...Organizational Structure of Walmart Doshiemae Johnson MGT/230 Patricia Ford February 1, 2016 Introduction Walmart’s humble beginnings started in Rogers, Arkansas in 1962 by Sam Walton. Today, Walmart has evolved into a multibillion dollar company earning 486 billion dollars (Wikipedia.com (Entreprenuer, 2016) (Entreprenuer, 2016), 2015). Walmart is currently located in over fifteen countries and have over eleven thousand six hundred twenty stores (wikepedia.com). Their slogan is “Save Money, Live Better.” Walmart’s success could not have happened without strategic planning of the company’s business processes. These factors decide which organizational structure would be appropriate for the company to use. This paper will discuss the organizational structure of Walmart and their corporate processes that include marketing, human resources, products, and geographical locations. Organizational Structure Walmart’s organizational structure is divisional. Under this type of structure, each division has its own executive, which is the vice president. The vice president is responsible for their own budgets, advertising, and hiring (Bateman, 2011). Each division is given enough resources and autonomy to function alone. Unlike other organizational structures such as functional where divisions are departmentalized based on common job functions and matrix where both employees and managers from different company departments work together to achieve goals and solve problems (Bateman...
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...Organizational Structure: Walmart Michele Hileman MGT/230 June 15, 2015 Opening its doors in Rogers, Arkansas, Walmart started a profitable business in 1962. The founder, Sam Walton, could never have envisioned where his company would be in the present. Earning approximately $30,000 in 1962, Walmart has evolved into a multibillion dollar company earning over $15 billion in 2011 (Walmartstores.com, 2012). This evolution could not have come without careful planning, strategic implementation, and control of its business processes. These factors are the deciding factor in choosing the correct organizational structure. Taking cues from its needs, Walmart has a created a hierarchal structure that is departmentalized to leverage the skills and strengths of the employees involved in the department. Spearheading the organization is Chief Executive Officer (CEO) Mike Duke. The CEO is responsible for overseeing many departments including corporate affairs, human-resources, and international affairs just to name a few. All sectors that the CEO oversees are; ASDA Stores, the United Kingdom counterpart to Walmart; global e-commerce; finance; information technology; corporate affairs; legal; merchandise, and replenishment; global customer insights; human resources; sourcing; international; Sam’s Club; and United States Walmart (Walmartstores.com, 2012). Some departments are further split to handle different activities efficiently. ASDA is headed by its own CEO, Andy...
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...Change As an organization grows, it is important to assess its structure and design. This is especially important as a company expands internationally, as workplace culture varies from country to country and these nuances can determine the success of the organization. This is includes considering the current structure and allocation of resources, identifying any potential challenges transitioning into a new environment, and then determining solutions to meet the needs of the organization within the confines of its new culture. As Walmart expands its operations into China, it is critical that leadership identifies organizational changes needed before establishing operations in that country. Current Structure and Organizational Design Walmart’s current organizational structure has the business broken into three segments- U.S., international, and Sam’s Club- all under the Walmart Stores, Incorporated umbrella. Each division has its own leadership team whose President is accountable to the President of Walmart Stores. Each division runs as its own independent business, giving them more flexibility to make decisions to directly impact the business within their division. Additionally, each division maintains its own real estate, human resources, marketing, and procurement/distribution departments. Overarching leadership across the three divisions include the Chief Information Officer, Chief Financial Officer, and several other senior executive positions (Walmart, n.d.). At the...
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...business that I frequent is Walmart. I go there on almost a weekly basis to get groceries and household necessities. The three main components of a business model are its business commerce, business occupation, and business organization. Business as a commerce is the process in which people produce, exchange, and trade goods and services. Walmart’s business commerce is trade. As Walmart has expanded, they are engaged in not only the trade of goods, but also services. Most Walmart stores have a variety of services that are provided, from a pharmacy, to a photo studio, hair care salon, etc. Business as an occupation is the set of skills and abilities that an organization has that allows them to create value in the goods and services that they offer. In the case of Walmart, a highly efficient set of skills and abilities exist. The company is set up to encourage efficiency and mass purchasing power, which allows Walmart to undercut its competitor’s pricing. Furthermore, Walmart invests significant amounts of money in employee training, which further supports the skill set of the business. Business as an organization is the system of authority and relationships that control interactions between people and move the organization towards a common goal. Walmart’s organization is one of its strong points, as it is organized according to a divisional structure, utilizing a market structure. Walmart, over the years, has greatly expanded its market structure, which allows it to offer a...
