Corporation's External Environment And Components Of The Macro Environment

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What is a company’s external environment? Many people do not know, but as humans we subconsciously evaluate a company’s external environment daily. We are constantly observing the macro environment or “outside” factors that influence the corporation’s mission or goal while watching how the corporations handle the everyday challenges. The six key components of the macro environment include: political factors, economic conditions, sociocultural forces, technological factors, environmental forces, and legal factors. With every “outside” there is an “inside”; the immediate competitive environment is composed of five competitive forces that influence decisions within the firm. The framework of these forces includes: competition of rival sellers, potential new entrants, and producers of substitute products, as well as, supplier and buyer bargaining powers. All eleven components are…show more content…
They have set many goals, but the top priority ones are: reduce energy, reduce waste, organic packaging, and reduce water usage. According to Target’s corporate website, Target has achieved their goals of organic packaging, diverting retail waste to recycle and reuse, and water use reduction. Their reduction of energy goals are using energy star items and solar panels on all stores and distribution centers. Walmart has advanced farther than Target. Their initiatives include: reduction of emissions, eliminating waste, and of course reduction of energy. In October 2016, Walmart was the first corporation to reduce emissions and they created Project Gigaton (corporate.walmart.com). Project Gigaton is to reduce emissions by one gigaton by 2030. Another way they help the environment are plans to eliminate waste. They take excess food and created animal food or compost, supply reusable material (ex. Reusable bags), and they have designated trash and recycle bins to help save the

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