Organizational Structure

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Organizational Structure: Walmart Michele Hileman MGT/230 June 15, 2015 Opening its doors in Rogers, Arkansas, Walmart started a profitable business in 1962. The founder, Sam Walton, could never have envisioned where his company would be in the present. Earning approximately $30,000 in 1962, Walmart has evolved into a multibillion dollar company earning over $15 billion in 2011 (Walmartstores.com, 2012). This evolution could not have come without careful planning, strategic implementation, and control of its business processes. These factors are the deciding factor in choosing the correct organizational structure. Taking cues from its needs, Walmart has a created a hierarchal structure that is departmentalized to…show more content…
However, without integration between the divisions, coordination throughout the organization could not be used to create value within the corporation (Bateman & Snell, 2011). Therefore, with the size of Walmart’s organization, and the specialization of tasks, a vertical structure is best utilized to manage functions. When considering the e-commerce, and international market sector of Walmart’s organization, organizational design is one place where strategic planning is paying off. With over $101 billion returned to shareholders since 1962, Walmart has shown that along with their market, they too have grown to handle the rigorous demands of such an immense market. Geographic regions influence Walmart’s organizational structure by creating a need for a different supervisory structure. Walmart’s International division is led by its own CEO. The CEO supervises its own team of associates. With stores in Brazil, Japan, Mexico, Argentina, Asia, Canada, Europe, Middle East, Africa, India, and Latin America, managing a workload involved in supervising all these divisions would be impossible with one CEO. Different functions within the organization call for different officers within the organization. Walmart also has a global customer insights department where they
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