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In this assignment, you are to use the same corporation you selected and focused on for Assignment 1: Strategic Management and Strategic Competitiveness and Assignment 2: External and Internal Environments.Research the company on its own website, the public filings on the Securities and Exchange Commission EDGAR database, the Universitys online databases, the Nexis Uni database, and any other sources you can find. The annual report will often provide insights that can help address some of these questions.RequirementsWrite a six- to eight-page paper in which you do the following:Analyze the business-level strategies for the corporation you chose to determine the business-level strategy you think is most important to the long-term success of the firm and whether or not you judge this to be a good choice. Justify your opinion.Analyze the corporate-level strategies for the corporation you chose to determine the corporate-level strategy you think is most important to the long-term success of the firm and whether or not you judge this to be a good choice. Justify your opinion.Analyze the competitive environment to determine the corporations most significant competitor. Compare their strategies at each level and evaluate which company you think is most likely to be successful in the long term. Justify your choice.Determine whether your choice from Question 3 would differ in slow-cycle and fast-cycle markets.Use at least three quality references. Note: Wikipedia and other websites do not quality as academic resources. Your assignment must follow these formatting requirements:This course requires use of new Strayer Writing Standards (SWS). The format is different than other Strayer University courses. Please take a moment to review the SWS documentation for details.Be typed, double spaced, using Times New Roman font (size 12), with one-inch margins on all sides; references must follow SWS or school-specific format. Check with your professor for any additional instructions.Include a cover page containing the title of the assignment, the students name, the professors name, the course title, and the date. The cover page and the reference page are not included in the required page length. Use the Assignment 3 Template [DOC] to ensure that your assignment meets the above requirements.The specific course learning outcome associated with this assignment is as follows:Determine business-level and corporate-level strategies for a corporations long-term success comparable to the competitive environment.Grading for this assignment will be based on answer quality, logic and organization of the paper, and language and writing skills, using the scoring rubric. updated_bus499_external_and_internal_environments.docx bus499_strategic_management_and_strategic_competitiveness.docx assignment_3_template.docx Unformatted Attachment Preview Running Head: EXTERNAL AND INTERNAL ENVIRONMENTS External and Internal Environments Elizabeth Frazier Professor: Dr. Joseph Keller Strayer University May 18, 2020 1 EXTERNAL AND INTERNAL ENVIRONMENTS 2 Introduction To succeed and thrive, organizations must adapt and fit with the forces in their external environments. Organizations are groups of people deliberately formed to serve a purpose over designed and coordinated plans. Organizations function in many different external environments and are organized and calculated internally to meet both external and internal demands and opportunities. Some organizations include not-for-profit, for-profit, public, private, government, voluntary, family-owned and operated, and publicly traded on stock exchanges. Establishments are usually referred to as businesses, corporations, foundations, agencies, associations, firms, and conglomerates. The type, size, scope, location, purpose, and mission of a business all determine the external environment in which it functions, it still must meet the requirements and contingencies of that environment to survive and flourish. General Environment – Technological and Economic Technological According to Nandonde (2019), PESTEL analysis is a vital tool that executives could depend on to systematize factors in the general environment and determine how such factors impact firms and industries within them. Generally, PESTEL refers to an anagram, implying that its a word formulated using parts of different words. PESTEL, in particular, replicates the six segments of a general environment namely the technological, legal, environmental, social, and economic segments. The political and economic segments are the segments that would rank highest in Walmart. Economic factors rank highest on account that Walmart runs in various nations. Currency devaluations and high rates of inflation are a few of the most important EXTERNAL AND INTERNAL ENVIRONMENTS 3 factors, which have impacted the organization over the last years. High rates of interest inflation, high costs of energy, high level of debts, high unemployment, along with inadequate consumer credit are a few of the main factors that influence the operations of Walmart in the USA this is on account that the factors mentioned above have a substantial effect on the demand of a consumer. Economic Walmart functions in over twenty-five nations throughout the world. Accordingly, the firm must make sure that it abides by the regulations and rules to host nations. The Chinese operations of Walmart in 2010 encountered numerous difficulties (Frynas & Mellahi, 2015). These difficulties in due course forced the firm to obtain a local firm to keep having efficient functioning in a nation. Political factors, which might impact the operations