Wal-Mart's Organizational Structure Essay

600 WordsApr 30, 20153 Pages
Wal-Mart’s Organizational Structure Tiffany Tyler, Samantha Moore, Eddie Martinez, Salvador Lua Management MGT/521 March 12, 2015 James Ghormley Wal-Mart’s Organizational Structure Wal-Mart opened their doors to the public back in 1962 in Rogers, Arkansas, Sam Walton; the brilliant mind behind the idea of Wal-Mart never could have imagined the type of success his business would eventually build. Wal-Mart evolved into a multibillion dollar company that earned over $15 billion in 2011 (Walmartstores.com, 2012). The evolution of Wal-Mart could not have been successful without careful planning, impertinent strategic implementation, and proper control of its business processes. Without these major factors it would have been almost impossible for Walton to choose the correct organizational structure that would help run this business still today. Current Structure Wal-Mart has been successful since the start of the business back in 1962; none of this success could have been possible without a great organizational structure. Wal-Mart’s current structure is a formal, bureaucratic structure which is better suited for a more complex/larger organization. Within this structure it clearly defines the roles and responsibilities of the employees and has a high respect for merit. There are three operating divisions within Wal-Mart that are logistics, real-estate, and store operations. These divisions are under a leadership team that is ultimately unified within the company. Within the leadership team it is broken down into three geographic business units: West, North, and the South. With these divisions being under one leadership team it has taken Wal-Mart into the geographic departmentalization setting. As far as the chain of command with Wal-Mart, the chain of command is very clear, and is known throughout all of the company and has many levels of management from

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