Internal Environment

Internal Environment

From the e-Activity, analyze the internal environment of the company you researched to determine that company’s strengths and weaknesses.

Wal-Mart is the number one business in the world with revenue of 400 billion dollars in revenue. Wal-Mart has the largest scale of operations; they use their strong buyer power on supplies to reduce the prices. Wal-Mart has some of the lowest priced merchandise over all of its competitors because of higher economies of scale results in lower prices that are passed to consumers. This means that because Wal-Mart is the biggest company in the world they have much strength that will allow them to lower their prices, track orders, inventory levels, sales and marketing strategies. They have a wide range of products, cost leadership strategy, and international operations due to the internet and applications for their website. Some weaknesses are lawsuits due to labor laws, high employee turnover rates, and negative publicity. Many people have sued Wal-Mart for different types of things from slip and falls to discrimination suits. The high employee turnover rates result from the low minimum wage the company offers their employees. Wal-Mart has negative publicity due to employee complaints of poor working conditions and bribery these types of negative publicity damages the corporation’s reputation.

Based on the strengths and weaknesses you discovered, determine what steps the company could take to positively impact the company’s competitiveness. Explain your rationale.

I believe that the company could take many steps in this competitive field, for starters they can raise the pay being as though minimum wage is going to raise why not be the front runners in the business by starting early. By doing this Wal-Mart will be at least respected by their employees which may help the morale within the company and probably prevent future turnover rates from being as high. As far as the lawsuits slip and falls will happen because accidents happen. The best way to handle this would be to provide extra training to the staff and allow them to have different incentives for keeping the store safe at all times. Training classes could be provided to teach the employees about discrimination as well. With all of the training classes and wage increases Wal-Mart would probably be viewed in the public sector a lot better than they have been in recent years.

(2014) Wal-Mart Corporation retrieved on July 14, 2014 from www.walmart.com