Walmart's Organizational Strategy

573 Words2 Pages
Wal-Mart Wal-Mart's organizational strategy is designed to be the low cost leader. Strategy means the pattern of purposes and policies that defines the organization and its missions and that positions it relative to its environment (Anonymous, 2008). Being the low cost leader and this mentality runs throughout the entire organization and dictates all of its policies and dictates the way that the company utilizes its resources. For example, the company devotes a significant portion of their resources toward creating efficiencies through distribution, logistics, and information technology. However, there store layouts are simple and standardized and the company does not try to create value in its stores through dedicating much of its resources to retail aesthetics. Therefore Wal-Mart's mission dictates the organizational strategy which in turn helps the company decide how to invest its resources. The organizational structure refers to the division of labor in the organization or the way the company goes about dividing work into tasks or roles such as operations, logistics and transportation, and training, and recombining them into administrative units, e.g., branches, departments, bureaus, or divisions according to mission, function, and/or region (Anonymous, 2008). The organizational structure at Wal-Mart is relatively flat compared to many other organizations in the same industry. Wal-Mart has been able to eliminate various layers of management through its training
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