The External Environment Of An Organization Comprises All ✓ Solved

The External Environment Of An Organization Comprises Of All The Entit

The external environment of an organization comprises of all the entities that exist outside its boundary but have significant influence on its growth and survival. An organization has little or no control over its environment but needs to constantly monitor and adapt to these external changes. Share a recent example from business news about an external organizational challenge, how the company addressed it (internal factors), and what you would do differently. (500 Words with APA citations)

Sample Paper For Above instruction

The external environment of organizations plays a critical role in shaping strategic decisions and operational outcomes. These external forces include economic, political, social, technological, environmental, and legal factors (Johnson, Scholes, & Whittington, 2017). Companies must continuously analyze and respond to these external challenges to ensure sustainability and competitive advantage. A recent example that illustrates an external organizational challenge is the impact of the COVID-19 pandemic on the retail giant, Walmart Inc.

When COVID-19 emerged as a global health crisis in early 2020, Walmart faced unprecedented external challenges, including supply chain disruptions, increased demand for essential goods, and health and safety concerns for employees and customers (Smith, 2021). As an organization operating in a highly competitive retail environment, Walmart needed to adapt swiftly to these external pressures. The company’s response involved multiple internal strategic adjustments aimed at mitigating external risks.

One of the key internal factors Walmart addressed was its supply chain management. Recognizing the risk of supply disruptions, Walmart invested heavily in diversifying its supplier base, increasing inventory levels of essential products, and enhancing logistics capabilities (Lee, 2021). These internal adjustments allowed Walmart to maintain store shelves during a period of panic buying and supply shortages, thus protecting its revenue streams and customer trust. Furthermore, Walmart implemented rigorous health protocols and safety measures for its workforce, including providing personal protective equipment (PPE), enforcing social distancing in stores, and offering paid sick leave (Brown, 2021). These internal adaptations helped Walmart address external stakeholder concerns regarding health and safety.

Additionally, Walmart expanded its digital presence by boosting online sales platforms and contactless shopping options. This strategic pivot to e-commerce was a response to consumer behavior shifts during the pandemic, representing internal flexibility in responding to external technological and social forces (Johnson et al., 2017). The company also collaborated with government agencies to ensure compliance with evolving regulations and contributed to community support initiatives, which reinforced its corporate social responsibility image (Taylor, 2022).

While Walmart’s responses were effective, there are areas where different approaches could enhance resilience. For example, an even more proactive approach to transparent communication with consumers about supply chain issues might have alleviated customer anxiety more effectively. Moreover, investing in advanced predictive analytics could have optimized inventory management further, reducing overstock and stockouts (Chong et al., 2020). These strategies would demonstrate greater agility in anticipating external shocks and adapting internal processes accordingly.

In conclusion, Walmart’s response to COVID-19 exemplifies the importance of internal strategic adjustments in navigating external organizational challenges. The company's diverse approach—ranging from supply chain diversification to health and safety measures and e-commerce expansion—highlighted effective external environment management. Future strategies could benefit from increased emphasis on predictive analytics and transparent communication to better prepare for similar external shocks.

References

• Brown, A. (2021). Walmart’s COVID-19 response strategy. Retail Weekly Journal, 28(3), 45-49.
• Chong, A., Lo, C., Weng, X., & Cheng, T. C. E. (2020). Predictive analytics in supply chain management: Challenges and opportunities. International Journal of Production Economics, 227, 107673.
• Johnson, G., Scholes, K., & Whittington, R. (2017). Exploring corporate strategy: Text and cases. Pearson Education.
• Lee, M. (2021). Supply chain resilience during COVID-19: Walmart’s strategies. Journal of Supply Chain Management, 57(2), 15-22.
• Smith, J. (2021). The COVID-19 pandemic and retail supply chains. Business News Daily, March 15, 2021.
• Taylor, S. (2022). Walmart’s community engagement during the pandemic. Corporate Social Responsibility Journal, 8(1), 32-45.