Premium Essay

Wal-Mart, an Organizational Analysis

In: Business and Management

Submitted By DueDate1
Words 1511
Pages 7
Wal-Mart, an Organizational Analysis
Kenneth Russell
Strayer University
Dr. Mary Tranquillo
Bus. 310
November 6, 2012

Wal-Mart, an Organizational Analysis
Introduction
I will thoroughly discuss in detail the operation of Wal-Mart, the company’s strategies, legal concerns and various challenges the company faces. In addition, I will address any current (or anticipated) human resource issues concerning the expanding into the international market and make recommendations on how the organization can leverage its human resources to come out on top in a highly competitive market.

Wal-Mart, an Organizational Analysis
Describe the nature of the organization, its size, and any specific human resource challenges it faces.
One of the most recognized retail chains around the world, Wal-Mart is an American public multinational corporation running chains of large discount and warehouse stores. Considered the largest public corporation when ranked by revenue, Wal-Mart boasts a staggering 2 million employees worldwide with approximately 1.4 million in the United States. (Wal-Mart, 2012).
Wal-Mart is known for their brand of low prices and high volume which dominates the retail market. Wal-Mart’s mission statement and slogan sums it up in one simple phrase: “We save people money, so they can live better”. Wal-Mart’s idea and strategy is targeted at offering consumers a variety of name brand goods at competitive prices. Wal-Mart has over 10, 300 retail stores in 27 countries under 60 different banners. As of Jan 2012, Wal-Mart generated approximately $444 billion in revenue and increasing sales by 5.9% and a return of 11.3 billion to shareholders through dividends and share repurchases (Wal-Mart, 2012). Wal-Mart employs over 2.2 million associates worldwide. Wal-Mart is the world’s largest non-governmental employer and the second-largest company following Exxon

Similar Documents

Premium Essay

Organizational Culture Analysis

...Organizational Culture Analysis Organizational culture is the shared meaning and values held by associates in their organization. It members create and maintain a shared sense of reality (Baack, 2012). This reality shapes the values they share and understand. Different organizations have different organizational realties. This is because of the actions performed by the associates of an organization are interpreted differently depending on the organization (Baack, 2012). Different organizations use different symbols. Common symbols in the workplace are physical, behavior, and verbal symbols (Baack, 2012). Physical symbols are material objects such as logos, design, décor, and even buildings. Behavior symbols consist of rewards and punishments, rituals, traditions, ceremonies, and customs. Finally, verbal symbols are jargon, names and nicknames, stories, history, and metaphors. Organizational culture is the behavior of its associates with the organization and the meaning that people attach to those behaviors (Baack, 2012). Organizational culture includes the emotional and psychological climate which may involve employee morale, attitudes, and levels of productivity (Baack, 2012). Organizational culture includes all the symbols (action, routines, and conversations) and the meaning that people attach to them. Values inform associates of an organization on what is important to that specific organization. Values are derived from the core values of the organization...

Words: 1668 - Pages: 7

Premium Essay

Walmart Fails in Germany

...INB400 – International Organization and Management Term paper Wal-Mart’s culturally and institutionally flawed entry into the German retail market Joakim Holsten Leren s105710 Julianne Øien s106222 Mirko Wichmann s145433 Lara-Caterina Buggert s145400 Eloise De Bont s145611 22 pages Table of Contents Introduction 2 Case presentation 2 The Wal-Mart concept 3 Institutional challenges [to be deleted] 4 Cultural challenges [to be deleted] 4 German market 5 Theoretical Background 5 The cultural perspective 6 The institutional perspective 9 Case Analysis 12 The cultural perspective 12 The institutional perspective 15 Recommendations 19 Cultural 19 Institutional 20 Limitations 22 Cultural 22 Institutional 22 Conclusion 23 References: 25 Introduction The purpose of this paper is to address and analyze the challenges Wal-Mart faced during its entrance into the German market in the late 1990s. We have analyzed this with the following problem in mind: “Which aspects, both cultural and institutional, led to Wal-Mart’s failure in Germany and what should they have done instead?” We will approach this problem by outlining theoretical frameworks for analyzing cultural and institutional aspects of a company. We will then employ said theories in order to analyze the case of Wal-Mart’s failure in Germany. Finally, we will come to a conclusion concerning what they should have done as they entered into the German market...

