Company is Walmart How has your organization responded to the design challenges?

Question

Company is Walmart

How has your organization responded to the design challenges?

(a) Is it centralized or decentralized? How do you know?

(b) Is it highly differentiated? Can you identify any integrating mechanisms used by your organization? What is the match between the complexity of differentiation and the complexity of the integrating mechanisms that are used?

(c) Is behavior in the organization very standardized, or does mutual adjustment play an important role in coordinating people and activities? What can you tell about the level of formalization by looking at the number and kinds of rules the organization uses? How important is socialization in your organization?

Does your analysis in item 3 lead you to think that your organization conforms more to the organic or to the mechanistic model of organizational structure? Briefly explain why you think it is organic or mechanistic.

From your analysis so far, what do you think could be done to improve the way your organization operates?

Explanation / Answer

Walmart is a centralised organisation. All of the employees inside the workplace are required to follow the companies policies which is usually called the 10 rules of Sam Walton which is closely implemented in to the organisation. All of these approaches are directly signature of a centralised Organisation in which everything is streamlined according to the origination of the core idea of the organisation. Definitely Walmart has their own differentiation strategy by lowering down the prices. Walmart uses low price cost differentiation technique for improving the overall availability among their competitors. This low pricing approach enables Walmart to get more of the market revenue by improving its overall availability of market range products as well as providing new products for lesser prices. As Walmart is very enormous in size maintaining this type of structure following down the cost and increasing the overall profit of the organisation by selling the maximum amount of products has always been beneficial for the company. Different forecasting tools as well as availability of best available suppliers using the electronic management system is one of the main ideas which is implemented into the Walmart for improving the overall cost revenue from the specific market segment in which they are operating. Market behaviour of Walmart case not specifically standardized. Mutual adjustment according to the region and situation where the walmart is opening its supermarket store is the most essential part of creating a more effective marketing strategy for improving the available resources as well as products. Company is heavily relying on human resources and creating more of the organic approach rather than focusing on machinist 1 model of the organisational structure. Walmart does have state of the art sorting and managing facility but their approach of getting more and more human resources into the organisational structure as always pushed them towards Being an organic structure. For improving the overall operational structure of the organisation, walmart can implement better strategy of treating its employees by improving the overall available sources for the employees as well as providing adequate pay scale for their employees as well.

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