Situation Analysis Group Presentation

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4.0 Walmart’s External Market Environment
4.1
4.2
4.3
4.4
Economic Environment
Technological Environment
Political and Legal Environment
Cultural and Social Environment
4.1 Economic Environment
Macro-economic environment includes national income,
economic growth and inflation.
 Walmart operates both in the United States and
internationally in 28 countries.
 Affected by economic market and business conditions around
the world which Walmart operates.
4.1 Economic Environment Factors
Economic Factors that can affect Walmart’s financial
performance include:
 Inflation or deflation conditions within a country
 Consumer wages
 Unemployment levels
 Transportation, energy and utility costs
 Currency exchange rate fluctuations
 Consumer confidence and spending levels
4.2 Technological Environment
Walmart has integrated online e-commerce business to grow
their business beyond the physicial stores.
 Broad assortment of merchandise including items not offered
in stores
 Merchandise can be shipped or picked up at a local Walmart
store
 Walmart Pickup is for grocery items where pick-up time is
selected and the groceries are delivered to the customer’s
vehicle.
4.3 Political and Legal Environment
Political factors affect the economic environment of a region.
Example:
 Trade rules and regulations impact how international trade is
conducted.
 World Trade Organization – global international organization that
deals with rules of trade between nations
 North American Free Trade Agreement – created to eliminate
trade barriers between United States, Canada and Mexico.
4.3 Political and Legal Environment
 Walmart has hired lobbyists to influence government
legislation which in general can include lobbying on trade
policy, taxes, and labor and workplace laws.
 Figure shows the amount of money Walmart has spent
between 1998-2018 on lobbying.
Taken from:
OpenSecrets.org
4.3 Political and Legal Environment
Legal Environment:
 Walmart operates in a complex regulated legal environment
both in the United States and in the other countries it is
located.
 Laws pertain to:
 Consumer protection laws
 Product safety laws
 Employment Regulations
 Workplace laws
 Taxes
4.3 Political and Legal Environment
Legal Environment:
 Example: Walmart’s pharmacies must comply with the laws
and regulations of the Drug Enforcement Administration
(DEA). The DEA regulates the distribution and dispensing of
pharmaceutical and controlled substances. Walmart is
required to hold valid DEA and state-level licenses and comply
with various federal and state controlled substance acts.
4.4 Cultural and Social Environment
Affects customer buying behavior by taking into account
how and why people live and behave as they do.
 Success of incorporating the cultural and social environment is
shown by Walmart’s ability to adapt its stores to reflect the
communities in which they operate.
 Walmart has been criticized in the past that the building of Walmart
stores causes some small business own to go out of business
because they cannot compete against Walmart.
 Walmart participates in social activites to develop a better
relationship within the communities they are operating in.
4.4 Cultural and Social Environment
Walmart publishes a Global Responsibility Report which shows
examples of Walmart’s participation in local communities.
Examples in 2018 Report include:
 Providing $44 million in funding to support disaster relief
including funding for the hurricanes that hit the United States
and Puerto Rico in 2017.
 Donated 2.5 billion pounds of food to relieve hunger since
2015.
 Hired more than 194,000 U. S. Veterans
Section 4.0 Works Cited
Walmart 2017 Global Responsibility Report, https://corporate.walmart.com/globalresponsibility/global-responsibility-report
Walmart 2018 Annual Report, http://stock.walmart.com/investors/financialinformation/annual-reports-and-proxies/default.aspx
Walmart Highlights Economic, Societal and Environmental Progress in 2018 Global
Responsibility Report Summary, https://3blmedia.com/News/Walmart-HighlightsEconomic-Societal-and-Environmental-Progress-2018-Global-Responsibility
OpenSecrets.org – Center for Responsive Politics: Walmart,
https://www.opensecrets.org/lobby/clientsum.php?id=d000000367
Perreault, William D. Jr, Cannon, Joseph P., McCarthy, E. Jerome. Basic Marketing: A
marketing Strategy Planning Approach (19th edition). McGaw-Hill Irwin. 2014. pp.
66-77.
Panmore Institute. Walmart PESTLE Analysis & Recommendations. January 13, 2017.
http://panmore.com/walmart-pestel-analysis-recommendations-case-study
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