BUS 475 Corporate Societal Relationship
Evaluating a Corporate-Societal Relationship
According to the textbook, the current world economy is increasingly becoming integrated and interdependent; as a result, the relationship between business and society is becoming more complex. In this assignment, you will be researching a Fortune 500 company from an approved company list provided by your professor.
Write a 4–5 page evaluation of your chosen company’s performance with respect to its stated values. Do the following:
- Summarize the company’s primary products and or services.
- Suggest three ways in which the primary stakeholders can influence the organization’s financial performance. Provide support for your response.
- Describe two critical factors in the organization’s external environment that can affect its success. Support your assertions.
- Assess the company’s biggest success or missed opportunity to respond to a recent or current social issue. How did it impact company performance?
Integrate at least two supporting resources from the Strayer University Library or other reputable sources.
This course requires the use of Strayer Writing Standards. For assistance and information, please refer to the Strayer Writing Standards link in the left-hand menu of your course. Check with your professor for any additional instructions.
The specific course learning outcome associated with this assignment is:
• Evaluate the relationship between a business and society based on external environmental factors, stakeholders, and corporate social responsibility issues.
Evaluating A Corporate-Societal Relationship
Evaluation of Company’s performance with respect to the shared values
Walmart Inc. is primarily amultinational retail company based upon the chain of supermarkets, discount localities, and grocery shops in the United States. Sam Walton was the founder of the Company. Currently, Walmart has a revenue of US$ 514.405 billion concerning the list that has been issued by Fortune Global in 2019. The corporation also has a huge scheduled company in the globe having 2.2 million workers. The Walmart is implementing and preserving a threat assessment complex regulator Point approach to accomplish the dependability of Walmart for all stock mechanisms. The primary emphasis of the organization is the selling of goods at less prices to attain huge-volume sales. At the beginning of the current year, the sales of the corporation increased by 45%. In the recent year of 2020, the employee was given the option to obtain paid leave. The corporation recently introduced the latest service, which is called Transporter pickup. It permits the buyer to plan a return for goods that have been purchased online or through the stores via the vendor. These services can be begun from the Walmart application or the website. Whereas in the year 2021, Walmart announced that they are launching the Fintech startup with the venture partner Ribbit Capital. The main purpose will be to provide financial goods to customers and employees.
Primary Product and Services
The main products of Walmart are
- Beauty and wellness products.
- Electric appliances and hardware.
- Accessories, toys, and sports goods.
- Family apparel and all housewares
- Pets, lawn and garden supplies.
- Frozen and fresh products.
- Beverages, meat, and dairy products.
- Bakery and dry goods.
How primary stakeholder can influence the financial performance of Walmart
Profit maximization is a significant aspect for Walmart to endure the performance and cultivate to make the most of wealth for the stakeholders. On the other hand, Social responsibility is the significant responsibility of the corporation that concentrates on social mobilization. The ability of Walmart for the creation and sustainability of organizational prosperity is based upon the reasonable efficiency of its value chain, which is then identified by Walmart’s association with customers, employees, shareholders, and stakeholders. The stakeholders of Walmart can be classified as primary or secondary stakeholders that can influence the Company’s financial achievement shown below: (Steven C. Hall, 2020)
- The primary stakeholders have concerns that are straightaway concerned to the prosperities of Walmart. The primary stakeholders include the investors, shareholders, employees, suppliers, and customers. On the other hand, there are the secondary stakeholders who have a subsidiary influence on the organization. They comprise the broadcasting, pressure groups, controllers, participants, and others.
- Stakeholders have huge involvement towards the wealth-generation capability of Walmart, and therefore these are the probable beneficiaries and the risk carriers.
- Corporate social responsibility is the moral accountability of Walmart to stakeholders, which are impacted by the actions of Walmart. It is an essential responsibility of Walmart that emphasizes social mobilization in its entirety. It is an extensive notion which narrates the responsibility of Walmart for the maximization of its positive influences on the community and minimizing the negative influences.
