PESTLE Analysis of Wal Mart essay

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Political

Wal-Mart increases accessibility and quality of goods for consumptions. This includes the commodities the government wanted to be in the country. For this reason, it remains to be the top retailer in America and continues to grow rapidly. It is the leader as far as retailing industry is concerned with fiscal revenue of $244.52 billion in 2003 managing and operating 4150 retail facilities throughout the world.

Economic

The utmost opportunity available to Wal-Mart is free trade zone. When the government enters into trade agreement with other countries, businesses in U.S can sell products from all those countries in their stores. Wal-Mart awarded an estimate of $2 billion to United States per hour associates through financial incentives such as contributions, profit sharing, bonuses and hundred millions of dollars in contributions and discounts.

Social-cultural

Wal-Mart geared efforts in low-income customer segment. The headquarters reflected the tendency of the company to parsimonious get housed in warehouse style buildings characterized by minimalist décor.  Frugality becomes company’s tenet with every associate required to adopt value in manifestations.

Technological

The company valued proactive investment in technology in deploying private satellite network. Wal-Mart managed its own logistics by using a central spoke and hub system of distribution and warehouse centers. It uses IT in supporting international logistics system and efficient procurement.

Legal

Wal-Mart is up against 38 federal and state lawsuits filed workers in 30 states. The company is accused of forcing workers to work for long workers through their systems. Gender discrimination has also been launched against Wal-Mart by social responsibility and watchdog organizations. In other instances, Wal-Mart has found itself against environmental laws especially in Florida.

Environmental

Ease of shopping is an opportunity the company has noticed because is what most customers want. Employee theft is the most common environmental issue facing Wal-Mart. Antitheft labels and radio frequency normally go unnoticed and in packages. In accessing distribution network, Wal-Mart employs the use of cross-docking system enabling it to utilize economies of scale. It also grants this company the ability to be to increase delivery speed, respond to market demand and low inventory. With this system, Wal-Mart successfully decreased its cost of sales by 2-3%.

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