Wal-Mart has been one of the world most successful stories; the small store in Alaska has been extended to be the world largest retail organization. Behind this success; there have been certain organization behaviors that have shaped the Wal-Mart stores.
In this essay, we try to explore those orgnizationuinal behavior factors that have created the Wal-Mart culture; keeping into considerations the values of ethics and modern business behavior, we try to explore Wal-Mart behaviors in the areas of organization culture, change management, leadership..etc …
Wal-Mart eager for a “low cost strategy” that serves its sole focus on customers buying cheap items with good quality and service under the umbrella of “Save Money. Live better” logo has defiantly played a main role in designing this organization. To achieve this low-cost strategy Wal-Mart has created several ideas on the retail & specialty sides. On the retail side “Wal-Mart Discount Stores, Supercenters, Sam’s Club, International, Neighborhood Markets”. While on the specialty side (Wal-Mart Vacations, Pharmacy, Optical, Used Fixture Auctions), each subsidiary has its own line of services. Those divisions aim to target special customers which defiantly gives Wal-Mart the flavor of functional design organization
Cut the organizational chart and paste it here
This functional organizational structure is formed to continuously drive costs lower, which contributes to the emergence of a low-cost culture—a culture in which all associates constantly try to find ways to reduce the costs incurred to complete their work. Specializing in associates work allows them to increase their efficiency, reducing the costs as a result.
In addition, Wal-Mart has simple reporting relationships, few layers in the decision-making and authority structure, a centralized corporate staff, and a strong focus on process improvements. All of these characteristics shape the cost leadership... [continues]
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