1.Political factor: the company is operating worldwide and the company needs to abide by rules and regulations of different countries. Asian countries in which Wal-mart is operating have many difficulties. Tax rates have influenced majorly on the sales of the company. County like India are not allowing Wal-mart to start the operations in their country because this will impact their local market. Along with this, in many countries tax rates are high that increases the final prices of the products (Bauer, 2010). An example can be taken that explains in the shutting of operations because of political influence in the country. Wal-mart acquired with Bahrti Airtel which is the leading telecommunication company and closed the operations in 2009.
2.Economic factors: An economic condition of the countries in which Wal-mart is operating brings positive or negative impact on the operations of the company. Countries like UK have faced economic down turn during the years of 2008 and 2009. This drew negative impacts on the sales of the company. In US the company is facing similar issues because of unemployment rates, higher level of consumption, increase rate of inflation, low disposable income of people and economic slowdown in the country. In these conditions operations of the company cannot be performed smoothly (Taylor, 2008).
3.Social factor: every country has different social backgrounds and ethnic structures. In this way the company has to merge with the social factors of every country. Local culture of the country is an important indicator for the overall performance of the company. Social factors like Population, age, growth, income level and other aspects of the society (Stanehouse, 2004).