Words: 9016 - Pages: 37

Premium Essay

Organizational Structure Paper

...Organizational Structure Paper Egla Rodriguez MGT/230 May 15, 2012 Robin Sully Organizational Structure Paper In 1962, in Roger, Arkansas, Sam Walton had this brilliant idea that American consumers needed a different type of store so he opened Wal-Mart on the other hand in the same year, Dayton Hudson corporation opened “The first Target store in 1962 in the Minneapolis suburb of Roseville, Minn., with a focus on convenient shopping at competitive discount prices. Today, Target remains committed to providing a one-stop shopping experience for guests by delivering differentiated merchandise and outstanding value with its Expect More. Target currently is the second largest general merchandise retailer in America, with Target.com consistently being banked as one of the most-visited retail Web sites. Organizational Structure is a way that an organization arranges people and jobs so that it can be executed and its goals and objectives can be met. Wal-Mart was constructed into a three product divisional structure. The successful world retailer’s business categories include Wal-Mart Stores, Sam's Club, and International stores. Wal-Mart was built on three beliefs such as great customer service, striving for excellence, and respecting other individual. Like Wal-Mart, Target also strives on customer satisfaction. Targets objective is to make themselves the preferred shopping destination for their guests by giving them vale, innovation, and an outstanding experience. Wal-Mart...

Words: 1022 - Pages: 5

Premium Essay

Wal-Mart Research

...Library Research for Wal-Mart Stores, Inc. DeVry University Keller Graduate School of Management MGMT 591 November 24, 2013 Introduction of Organization: Wal-Mart is an American multinational retail corporation and the world’s second largest public corporation (Wal-Mart 2013). Founded by the Sam Walton, this company runs a chain of large discount department stores, and warehouse stores (Wal-Mart 2013). With over two million employees this company is worth approximately $446 billion. To this day Wal-Mart remains a private employer and is still run by the Walton Family (Wal-Mart 2013). Description of Problem: With more than two million employees worldwide, Wal-Mart has faced major lawsuits in regards to workforce. Employees are generally dissatisfied due to low wages, poor working conditions, and inadequate healthcare (Hart 2006). Furthermore, Wal-Mart faces sex discrimination allegations against their female employees in terms of promotions (Wexler 2011). This in-turn has caused Wal-Mart to be scrutinized constantly in regards to how they treat their employees. These issues have caused low job satisfaction amongst all employees. In my paper, I would like to look at employee motivation and how it can be applied to remedy this low employee satisfaction Wal-Mart is experiencing. Additionally, I want to look at attitudes and job satisfaction and what steps Wal-Mart can take to make sure that their employees are happy. I want to compare Wal-Mart’s top competitor,...

Words: 519 - Pages: 3

Premium Essay

Wal Mart Turnover Rate

...Wal Mart A Proposal on How Wal-Mart Can Reduce High Employee Turnover Tiffanie Jenkins GM 591 Wal-Mart Stores, Inc. branded as Wal-Mart since 2008 and Wal-Mart before then, is an American public multinational corporation that runs chains of large discount department stores and warehouse stores. The company is the world's 18th largest public corporation, according to the Forbes Global 2000 list, and the largest public corporation when ranked by revenue. It is also the biggest private employer in the world with over 2 million employees. The company was founded by Sam Walton in 1962, incorporated on October 31, 1969, and publicly traded on the New York Stock Exchange in 1972. It is headquartered in Bentonville, Arkansas. Wal-Mart is also the largest grocery retailer in the United States. In 2009, it generated 51% of its US$258 billion sales in the U.S. from grocery business. It also owns and operates the Sam's Club retail warehouses in North America. Wal-Mart has 8,500 stores in 15 countries, under 55 different names. The company operates under its own name in the United States, including the 50 states and Puerto Rico. Walton was extremely successful in running the store in Newport, far exceeding expectations. However, when the lease came up for renewal, Walton could neither come to agreement on the existing store's lease renewal nor find a new location in Newport. Instead, he opened a new Ben Franklin franchise in Bentonville, Arkansas, but called it "Walton's Five...

