MODERN ORGANISATIONAL CONTEXT

The Modern Organisational Context

The Modern Organisational Context

Part A

In this part of the paper, we will be focusing on the organization's social and economic factors and their effects on the organization.

Organization Overview

Wal-Mart Stores Inc. is a true American Retail Group; the major part of the U.S. market dominated one. Wal-Mart is in the list of Fortune Global 500 number one of the largest companies listed on the world. Wal-Mart employs over two million employees, making it the largest private employer in the world. The turnover of Wal-Mart in fiscal year 2009, climbed from the preceding year by 1% to 405.6 billion U.S. dollars. The profit rose by about 7% to 14.3 billion U.S. dollars. The company name is derived from its founder Sam Walton at (Wal Mart's ton). On 2 July 1962, Sam Walton opened his first Wal-Mart in Rogers (Arkansas), after its first store in 1950, a Dime & Nickle Store at Town Square, the small town of Bentonville, Arkansas had opened. Wal-Mart has 3702 branches in the U.S. and is also more investment in Mexico, Great Britain (Asquith Dairies), Japan (Seiyu), Canada and the People's Republic of China represented, while markets in Germany and South Korea in 2006 were abandoned. In Mexico, Wal-Mart, through its subsidiary Wal-Mart operates (Lorenzen, 2006, 22).

Considerable changes have been made by Wal-Mart, as a market they are now committing towards a social concept of being green. For years, the giant retailer was criticized for low remuneration for its workers, limited benefit offering, employees exploiting at the workplace around the organization, and discrimination of gender. Wal-mart has trail as a culpable corporate social reputation, with realizing significant saving.

Economic and Social Factors

Organizations get socially affect by some factors and these factors are values, beliefs, opinions, lifestyle, and attitude of a person, as they are developed from ecological, religious, cultural, demographic, and educational conditioning. The economy is probably the main element of the external environmental analysis.

Currency Exchange Rate

It is important to monitor fluctuations of the Pounds against other currencies to influence Wal-Mart's capability to participate in the world market.

A decline in value of the pounds against other currencies may thus, be due to the economy in UK. Nevertheless, a decrease in the exchange rate reflects, to a certain extent, a workable unstable Spanish economy. Economic components are an issue of anxiety for Wal-Mart since they influence altogether buying behaviour of customers (Berman, 1998, 207). While the UK Treasury, was announced officially in a recession in 2008, a significant decrease in concern of the types of government help to minimize the increase in job losses during the year 2009.

Inflation Rate

In order to expand operations, it is essential to review its inflation rates. The larger the inflation rate, the higher the general price levels in an economy in turn decreasing expenditure of households.

Unemployment Rates

“Unemployment rate is the percentage of the labour force unemployed at any time”. The lower the unemployment rate, the more people with jobs; thus disposable income in a household are ...