You may do both if you'd prefer. WalMart faces challenges from its political environment.
Sometimes failure is due to the internal environment — the company's finances, personnel or equipment. Sometimes it's the environment surrounding the company. Knowing how internal and external environmental factors affect your company can help your business thrive.
The Economy In a bad economy, even a well-run business may not be able to survive. If customers lose their jobs or take jobs that can barely support them, they'll spend less on sports, recreation, gifts, luxury goods and new cars.
High interest rates on credit cards can discourage customers from spending. You can't control the economy, but understanding it can help you spot threats and opportunities. Staff Unless you're a one-person show, your employees are a major part of your company's internal environment.
Your employees have to be good at their jobs, whether it's writing code or selling products to strangers. Managers have to be good at handling lower-level employees and overseeing other parts of the internal environment. Even if everyone's capable and talented, internal politics and conflicts can wreck a good company.
Competition Unless your company is unique, you'll have to deal with competition. When you start your company, you fight against established, more experienced businesses in the same industry.
After you establish yourself, you'll eventually have to face newer firms that try to slice away your customers.
Competition can make or break you — look at how many brick-and-mortar bookstores crashed and burned competing with Amazon.
Money Even in a great economy, lack of money can determine whether your company survives or dies. When your cash resources are too limited, it affects the number of people you can hire, the quality of your equipment, and the amount of advertising you can buy.
If you're flush with cash, you have a lot more flexibility to grow and expand your business or endure an economic downturn. Politics Changes in government policy can have a huge effect on your business.
The tobacco industry is a classic example. Since the s, cigarette companies have been required to place warning labels on their products, and they lost the right to advertise on television. Smokers have fewer and fewer places they can smoke legally.
The percentage of Americans who smoke has dropped by more than half, with a corresponding effect on industry revenues. Company Culture Your internal culture consists of the values, attitudes and priorities that your employees live by.
A cutthroat culture where every employee competes with one another creates a different environment from a company that emphasizes collaboration and teamwork. Typically, company culture flows from the top down. Your staff will infer your values based on the type of people you hire, fire and promote.
Let them see the values you want your culture to embody. Customers and Suppliers Next to your employees, your customers and suppliers may be the most important people you deal with.
Suppliers have a huge impact on your costs.Feb 23, · In Part Two of our series we visit the External analysis of discount department stores, the industry Walmart is classifies as.
External Analyis Wal-Mart Current Macro-Environment The external environment influences the decisions managers have to make to continue the longevity of their company.
Although managers have a minor impact on changing the external environment, understanding. These factors can be positive or negative, and either internal or external.
What we mean by this is that these factors can either be as a direct consequence of the actions of the company (internal), or completely unrelated and avoidable (external). External/Internal Factors I have selected Wal-Mart as an organization.
Please assist with the following: Globalization and Technology. a.
Explain how internal and external factors impact the . Drive culinary excellence by sharing, teaching and inspiring our Walmart associates through culinary education, leverage of Culinary Innovation Center, use of our sensory & .
In week two, integrate the external analysis from mod 2 with the internal analysis from week one of mod 3. The end result of an internal and external analysis is the identification of the company's strengths, weaknesses, opportunities, and threats. The Audit Committee shall oversee the integrity of the audit process, financial reporting and internal accounting controls of the Company, oversee the work of the Company’s management, global internal auditors (the “Internal Auditors”) and the Outside Auditor in these areas, oversee management’s development of, and adherence to, a sound.