Words: 6103 - Pages: 25

Premium Essay

Mgt Week 2

...Wal- Mart Jose Vasquez MGT 230 MAY 20, 2014 Melanie Behunin Wal- Mart In a variety of business environments around the world, four management functions are usually found. The four functions of management are planning, organizing, leading, and controlling. Planning occurs within these functions of a business, and it helps to deliver strategic value. Organizing will build a dynamic organization and leading will mobilize people. Controlling is part of learning and changing as the organization grows. All four functions of management are the key concept to effective management. Internal and external factors influence the decision-making process that affects management. The competitive landscape is constantly changing; therefore, managers must consider people and businesses around the world. These are used from top-level management to frontline or organizational management. Globalization, technology, innovation, diversity and ethics are factors that affect these business functions. One can examine almost any organization and find this to be true. Wal-Mart is one of the leading retail organizations in the world whose management functions are affected by these factors. Opening its doors in Rogers, Arkansas, Wal-Mart 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, Wal-Mart has evolved into a multi-billion dollar company earning over $15 billion in 2011...

Words: 1797 - Pages: 8

Premium Essay

Swot Analysis of Walmart

...Wal mart With around 5000 retail outlets worldwide, operating in more then a dozen countries and with over US$286 billion in annual sales, Wal-Mart is the top retail chain and number one fortune 500 company in the world. Wal-Mart is the top employer in the U.S. with 1.3 million employees, “the company accounts for 9 cents of every US retail dollar and sells around 20 per cent of the nation’s groceries and pharmaceuticals.” (Times News Network). Wal-Mart’s sheer size gives it unrestrained economic power which allows it to drive down costs in the retail and manufacturing sectors and to enact its own standards with regards to its work force. Facts about Wal-Mart and China * It is important to understand that there is a huge difference between the Chinese model and the Indian growth model, the Indian model is essentially domestic demand driven unlike the Chinese one that is fuelled by export growth. * More than 70 per cent of the commodities sold in Wal-Mart are made in China. * Wal-Mart Stores Inc, says its inventory of stock produced in China is expected to hit US$18 billion this year, keeping the annual growth rate of over 20 per cent consistent over two years. * "If Wal-Mart were an individual economy, it would rank as China's eighth-biggest trading partner, ahead of Russia, Australia and Canada," Xu Jun, Wal-Mart China's director of external affairs said. * Insiders point out that Wal-Mart's imports from China have largely influenced the US trade deficit...

Words: 2423 - Pages: 10

Premium Essay

Proposal on Wal Mart Turnover

...Wal Mart A Proposal on How Wal-Mart Can Reduce High Employee Turnover Tiffanie Jenkins August 21, 2011 Wal-Mart Stores, Inc. branded as Wal-Mart since 2008 and Wal-Mart before then, is an American public multinational corporation that runs chains of large discount department stores and warehouse stores. The company is the world's 18th largest public corporation, according to the Forbes Global 2000 list, and the largest public corporation when ranked by revenue. It is also the biggest private employer in the world with over 2 million employees. The company was founded by Sam Walton in 1962, incorporated on October 31, 1969, and publicly traded on the New York Stock Exchange in 1972. It is headquartered in Bentonville, Arkansas. Wal-Mart is also the largest grocery retailer in the United States. In 2009, it generated 51% of its US$258 billion sales in the U.S. from grocery business. It also owns and operates the Sam's Club retail warehouses in North America. Wal-Mart has 8,500 stores in 15 countries, under 55 different names. The company operates under its own name in the United States, including the 50 states and Puerto Rico. Walton was extremely successful in running the store in Newport, far exceeding expectations. However, when the lease came up for renewal, Walton could neither come to agreement on the existing store's lease renewal nor find a new location in Newport. Instead, he opened a new Ben Franklin franchise in Bentonville, Arkansas, but called it "Walton's...

