Who are Wal-Mart’s major external stakeholders? Do a strategic constituency analysis creating a new figure that describes Wal-Mart as you understand it.

External stakeholders are individuals, groups and entities from outside that are affected by the consequences and outcomes of an organizations decision. External stakeholders include customers, supplies, government and communities. The external stakeholders of Wal-Mart henceforth are the customers, suppliers, communities, competitors and the unions.

The strategic constituency analysis is an approach that suggests that an efficient organization is the one which fulfills the demands of these constituencies in its environment from whom it needs support for its survival. It assesses the effectiveness to satisfy multiple strategic constituencies both internal and external to the organization. This approach is ideal for organizations which rely highly on response to demand. The strategic constituency approach takes explicitly into consideration that the organizations fulfill multiple goals like workers, consumers and the local community. In these there opt to be a distinct interests vis-à-vis the corporation and thus use different evaluation criteria.

However, isolating the strategic constituencies from their environment within which they function is a challenging and tricky task because the environment swiftly changes that is what is a crucial goal today, might not be so tomorrow. Individual constituencies may create significantly diverse ratings of organization effectiveness.

Creating the new figure of Wal-Mart using the strategic constituency

Customers

Wal-Mart reason for existence is to provide goods and services which is evidenced from its objectives which states that they want to provide the customers with what they want, when they want it, all at a value. Wal-Mart thereby wants to provide these goods and services that meet the customers need and benefits in a more meaningful way. The customers therefore plays vital role in the success of the business and to its survival. The customers provide the feedback to the company which helps the organization to consistently improve their goods and services to meet the customer’s expectations. With this somebody can depicts that the customers are the major external stakeholders of Wal-Mart. More so, customers do not necessarily have to wait for the promotions to kick off so as to buy from the organization because they offer lower prices as they are based with the low margin and high sales volume strategy, so the customers then boost their savings by buying from Wal-Mart. Wal-Mart has become so passionate to the customers as the organization appreciates that their success is just contributed by its customers and they focus on the needs of the customers to obtain the total customer satisfaction. 

What others are reading from this blog...

1. Explain in detail, why creativity and innovation are critical traits of a successful entrepreneur.

2. Strength and weaknesses of the First Direct bank_Swot analysis

3. What is a Balanced Scorecard?

4. The distinctive characteristics of services merit their management framework. Discuss fully?

5. What are the typical components of a business plan for a start up cover?

6. A case study of Walmart

7. Strength and weaknesses of the First Direct bank_Swot analysis

8. The nature and distinctive characteristics of service merit their own marketing and management framework. Discuss. 

Community

The community plays a major role in Wal-Mart as they are also the major external stakeholders of the company. The communities provide with the source of labor to Wal-Mart and they also provide with customers who buy goods and services from the organization, as well as the potential customers. With that Wal-Mart has to plough back to the community so as to show the appreciation, this then build a good reputation of the company thereby no protests can be encountered from the community as the one which happened in several towns in Massachusetts.

Competitors

Competitors are the Wal-Marts external stakeholder and they play a very pivotal role in the success of the business. These competitors provide competition to the company so that at the end of the day Wal-Mart is forced to provide quality products to the customers. Competitors also makes the organization to become efficient that is Wal-Mart has the best logistic system, so to achieve all these competition is vital to put pressure on the organization so that it strives for the best. The competition opt to be a fair and an ethical one so that the organization builds its reputation, unlike what happened with Wal-Mart where it opened the branch small retailers were closing because they were pushed out of the business which caused the protests from some communities and they didn’t allow them to open the other branch in some areas. This maybe was due unfair competition and some ethical issues as some newspapers published results concerning the results of Wal-Marts entrance into new markets.

Suppliers

The suppliers are also the external stakeholders of Wal-Mart. The suppliers of the company must be reliable and efficient, that is they opt to provide the materials at time. They is also a need to be a relationship with the suppliers, that is the good relations with the suppliers for the continuous and long lasting business. The suppliers also must have a clean ways of doing business, not what happened with the Wal-Mart suppliers who were using the child labor in Bangladesh. This kind of publication might ruin the reputation of the company, so the organization must choose wisely its suppliers.

Government

Government is also a major external stakeholder of Wal-Mart. Government governs laws and regulation to the organization. It portrays the laws to be adhered to as a company which sees Wal-Mart abiding to those laws and thereby expanding internationally. In the case study there is no situation whereby the organization did not adhere to the laws and regulations.