Walmart Inc. (formerly Wal-Mart Stores, Inc.

) is an American multinational retail corporation that

operates a chain of hypermarkets, discount department stores, and grocery stores.[8]
Headquartered in Bentonville, Arkansas, the company was founded by Sam Walton in 1962 and
incorporated on October 31, 1969. It also owns and operates Sam's Club retail warehouses.[9
Walmart is the world's largest company by revenue—over US$500 billion, according to Fortune
Global 500 list in 2018—as well as the largest private employer in the world with 2.2 million
employees. It is a publicly traded family-owned business, as the company is controlled by the
Walton family
Walmart’s Organizational Structure

Walmart’s organizational structure determines the company’s business activities.

Currently, these activities are mainly in the retail industry, including operations in the e-commerce
market.

The company’s corporate structure also imposes limits on how the business addresses its problems.

Structural characteristics help facilitate the company’s strategic implementations in capturing a bigger
share of the retail market.

In relation, Walmart’s organizational culture determines the way people respond to challenges in the
workplace.

Formerly named Wal-Mart Stores Inc., the company has a leadership position in the industry. Such a
retail market position and potential long-term business success are linked to the beneficial and
synergistic combination of the company’s organizational structure and organizational culture. The
characteristics and implications of the corporate culture are influenced by how the corporate structure
supports human resource development and other aspects of Walmart’s retail business operations, such
as marketing, and strategic formulation and organizational design founded on the company’s mission
and vision.

Walmart’s Organizational Structure

Walmart has a hierarchical functional organizational structure.

This structure has two features

1. hierarchy definition
 The hierarchy feature pertains to the vertical lines of command and authority
throughout the organizational structure.
 For example, except for the CEO, every employee has a direct superior. Directives and
mandates coming from the top levels of the company’s management are implemented
through middle managers down to the rank-and-file employees in Walmart stores.

2. function-based definition
 function-based definition feature of the company’s corporate structure involves
groups of employees fulfilling certain functions.
 For example, Walmart has a department for the function of human resource
management. The company also has a department for the function of information
technology, and another department for the function of marketing. These are just
some of the numerous function-based departments in Walmart’s organizational
structure.

The main effect of Walmart’s hierarchical functional organizational structure is the ability of corporate
managers to easily influence the entire organization.

For example, new policies and strategies developed at the company’s corporate headquarters are
directly passed on to regional managers down to the store managers.

In this way, effective monitoring and control are achieved through Walmart’s hierarchical functional
organizational structure.

However, a downside of this corporate structure is that it has minimal support for organizational
flexibility. The lower levels of the organizational structure cannot easily adjust business practices
because of the lengthy communications and approval process involving the middle managers and
corporate managers at Walmart’s headquarters.
 Walmart’s Organizational Culture
Walmart’s organizational culture has four main components. These components guide
employees’ behaviors, which determine organizational capacities to add value in the
provision of retail service and related services to consumers. The cultural components
are also identified as Walmart’s beliefs:

1. Service to customers:

In terms of service to customers, the company prioritizes customers in its operations.

2. Respect for the individual

Walmart also recognizes the contributions of each employee to the success of the business.

3. Strive for excellence

, the firm strives for excellence in the performance of individual workers, teams, and the entire
organization

4. Action with integrity

In terms of maintaining integrity, Walmart promotes the virtues of honesty, fairness, and
impartiality in decision-making processes.
 Walmart Stores Inc. Report constitutes a
comprehensive analysis of Walmart business strategy. The report illustrates the application of
the major analytical strategic frameworks in business studies such as SWOT, PESTEL, Porter’s
Five Forces, Value Chain analysis and McKinsey 7S Model on Walmart. Moreover, the report
contains analyses of Walmart’s marketing strategy and discusses the issues of corporate social
responsibility
Prons of Walmart
1. Wal-Mart Economy
2. Varied Selection of products
3. Low Prices
4. Huge Employer
5. Additional Business to Areas
6. More Diverse Business Model
Cons of Walmart
1 Bad Healthcare Coverage
2. Anti-Employees Policies
3. Illegal Citizens & Racisim
4. Un-Environmentally Friendly Operations

Walmart: Organizational Structure &

Organizational Culture