Words: 6104 - Pages: 25

Free Essay

Organizational Structure of Wamart

...Organizational Structure of Wal-Mart Timothy Frost MGT230 May 24, 2012 Howard Kersey Abstract Wal-Mart, the world’s largest retailer, can be viewed as a model of success upon reviewing the internal structure of its organization from within. Comparing the various types of organization structures gives an insight regarding the type of structure Wal-Mart is composed of. As we take a closer look at this company’s structure it enables us to understand better the management functions and elements of control and coordination in place to achieve strategic planning and goals and to implement those into specific actions. We will also explore how this structure affects the relationships among the various departments. I will discuss three objectives throughout this paper. First, I will describe Wal-Mart’s organizational structure and make a comparison to that of other organizational structures used today so as to clarify differences and similarities. Second, I will evaluate how the organizational functions influence and determine its structure. Third, I will explain how organizational design helps determine the best structure. Organizational Structure of Wal-Mart Wal-Mart operates under three divisions, which are Wal-Mart US, Sam’s Club, and Wal-Mart International. Its global operations expands over several continents with numerous subsidiaries geographically located in several countries. These subsidiaries operate under different business names to include ASDA,...

Words: 1179 - Pages: 5

Premium Essay

Strategic Plan

...Strategic Plan To validate the organizational vision, mission, and values statements of Wal-Mart, the strategic management process will be examined. The strategic management activities are different for each business but the basic components within the strategic management model are very parallel when looking at the strategic management operations. Some components of the strategic management model include company mission, external environment, and internal analysis. The mission of a company is the unique purpose that sets it apart from other companies of its type and identifies the scope of its operations (Pearce & Robinson, II, 2011). The company mission exemplifies the company’s product, market, and technological areas of emphasis that mirror the values and priorities of the strategic decision makers. Social responsibility is a critical consideration for a company’s strategic decision makers because the mission statement must express how the company intends to contribute to the societies that sustain it (Pearce & Robinson, II, 2011). Therefore a business has to set social responsibility objectives. The first Wal-Mart store was opened in 1962 in Rogers, AR. Wal-Mart was opened and mostly financed by Sam Walton. The mission statement and purpose of Wal-Mart is “We save people money so they can live better.” Wal-Mart’s founder Sam Walton originally defined the company purpose which is “ If we work together, we’ll lower the cost of living for everyone…we’ll give the world...

Words: 858 - Pages: 4

Premium Essay

Walmart Organizational Issues

...Employees Wal-Mart Organizational Issues Instructor: Dr. Mitra Asif Student Name: Phunsuk Wangdu Submitted on: July 7, 2015 Wal-Mart Organizational Issues and Situation Analysis Phunsuk Wangdu Index Introduction 3 OB issues and situation analysis 3 Conclusions 7 References 8 Appendices 12 Introduction Wal-Mart stores Inc. is the world’s largest retailer with reported gross earnings of 460 billion U.S. dollars for 2014. It has 4,281 stores in the United States and over 11,100 stores worldwide. Wal-Mart hires more workers than any company in the whole world; in 27 different nations around the world it has hired over 2.2 million workers. The interest on Wal-Mart stems from their ability to provide products to its customers at relatively low prices, earning them a competitive advantage over other retailers, since their products sell five times more than other American stores. However this has involved both positive and negative effects on the long term. These sales at low prices to customers have been achieved as a result of their low cost imports and high integration with foreign suppliers from various countries around the world especially China. Due to the high volume of imports a large number of small businesses have been destroyed together with jobs in the manufacturing industry; the US economy has been affected by an increased trade deficit and the local manufacturing sector has also been affected by this growth. Moreover, Wal-Mart has received...

Words: 3622 - Pages: 15

Premium Essay

Human Resources Practices in Walmart

...Analysis and Recommendations Introduction – Wal-Mart, founded by Sam Walton in 1962, is one of the world largest companies by market capitalization and number of people employed and touching millions of customers everyday. There are more than 7,800 Wal-Mart stores and Sam’s Club locations in 16 markets worldwide and there are more than 2 million associates serving more than 100 million customers per year (About Us, n.d.) It is the largest grocery retailer in the United States with an estimated market share of around 20% of the retail grocery and consumables business. To be able to efficiently operate such a complex operation at such a large and do it consistently would only be possible by the huge effort by Wal-Mart’s ‘associates’ as its employees are called. This papers looks at the human resources practices of Wal-Mart with a special focus on group and team behavior, leadership, conflict and negotiation, human resource practices and organizational culture and diversity within the company to understand them and also provide some recommendations to make them better in the future. Analysis of various HR related areas of Wal-Mart – One of the reasons why Wal-Mart has been so successful and scale up its model across so many locations is the values and beliefs established by its founder and the customer centric culture that is replicated across locations. The company right from the time of its inception has a clear mission which is to save its customers money and enable them to...

