...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...
Words: 1157 - Pages: 5
...The Organization Structure of Walmart An essential part of Walmart’s culture is to constantly look for ways to be more successful. On January 28th, 2010,Walmart released a report of its organizational realigning. This realigning was an attempt by Walmart to create a more efficient organization and to be better equipped to react to it customers demands. Walmart made the decision to re-organize its three United States operations into three geographic units within the United States and then appoint a president to each unit. These units were changed to Walmart South, Walmart North, and Walmart West. Walmart also stated that in the United States it would be bringing all of their operations together into three operating divisions as well. These operational categories would be Store Operations, Real Estate, and Logistics all under one leadership team. This divisional approach and structure works to Walmart's benefit because each division is unrestricted, when it comes to focusing their strengths on specific areas such as customers, service, and product. Tightening the focus permits Walmart to efficiently identify individual procedures and processes that need adjustment and to make modifications appropriately. As a result, of this organizational realigning, Walmart was able to reduce approximately 300 positions in the corporate support areas (Walmart, 2014). This divisional structure and approach is working for Walmart's advantage because each division is able to focus its energies...
Words: 648 - Pages: 3
...March 30, 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...
Words: 1162 - Pages: 5
...XMGT/230 Week 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...
Words: 638 - Pages: 3
...Organizational Function Bobby Davis MGT/230 January 4th, 2014 Professor Vermuth Organizational Function The organizational structure of a company is the structure of business it plans to operate with and is typically estimated to be the most efficient for the company’s objective. The point of this organizational structure is to allow the company to collaborate on different levels to operate as a one entity or multiple entities. When a company is looking at a structure, it looks for the most efficient ways to categorize the company’s divisions, departments, and partnerships in a way to produce the most return on investment. Walmart and More Walmart was founded in 1962 by Sam Walton. He opened the first Walmart in Rogers, AK. Walmart incorporated in 1969 under the name Walmart Stores, Inc. With more than 245 million customers, the most efficient organizational structure may not be obvious. Today Walmart has over 11,000 stores in 27 countries. Employing 2.2 million people worldwide and generating revenue above $466 billion ("Walmart.com", 2013). Walmart has three separate divisions, two of which are in the United States; Wal-Mart and Sam’s Club. The third division is the international division which operates stores internationally. Examples of some companies that use a different approach are Starbucks and Dunkin Donuts. These two use a matrix style organization; there are multiple U.S. divisions, broken up into different geographic territories. Matrix...
Words: 1142 - Pages: 5
...Wal-Mart’s Organizational Structure Damaris Medina MGT/230 September 13, 2012 Dan Kassmeier Every company has their own form of organizational structure. Whether the business is big or small, an organizational structure is needed in order to have a successful business. An organizational structure helps put the business in order to make sure there are no problems in the future, but what is an organizational structure? It is how the reporting structure is organized. There are many types of organizational structures. Some examples of organizational structures are, the functional, matrix, and divisional structures (Bateman & Snell, , 2011). When business owners are planning a structure for their business, it is important to know just how complex the business will be. If the business is a major corporation, such as Wal-Mart, then the structure should be able to support the complexity of the business. When a major corporation does not have a structure that supports their complexity, they are likely to have issues with the organization of the business. Thus causing for the business to lack the proper management and potentially fail. An organizational structure will determine how all employees work together. If the business is not under a strong structure, then there will be confusion throughout the whole business. An organizational structure also determines the decisions that the business will make as a whole (, , 1991).If there is no structure, there is no business. There...
Words: 1398 - Pages: 6
...Organizational Structure MGT/330 September 26, 2011 Tyler Allen Organizational Structure Organizational Structure is a way or method through use of hierarchy that a group, organization, business, people or objects, collaborate to achieve success on one common goal. There are three types of organizational structure; functional structure is specialized and grouped according to business functions and skills they require, divisional structure the divisional structure groups each organizational function into a division. Each division within a divisional structure contains all the necessary resources and functions within it, and the matrix structure which is a structure that groups employees by both function and product. Functional Structure Functional structure is the structure that Aldi’s grocery store uses. This company starts with operational manager who is the manager over a certain division which is broken down by states, the district manager is over a certain amount of stores in that city, the store managers the person in charge of that particular store, shift managers who are over the cashiers which are the employees. Once a month Aldi’s divisional manager has a meeting with all the district managers and store managers in his division. They discuss; insurance, sales, customer service, and store standards. Once the meeting has taken place the store managers will have a meeting with their employees to discuss changes or concerns that needs to be addressed. This structure...