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...ORGANIZATIONAL ASSESSMENT Organizational Assessment Sherry Crowe MGT416 Operations Management A02 Dr. Carson March 19, 2014 Argosy University The Wal-Mart Corporation On May 9, 1950, Sam Walton opened up Walton’s 5&10 in Bentonville, Arkansas. The first store with the Wal-Mart name, opened in Rogers, Arkansas in 1962 and was financed 95% by Sam Walton himself. Since its beginning in Arkansas, Walmart has helped millions to save money and live better. Walmart has changed from being a retail store accessible with set hours to be available anytime and anywhere for their 245 million customers. Walmart offer its 245 million customers retail shopping in 11,000 stores under 69 banners in 27 countries and e-commerce websites in 10 countries (Wal-Mart Stores, Inc., 2013). The company is considered one of the largest employers in the world; Walmart employs 2.2 million associates worldwide. In the U. S., Walmart Supercenters, Neighborhood Markets, and Sam's Club warehouses comprise the choices of Walmart stores to which customers have access (Wal-Mart Stores, Inc., 2013). As Walmart continues growing successfully the corporation has experienced global success, which has led the corporation to be in constant of change of strategies that provide that the corporation continues fulfilling its mission while offering new products, bettering the human resource management and developing its personnel, and expanding its social responsibility by helping the different communities where stores...
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...6 Assignment Organizational Structure One organization that I am very familiar with as a consumer and as an ex-employee is Walmart. Walmart is one of the largest non-union successful corporations in the United States. Walmart’s organizational structure, organizational function, and organizational design make it a place consumers rely on for a number of things and for a number of reasons. The organizational structure of Walmart is fairly simple for a corporation as large as it is. Walmart’s organizational structure can be defined as a geographic structure, in which divisions are created to support the needs of customers in a particular region, country, or world area. (Jones: Introduction to Business: How Companies Create Value for People) Walmart as we know it here in the United States operates in a number of different countries under numerous names, all the same corporation. Walmart consists of three main business divisions. These include Wlamart United States, Walmart International, and Sam’s Club. These main divisions are the core of its’ organizational structure. From these divisions leadership and management is then regionally developed and divided into regions of each division all the way down to store managers. The headquarters of this nearly billion dollar corporation still lies in the state of Arkansas where it was began, which would make Walmart United States the top division of the three. This organizational structure is for a global, publically shared...
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...2015 Walmart’s Organizational Structure Walmart was founded in 1962 by Sam Walton. Walton opened the first Walmart in Rogers, Arkansas. Walmart was officially incorporated in October of 1969 as Wal-Mart Stores Inc. and is publicly traded on the NYSE. Walmart’s main headquarters is in Bentonville, Arkansas and is the largest grocery retailer in the United States. Likewise, Walmart has 11,453 retail stores in 27 countries, under 71banners. The company operates under the Walmart name in the U.S which includes Puerto Rico. It operates in Mexico as Walmex, in the United Kingdom as Asda, in Japan as Seiyu, and in India as Best Price. It also has wholly owned operations in Argentina, Brazil, and Canada. Walmart hasn’t always been successful in entering new countries, mainly in Germany and South Korea whereas in the United Kingdom, South America, and China are highly successful. Walmart employs 2.2 million associates around the world with 1.3 million of them in the US. (Walmart .com) Organizational Structure Every organization takes on some direction, in terms of what customers/clients it serves and what functions it performs for these customers. The organizational Structure of the Wal-Mart Corporation is a divisional structure that has made some changes to its structure in 2010. A divisional structure has three different categories in which are product structure, market structure, and geographic structure. Wal-Mart falls under market structure. This is where groups function by...