Words: 2752 - Pages: 12

Premium Essay

Company Reference

...Zhang Planning: For the Porter’s generic strategies, Wal-Mart is overall cost leadership strategy, because Wal-Mart’s mission is “Save money. Live better.” It always low prices, and using this strength to attract customers. Moreover, for the Miles and Snow’s strategy, Wal-Mart is the type of analyzer which incorporates elements of both the prospector and the defender, because Wal-Mart is not only defending its current market by lowering its cost, but it also seeks out the market opportunities that expand its scope of globalization. Wal-Mart has over 7100 stores worldwide and more than 4000 in America, so Wal-Mart is also a global strategy company. It views the world as a single marketplace and addresses the needs of the customers worldwide.  Wal-Mart has proactive stance for the social responsibility. This company always does feedbacks to the society.  In this article, Wal-Mart donates 4 million dollars to a city program that offers summer jobs to young people. This behavior helps finance 3400 jobs.  CSR can also motivate employees and strengthen brands, while also providing benefits to society. References: “Always low prices”. The Economist, 29 Feb. 2008.     http://www.economist.com/node/10727908 Javier, C. Hernandez. “As It Campaigns to Build in the City, Wal-Mart Donates $4 Million”. The New York Times, 05 July. 2011 http://cityroom.blogs.nytimes.com/2011/07/05/as-it-campaigns-to-build-in- the-city-wal-mart-donates-4-million/ Organizing: Walmart's business...

Words: 970 - Pages: 4

Premium Essay

Wal-Mart: Global Market Strengths and Weaknesses

...Wal-Mart: Global Market Strengths and Weaknesses Option C Donnitia Decembly Rodney Emery Lynne Johnson Central Michigan University MSA 601: Organizational Behavior Introduction According to CNN Money, Wal-Mart Stores Inc., is a Fortune 500 and has topping the list for many years. It is the largest retail company Wal-Mart is a worldwide corporation with stores in all U.S. states and in 15 other countries (The New York Times, 2013). The company started with one small store in Arkansas and has since blown up into the biggest-earning corporation in the world. It has the most employees of any non-government company in the world. It has made its reputation and built its customer base on the basis of low prices (Business Insider, 2012). Wal-Mart is a huge, successful corporation that can serve as a useful case study for anyone who wants to build a successful business. There are a variety of factors that have impacted Wal-Mart’s international success. In order to properly understand this success, it is useful to perform a competitive analysis that looks at the firm's successes and weaknesses globally. Mexico Market Adapting to cultural differences in countries like Mexico has opened up a very prosperous international venture for Wal-Mart. Wal-Mart hired locals to manage their stores, let manager’s control the merchandise strategy, made sure that the merchandise they carried reflected the local surroundings, and built smaller stores in local neighborhoods to accommodate...

Words: 1801 - Pages: 8

Premium Essay

Ethic Issues

...Part I Intra- and Extra Organizational Ethical Issues In prior to clarify the relationship between intra- and extra-organizational intangibles in individual cases, how these intangibles within business organizations could interact with those organizations’ various external constituents or stakeholders should be stressed in the very beginning. As the cornerstone of the corporate strategy, risk management plays a crucial role in promoting business ethics and social responsibility. Since any failure to appear in business integrity could result in a ruin of reputation, both of employers and employees should commit themselves to maximize returns to their shareholders. Therefore, how to evaluate and control the risk within corporations has become the center of business development. Strengthening customer loyalty and investors’ confidence could differentiate companies from their competitors mainly by improving intra-organizational ethics. On the contrary, ignoring business ethics from the companies could encourage their major competitors to use that against them, thus resulting in an enormous loss of share in the market. In addition, taking the initiative in business ethics could allow corporations to avoid interruption of taxation and regulation. Conversely, the dishonest business acting is possible to force the company into litigation or penalization by the law agencies of local governments. However, merely concentrating on the intra-organizational ethics could underestimate the...

Words: 2688 - Pages: 11