Organizing Paper

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Date Submitted: 06/02/2008 07:45 PM

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Organizing Paper: Wal-Mart Corp

Sam Walton, a graduate from University of Missouri in 1940, is the founder of Wal-Mart. Walton franchised his first retail store as a Ben Franklin affiliated store in Newport, Arkansas after he returned from World War II. The following paper will summarize the organizational structure of Wal-Mart Corp. Wal-Mart’s organizational structure consists of a divisional structure. A divisional structure has three different categories which are product structure, market structure, and geographic structure. Wal-Mart falls under market structure. In 2nd July, 1962, Walton withdrew from Ben Franklin’s franchise and opened his own store incorporating his new idea, Wal-Mart Discount City in Rogers, Arkansas. Walton’s brilliant idea and successful operation allowed Wal-Mart expansion from one store to 38 stores across the United States within eight years. By implementing this organizational strategies, Wal-Mart became the first company to reach one billion dollars within nine years. In 2004 Wal-Mart has 4,906 stores world-wide, and $9 billion in profit. Despite some of controversial issues about its operational approaches, Wal-Mart’s dramatically rapid growth is phenomenal in the business community, and its successful business model has been eulogized world-wide.

Organizational Structure Comparison

How is Wal-Mart structured to reach its goal of saving people money so they can live better? (Wal-Mart Stores, Inc. [WMSI], 2008, p. 1) Wal-Mart has two organizational structures. The parent company is structured with functional divisions supporting the business segment divisions. Under the Chief Executive Officer who reports directly to the Board of Directors, Wal-Mart’s functional departments are specialized and grouped according to corporate functions with vice-presidents in charge of corporate affairs and public relations, personnel, finance, and information technology. Wal-Mart’s business segments are Wal-Mart...