of Walmart in China consist of regulation and legal constraints, the tax system, and political instability. Political factors might force a firm to alter its functioning to comply with the current conditions. Forces of Competition – Scanning and Monitoring Scanning Threats of the new entrants, along with rivalry intensity amongst the competitors, are the most critical forces for Walmarts company. There exists an intense competition in the retail business (Colacicco, 2018). The company has numerous companies that have diverse sizes, which compete for accessible consumers utilizing various strategies. The enormous number, along with a diversity of companies in the business, together with the firms aggressiveness, EXTERNAL AND INTERNAL ENVIRONMENTS 4 poses a momentous threat to the competition. The organization has tended to such risks by guaranteeing that its still aggressive. Regardless of the way Walmart is a leader of the industry, it has made an effort to procure a more significant market share in several market segments (Chekwa et al., 2014). The organizations also participate in broad advertising campaigns that strive to enhance their share of the market. Besides, Walmart occasionally opens other stores in new locations. This helps the firm obtain new unexploited markets or grab consumers of competitors that will move to Walmart upon entry into the market because of the companys robust brand name. Monitoring Walmart functions in commerce where there exists a great threat of the new entrants. Reason being that the new small traders might get into the market, even though big trades like Walmart might populate it. Small traders compete against Walmart based on specialty, convenience, or different factors. The reduced cost of conducting business is one of the significant factors that make it easier for small traders to venture into the market. Besides, venturing into a retail business needs a moderate quantity of capital (Colacicco, 2018). Though, its hard for new entrants to establish their brands. Generally, Walmart has countered the new entrants threats by heightening several stores, especially in an American market that rationalizes for an enormous percentage of its profits. A huge number of Americans reside within five miles of the store of Walmart. Thus, making it troublesome for new entrants to rival with Walmart in accordance with the location and convenience. The extensive campaigns for advertising have additionally assisted with EXTERNAL AND INTERNAL ENVIRONMENTS 5 enhancing the competitiveness of the company. This has helped the firm acquire a competitive advantage over the other firms in the business. Future Improvements Walmart must strive to distinguish its service from its competitors services. For instance, the organization might establish stores that help consumers have a pleasant experience of shopping (Chekwa et al., 2014). This will help in drawing in consumers to their stores. Besides, the firm might target the new markets. Additionally, Walmart has no enormous presence in emerging marketing. And thus, venturing into the emerging markets will guarantee profitability and future growth since the emerging markets are developing at a greater rate. This will help the firm to stop being excessively dependent on American markets that are saturated. Greatest External Threat & Opportunities Since Walmart is a market leader, it experiences high competition both in the international markets and the local markets. The firm might counter such competition or rivalry by taking part in wide-ranging advertising campaigns; besides, the firm has sufficient capital to fight competition (Frynas & Mellahi, 2015). Additionally, the firm might establish initiatives, which strive to enhance the brand name of the company. This encompasses executing several initiatives of corporate social responsibility and sponsoring different events, which are prevalent in communities surrounding Walmart stores. This, in turn, demonstrates that the organization is receptive to the communitys needs. Venturing into the emerging markets will help the firm uphold its revenue of sales, given reduced sales in the established markets that are depicted by high competition. EXTERNAL AND INTERNAL ENVIRONMENTS 6 In general, Walmart experiences high competition from firms that utilize e-commerce to sell products and services (Chekwa et al., 2014). Firms that utilize e-commerce pose substantial threats to the brick-and-mortal stores because they contain reduced operational expenses. Walmart might oppose competition from companies of e-commerce by creating its platform of ecommerce and engaging in broad promotional campaigns to strengthen its fame amongst its consumers. Presently, Walmart rivals with the specialty store. The use of diverse techniques for diverse markets like the establishment of neighborhood markets and normal stores offer Walmart the greatest expansion opportunity. The firm might establish specialty stores, which target diverse segments of the market. The strong brand-name of Walmart will help it draw in a considerable lot of consumers. This would, in turn, fuel the companys profitability and growth. Strengths, Weaknesses and Tactics The robust brand name of Walmart is one of the significant companys strengths. Conveying customized encounters to its consumers is, on the other hand, a significant technique that Walmart should utilize to capitalize on its robust brand name (Martínez et al., 2017). Walmart must employ digital marketing to help it connect with its consumers using different means. Walmart must also execute a technique that guarantees conversions and discussions with its consumers throughout various channels. It