An analysis of the organization of wal mart an american corporation

Walmart industry analysis

Improving quality standards — Low-cost products render low quality sometimes. Shoplifting controls: Wal-Mart has cut its pilferage-related losses by instituting a policy in which 50 percent of the savings created by pilferage decreases in a particular store versus the industry standard is shared among store employees. Every company making this move faces an array of choices: It can acquire an existing player, build an alliance with an existing player or start greenfield operations, either alone or in partnership with another player. The European retail industry is mature, implying that a new entrant would have to take market share away from an existing player - a very difficult task. An effective HR system will prevent Walmart from any potential criticism regarding its workforce. Currently, these activities are mainly in the retail industry, including operations in the e-commerce market. So Wal-Mart chose to focus on areas where it could differentiate it self: customer service, targeted at neutralizing Carrefour, and merchandise mix, targeted at overwhelming smaller local competitors.

Access the full analysis Wal-Mart quickly reconfigured Woolco along the lines of its successful United States model, a strategy facilitated by the similarity between the United States and Canadian markets.

This solution sought to balance the desire of local customers for high-status United States-made consumer goods and pressure from local governments to purchase domestic goods.

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Teams create synergy and thus teaming up at both the levels of employees and leaders will lead to solutions that will positively help the progression of the organization. It is no doubt true that Asian markets had huge potential when Wal-Mart launched its globalization effort in Additionally, these companies have a relatively good reputation for treating their employees well compared to Walmart. Female employees are discriminated in regards to promotions and pay scale as per this lawsuit. Business organizations need to be able to adopt such changes to their operations to keep abreast with their competitors. Function-based organization feature involves a group of employees fulfilling certain functions, for example, human resource management, information technology, marketing and the likes. A large scope for further changes remain, and this could be addressed through strategies to improve employee working conditions and morale. This decision was reinforced by the fact that there are only two markets in Argentina of significant size. Product sourcing was another area requiring adaptation. Walton was only 44 years-old when the first retail store was opened. Experimenting with less risk. Formerly named Wal-Mart Stores Inc.

No other direct competitor, except Amazonhas made it to the Forbes list of the top 50 most valuable brands. The answer is that the company needed to grow in order to survive, and the international arena was the only one in which significant growth was possible.

An analysis of the organization of wal mart an american corporation

Having determined that building new hypermarkets in Germany would be ill-advised due to the mature European market and that strict zoning laws precluded greenfield operations, Wal-Mart spent more than two years exploring potential acquisitions, including Britain's Tesco, Germany's Metro and the Netherlands' Makro. But the Asian market is the most distant geographically and the most different culturally and logistically from the United States market. The Shenzhen operation also experimented with stocking merchandise targeted at a predominantly male market. Walmart should also play an active role in environmentally sustainable practices to create a positive image in the industry. To entice shoppers away from these large but user-unfriendly stores, Wal-Mart stressed its customer service, an asset enhanced by its policy for hiring and promotion. In , Kmart was a wholly domestic company, deriving all of its sales revenues from its United States stores. Structural changes at Walmart would help in the development and restructuring of the organization. The management style at Walmart is mainly based on transformational and transactional management. The choice of which market to enter first is not always easy. It targeted China, with a population of more than 1. Political and legal Issues — This is also a threat to Political and legal affairs can always hinder the company to operate in some countries. Roe, M. It hugely invests its time and money in developing and managing its employees. Furthermore, Wal-Mart's business model was precisely what Woolco needed to transform itself into a viable and healthy organization.

Directives from the top levels of management are implemented by middle managers down to the rank-and-file employees in their stores. It could not afford to enter them all simultaneously for at least two reasons.

The company has been said to have many managers, and this has had an impact on customer service.

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Customers: Although the Woolco acquisition was Wal-Mart's first entry into Canada, the company had a head start in building a consumer franchise because most Canadians live near the United States border and were already familiar with Wal-Mart. President and CEO, Samsclub. The first Walmart store was opened in the early s in Rogers, Arkansas.

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To mitigate resistance and enhance engagement of organizational change and development, changes should take place in stages so that the leadership and employees get accustomed to change.

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Walmart Organization Challenges And Organizational Change Analysis