Evaluation of Business Operations – Walmart
MGT416 OPERATIONS MANAGEMENT A02ARGOSY UNIVERSITY
Introduction
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
Comparison
Defines role & relationshipIncreases management efficiencyCritical issues handled by top management
Contrast
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
Conclusion
Product divisional structureDecisiveness of organizational functions & organizational design on organizational structure
References
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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