Assignment 2: External and Internal Environments

Assignment 2: External and Internal Environments

Introduction

External and internal business environments

In today's fast pace of globalization, the competition among the organizations in the industries has increased to great extent. The organizations, in order to be competitive and successful among the competitors, implement various strategies and approaches by analyzing various internal and external business factors. The organizations are required to carefully monitor and evaluate the internal and external business environments so as to attain the short term and long term business goals and objectives. The careful analysis of internal and external business environment allows the organizations to develop effective and efficient business strategies and plan of actions that guarantee future success and growth of the organization (Michael E. P., 2008).

The analysis of the internal business environment requires the organizations to evaluate its internal strengths and weakness, whereas, the analysis of the external business environment requires the organizations to evaluate the opportunities, threats as well as challenges that are exposed to them. By analyzing the internal business environment, the organization can find out its inefficiency and ineffectiveness in certain areas and based on that it can develop and implement such strategies that can overcome its weaknesses (Michael, A. H., Duane, R. I., Robert, E. H., 2010). Through the external business environment assessment, the organization can understand that how the political and economic factors as well as the competitive organizations are impacting the overall organization's performances. Thus the external and internal environment assessments allows the organizations to recognize and focus on key issues that have direct and significant impact upon overall success and profitability of the organizations (Henry, A., 2008).

The following section aims at discussing in detail about the publicly traded organization, Wal-Mart. The analysis of the internal and external business environment of the organization will also be made so as to understand that how the organization is performing in the industry and what are the challenging factors with which the organization is dealing with. Also it will be analyzed that what are the strengths of the organization that are assisting it in gaining the competitive position among the competitors in the industry.

Discussion

Retail industry in United States

The retail industry of the United States is one of those industries that are contributing greatly to the economy of the country. In recent years, more and more organizations have initiated their businesses in the retail industry of United States because of the progressive trend of this industry. In the year 2012, the retail industry of United States has recorded great market share in overall success of the economy. In all around the United States, there are about one million retail stores that have generated billions of revenues. There are various categories in the retail chain business that involves the convenience stores, auto dealers, grocery stores, machineries etc. Most of the business is also increasingly initiating their online retail businesses so as to carry out their business operations also from the internet (Fitzen, L., 2009). This aspect has further given a boost ...