Environmental_Factors

Environmental Factors Paper In businesses today marketing professionals are not only concerned about the marketing mix, marketing plans or targeting the right consumers, but also the rapid changes in global society. This paper will discuss Wal-Mart and describe the high-level domestic and global environmental factors that may impact the organization's marketing decisions. The discussion will also explain how Wal-Mart’s marketing decisions are affected by current technology. The paper will end with an analysis of the social responsibility and ethics of Wal-Mart in regard to organizational marketing programs. Wal-Mart opened its doors in 1962 as a small discount store founded by Sam Walton in Rogers, Arkansas. Wal-Mart is currently one of the world’s largest retail companies. The company operates retail stores in various layouts. At the end of January 2008, the company operated 971 discount stores, 2,447 supercenters, 591 Sam’s Clubs and 132 Neighborhood Markets in the United States. Wal-Mart operates in various international markets as well. These markets include the UK, Canada, Japan, Mexico, Brazil and China (Datamonitor, 2008, p. 5). Since the company operates all over the world, it must deal with environmental factors but domestically and internationally. A few of these factors are rapid changes and innovations, globalization as well as diversity (UOP, n. d.). The world is constantly evolving and these rapid changes lead to innovations that were not heard of ten years ago. At one time, Wal-Mart received goods by freight train or boat, now with the help of super jets and mass distribution companies, Wal-Mart customers can receive goods within days after ordering them. In today’s society, marketers use these types of changes and innovations to benefit the company as well as the consumer. Customer needs are better accommodated because the product mix is more flexible to suit the specific needs of different customers around the world (UOP, n. d.). As a global organization, Wal-Mart makes wise use of its resources. The marketing manager must decide the most effective and efficient method of allocating resources to benefit the company. What the customer wants and needs is of great importance though these needs change constantly. Wal-Mart must be proactive and anticipate how to meet the consumer’s wants and needs. The company uses different marketing mix for customers’ stateside and overseas. Through global standardization the company saves money by keeping costs and prices low and affordable. Wal-Mart has a distribution system that allows the company to purchase goods at a lower price. The Wal-Mart brand name is synonymous with receiving goods at discount (Armstrong and Kotler, 2005, p. 534). Diversity is another important marketing element that Wal-Mart truly values. Wal-Mart is dedicated to providing cultural diversity in every aspect of its business. The company’s diversity statement is as follows: “As the world's largest retailer, we value diversity and foster a working environment that enriches the personal and professional experiences of our associates, promotes excellence, and cultivates the intellectual and personal growth of the entire associate population. We make diversity part of our business plan, ensuring we can continue to be a global leader in all aspects of Diversity and Inclusion,” (Wal-Mart, n. d.). Wal-Mart uses this diversity statement to build and maintain public relations. The company diversity statement allows all of their employees and consumers to feel as if they are valuable and productive part of the company. Technology positively impacts Wal-Mart’s marketing on a large scale. Most consumers today have at least one personal computer, laptop, netbook, or Smartphone in their home, workplace or school. Marketers are using these technological gadgets to their advantage. Wal-Mart offers special discounts on products purchased via the internet. The product mix at local stores has changed, because these purchases prevent the store from overstocking items. Consumers are satisfied because in most cases the purchase can be delivered to a nearby store within days and ships free of charge (UOP, n. d.). Since Wal-Mart is a global organization, being socially responsible and having strong ethics is important to consumers. Most consumers are morally conscious beings and want to purchase items from an organization that holds the same values. Wal-Mart uses these factors when making decisions on products that are purchased and how the products are delivered. Additionally, they use social responsibility and ethics for public relations. Wal-Mart is a socially conscious company and makes major contributions to local and global causes. The company considers itself to be “a store of the community” and supports local charitable and community based organizations (Wal-Mart, n.d.). Wal-Mart has a Global Ethics Office that monitors the company’s code of conduct and basic beliefs. The three basic beliefs are 1) Respect for the Individual, 2) Service to the Customer and 3) Strive for Excellence. The code of conduct ensures that all employees and stakeholders act responsibly and ethically. The top four guiding principles are 1) always act with integrity, 2) lead with integrity, 3) expect others to work with integrity, and 4) follow the law and be honest and fair. Wal-Mart is striving for excellence in all of its business practices and this helps the marketer to attract and retain customers and actively engage others in the distribution channel. Wal-Mart is a company that values it customers and employees. In the past 30 or more years, the company was able to build a strong consumer base and expanded into international markets. As the company grew and the world changed, marketers properly addressed environmental factors that could have crippled the company. Technological advances strengthen the company more by allowing marketers to address the needs of consumers quickly. In the past Wal-Mart may have dealt with social and ethical issues, the company is now embracing the world and making positive changes. References Armstrong, G. and Kotler, P (2005) Marketing: An introduction, Seventh Edition, Published by Prentice-Hall. Datamonitor (May 19, 2008) Wal-mart stores, inc: Company profile Retrieved July 14, 2008 from http://web.ebscohost.com.ezproxy.apollolibrary.com/bsi/pdf'vid=6&hid=116&sid=58ae2174-2d2a-4f13-bdb1-62c469a47b0c%40sessionmgr103 UOP (n. d.) Mkt 421 week five: the dynamic environment of marketing. Retrieved July 14, 2008 from https://mycampus.phoenix.edu/secure/resource/resource.asp Wal-Mart (n. d.) Diversity. Retrieved July 14, 2008 from http://walmartstores.com/Diversity/ Wal-Mart (n. d.) Global ethics office. Retrieved July 14, 2008 from http://walmartstores.com/AboutUs/280.aspx Wal-Mart (n. d.) Community & giving. Retrieved July 14, 2008 from http://walmartstores.com/CommunityGiving/