might profile its consumers dependent on the buying proclivities to develop customized communication means with them in dual interactions. This will require Walmart to guarantee that it simply doesn’t categorize its consumers but rather strives to enhance its relations with them. EXTERNAL AND INTERNAL ENVIRONMENTS Notwithstanding that it is an enormous retailer throughout the universe, Walmart runs in some nations outside the USA. This poses as the utmost weaknesses for the firm. Thus, a firm must guarantee that it expands its business in alien places (Frynas & Mellahi, 2015). Focus on the American market will stunt the company growth since this market is saturated. This stratagem, in general, will help the firm to stop being dependent on an American Market. The emergent markets pledge to take into account the substantial percentage of the sales revenues company in the future. Resources, Capabilities, and Core Competencies Walmarts resources consist of low-cost position and brand loyalty. The firm has a solid brand-name that upsurges loyalty amongst its consumers. Additionally, Walmart is tantamount with inexpensive products (Martínez et al., 2017). This assists with enhancing the company’s popularity amongst its consumers. The capabilities Walmart consist of having an excellent logistics system. Also, the firm has its stores in several nations (Martínez et al., 2017). These nations are connected by the stateof-art supply chain, which guarantees seamless product movements in a supply chain. Nonetheless, Walmart has over 4,000 tracks, which assist in its product transportation. The companys core competency, on the other hand, in being a market leader that has helped it create a competitive edge for itself (Chekwa et al., 2014). The company takes part in the tough negotiations dependent on its dealers value and makes sure that the eventual price or value is the least possible. Therefore, this helps it provide the lowest probable expenses to its consumers. Another Walmarts core competency is reduced cost operations. Walmart strives to lessen its operational expenses. The companys products contain a low-profit margin though enough volumes of sales help it acquire profits. 7 EXTERNAL AND INTERNAL ENVIRONMENTS 8 Sources 1. Hitt, Ireland, & Hoskisson. 2020. Strategic management: Concepts and cases: Competitiveness and globalization (13th ed.). Mason, OH: South-Western Cengage Learning 2. Banerjee, D. (2015). Walmart Stores Inc.-A Strategic Analysis. International Journal in Management & Social Science, 3(12), 202-225. 3. Chekwa, E., Martin, J., & Wells, K. (2014). Riding on the waves of sustained competitive advantage: Consumers perspectives on Walmart Corporation. International Journal of the Academic Business World, 8(2), 13-25. 4. Colacicco, G. (2018). Internationalization decisions in the retailing sector: Walmart in South Korea. 5. Frynas, J. G., & Mellahi, K. (2015). Global strategic management. Oxford University Press, USA. 6. Martínez, A. B., Galván, R. S., & Alam, S. (2017). Financial Analysis of Retail Business Organization: A Case of Wal-Mart Stores, Inc. Nile Journal of Business and Economics, 3(5), 67-89. 7. Nandonde, F. A. (2019). A PESTLE analysis of international retailing in the East African Community. Global Business and Organizational Excellence, 38(4), 54-61. Running Head: STRATEGIC MANAGEMENT AND COMPETITIVENESS Strategic Management and Competitiveness Elizabeth Frazier Professor: Dr. Keller Strayer University 4/27/20 1 STRATEGIC MANAGEMENT AND COMPETITIVENESS 2 Introduction The market environment has significantly changed thus impacting the strategic competitiveness of entities. These changes are caused by several factors including globalization, technological development, changes in consumer tastes and preferences, and other external factors that are beyond the control of organizations. Stiff competition in different industries has prompted companies to look for ways to gain competitive edges and obtain a considerable market share. By doing this, these entities will likely achieve their objectives of strategic competitiveness, gain profits as well as maximize the shareholders’ wealth. Strategic competitiveness is attained when companies effectively design and execute a value-creating strategy. This paper will address how elements of strategic management and competitiveness affect the operations, success, and growth of Walmart Inc. Globalization Globalization entails the process in which entities establish international influence and/or begin operating their businesses on an international framework. Walmart Inc., a multinational company, has been substantively affected by globalization. The retail company operates in the United States and other foreign countries around the world. The elements of globalization have influenced the company’s growth and success in its local and international markets. Fundamentally, globalization has provided vast opportunities for Walmart. The political environment in many countries that the company operates in has led to significant success in exploiting opportunities in the global market. For instance, the globalization movement of unifying the global economies and the establishment of preferential trade agreements such as the European Union and NAFTA give Walmart considerable market opportunities. Facets of this STRATEGIC MANAGEMENT AND COMPETITIVENESS 3 trend like the minimization of barriers to trade have resulted in the opening of new markets by multinational corporations like Walmart Inc. (Hitt& Hoskisson, 1). Globalization also poses threats to Walmart. For instance, global competition has also impacted Walmart. Essentially, some of the reasons