Introduction
There are few environmental factors that affect the global and domestic marketing decisions which are divided into sections. These sections include technological, political, socio-cultural and legal factors. A good example of such an organization is the Wal-Mart marketing agency which is a US based organization that mostly deals in running large stores and warehouses. Wal-Mart organization is one of the biggest private employers. These environmental factors can affect the functions of the stores. Wal-Mart faces a number of situations where the politics have forced the company to raise or lower the product prices in the name of cleansing their public image to gain more favor from the people (Bateman & Snell, 2013). The organization in return is forced to make some critical marketing decisions to curb the increased level of manipulation from the politicians.
In cases of political instability in some countries, Wal-Mart Company has been forced to reduce the number of clients thus affecting the performance of the company. Most of the countries that are victims of political instabilities affect the performance of any organization. Therefore, the company is forced to make some marketing decision such as reducing the number of investments in that country. In cases where the political stability of a nation is strong, it implies that organizations like Wal-Mart will invest more and put its resources on the same. This is an important market decision that companies can make annually.
Legal responsibility
Legal responsibility often referred to as a set of law that limits or governs activities that can affect any organization and its planning processes, or affect the company’s performance when subjected to law that limits that are stringent enough to force changes in the company’s policies. When a company meets some social responsibilities, it thrives to the eyes of the public; therefore it leads to the success of the company. Additional success might be when a company sets guidelines that govern employees and shareholders that are tied to the organization, a key to achieving a well-run company; a success that has been met and fulfilled by most organization including the Wal-Mart organization thus increasing their market demand to the public.
Trade practices and agreements
Trade practices and agreements have a positive impact to a society and the world as a whole in general. Every country is held accountable and responsible for the running of its own finances and budgets irrespective of the economical level in the world market (Bateman & Snell, 2013). This has enhanced a fair and free trading in the world market. The level of global economic interdependence keeps and maintains the economy of the world at a constant growth rate. These practices and agreement has enhanced the recognition of the Wal-Mart organization. In presence of these agreements, Wal-Mart has risen to be one of the most prolific and successful organizations in the world placed at number two. Between 1980 and 1990, Wal-Mart rose to become the largest private firm ever to grow to an extent that is gained recognition and concern from other nations
Infrastructure
In the days before the conception of Wal-Mart stores, the founder had to consider specific infrastructures that would supplement his ideas; Roads and railway lines, and even bridges all were considered in order to develop a successful company. In addition, the use of these infrastructures facilitated transportation which created easy access to resources around the organization; resulting, in increased amount of sales per annum (Mols, 1999). The increased development of infrastructures attracts people to enjoy better facilities. An increased population denotes an increase in birth rate. The increasing number of new born babies implies an increase in number of clients in future hence the production of the organization.
Demographics
In most cases, census is taken but the results are never released to the public (Bateman & Snell, 2013). This has accelerated to poor and inaccurate recording of the exact number of people hence impaired judgment from the company on how many sales it expects on a certain year. Due to lack of accurate information taken from the census, there is negative impact on the performance of the Wal-Mart Organization. In any organization, an accurate data collection system from the people is essential in planning of the next market strategy. Surely, Wal-Mart is adept in gathering demographic information based on their success alone.
Set of priorities
Most organization fails to set their priorities and this has affected the functioning of the Wal-Mart organization. They are driven by the views and opinion of individual who have the greatest political influence on the same (Mols, 1999). Subsequently this affects the performance and output of the organization as a result of intense and strong pressure from the people and society.
Cultural difference
Cultural differences can be outlined and its importance revealed out when considering time management between two business partners. Some people from different cultural diversity can be well known for their poor performance in time keeping while the other individual can be well known for his excellent time keeping strategy. Consider a business between the two; definitely it implies that the business would not succeed due to their cultural differences and punctuality in time management. These effects are so intense and affect the amount of sales an organization produces, for instance the Wal-Mart company. The mode of communication is another barrier that limits the company from achieving its target in any business organization. An effective communication is the basis of any successful business (Bateman & Snell, 2013). Therefore a common mode of communication should be enforced to achieve the target of any business organization.
The foreign Corrupt Practice Act
The foreign Corrupt Practices Act is a law passed in 1977 which prevents companies from expending bribes to foreign top government officials for the purpose of falsely obtaining the organization. The effects of the Act was intense, the managing directors of most organization are subjected to fear of huge fine or jail term thus leading to better and improved performance of the companies in the United States of America.
Advancements InTechnology
Technological advancement in the current world corners the Wal-Mart company to change its’ decision on any market plan. In countries with high technological advancement, the market decision would be to increase the number of the organizations’ representatives. The organization can post it’s advertisement to the public through social networks such as twitter and Facebook or any other online services (Mols, 1999). This enables the organization to generate more international sales within a very short period of time at a minimum cost. People from all over the world can have access to the public information displayed in the organization’s website and hence ease of cost on marketing their products. In cases where there is change in the methodology of presentation, the market decision would be to adjust the trending change in technology.
