Wal-Mart

Paper Summary:

This paper explains that a business can be structured in several ways, depending on which type of structure fits best its organizational needs. Wal-Mart has a functional organizational structure, which goes hand in hand with its business strategy of cost leadership. The author points out that the creation of an IT department, which works closely with R&D, allowed the company to make intensive use of high technologies and be able to reduce costs massively. The paper concludes that the retailer's organizational design allows it to maintain the leadership position in its home and global markets but does not promote workforce actualization. Part of this paper uses bullet point style.

Table of Contents:
Types of Organizational Structure
Organizational Functions and Structure at Wal-Mart
Organizational Design at Wal-Mart

From the Paper:

"The retailer has the same business strategy of low prices in every country it operates and its marketing activity supports this strategy. Basically, the company has a global control over this function, but it is also aware of the importance of the local content for this type of activity, which is why regional managers are given freedom within limits when it comes to marketing.
"The logistics function is strongly connected to the IT function as the company's level of automation for the supply chain is very high and writes the best practices in its industry."

Sample of Sources Used:

• Pohle, G. & P. Korsten & S. Ramamurthy. 2006. "The specialized enterprise - A fundamental redesign of firms and industries" in Chapman, M. & S. J. Berman. 2006. "Innovative approaches for sustainable growth". IBM Busines Consulting Services.
• D'Annunzio, L. S. 2005. "Challenges and strategies of matrix organizations: top-level and mid-level managers' perspectives". Human Resource Planning, Vol. 28(1): pp. 39-48.
• Kampas, P. 2007. "Mastering Organizational Architecture". www.kampasresearch.com.

More papers on Wal-Mart:

• Research Paper # 91854 : "Wal-Mart and Supply Chain Management"
• Case Study # 102381 : "Wal-Mart Stores, Inc."
• Case Study # 148411 : "Wal-Mart's Positive Influence on Chinese Consumers"
• Case Study # 148452 : "A History of Walmart's Globalization Strategy: Strategic Wins in China, Major Struggles in Germany"

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