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...local business that I frequent is Walmart. I go there on almost a weekly basis to get groceries and other necessities. The three main components of a business model are its business commerce, business occupation, and business organization. Business as a commerce is the process in which people produce, exchange, and trade goods and services. Walmart’s business commerce is trade. As Walmart has expanded, they are engaged in not only the trade of goods, but also services. Most Walmart stores have a variety of services that are provided, from a pharmacy, to a photo studio, hair care salon, etc. Business as an occupation is the set of skills and abilities that an organization has that allows them to create value in the goods and services that they offer. In the case of Walmart, a highly efficient set of skills and abilities exist. The company is set up to encourage efficiency and mass purchasing power, which allows Walmart to undercut its competitor’s pricing. Furthermore, Walmart invests significant amounts of money in employee training, which further supports the skill set of the business. Business as an organization is the system of authority and relationships that control interactions between people and move the organization towards a common goal. Walmart’s organization is one of its strong points, as it is organized according to a divisional structure, utilizing a market structure. Walmart, over the years, has greatly expanded its market structure, which allows it to offer a multitude...
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...Walmart Organizational Management Name Institution Affiliation Organizational Context Wal-Mart Stores Inc. or Walmart is a multinational retail organization that has numerous chains of large discount warehouse and general stores. The company was formed in 1962 by Sam Walton as a family-owned business. It was incorporated in 1969 and traded on the Stock Exchange of New York publicly in 1972. Since then this organization has grown strength to strength winning various accolades. In 1988, it was ranked as the most profitable retail business in America outselling competitors such as K-Mart and Sears in the retail business (Fishman, 2006). It was founded on Sam Walton’s quest for providing goods and services at relatively low or discounted prices. The Walmart principles have been hinged on cost-cutting while at the same retailing goods at consumer-friendly prices. The organization too, has been hailed for its global standard efficiency and business innovations. It was one of the first corporations that integrated use of computers in its operations in all its branches. The mission statement reflects on the founder’s business model of passing savings to his clientele and amassing profits through volume sales. This principle has made consumers feel more welcome and their needs taken care of over the years. The cost-cutting initiatives embraced by the company operations have been as a result of this old age philosophy Walmart has spread its wings world over opening up over 8...
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...through the implementation in Walmart’s human resource management through the company’s organizational structure, which is a hierarchical functional structure. Walmart’s organizational design is centralized and hierarchical, with some level of decentralization. The hierarchical and centralized organizational structure refers to having central corporate headquarters that monitor and direct all activities in the organization. Corporate departments have jurisdiction over all the Walmart stores. Some degree of management decentralization also exists in the company. For example, each Walmart store has its own human resource department. Each store’s HR department has an HR manager to apply corporate HR strategy based on the unique needs of the individual store. This centralized organizational structure combined with partial decentralization is an acceptable concept. Centralization integrates Walmart’s organization so it functions as one entity. Decentralization makes the organization flexible enough to face new or emerging issues in the business. Thus, Walmart has clear and distinct definitions for every job position and level of the structure. 3.1 METHOD OF JOB ANALYSIS Job analysis data can be obtained in several ways. The more common methods of collecting the data needed to analyse jobs are interviews, questionnaires, observation, and diaries. As a method of job analysis, Walmart applies matching approach which involving interviews and direct observation on applicants, employees...
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...extensive in the Denver area due to its competitive strategy. (www.revolutioncleaners.com). A business with more than 50 employees, Wal-Mart, was founded in Arkansas in 1962 and became a public company in 1972. The company started with the plan help the low income earners live an enhanced life. Walmart operates in twenty eight different countries and has more than 2.1 million employees globally and is opening new branches almost daily, selling a variety of products earning over 540 billion profits annually. (walmartstores.com) Hierarchical organization. With less than 50 employees, the hierarchical organization of Revolution Cleaners is extremely straightforward. The company has an owner, managers, and employees. The owner/CEO is in highest ranking official in the business and he gives his orders and commands to the store managers who then pass on the information the employees. Communication in Revolution Cleaners is very efficient as the hierarchical structure uncomplicated as opposed to a larger organization, like Walmart. The hierarchical structure in small companies like Revolution Cleaners is effective, as the amount of employees affects the success of the organizational structure. The level of the management is simple making communication and decision making efficient and problem free. Based on the Revolution Cleaners website (and personal...
