Pick a company that does business nationally and internationally and make not of what environmental facotrs come into play when they make decisions on how to promote their product/service. In particular, examine:
- How the global economic and political situation influences them
- How important physical infrastructure and capital
- If demographics plays a part, how?
- Any issues brought up by cultural variances between the nations of operation
- What emphasis the company puts on social and ethic responsibilities compared to legal ones
- How much they are influences by local, national and international laws such as the Foreign Corrupt Practices Act
- What impact technology has upon the business
In this response, we will discuss the influence along with an analysis of environmental factors that affect the domestic and global marketing decisions of Wal-Mart. First of all we will give background on the selected company, Wal-Mart.
Wal-Mart was founded in 1962 by Sam Walton and today it stands as the largest American public corporation of the world by revenue. It runs a large chain of discount departmental stores. Wal-Mart was incorporated on October 31, 1969 and was listed on the New York stock exchange in 1972. Among the private employers and grocery retailers in the United States, Wal-Mart possesses a 20% market share of the retail grocery and consumables business.
The North American company, Sam's Club is also owned and operated by Wal-Mart. It functions in different parts of the world like South America, China, Argentina, Canada, Brazil, Puerto Rico etc. It operates as Walmex in Mexico, Asda in United Kingdom and as Seiyu in Japan. However, due to some of its unsuccessful ventures, it has to pull out its operations from South Korea and Germany (Hightower, 2002).
External environment plays a vital role in the operations of a business and needs a careful analysis.
Economic factors play an important role in the functioning of any business as every business operates in the economic environment. These factors usually cannot be controlled by the businessmen and therefore, a careful analysis of the environment is essential to discover the problems and find their possible solutions. Economic factors include the systems of tax payment, investment and allowances, sophistication of moving and raising capital, prices of the commodities, fiscal and monetary policies and rates of exchange. Wal-Mart has kept all these factors into consideration and has been successfully conducting its business for years. It is known for its specialized quality products that are provided at reasonable cost for the benefit of the customers. These enormous high quality products have gained great popularity among the masses.
Businesses operate not only with the sole aim of generating profit but also with the aim of providing benefits to all those who are directly or indirectly connected with it. Therefore, every ...
The response address the economic, social, cultural, legal, political, technological factors that affect Wal-Mart's international dealings in 1398 words with 4 references.