Wal-Mart Organizational Structure the Most Successful Companies

Wal-Mart Organizational Structure

The most successful companies have something to teach us. Wal-Mart has proved its successful business approach by adapting with changes throughout the years while maintaining a certain organizational system. The purpose of this essay is to examine Wal-Mart and its organizational structure methods. I will specifically analyze three different organizing functions for this company. I will evaluate the organizational structure of Wal-Mart and compare it to other forms of structuring. Next, this essay will evaluate Wal-Mart in terms of its organizational functions. Finally, I will demonstrate how Wal-Mart's organizational design suits its business model.

Defining Wal-Mart

According to Wal-Mart's corporate web site, this company serves over 200 million customers a week providing consumer items including groceries, clothing, electronics and more. Wal-Mart sells its goods to customer through various outlets including retail, online and mobile devices. Wal-Mart employs more than 2 million people throughout the world and its 2012 sales tallied at over $444 billion. Wal-Mart is one of the most powerful and successful multi-national corporations in the world. The corporate headquarters for Wal-Mart is Bentonville, AR.

Wal-Mart's Organizational Structure

As stated before, Wal-Mart organizes itself as a corporation. This form of structure suits this company for many reasons. Corporations hold certain advantages over other forms of organization. Unlike sole proprietorships and partnerships, corporations have limited liability. In essence the corporation is like an imaginary person that holds no responsibility. The personal economic affairs of the employees of a corporation are separate from business affairs in this type of organizational structure.

Another advantage of Wal-Mart being a corporation is that this business will be afforded to accumulate larger amounts of capital for investment. Corporations are useful structures that larger companies can operate under. Corporations can become public and receive investor capital to help them invest in making their company stronger. Wal-Mart is a publicly traded company that takes advantage of this structural benefit.

Wal-Mart's Organizational Functions Influence on Its Structure

Wal-Mart is a giant organization that needs to have many resources available in order to function properly. Gereffi & Christian (2009) explained Wal-Mart "focuses on its discount format, location strategy, and corporate culture. Its rise as a retail leader embodies its commitment to business efficiency and low prices, mediated by a passion for technology driven supply-chain management, while embracing a folksy, regional Ozark Mountains, Arkansas, corporate culture " (p.576). This culture attempts to include as many people as possible trying to grow as large as possible while still maintaining profits.

Wal-Mart, as a result of this aggressive business model, must adjust its organizational structure to fit these principles. All aspects of marketing, finance, human resources and operations must be planned for at a macro level. Corporation organizational structures appear tailored for this type of business model where world markets and total domination are important in defining this company's success.

Wal-Mart's Organizational Design

Hartung (2012) suggested that Wal-Mart's organizational design may be failing their best interests currently. He reported that all retail markets have changed due to online market growth and Wal-Mart has been left behind, "unfortunately, too many businesses react to market shifts like Wal-Mart. They hunker down, do more of the same and re-organize to "increase focus" on the traditional business as results suffer. Instead of adapting the company hopes more focus on execution will somehow improve results."