Evaluation of Business Operations

Evaluation of Business Operations – Walmart



Founded by Sam Wilton in 1962Headquarter is in Bentonville, ArkansasMore than 11,000 stores under 69 banners in 27 countries2.2 million associates worldwideMore than 200 million customersLargest public corporation based on revenue (Fortune Global 500, 2008)

Organizational Structure

A structure of task and reporting relationship between employees

Organizational Structure

Type of Organizational Structure:FlatHierarchicalFunctionalDivisionalMatrix

Organizational Structure

Product Divisional Structure at 3 levels:Wal-Mart Stores (United States)Sam’s Club (United States)International Stores

Divisional Structure

Divisional Structure

Separate business unitsIndividually responsible for profit and loss

Divisional Structure

Divided into three parts:Product StructureMarket StructureGeographical Structure

Flat Structure

Flat Structure

Simplest formFewer layer of management

Hierarchical Structure

Hierarchical Structure

Management positions in hierarchical orderCentralized decision making on critical issues


Defines role & relationshipIncreases management efficiencyCritical issues handled by top management


Wider exposure in division structureLess inter-departmental communicationGood for large organizations

Organizational Functions affecting Organizational Structure

MarketingHuman ResourceOperationsFinance

Organizational Design affecting Organizational Structure

ProductGeographyCustomer-basedMarketing Channels


Product divisional structureDecisiveness of organizational functions & organizational design on organizational structure


About Us: Wal-Mart. Retrieved March 27,2014, from http://walmartstores.com/AboutUs/Organization and Organizational Structures (2008). Retrieved March 27,2014, from http://www.studiesfaction.com/management/11-organization_and_organizational_structures-page1.htm Lennon, J. (2008, May 28). The Organizational Structure of Starbucks, Unilever, and Wal-Mart. Retrieved March 27,2014, from http://www.associatedcontent.com/article/782963/the_organizational_structure_of_starbucks.html?cat=3

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