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...Building an International Company Name University Abstract An international company is any company that has its facilities and other assets in at least one country other than its home country. A successful company understands the meaning of competition which has caused them to actively fight for new markets, products, and services in order to sustain a competitive advantage. A company that has obtained success in its country of origin usually expands their services into the global economy to become an international business. These companies effectively control their financial and material resources by managing economies of scale, low cost production and fluctuations in currency. Human resources are also essential in the making of a successful company by recruiting talented individuals and encouraging innovation within the company. International companies can expand organically, which is a slow process that consists of building the business from ground up, or they can expand inorganically by buying out, or merging with, an existing business. If I had to create a new product idea, I would want to invent a new way to produce cheap efficient energy for the need of the masses. I would expand the company to international status using the inorganic global growth process. Due to advances in technology, and in today’s business market, most businesses have to compete globally. “These companies actively compete for new markets, products, and services in order to develop and sustain...
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...Company Motivational Profile – Walmart Company Motivational Profile – Walmart To achieve success, organizations must have a clearly defined plan. Sam Walton, founder of Walmart, began his retail career as a management trainee at JC Penny. Walton opened a five and dime store in 1951 and his first Walmart opened in 1962. Walton’s concept of discounting prices included a large variety of low priced items, buying large quantity goods at the lowest price, and passing the savings on to his customers. Today’s retail organizations must have a plan to achieve success. Walton’s vision allowed Walmart to grow into a multi-billion dollar international retail giant. This paper discusses Walmart’s motivational profile including the background and history of Walmart, their corporate culture and management, the strengths and weaknesses of their motivational strategies, and finally, an analysis of Walmart’s motivational strengths and recommendations for future improvements. Background Information Before opening Walmart, Sam Walton traveled around the world studying everything he could about discount retailing. Walton became eager to bring the United States a different type of store. He had an idea that Americans wanted something out of the box. Walton put in most of his own personal money to open his first store in Rogers, AR. Walmart extended with more stores in later years. He always believed that if a business gave their customers what they wanted, they will continue to...
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... MGT/312 June 15, 2015 Gregory Lucht Four Functions of Management Management has been the fundamental aspect of any organization. For an organization to run smoothly and accomplished its mission, goals, and objectives, managers must have creative problems solving skills. The Four Functions of Management include planning, organizing, leading, and controlling. The primary functions of management have been broken down into four different areas. Each function of management helps the managers and employees to stay focused on getting the task done correctly. Planning In October 2005, Wal-Mart CEO Lee Scott committed the company to three ambitious goals: To be supplied 100% by renewable energy; to create zero waste; and to sell products that sustain Wal-Mart's resources and the environment (Plambeck, 2007). The managerial staff decided to assign a marketing team to perform a strategic study in an attempt to resolve the decrease in market sales. This analysis will give Wal-Mart a forecast of what the organization needs to do in efforts to become the most competitive and innovative company in the world. Wal-Mart’s goal is to; “save people money so they can live better” (Wal-Mart, purpose, 2008). An example of the way this company save consumers money is to purchase products in large quantities. Having a good relationship with other organizations is another way this company can keep the cost at a minimum. Wal-Mart's main objective is to be aggressive and creative to increase...
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...Organizational Structure of Wal-Mart Wal-Mart, the largest retailer in the world, can be seen as a successful model to examine the internal structure of the organization from the inside. Comparing the different types of organizational structures provides an overview of the structure type Wal-Mart is composed of. As we take a closer look at the structure of the company allows us to better understand the functions of the management and control and coordination in place to achieve the objectives of the strategic planning and implementation in those actions. We will also explore how this structure affects the relationship between the various departments. I will discuss three objectives in this paper. I will first describe the organizational structure of Wal-Mart and make a comparison with other organizational structures used today to clarify the differences and similarities. Second, I will evaluate how organizational functions influence and determine its structure. Third, I will explain how the organizational structure helps to determine the best structure. Wal-Mart operates in three divisions, which are United States Wal-Mart, Sam's Club and Wal-Mart International. Its overall business spans several continents with many subsidiaries in several countries geographically. These subsidiaries operate under various trade names, they include ASDA, Sam's Club, Seiyu, Massmart, Wal-Mart U.S., Wal-Mart Canada Wal-Mart in China Wal-Mart Brazil, Wal-Mart Argentina, Mexico Wal-Mart...
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