The logistics function is strongly connected to the it function as the company's level of automation for the supply chain is very high and writes the best practices in its industry. Suppliers know on permanent basis where there merchandise it and the company know at any point in time the location of any item, the inventory level, etc.
The creation of an it department that works closely to R&D allowed the company to make intensive use of high technologies and be able to reduce costs massively. The great performance achieved by the company couldn't have been possible with dispersed, uncoordinated it and R&D activities.
The recent expansion to Europe and Asia determined the company to implement changes at functional level, which influenced its organizational structure. For instance, marketing maintain its main strategy, but the promotional strategies had to be adapted to the host markets (EU and Asia), which are completely different markets. The financial function suffered changes due to the different accountability system in the host markets.
Overall, the globalization process brought many changes in the company. These changes had to me made for the retailer to be able to compete in foreign markets and they had a significant impact on every level, including the organizational structure.
Organizational design at Wal-Mart
Wal-Mart's strategy is focused on cost reduction. To support that, the retailer maintains its corporate overheads at a low level, has its suppliers tightly integrated, leverages scale economies and has leadership in use of technology (Chapman & Berman, 2006).
These tasks are not easy especially now that the company competes globally and it is more difficult to coordinate its different activities/departments. However, the retailer manages to chose a mix of strategies with respect to organisational design that allows...
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
This is also true for inventory turnover. As significant as the impacts of all of these outputs can be on the organization, when improvements are made to multiple outputs, the impact is magnified. Furthermore, these outputs all contribute to another crucial output for Wal-Mart, the profits. Profit is the ultimate output for Wal-Mart, and all of their other key measures relate directly to this objective. Many other outputs at Wal-Mart,
As can be seen from the Table 1: Comparing Store Statistics, Wal-Mart on average has the least amount of full-time employees of any given regional or local competitor and therefore has the ability to control benefits and compensation costs. In addition this strategy alleviates the potential for union organizing as well. This strategy alleviates the need to pay medical benefits and also makes the company more resistant to labor organizing
Wal-Mart Corporation Mission and Vision Statement Analysis Linking Wal-Mart's Mission and Vision to Their Strategic Goals ands Objectives Assessing the Link Between Wal-Mart's Financial Performance And Its Strategic Goals Wal-Mart Competitive and Marketing Analysis Wal-Mart Marketing Analysis Selecting An Appropriate Strategy (low cost, differentiation or niche) For Maximizing Organization's Return on Shareholders Potential Wal-Mart Merger & Acquisition Strategy Incentive and Reward Strategies for Wal-Mart Employees Evaluating How Current Strategies Define Ethicacy Levels at Wal-Mart Wal-Mart Ratio Analysis Income Statement Analysis,
Wal-Mart Porters Wal-Mart Strategic Management Wal-Mart mission is based on the model that by simply saving people money so they can live better. The philosophy and overall business strategy was developed based on a simple idea created by founder Sam Walton: offer shoppers lower prices than they can get anywhere else. This strategy has been the basis of an incredible history and growth record for the company. This strategy still guides the
Wal-Mart is also a highly delegative culture in terms of its subsidiaries, with in-store managers in all regions they operate in responsible for performance. The Wal-Mart approach to delegation also requires in-store associates to assist with the unloading of trailers when they arrive with merchandise at Superstores as well. Wal-Mart strongly holds efficiency and delegation in the same context (Appelbaum, Lichtenstein, 2006). Diversity and Ethics Wal-Mart has often been criticized for
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