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External/Internal Factors
Week 2 External/Internal Factors
University of Phoenix
MGT 330 Management Theory, Practice and Application

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External/Internal Factors
External/Internal Factors
On December 7, 1993 in Fort Gibson, Oklahoma a 13 year-old boy shot 4
classmates with his fathers handgun purchased 6 years earlier at Wal-Mart. On August
28, 2000 student James Easton Kelly shot Professor John Locke after the professor
informed the student that the University of Arkansas was going to dismiss him due to his
lack of progress towards his doctorate. After receiving the bad news, James Easton
Kelly went to Wal-Mart to buy 50 rounds of .38 caliber bullets and returned to school to
kill the professor and himself. On July 31, 2001 John VanGraafeiland argued with his
wife; he threatened to go to Wal-Mart to buy ammunition and kill himself. Local Police
contacted Wal-Mart’s management to inform them about the situation; however, no one
at Wal-Mart informed the clerk selling the ammunition. After purchasing the ammunition
at Wal-Mart, the man shot himself in his car (Moore, n.d.).
Wal-Mart is one of the world’s largest corporations with its $218 billion annual
sales and 1.2 million employees. According to Wal-Mart upper management, the
company was built on three beliefs, which are: service to company’s customers, strive
for excellence, and respect for the individual. However, all three beliefs are violated
because of the sale of handgun ammunition, which is used to murder and commit
suicides. Petitions, such as “Wal-Mart is nothing without its customers” were created in
order to encourage Wal-Mart’s upper management to stop immediately the sale of
handgun ammunition (Moore, n.d.). Because of this external factor, Wal-Mart’s
management decided to drop gun sales and replace them with other sporting goods in
several stores. Management made sure that the company adapts to a changed
environment due to internal or external factors without jeopardizing the company’s

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External/Internal Factors
success. This research paper will discuss how external/internal factors such as ethics,
globalization, and diversity affects the four functions (planning, organizing, leading, and
controlling) of Wal-Mart’s management.
The word Wal-Mart means everything to so many people, anyone can shop there
regardless of income and ethnic background. Ethics are critical for such a vast majority
of cultural backgrounds; indeed, Sam Walton founded Wal-Mart mainly on 3 Basic
Beliefs: respect for the individual, service to the customer and strive for excellence. In
2004, the organization established the Global Ethics Office to promote Wal-Mart’s
ethical culture to all stakeholders globally. Further, Wal-Mart updated the Four
Statement of Ethics to provide its employees a reference guide to help them make
ethical decisions. The statement of Ethics is a code of conduct direct to help the
employees taking the right decisions and act with integrity. The statement includes
principles such as always act with integrity, be honest and fair, respect and encourage
diversity and never discriminate against anyone, and so forth (Wal-Mart, n.d.).
Wal-Mart’s promote ethics through its Ethical Standards Program (ESP) which is
direct to strengthen environmental practices in factories and positive labor in order to
bring opportunities for a better life in the countries where merchandise for sale by Wal-
Mart is sourced, and to verify factory compliance with the Standards for Suppliers (Wal-
Mart, n.d.) Wal-mart continues to train good ethics with its entire organization with
Planning, Organizing, Directing/Leading and effective Communication.

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Excellent resource! Really helped me get the gist of things.