the company expanded internationally are to gain a competitive edge in global markets and to increase its customer base. Competition in the global market is stiff and rising, and the company is competing with other large and established retail rivals. Some of the biggest competitors of Walmart are Amazon, Kroger, Costco, and Alibaba Group. To surpass its rivals, the company provides quality and affordable products and services and adopt business levels and corporate levels strategies like differentiation and diversification. Technology The technological environment has significantly changed thanks to the advancement of technology. Technology changes have also impacted greatly Walmart’s businesses and operations. For instance, the trend of e-commerce in the market and the increasing number of companies transacting online has impacted the firm’s operations. Walmart has both physical (brick and mortar) and online presence. The company sells its goods and services in its physical stores as well as its online platform. Customers can now purchase the company’s brands online without necessarily visiting their physical retail stores. Walmart’s move to adopt e-commerce was instigated by competition in the industry and also the goal of gaining a competitive advantage. Walmart also uses a robot in its stores. The adoption of this technological tool was motivated by the company’s objectives of reducing costs and also providing quality services to STRATEGIC MANAGEMENT AND COMPETITIVENESS its target market. Typically, the company’s roving robot from Bossa Nova Robotics assists in restocking shelves, monitoring stock levels, and ensuring that the price tags of inventories are accurate. Furthermore, Walmart’s marketing and promotion techniques have been affected by technological changes. The company engages in rigorous social media marketing where it promotes its brands to its target market, particularly the techno-savvy customers. Additionally, the automation of the processes of unloading trucks and sorting stocks has allowed the company to save significant costs (Perrine, 2). Industrial Organization Model The industrial organization model of above-average returns assesses how the eternal environment impacts the strategic plans of an entity, in this case, Walmart. The organizational performance of the company is affected by industry characteristics such as product differentiation, economies of scale, barriers to entry, and diversification. The model has four assumptions. The first assumption of the industrial organization model is that the external environment impacts the strategies that will result in above-average returns. Walmart’s eternal environment including the competitor and industry environment exerts pressure on the company thus leading to above-average returns. The second assumption is that the competitors have strategically relevant resources and thus Walmart should select a strategy that is connected to above-average returns. The third assumption of this model is that resources needed to execute strategies are highly mobile across companies. Therefore, Walmart should optimize the mobility of these resources to earn above-average returns. The fourth assumption of the industrial organization model lies in the management of firms. Thus, Walmart’s management can rationally make decisions that will enable the company to maximize its profits. In other words, Walmart can 4 STRATEGIC MANAGEMENT AND COMPETITIVENESS 5 adopt strategies such as product differentiation and economies of scale to earn above-average returns (Rothaermel, 3). Resources Based Model Walmart has a set of unique resources and capabilities that offer the foundation of its strategy. Essentially, the company’s input and capabilities are critical to the achievement of profitability. For instance, Walmart’s human, physical, technological, and financial resources allow it to be in a better position to earn above-average returns. For example, the company’s employees are skilled and experienced hence have the capacity to provide quality customer services. Walmart’s corporate culture is based on its customers and it strives to satisfy the needs and expectations of its target market. Thus, these aspects of corporate culture are the basis of its competitive advantage. Moreover, its physical resources such as land and equipment also put the company in a better position to provide quality and affordable goods and services to the consumers thus gaining a competitive edge over its rivals. Vision Walmart’s vision statement is ‘Be the destination for customers to save money, no matter how they want to shop’ (Ferguson, 4). This means that the company is customer-oriented because it focuses on customer convenience and affordability of its products. Walmart strives to provide affordable brands to its target market in order to attract and retain its customers. The convenience of its customers is also key for the company and that is the reason why Walmart adopted online shopping. All these strategies utilized by the firm allow it to have a large customer base, increase its sales, and its profits, and subsequently become successful in the industry. STRATEGIC MANAGEMENT AND COMPETITIVENESS 6 Mission Walmarts mission statement is ‘to save people money so they can live better’ (Ferguson, 4). Components of this mission statement are financial independence, improving the lives of its customers, and exceeding expectations. Walmart focusses on improving the lives of its customers by making its products more affordable compared to its rivals. With affordable products, customers are likely to have financial liberation. In other ... Purchase answer to see full attachment