Choose an organization with which you are familiar with or you would like to know more about.create a table identifying potential stakeholders of the organization. Then indicate what particular interests or concerns these stakeholders might have.create a list of factors in the external environmentthat could affect the management of the business you sellected.
Walmart Inc. is an American multinational retail corporation that operates discount department stores, grocery stores from the US, and also a chain of hypermarkets. It was founded in the year 1962 by Sam Walton and headquartered in Bentonville, Arkansas. It was incorporated in the year October 31, 1969.
According to the reports as of January 31, 2021, this company has 11,443 stores and clubs in 27 countries and is operating under 56 different names.
Some of the operating names are
It is one of the companies in the world that has the largest number of employees, i.e., approximately 2.2 million employees across all its branches worldwide. It has established operations in about 27 countries, which means that it has a relatively large number of stakeholders.
Stakeholders and their interests:
The stakeholders of Walmart include the top management, employees, customers, as well as shareholders.
All stakeholders of the organization have their interests and claims in the organization.
The Walmart stakeholders have other interests, i.e., to ensure that the organization has a good reputation in society. This reputation can be achieved through corporate social responsibility. This would help in attracting more customers as well as other personnel and finally ensures organizational success.
The main responsibility of the managers and employees of Walmart is making proper decisions. These decisions involve deciding on ways to improve organizational performance by understanding what is right or wrong for the organization. And also, the decisions made should be improved constantly. They need to note the constantly changing business environment and make necessary advancements using technology. This is because the authority and responsibility to make decisions lies in the hands of managers at Walmart.
The other major responsibility is to innovate and ensure creativity at Walmart. Creativity enables in improving the quality of its services and products, also and in gaining a competitive edge.
The following are the list of factors that could affect the management of Walmart in the external environment:
The macro-environment of Walmart is influenced by external factors based on the PESTLE analysis. This analysis indicates the need for strategic focus on various concerns, such as economic, socio-cultural, and ecological concerns.
Political Factors: The company considers the political factors about government policies. The political external factors in the macro-environment of Walmart are high stability of politics, political support for globalization, political pressure for higher wages. The political pressure for higher wages is a threat.
Economic Factors: The company faces significant pressure from economic changes and it directly leads to changes in revenues. The economic external factors in the macro-environment of Walmart are the stability in most of the economies, the growth of developing countries which is continuous, and the decrease in unemployment in the US. All these factors are opportunities.
Social/Sociocultural Factors: The social or socio-cultural factors of Walmart are consumer perception and preferences related to healthy lifestyle trends, cultural diversity trends, and urban migration. All these factors are opportunities.
Technological Factors: The technological external factors in the macro-environment at Walmart are increasing business automation, business analytics or big data, and increasing mobile device usage among consumers. All these factors are opportunities.
Ecological/Environmental Factors: The ecological external factors in the macro-environment at Walmart are business sustainability trends and environmentally friendly products trends. These two factors are opportunities
Legal Factors: Any business is subjected to the laws and regulations that are required. The legal external factors in the macro-environment at Walmart are food safety regulations which are an opportunity, employment regulations which is an opportunity, and tax law reform which is a threat when not followed.
The external factors present for Walmart are significant opportunities and also a few threats that should be addressed by a proactive approach.