- The capability of Walmart for the establishment of satisfactory connections with stakeholders is an essential situation for the enhancement of stakeholder’s wealth. The requirement for applying a suitable corporate governance approach is also the need, along with social and economic aspects (Nana Serwaa Ofori-Nyarko, 2020).
Critical factors in the external environment of Walmart
The organization Walmart always makes sure that they fully comply with the political condition of every nation in which they are operating. They also make sure that it has a decent situation concerning political concerns. Walmart is ready to deal with the issues and problems that arise from the concerning political segment. Walmart considers all the political factors that have been roaming in the retail market sector, typically concerning government strategies. In this factor, the aspect that arises from the politically active interest groups also plays a significant role. Following are the aspects that have been affecting Walmart in the external environment.
- Great constancy of legislation.
- Radical maintenance for globalization.
- Political compression for advanced remunerations.
The corporation of Walmart is although economically steady for many years but still is affected by external environmental, economic factors. In case they are operating in a stable economic environment, Walmart always tries to progress their goods and try to deliver the best to their customers. It is not only an internal economic scenario of Walmart that should be considered but also the nation’s economy moves side by side. Walmart is currently under pressure from economic fluctuations in the retail industry. Such alterations significantly lead to fluctuations in Walmart revenues. The shown below are the external environmental factors (Yuqi Chang, 2020).
- Sustainability of main economies.
- The sustained expansion of emerging nations.
- The decline in redundancy in the United States.
The biggest success of Walmart
- Walmart has attained success in managing both online and in-store grocery stores. The Company has successfully maintained a strong customer base by providing them quality products, goods, and services.
- Walmart is the sole market leader when the point comes to grocery sales. It also provides the widest collection of customer fiscal assistance compared to various prominent retailers—the sale of the product and financial services earned around $1.6 billion in revenue.
- Out of the 67 million houses that have pets in America, 43 million purchase from Walmart.
The missed opportunity of Walmart
- Walmart deals with numerous lawsuits associated with the dealing of employees comprising the judgment and unsatisfactory remuneration. This has made the retailer momentous, along with the disclosure of its brand reputation (Nilufer, 2020).
- The offering of western products to the countries that are struggling to attain more disposable revenue to purchase the goods.
- Walmart can accept the product having a private tag as an approvalexpands for these goods as a superiority substitute to huge nationwide products.
The relationship between the business and society is based on external factors.
Walmart proved to be the market leader and trendsetter in the field of the retail sector. This is because of the superiority which is preserved by Walmart and the methods that they have been followed by organizations for dealing with the potential stakeholders. Walmart has also skilled the vendors and investors with the regulations and conducts that have pre-determined. The Walmart has very firm strategies and approaches concerning the customer sales along with purchases and the operations of the vendors. Additionally, they are following pre-determined approaches of shareholding rights capability along with the clashes that emerged within the Walmart (Rupinder P. Jindal, 2021).
- Nana Serwaa Ofori-Nyarko, F. W. (2020). SWOT ANALYSIS: WAL-MART STORES INC. International Journal of Recent Research in Commerce Economics and Management (IJRRCEM), 2349-7807.
- Nilufer, N. (2020). A critical assessment on business strategy from aviation to the retail industry during COVID-19 Pandemic: A Walmart case. Business Ecosystem & Strategy, 2687-2293.
- Rupinder P. Jindal, D. K. (2021). Omnichannel battle between Amazon and Walmart: Is the focus on delivery the best strategy? Elsevier public health emergency collection, 270–280.
- Steven C. Hall, S. K. (2020). Walmart Impact on the Finance and Insurance Industry. Mountain Plains Journal of Business and Technology, 1-20.
- Yuqi Chang, J. H. (2020). Analysis on the Mode of Multinational Retail Enterprises Entering Chinese Market. The modern economy, 1-9.