Organizational Structure Paper
University of Phoenix
MGT 330 – Theory, Practices & Application
Instructor: Fred Schaum
July 13, 2010
Wal-Mart is one of the largest corporations around the globe. Wal-Mart serves customers and members more than 200 million times per week at more than 8,446 retail units under 55 different banners in 15 countries. With fiscal year 2010 sales of $405 billion, Wal-Mart employs more than 2.1 million associates worldwide “A leader in sustainability, corporate philanthropy and employment opportunity, Wal-Mart ranked first among retailers in Fortune Magazine’s 2010 Most Admired Companies survey.” In order for one to understand what type of organization Wal-Mart’s size is one of great proportion and requires the organizational structure to be sound as well as effective. In the next few paragraphs the Wal-Mart organization will be examined and it will be determined what type of structure Wal-Mart possesses and how it can become more agile.
Horizontal/ Divisional Description of Wal-Mart Altogether, there are about eight organizational structure types. Each company has to find a way of putting these “pieces of the puzzle” into one well thought-out outline to represent the necessary relationships. In this case, we’ll be looking at the divisional structure. According to the text, “as organizations grow and become increasingly diversified, they find that functional departments have difficulty managing a wide variety of products, customers, and geographic regions. In this case, organizations may restructure to group all functions into a single division and duplicate each of the functions across all the divisions (Bateman and Snell 8th edition, 2009).”
Wal-Mart has been sectioned into a three product divisional structure. The three include Wal-Mart Stores (located here in the United States), Sam 's Club (Located here in the United States), and some global