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Introduction

The onus of this paper is to examine the influence of the external environment and determine the big strides that managers of both the Apple and Wal-Mart corporations have taken to ensure competitive advantages. To make the anticipated organizational changes and stay one step ahead, (Daft& Sandburg,2000) wrote that the respective managers ought to make important decisions and respond well to the great benefits of the companies. Despite the fact the two multinational companies operate in different industries or markets, they have increased their momentum, especially their positive approach to the international market. Their global operations have succeeded, although there are many businesses and financial risks involve political factors, as well as global cultural diversities.

For the continued value addition, Apple and Wal-Mart make use of the six broad segments or model that includes: social or cultural, demographic, technological, global, political or legal, and macroeconomic factors. Therefore, this document is tasked with the responsibility of diagnosis of the fundamental and general external environment embodied in the six broad segments under the glare of their potential strengths, opportunities, threats, and weaknesses.

Strategies and application

As per the strengths, weaknesses, opportunities and threats, these companies’ images are branded or supported by the contingency theory and six wider segment model that determine the current market position. The changes achieved are as a result of the implementation of the appropriate set steps that relies on the processes and theories of organizational change.

Leadership and organizational strategies: These differences can be bridged by focusing on individuals, groups and organizational level performance improvement meant to attain a synergistic outcome by harnessing the full potential functionality of these organizational systems

From the side of management,(Jinjin, 2013) argue that these changes would enable Apple and Wal-Mart to evolve at a pace that would necessitate these companies to continue performing and even exceed the requirements of customers. These changes are done by the organizations' structures, vision, and goals.

Technological and cost effective strategies: The due process of change involves changing the management in a way that will control as well as make the expected outcomes attainable. Notable organizational change is fueled by the technology and innovations. These aspects or conditions of change make the companies long for change. Such practices as the right set of company values‚ costs of operations, and skills that are paramount to the realization of the expected organizational outcome.

People and resistance to change

Both Apple and Wal-Mart encounter strongly opposing forces from individuals or groups in the organization. They may lose their innovative and self-reliance skills and get used to implement set objectives from the managers. These human forces were detrimental to the development of the organization.

The outcomes from the set goals may not agree with the dynamic change in the market such that they become obsolete as soon as they are achieved. (Mata,2012) state that the groups and individuals now equipped with relevant managerial values and skills might decide to break away from the organization and take on individual ventures.Hence, conflicts of interest may advance, threatening the implementation of the anticipated organizational changes while welcoming great losses to the organization.

SWOT Analysis of Wal-Mart and Apple Corporation

Both Apple and Wal-Mart, employ multiple strategies, ensuring that they acquire competitive advantages while carrying out their global operations and business activities. One of the primary reasons why they have globalized their operations is because of low-costs of contracting their supplies, labor compensations, and diversification of business risks so that they can be successful as the economic and global segments of the six wider model stipulates as (Jinjin, 2013) notes. To ensure economic, environmental, and social sustainability, Wal-Mart as well as Apple companies, should capitalize on their current strengths. Furthermore, mitigate or minimize potential weaknesses, and at the same time capture market opportunities while limiting the relevant threats that they may face.

Strengths

In the past couple of years, Apple Company has experienced tremendous changes in terms of offering market-centered and superior products into the international community. Being a pioneer concerning the personal computer industry, Apple has successfully positioned itself and become one of the remnants in the hardware producers in both the manufacturing together with the operating system markets.

Apple as a global firm is self-sufficient and well-endowed in the creation of its internal components about its computers. (Jinjin, 2013) opine that it has come up with better standards meant to increase the high-quality products it always produces that meet wider customer satisfactions. Apple is strongly dedicated towards the international market research and development so as to promote the design and development of new products for more customer efficiency as well as feasibility in use. Apple is always committed towards excellence, especially in the simplicity and compatibility of its cheap and high-quality products.

Apple Company has ascended to the level where it offers a distinct and unique brand in the computer industry, thus more net income. Utilizing the technology segment, Apple has increasingly invented new computer devices with special features to the expectations of the global clients. This technology has also ensured that the company operates at minimal costs while increasing output to cater for high demand in the international market.

This ability can be witnessed from its high stock price in the individual computer industry, where it is financed by equity means. The fact that Apple Company has little debt makes the investors put more money into the firm since there is fewer risk hazards associated with their stocks. Apple’s customer service desk is influential or monumental that receives highly customer respect and the firm has plans to maintain that status through its creativity and organizational stability.

Wal-Mart, on the other hand, has much strength due to its incredible success. The company is the main employer of workers in the United States, and it was regarded as the few firms that offer decent job opportunities. The company occupies the number two or in the second position in terms of net sales in the international market due to aggressive growth strategy.

Wal-Mart boasts of having the best logistics system that acts as the competitive advantage and can comfortably ship merchandise from anywhere including its numerous distribution centers. Following from (Mata, 2012), Apple has an online distribution center that is used by customers to put orders and share sales data with the potential suppliers via computer programs. This innovation provides convenience for global clients and ensures effective logistics system for online orders.

