Walmart: Scanning the External Environment Brenda Catron, Ashley May, Darrelle Pan, Elizabeth Patz, Bobbi Ready, Diana Velez & Hridya Warrier STR/581 March 23, 2015 Dan McFadden * Most Vital External Environmental Factors: REMOTE| Affects that are beyond control or influence INDUSTRY Businesses providing a similar product or service EXTERNAL OPERATING ENVIRONMENTS The acquisition and use of business resources EXTERNAL ENVIRONMENTAL FACTORS External Environmental Factors (Part 1 of 2 slides) Below are examples of current and most important external environmental factors faced by Walmart. REMOTE Examples are Ecological, Political, Social, Legal, Geographic, and Technological factors that affect decision making abilities that are beyond control or influence. Analysis of the remote business environment helps business strategists understand the nature and direction of the current conditions. Remote analysis spots potential issues and predicts trends. INDUSTRY The competitive environment, or the industry environment, describes the conditions of businesses providing a similar type of product or service. Industry analysis helps business managers know how to make their products or services different and better than competitors. EXTERNAL OPERATING ENVIRONMENTS The operating environment involves customers, creditors, investors, employees, the marketing environment, and how a business uses and acquires resources. The operational profile aids in learning which business strategies are working and which strategies may need to be changed or abandoned. * Most Vital External Environmental Factors: REMOTE| International Expansion, Generate New Revenues, Online Sales INDUSTRY Costco Wholesale Corp., Target Corp. and Big Lots, Inc. EXTERNAL OPERATING ENVIRONMENTS Numerical goals lead to stretched ethical boundaries (Tracy Morgan Lawsuit & Bribery Scandal) EXTERNAL ENVIRONMENTAL FACTORS External Environmental Factors (Part 1 of 2 slides) Below are examples of current and most important external environmental factors faced by Walmart. REMOTE Despite efforts to grow offshore, attempts at international expansion have largely been flops. Efforts to expand into smaller stores have had mixed success, and are marginal at generating new revenues in urban efforts. Meanwhile, Walmart still has no coherent strategy for on-line sales expansion. INDUSTRY The industry environment for Walmart involve competitors like Costco Wholesale Corporation, Target Corporation and Big Lots Incorporated who are directly contributing to Walmart’s decline in customers and revenues; forcing Walmart management to operate mainly by numerical goals. EXTERNAL OPERATING ENVIRONMENTS The operating environment for Walmart involve ethical and legal boundaries being stretched in order to meet numerical goals. Tracey Morgan Lawsuit: Comedian (Tracy Morgan) was seriously injured, and his companion and fellow comedian James McNair was killed, when their chauffeure.