Words: 744 - Pages: 3
...International Business Organizational architecture—(organization structure, control systems, incentives, processes, organizational culture and people) Organizational Structure • Organizational structure has three dimensions: 1. Vertical differentiation - determines where decision-making power is concentrated within a structure 2. Horizontal differentiation - the formal division of the organization into sub-units 3. The establishment of integrating mechanisms - the mechanisms for coordinating sub-units Vertical Differentiation: Centralization • Facilitates coordination of activities Eg. A firm has a component manufacturing operation in Taiwan and an assembly operation in Mexico • Ensure decisions consistent with organization’s objectives • Allows top-level managers to bring about organizational change • Avoids duplication of activities Eg. Many international firms centralize their R&D functions into one or two locations to ensure the R&D work are not duplicated. Decentralization • Takes advantage of local information, which may result in better and faster decisions • Can motivate employees • Relieves top management • Can increase control in self-contained subunits • It can be worthwhile to centralize some decisions and decentralize others, e.g., centralizing control over core competencies while decentralizing operating decisions Horizontal Differentiation: The Design Of Structure • Horizontal differentiation...
Words: 1728 - Pages: 7
...Organizational Structure and Culture Both an organizations structure and culture are very important aspects of it, and can have a great effect on each other. According to Wikipedia, an organization's structure consists of activities such as task allocation, supervision and hierarchical lines of authority. Organizational structure determines what roles, responsibilities and power are assigned. In manufacturing for instance, there is usually a plant manager, shift coordinator, supervisor and then employees who work on the production floor. And the structure of the organization influences the culture that an organization may have, and vice versa. Like people, organizations also have culture which consists of its beliefs, values, customs and rules that have been adopted overtime. Culture can change as a company changes structure, or shifts its focus from one objective to another. And since structure determines things like decision making and the people that are hired, it affects company culture. The type of structure that a company has, such as centralized, decentralized, organic or mechanistic influences culture in areas like role assignment, employee involvement, and with dealing with customers. An example is a company like Starbucks, who uses a matrix organizational system set up to accommodate customer satisfaction (2012). Its business model is focused on customer service, and a corporate culture that values diversity and inclusion. For instance, when hiring...
Words: 657 - Pages: 3
...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
...CH 13 What is Organizational Structure? -Organizational structure: how job tasks are formally divided, grouped, and coordinated. -The structure can represent a tall pyramid, or it can be relatively flat. The structure determines the reporting relationships of people. Flat organization 에서는, 내 위에 있는 사람에게 문제를 알리기 쉽다. 하지만, pyramid structure 에서는, 내 위에 사람에게 말하고, 그 사람이 또 그 위에 사람에게 말하고.. 계속 이렇게 되다 보면, 전해야 하는 내용이 바뀔 수 있는 단점이 있다. -There are six key elements that managers need to address (다루다) when they design their organization’s structure: work specialization, departmentalization, chain of command, span of control, centralization and decentralization, and formalization. -Organizations do change their structure from time to time, which is known as restructuring. -Despite the profound impact restructuring has on employees, managers realize that in a dynamic and changing environment, inflexible organizations end up as bankruptcy (파산) statistics. Work Specialization -Work specialization (division of labour): the degree to which tasks in the organization are subdivided (다시 (적게) 나누다) into separate jobs. - The essence of work specialization is that, rather than an entire job being completed by one individual, it’s broken down into a number of steps, with each step being completed by a separate individual. Individuals specialize in doing part of an activity rather than entire activity. -Employee skills at performing a task improve through repetition. It is easier and less costly...
