Walmart Matrix Analysis

Because Wal-Mart is the world’s largest retailer and private employer, it has established a highly profitable business centered on a low-cost strategy and utilizes logistical efficiencies to create a competitive advantage. This is a general merchandise discount retailer that was incorporated in 1962 but yet, only established in Canada in 1994.

Selling in 15 countries, Wal-Mart has more than 395 stores just in Canada thus employing in over 8000 stores – each of these employments are met with a job specialization to provide the employee with a sense of enrichment and pride towards their accomplishments.

Furthermore, as a result of increasing the number of tasks in a particular job and giving the employees the authority and control to make meaningful

Sam Walton had an innovative vision ¬— one that steered his company to be first in the lead as the discount retailing store that it is today as well as giving the opportunity to ordinary people the chance to buy the same things as rich people.

His mission was to become a $125 billion company by the year 2000 was well established when the company hit $219.8 billion in 2000.and this, only from the U.S.A – the magic number for Canada was $165 billion.

Wal-Mart not only uses a matrix organizational structure but more specifically a geographical departmentalization matrix and this means they divide the company into geographical regions like North America, Europe etc. Then follow suit with that departmentalization matrix which divides their products into a department that has managements and sales groups monitored.

The most important trait to any organization in the business is the functions within the organization. That is to say the managers outline the practice in which employees organizing their work and socialize together.

Wal-Mart’s Four Parts Corporate Strategy:

1. Branch out into new sectors of retail

2. Creation of positive brand and company

Each of these areas are regulated by management who coordinates all activities related to the functional area.

Everyone that works on marketing the products, for example, would report to the manager of the marketing department. Subsequently the manager in charge of the other areas in turn would report to the chief executive officer — each staffing level reporting to its superior.

A matrix structure is what crowns Wal-Mart divisional organization structure. Granting that there are some disadvantages of forming teams nonetheless, it has been proving repeatedly that the use of teamwork has more advantages. Market managers run each district and are responsible for a larger number of stores, allowing Wal-Mart to work towards increasing the merchandise poser of the individual markers, which are now based more on the economic landscape of an area, less on the physical