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Discuss Internal and External in the Business Environment of Wal-Mart Inc


The business environment consists of systems and structures of business entities, i.e. companies, organization and individual business that hinders its growth and development. Wal-Mart is a global company that has an interest in retailing. According to research done by Fortune Global, Wal-Mart was the leading company worldwide with a revenue of US$548.743, with the highest number of employees being 2.3M. Internal factors include labour, poor management, and technology, while external factors include environmental, economic, and political factors. This negative aspect of Wal-Mart operations should be looked upon by the company management, finding solutions and recommendations for the appropriate action, increasing profit-making. This paper discusses internal and external factors in the business environment of Wal-Mart Inc.

External factors

Political factors have become a challenge to Wal-Mart by not adhering to certain countries or state laws. The concern above has led the government closer to selling Wal-Mart products. For example, Wal-Mart products were prohibited in China since the company sold the substandard product. Government passage of laws and regulations to Wal-Mart in terms of Revenue Corporation has harmed the company, i.e. government passing bills to increase workers salaries without consultation.

Wal-Mart has had an adverse effect due to economic instability, especially the coronavirus outbreak that affected the economy of the majority of countries. The customer knows Walmart selling products at low prices had to increase costs, which didn’t impress customers. Wal-Mart must know an economic change in every location it operates for better workability.

Wal-Mart has several warehouses around the globe; dumping waste has been a challenge since it is directed to sewage harmful to human health and aquatic animal, leading to the company being sued in the court of law, primarily in California. This lawsuit has made Wal-Mart pay US$25 Million (Chloe, 2021).

Internal factors

Wal-Mart labour problem has been a concern to the company. The company has many employees worldwide, pushing its aim and objective, leading to today. However, their situation remains undressed, leading to frustration among them. Due to those challenges, they formed labour unions, i.e. United Food and Commercial Workers Unions, which has to organize strikes for its members to make that concern. These strikes portray the company bad image hence losing to other competitors like Amazon.

Technology has taken the current world, and more interventions are being developed, hence being considered by different high-end companies (Ebaker, 2005). Wal-Mart coming up with new tech, especially in business retail, for higher productivity and competition is of great importance. In this regard, Wal-Mart has adopted robots in cleaning stores, fulfilling orders and streamlining production where racers employee focuses on selling. The majority of the customers are really on the online platform in assessing what they need to purchase.

Management has been a concern in keeping the company moving forward. Wal-Mart has had unprofessional managers hence violating the company code of ethics. There has been a scenario in which workers claim they work extra time without payment leading to strikes. It has been a concern that many of the employees of Wal-Mart raise complaints to managers yet remain unsolved, leading to strikes.


Business environment factors, as discussed, inhibit the development of Wal-Mart, being the most extensive company globally. Wal-Mart Company deals in the retailing model of selling goods to customers and containing many stores and a large number of employees globally. As outlined in this paper, internal and external company challenges should be handled amicably by the relevant authority in charge to continue occupying its position worldwide.


Sethi, P. (2014). The Wal-Mart affair–where implausible deniability is the coin of the realm. Corporate Governance.

M del (2021). Effect of digital innovation.

Ebaker, J . (2007). Review of economic and statistics.

Chlae,Arajade (2021). Walmart has been dumping waste hazardous waste into the environment


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