Internal and external factors can affect the four functions of management within any
business. With the Wal-Mart Corporation; globalization, technology, innovation, diversity,
and ethics are key factors that the corporation must consider if it plans to succeed and stay
competitive with other industries in its area. If these areas are not considered, the Wal-Mart
Corporation would discover that its company would not remain as strong as it has proven
itself to be.
Effect of Internal/External Factors
Managers must deal with several factors that will impact the four functions of
management, and both internal and external stimuli have a large influence on planning,
organizing, control and leading. Internal stimuli can include factors of supplies to
employees who a manager is in charge of. Planning for an event can be impacted by
supplies, because someone needs to be in charge of ordering and planning necessary
personnel to prepare for the event. Leading can also be in issue. If a manager does not
reflect enough control then people will lose respect; however, if a manager is too
insensitive, then this will result in losing personnel due to employees choosing to leave
their jobs. Leading can occur through working alongside the employees while also making
sure that matters of the business are taken care of. A resource being used at its peak is
necessary, but if workers are not being productive then managers need to remove
personnel to discipline these employees who are not performing to the needs of the
business. External factors can also have a large impact on managers and how they run their
business. These factors could be any stimuli, an example being laws changing to supply
issues that are not in the control of the manager. Wal-Mart operates by reducing cost, and if
factors outside of its control interfere then the manager may need to increase prices to
remain profitable.
Globalization
In todays global business world, Wal-Mart has expanded beyond the North American
markets. As of 1991, Wal-Mart has established itself as a global company with the opening
of a Sams Club in Mexico City, Mexico. According to Walmart.com, today their reach can
be felt not only in North America, but in Central and South America, the Caribbean and
Western Europe, spanning 13 markets nationwide. (Wal-Mart Corporation. 2008. Para 4.)
Countries that are part of the Wal-Mart family include: Honduras, Brazil, Puerto Rico,
United Kingdom and the Pacific nation, Japan. (Wal-Mart Corporation) Why have they
expanded globally? Their motto provides evidence of their goal; to save people money, so
