Diploma in Business Administration
(Student No –DBA 0707119)
June 03, 2008
A scan of the internal and external environment is an important part of the strategic planning process. Environmental factors internal to the firm usually can be classified as strengths (S) or weaknesses (W), and those external to the firm can be classified as opportunities (O) or threats (T). Such an analysis of the strategic environment is referred to as a SWOT analysis.
The SWOT analysis provides information that is helpful in matching the firm's resources and capabilities to the competitive environment in which it operates. As such, it is instrumental in strategy formulation and selection. Normally firms use SWOT analysis to develop a competitive
Wal-Mart is the largest grocery retailer in the
Wal-Mart operates in
Wal-Mart has been criticized by some community groups, women's rights groups, grassroots organizations, and labor unions, specifically for its extensive foreign product sourcing, low rates of employee health insurance enrollment, resistance to union representation, and alleged sexism.
A firm's strengths are its resources and capabilities that can be used as a basis for developing a competitive advantage.
The absence of certain strengths may be viewed as a weakness.
The external environmental analysis may reveal certain new opportunities for profit and growth.
1. To take over, merge with, or form strategic alliances with other global retailers, focusing on specific markets such as
2. The stores are currently only trade in a relatively small number of countries. Therefore there are tremendous opportunities for future business in expanding consumer markets, such as
3. New locations and store types offer Wal-Mart opportunities to exploit market development. They diversified from large super centres, to local and mall-based sites.
4. Opportunities exist for Wal-Mart to continue with its current strategy of large, super centres.
Changes in the external environmental also may present threats to the firm.
Wednesday, June 4, 2008
at 1:21 AM