Wal-Mart has received critics concerning its low wages, but this only serves to consider lower income people. (Palmer et al. 2008)indicate that the company saves each family approximately $1,000 per year in low prices while using its aggressive pricing strategy that stimulates more sales.

Wal-Mart pays strong attention towards the environmental issues through increasing the renewable energy use, thus reduce waste as well as campaign for the environmentally sensitive product. There is a growing anticipation that Wal-Mart will produce organically made baby clothes out of the grown cotton together with the improvement of the fleet efficiency truck.

Weaknesses

In the current dynamic business environment, advanced technology is applied to increase returns and efficiency. As a result of this aspect, (Jinjin, 2013) said that Apple company is faced with a major problem of ensuring consistency as well as quality products in the global market. For instance, the iPod had several glitches in addition to technological flaws that included the screen faults and short battery when it was released into the market. Even though Apple does not have debts, its lack of debts poses a potential weakness about the infrastructure since it creates the serious risk concerning stock acquisition.

The low price strategy of Wal-Mart that enables it to capture most of the sales of consumers has made it difficult for other small retailers to sustain them and survive. Therefore, ethical shoppers are disappointed with the exploitation of small retailers terming the Apple’s low price strategy as monopoly power.

Wal-Mart has increased the number of buildings globally, which is a strong concern by the environmentalists labeling it as a hazardous move to the environment. (Myers et al. 2012) provide that the structures also are associated with the traffic pollution together with congestion that can easily damage small communities. Also, Wal-Mart has received many accusations regarding discrimination against its female employees in addition to the constant violations of the fundamental child labor laws, hence decreasing the general morale of the workforce.

Although Wal-Mart firm has grown and globalized its operations, they do not have the required market presence in the European market. The only market they command is the UK and leaves the other market segment to be occupied by their competitors. Another aspect of Wal-Mart is the price deflation, which creates a dilemma for the whole company and its discount stores located globally. Instead of raising its sales using low-priced items, the company finds itself lowering the profits.

Opportunities

The Apple’s employees are sufficient and well-versed with the expertise relating to the target audience. These workers are creative and use their innovative thinking to originate various designs and product features. Therefore, it Apple has formulated a product line, which is functional and attractive. In essence, the company has enlarged beyond the product confines to include and focused on the customer’s lives. The Apple’s applications allow users to link to multiple programs using only one package.

The potential opportunity for Apple corporation is its MP3 player development that is energized by the iPod shuffle campaign as (Jinjin, 2013) claim. Apple has proven this quality fact through the 4-gigabyte memory packing. Another successful area that the firm is pursuing or targeting is the utilization of the Intel chips that will permit new machines to be able to run the Windows Operation System as well as develop music player and iTunes. The new and innovative software markets seem bright and promising.

Since Wal-Mart Company is the biggest retailer in the United States, its strategic position is a good opportunity towards becoming the largest global retailer. One area that needs to be increased is the products of music. Also, Wal-Mart Company has a potential opportunity to diversify its store types and target a particular market.

(Raju et al. 2014) debate that Wal-Mart firm has an opportunity and the ability to reduce the inflation price because of the low prices.Conversely, due to their products’ low prices, the wages paid to the employees, especially in third world countries.

Wal-Mart’s continued international expansion presents an enormous strategic opportunity. The growing economies in Asia and other young economies are the potential target marketplaces for Wal-MartCompany other than the readily available domestic market (United States).Wal-Mart should establish licensing agreements and alliances as they are the drivers into these developing markets.

Threats

The major computer technology advancements and transformation create stiff competitive within the industry. According to (Jinjin, 2013), Apple company is not operating alone in the global market. Thus, there are other competitive firms entering the computer market, where Apple has completely saturated. Companies like Dell and Hewlett-Packard manufacture low-budget computers that reflect the desires of the economically cautious consumers.

Apple contains a larger stock price as compared to both Dell and HP; this makes the market share as well as the total revenues of Apple Corporation relatively lower. As (Worley et al. 2013) highlight, the international exchange rates appear to pose a great challenge for Apple since most of its transactions are carried using foreign exchange rates, thus affecting the revenues and profits.

Wal-Mart on the other side uses cost-cut strategy to influence the market demands, which makes other competitors follow suit. As a result of this, Wal-Mart finds itself in a devastating situation where its revenues and profits reduce.

The main threat that faces Wal-Mart is uncertainties of the global markets that it keeps on expanding into characterized by both business and financial risks. It will be a challenge to gain the market power of hard-line commodities or products like home improvements. These market segments present stiff competition for Wal-Mart, which does not bear cost advantage.

Conclusion

Both Apple and Wal-Mart are global market players, and they have positioned themselves to gain competitive advantages alongside the risk aspects contained the foreign countries. To improve their respective images and gain bargaining power in the international markets, they have laid down strategic plans or strategies meant to address potential weaknesses and threats. However, technological, economic, political and environmental sustainability is the most important aspects of any organization that globalizes its operations.

References

Daft, R. L., & Sandburg, E. (2000). Management. Fort Worth, Tex. [u.a.: Dryden Press.