Words: 3901 - Pages: 16
...Prabesh Timilsina, HBD3173.E1, Exercise5 5.1 Study the Learning from Experience Case on p. 445. What is the significance of the organizational design of the company? The basis for any successful organization is for people to work together and understand how their behaviors support the organization’s strategy. Yet, talented people in even the best managed organizations are sometimes left trying to understand how their own activities contribute to their organization’s success. An organization’s design is crucial in clarifying the roles of the leaders and employees who hold the organization together. Organization design is the process of selecting a structure for the tasks, responsibilities, and authority relationships within an organization. An organization’s design influences communication patterns among individuals and teams and determines which person or department has the political power to get things done. The structure of an organization influences the behavior of employees. Therefore, an organization’s design plays a critical role in the success of an organization. Every organization’s design decision solves one set of problems but creates others. Organization design decisions often involve the diagnosis of multiple factors, including an organization’s culture, power and political behaviors, and job design. Organization design represents the outcomes of a decision-making process that includes environmental factors, strategic choices, and technological factors. Specifically...
Words: 9472 - Pages: 38
...Giant Innovator Lawrence and Han Nway Oo Team Chimpanzee Yonsei University Apple: The Giant Innovator In only a few years, Apple has grown to become the leading brand for phones, laptops, and mp3s among other technological devices. Macbook, iPhone, iPad, and iPod, the inventions and properties of Apple, are dominating and influencing the mind of teenagers and even the elders alike with its advanced functions and applications that aren’t replicable by brands. Apple’s attainment in this century has led the people to wonder the reason behind its achievements. What kind of organizational and corporate structure does Apple pursue to possess the successes? How does Apple motivate its employees in the work environment? Some give credit to the innovator of Apple, Steve Jobs, whose unorthodox style of leadership is the foundation of the company’s management. Although Apple’s organizational structure, corporate culture may seem to be a new style of management, it is inherently a cultural approach. In addition, it is Steve Jobs who is at the top of the chain of command reinforcing cultural management through his leadership, pursuit of skilled employees, and his firm grounding of corporate culture. Apple is a US-based consumer electronics company known for its ability to come out with path-breaking products. The work culture, propelled by a passion for new products with no trepidation to challenges and obstacles, exemplifies its intense work ethics. The employees are seen as...
Words: 2437 - Pages: 10
...Keller Graduate University [2009] Final Project Proposal “How to make Natel Engineering become a High Performance Organization” GROUP MEMBERS: Anthony Gonzales (acgonzales@msn.com) Christopher Cerdon (ccerdon@gmail.com) Raymond Bucassas (raymond_bucassas@yahoo.com) Kathryn Weber (kweber777@gmail.com) Nancy Sanchez (nancysanchez1985@hotmail.com) [pomona, ca] INTRODUCTION Good employee relations are crucial to any work environment in order to perform at their maximum efficiency. Excellent work and ethical values are needed to ensure a high quality standard of treatment in all occupational situations. A company that does not know how to treat their employees as their number one asset is a company destined to falter. Target Company: Natel Engineering Co., Inc. Chatsworth, Ca Founded in 1975, a foremost, privately held, independent manufacturer of a wide variety of microelectronic products, providing mid to high volume production to defense, aerospace, fiber optics/optoelectronics, medical, space, RF microwave and telecommunication industries. According to Business Week magazine in 2007, Natel Engineering Co. has been ranked as the 9th largest aerospace manufacturer in the greater San Fernando Valley area based on the number of employees. Natel is founded and owned by Sudesh Arora, who has a very prestigious background in Electrical Engineering -- he developed an exceptionally complex sulfur analyzer which won him the popular IR-100 Award...
Words: 4333 - Pages: 18
...A. Compare the cultures of the two companies using the relevant values in the attached “Competing Values Framework.” The Competing Values Framework model was developed for cultural assessments of organizations that shows the effectiveness in a two dimensional layout. In the Competing Values Framework model, there are four culture representations, Adhocracy, Clan, Market and Hierarchy. The Symphony and the Opera fit into one of the categories as individual organizations. More will be discussed on which category each belongs in, plus a comparison with each of the other three cultures. Included in the Competing Values map is two other cultural dimensions. The Horizontal dimension is located on the left of the model and maps out the inward or internal focus and integration. The primary attention focuses inward within the company or organization. When environments are less competitive and focused on the customer, internal focus is the most important dimension element. The outward or external focus and differentiation is located to the right of the model. The focus is primarily outwards, to the external environment, customers and suppliers. The Vertical dimension is located at the top and bottom of the model. This lower axis has more to do with who makes the decisions. At the bottom of the model, is Stability and Control which is geared more to management control. While at the top is Flexibility and Discretion which empowers employees to make decisions...
Words: 2430 - Pages: 10
