Mgt 230 - Organizational Structure Paper

Organizational Structure Paper

James K. Donnell

MGT/230

November 17, 2012

Matthew Palmer

In this Organizational Structure Paper we will be describing the organizational structure of the Wal-Mart Corporation. We will also evaluate how the organizational functions influence and determine the organizational structure, as well as explaining how organizational design helps determine which structure best suits the Wal-Mart Corporation.

The most important trait to any organization in the business world today is the functions within the organization. An organizing function of management outlines the practice in which individuals within the organization interact and work with each other. Among the many business enterprises and organizations that changes the world; Wal-Mart holds a very important position. Wal-Mart is the largest private employer in the world with over 8000 stores in 15 countries. As compared to other genuine companies that changed a lot in the world of entrepreneurs, Wal-Mart has a short, yet highly acclaimed story of success that is backed by brute force of efforts put in my many members and employees. This type of organization is a Public Company and was founded in Rogers, Arkansas of the United States of America. Sam Walton was the founder from March 29, 1918 to April 5, 1992, as the current headquarters is in Bentonville, Arkansas of the United States of America. Wal-Mart is a retailing, discount store, super markets, and has neighborhood shops with current revenue of 404.16 billion dollars and a net income of 13.59 billion dollars.

Organizational structure may be defined as the system of relations that subsist among a variety of positions and position holders. Formal structure is a blueprint of relations that has been knowingly deliberated and put into action. It includes a formal chain of command of power as well as policies and procedures and other premeditated attempts to control conduct. Wal-Marts organizational structure consists of divisional structure. A divisional structure has three different categories in which is product

Structure, market structure, and geographic structure. Wal-Mart falls under market structure. This is where groups function by types of customers so that each division contains the functions it needs to

service a specific segment of the market (George, Jones). For example Wal-Mart offers vision, pharmacy, beauty salon, grocery, crafts clothes, electronics, auto department, house wares and a whole lot more.

The two other businesses that are selected to show comparison and contrast are Kmart and Target. Kmart is one of the top