Analysis Of Walmart

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Wal-Mart corporation was founded by Mr. Sam Walton in 1962 has become the largest company of the world due to the astronomical growth in the past 10 years. Wal-Mart caught my attention because of the increasing presence of the company in Latin American markets. I am from Guatemala in Central America, country in which Wal -Mart started operations a few years ago. Its very interesting the business-level strategy they used to enter the Guatemalan Market. My family is very good friends of the family Paiz, owners of the super market chain “PAIZ” in Guatemala. When Wal-Mart was planning to start operations in our country, they basically offered a ridiculous amount of money to buy-out the Company “PAIZ” and they threaten to start a frontal Business war if they don’t sale the company. Our friends, the family Paiz didn’t had a choice to accept the cash for the company and sell completely the company to Wal-Mart Corporation. The entry strategy of Wal-Mart in Central America was clearly the acquisition of Central American retail holdings companies. Myself as a business owner love to study successful structures to try and apply them to my company, of course in this case, I cant really apply the divisional organization of Wal-Mart because of the magnitude and size of the company but I could get very healthy tips to the continuous growth of my company. Wal-Mart has a divisional organization structure at the top-level and in the Middle level management, however uses a matrix organization structure in the lower store level. This could be considered as a Hybrid design because it uses different types structural organizations to keep the efficiency in the Company. Wal-Mart divisional structure consists of completely separate and semi autono... ... middle of paper ... ...ly affect the other division and consequence the company. However, divisional structure has also negative points, companies like Wal-Mart have to work hard to avoid them. Wal-Mart follows a matrix organizational structure in the lower level management and front line employees. The matrix design creates a multiple command structure and the employees’ reports to both the department manger and the project manager. Wal-Mart decided to implement a matrix structure in their lower level because this system increase motivation and organizational commitment, provides the employees to learn new skills and it’s considered very efficient in using of human resources. The Matrix design allows employees to work in different kind of projects or tasks at the same time, it’s a good strategy to multi-task your lower level employees to increase their critical thinking skills.

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