External and Internal Factors of Wal-Mart

External and Internal Factors of Wal-Mart - 1 Running head:...

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1 Running head: EXTERNAL/INTERNAL FACTORS OF WALMART External/Internal Factors of Wal-Mart Learning Team B Holly Friedlund James O’Sullivan Kenneth Dabney Tony Grimes MGT/330 Peter Grove February 7, 2011
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There are four functions of management are essential to the success of managers everywhere which include planning, organizing, leading and controlling. The four functions of management; however are all affected by other internal as well as external factors that require careful planning and consideration when working out the details within a company. These internal and external factors are discussed using Wal-Mart, a multinational discount chain as a corporate example. The following internal and external factors will be outlined; globalization, technology, innovation, diversity, ethics, and how these factors can be managed using delegation. Globalization: The basic meaning of globalization is to grow worldwide or global within a business. Wal- Mart has perfected globalization, and they have stores all over the world. Wal-Mart manufactures goods in other countries where they are able to get cheaper resources and cheaper labor. Wal-Mart will also buy goods that are made in other countries as well. This is done because the cost of the labor and production of the good is cheaper in that certain country. Planning – Wal-Mart had to put together different strategies when moving into foreign countries. They had to look at the many different laws, and regulations each country had in place. An example of strategic planning was when Wal-Mart went into Mexico in 1991 as a joint venture with Cifra. A joint venture is when two companies join to create one legally independent company. Organizing – Wal-Mart has associates all the way up to top executives that are part of running their everyday business. Organizing the right people when working in other countries can be a challenge. When moving into a new country for the first time Wal-Mart found it to be successful to find people familiar with the language, and custom living practices of this country to help
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them run their stores. An example of organizing was when Wal-Mart first went into Europe. The rural culture of Wal-Mart did not mix well with German culture, and some of the German laws made it hard for Wal-Mart to do certain things. Leading – According to May (2008) Wal-Mart would use cost-effective management information systems, and have less managerial positions to help reduce their overhead cost when moving into a new country. Controlling - Technology is what helps Wal-Mart to be able to control their operations in other countries. According to May (2008) Wal-Mart handles most of their own logistics and warehouse distribution. This gives them the opportunity to deliver more loads then to outsource the distribution of goods. The reason Wal-Mart is able to do this is because they have set up distribution centers all across the world. Technology:
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External and Internal Factors of Wal-Mart - 1 Running head:...

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