Organization Structure Wal-Mart

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Individual Organizational Structure Paper MGT/230 August 31, 2012 Wal-Mart is one of the largest corporations around the globe. They accommodate thousands of customers more than 200 million times per week at more than 8,446 retail units. Wal-Mart employs more than 2.1 million associates worldwide. Wal-Mart’s size is one of great proportion and requires the horizontal, divisional, and vertical organizational structures to lead as one of the largest corporations in the world. Wal-Mart’s divisional structure, according to the text, “as organizations grow and become increasingly diversified, they find that functional departments have difficulty managing a wide variety of products, customers, and geographic regions. In this case, organizations many restructure to group all functions into a single division and duplicate each of the functions across all the divisions” (Bates, 2011). Wal-Mart is sectioned into three product divisional structures. The three include Wal-Mart, Sam’s Club, and some global stores. Wal-Mart was wise to use the divisional plans, as each division is open to center their attention on specific goals, customer services, and product knowledge. The company is too large to manage it any other way. Wal-Mart’s vertical structure starts with the board of directors, which execute three primary duties in the decision-making process can affect the organization. The first duty is “selecting, assessing, rewarding, and perhaps replacing the CEO,” the second is “determining the firm’s strategic direction and reviewing financial performance,” and the third is “ensuring ethical, socially responsible, and legal conduct”(Bates, 2011). This is the level of authority where decisions are made and people are told what they will do. The vertical structure of Wal-Mart has the board of directors, chief executive officers, chief financial officer, chief operating

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