WAL-MART… Organizational Structure…

Introduction…  Wal-Mart  Founded by Sam Wilton in 1962  Headquarter in Bentonville, Arkansas  More than 7000 stores all over the world

Introduction…  Wal-Mart  2 million Associates  More than 200 million customers  Largest public corporation based on revenue 2008 (Fortune Global 500)

Organizational Structure…  A structure of task & reporting relationship between employees

Organizational Structure…  Types of Organizational Structure:  Flat  Hierarchical  Functional  Divisional  Matrix

Organizational Structure Wal-Mart…  Product Divisional Structure at 3 levels….  Wal-Mart Stores (U.S.)  Sam’s Club (U.S.)  International Stores

Divisional Structure

Divisional Structure…  Separate Business Units  Individually responsible for profit & loss

Divisional Structure…  Divided into three parts:  Product Structure  Market Structure  Geographical Structure

Flat Structure

Flat Structure…  Simplest form  Fewer layer of management

Hierarchical Structure

Hierarchical Structure…  Management positions in hierarchical order  Centralized decision making on critical issues

Comparison  Defines role & relationship  Increases management efficiency  Critical issues handled by top management

Contrast  Wider exposure in division structure  Less inter-departmental communication  Good for large organizations

Organizational Functions affecting Organizational Structure  Marketing  Human Resource  Operations  Finance

Organizational Design affecting Organizational Structure  Product  Geography  Customer-based  Marketing Channels

Conclusion  Product divisional structure  Decisiveness of organizational functions & organizational design on organizational structure

Wal-Mart’s Corporate Structure CEO COO Northern US Southern US Eastern US Western US International Operations Materials Management Sales and Marketing A geographically-based set of divisions, including international

References  About Us: Wal-Mart. Retrieved November, 27, 2008, from  Organization and Organizational Structures (2008). Retrieved November 27, 2008, from organization_and_organizational_structures-page1.htm organization_and_organizational_structures-page1.htm organization_and_organizational_structures-page1.htm  Lennon, J. (2008, May 28).The Organizational Structure of Starbucks, Unilever, and Wal-Mart. Retrieved November 27, 2008, from rganizational_structure_of_starbucks.html?cat=3 rganizational_structure_of_starbucks.html?cat=3 rganizational_structure_of_starbucks.html?cat=3