WALMART

Organizational Analysis
 Introduction

A Industry Trends

G Competitive Positioning

E Issues

N Recommendations

D Method

A Limitations

Q&A
INTRODUCTION

 Founded on July 2nd, 1962 by Sam Walton

 11,695 stores worldwide

 Has become top retail store in America

 90% of American population lives within 10 miles of a Walmart

 Service to
customers

“Best retailer
in the hearts
Strive for Respect for
excellence
and minds of
consumers and
the individual CULTURE
employees”

Action with
integrity
STRUCTURE
Organizational structure is a divisional hierarchy due to the massive size of company.
Vertical lines of command leaves little room for organizational flexibility.

Douglas
McMillon
President/CEO
Walmart Stores Inc.

David
Greg Foran John Furner
Cheesewright
CEO Walmart U.S. CEO Walmart CEO Sam’s Club
International
TREND I: RISE OF
TECHNOLOGY
Incorporating A/R and V/R in shopper experience.

Using predictive analytics to forecast customers’ next

moves.

Example: Alibaba introduced a VR headset which

allows shoppers to shop in virtual locations

TREND II: RISE OF
MOBILE SHOPPING
Only 23% of consumers prefer to visit brick-and-

mortar shop while the rest prefer to shop online.

Global mobile sales in 2016 made up 34% of all e-

commerce transactions.

Expected to grow 31% by end of 2017

TREND III: RISE OF
PERSONALIZATION
 Digital world is making personalizing the shopper
experience vital for success.

 Online reviews decrease brand loyalty and increase brand

loyalty.

 Companies have to use predictive analytics to curate a

personal shopping experience.

 KPMG survey highlights importance of customer

recognition.
 MARKET SHARES OF MAJOR RETAILERS
63.90% ($511.37/$800 billion)

17.25% ($138.02/$800 billion)

15.11% ($120.89/$800 billion)
AMAZON
Culture Structure
Team-oriented cultural approach Uses a functional hierarchical structure.

Two-Pizza Rule Structure has tendency to create barriers

between functions
Small groups encourage creativity
COSTCO
Culture Structure
Emphasizes quality and cost leadership Uses a matrix organizational structure.
Membership-only warehouse club
business model
Low prices make Costco attractive
during times of economic difficulties.
CENTRAL PROBLEMS FACED
Corporate Culture
Wal-mart’s authoritarian culture pressurizes the higher level of management to squeeze
more from its workers and the lower level managers
Hyper centralized management at Wal-Mart
leaves no scope for innovation which significantly inhibits the future growth
CENTRAL PROBLEMS FACED
Communication
Communication system focused on instructing the sub-ordinates
Decline in the sales level as a result of the corporate culture.
affects the motivation level of the employees  negative impact on financial performance
METHODS
*Make bubbles when talking about methods*