Week 2 Internal and External Factors MGT 230 August 1, 2011 Globalization Wal-Mart stores serve millions of customers globally each day – and they do their best to make certain that the products on their shelves are a sign of the diverse needs and wants of their customers. Wal-Mart states they are focused on four strategies and the top one is becoming truly global. (Wal-Mart Stores Factsheets). In 2010, Wal-Mart reduced the plastic bag waste across their global operations by 47. 95 million pounds, or approximately 3. 5 billion bags. This represents a 21 percent reduction from our 2007 baseline.
In Chine in 2010 reduced the waste by 84percent using 2007 as a baseline. Wal-Mart wants to stay on top globally where economics is concerned as well as employment, zero waste, lowest prices and the list goes on. Wal-Mart so far has stayed on top as having the lowest prices and having the highest profit by working with and training local people to work while helping to improve the lives of the local people. Wal-Mart has three basic beliefs within their company: Respect for the individual, Service to their customers and Striving for Excellence.
In October 2010 Wal-Mart announced an acceleration of their global commitment to sustainable agriculture. By doing this they are matching farmers with markets, reducing food waste while motivating farmers to supply their chain. Through another program they work directly with the farmers to encourage safe cultivation of seasonal vegetables in an effort to reduce waste and improve the quality. Innovation Wal-Mart being a major retailer and promising low prices is always looking for ways to be innovative.
Wal-Mart holds a national sustainable packaging expo every year and in a statement from the senior director of packaging, Ron Sasine, he said, “We’re interested in innovation. That’s why we hold the event…” He goes on to say that Wal-Mart doesn’t just want something that is a dream but something they can use and commercialize. (WalmartHELP, 2011) Wal-Mart understands the need for innovation and that in order for them to stay ahead of the curve they must keep finding ways to make sure they have the lowest prices.
Another way they have found a way to be innovative is through their packaging. They discovered that if the companies that were selling their own products through Wal-Mart, cut down on packaging both sides would see a gain in lower prices, which in turn will mean more profits; and it has. This is an innovation and a model that major supermarket chains and major retailers follow now. It is not important to have innovation for the success of Wal-Mart but to help with the success of other major companies.
Ethics Wal-Mart is a large retail corporation and ethics plays a huge role internally and externally with the four functions of management. When planning, the retailer must consider the employees, the store, and its customers. Planning is specifying the goals to be achieved and deciding in advance the appropriate actions needed to achieve those goals (Bateman & Snell, 2011, p. 15). Once the planning is in place, then management can begin organizing who will do what task to ethically reach the store’s goals.
Ethics can affect organizing if the team does not have a strong ethical leader. Ethical leading is important to maintain a good workplace as well as a good place for customers to shop. Controlling is affected by ethics internally because the manager can oversee the job the employees are doing and be sure that they are working in an ethical manner. While employees have the opportunity to steal from the store, many will not because they are being watched and some just has good ethics. According to Walmart. com (n. d. , But, remember no guide or manual can give you a complete set of rules. So, in the end, we all must trust our own good judgment of right and wrong (Look inside the Statement of Ethics, para. 1). Wal-Marts diverse environment directly reflects the diversity needed to be successful with the four functions of management. Planning becomes a vital issue for a company that is in many different countries. The plan to send the correct managers to open stores in different regions can directly affect the internal and external environment with products, people, and marketing.
Leading must be diverse and ethical in Wal-Mart due to so many different people that work in the environment. The hiring process has different key and diversity is a main factor. (Peterson, 2005) This means managers and employees are screened and evaluating in their ability to be diverse with employees and consumers in order to make a comfortable work environment and comfortable shopping experience. Organization is a key role in everyday business for a large company like Wal-Mart.
Organizing to the diverse population takes leadership skills and must be diverse opinions and ethics in order to have a profitable layout of the store and keep the employees happy by not leaning to one culture or society more so than another. Controlling the environment in Wal-Mart must be diverse because of the many people and products that are there. With a diverse staff problems can arise if diversity is not implemented. If a manager does not like a certain race then the employees will feel uncomfortable and more than likely will show it their work.
This will affect profits and the work environment. Diversity is a key factor in the functions of management and Wal-Mart does a great job in attending to this issue. References: Wal-Mart 2011 Global Responsibility retrieved from http://walmartstores. com/pressroom/factsheets/ Globalization and the Wal-Mart Effect By Kerby Anderson retrieved from https://worldviewweekend. com WalmartHELP. (2011). Proven Innovation, Retrieved from http://walmarthelp. om/proven-innovation-is-the-focus-of-walmart’s-sixth-annual-expo-greener-package/ Bateman, T. S. , & Snell, S. A. (2011). Management: Leading & collaborating in a competitive world (9th ed. ). New York, NY: McGraw-Hill Irwin. Walmart. com. (n. d. ). Statement of Ethics. Retrieved from http://ethics. walmartstores. com/ Peterson, C. H. (2005). Employee retention: The secrets behind wal-mart’s successful hiring policies. Human Resource Management, 44(1), 85-85-88. Retrieved from http://search. proquest. com/docview/222104412? accountid=35812