its business to accommodate customers that it thinks are loyal. For that reason, customers dictate a lot how Walmart prices, positions and even promotes its retail store.
Advocacy Groups
Advocacy groups use a form of influence with the aim of making public to behave in a certain way. For instance, advocacy groups may call for the packaging of products in a way that is healthy, and as a result, the public may not consume the products unless they are packaged as demanded by advocacy groups (Bango, 2016). Advocacy groups will in many instances have the backing of powerful sources like politicians to influence the public. Advocacy groups also organize campaigns like marching on the streets to pass their point.
In many instances, advocacy groups hurt the way Walmart conducts its business. A good example is where Walmart was accused of not accepting notes from a doctor and at the same time penalizing works who are on sick leave. Such a report gets to taint the image of the largest private employer in America. As a result, it may be difficult for Walmart to hire new employees. Advocacy groups may make Walmart have lawsuits as a result of not complying with labor laws making business to be negatively affected when it comes to paying off legal fees.
Conclusion
In conclusion, there is no doubt that Walmart customers and competitors to Walmart are the most significant factors as to how Walmart gets to do business. Customers are the reason that Walmart is in the retail market. For that reason, they have to be accommodated by giving into their demands. That means that Walmart has to lower prices for its products. In dealing with its ever-useful customers, Walmart makes sure that it can satisfy them by reducing prices, initiating services like Walmart pick-up and delivery and having mobile apps for its customers. On the other hand, rival companies like Amazon and Home Depot are doing all they can to outdo Walmart. On its part, Walmart has maintained its policy of low prices but quality, making it remain on the top of the Fortune 500 Companies in America.
References
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Meyersohn , N (2018) Walmart and Target are spending like crazy to stop Amazon.Retrieved
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