Wal-Mart Case Study
Organizational Behavior Evaluation – Wal-Mart Stores, Inc.
The open systems theory and resource dependence theory state that organizations maintain fluid and changing relationships with organizations in their environment (Scott, 2003). A complex environment could substantially affect the functioning and potential survival of the organization. Managers must address all conflict and uncertainty in which should come as no surprise that complexity is also a defining feature of life in organization.
The first part of this paper introduces the background information about Wal-Mart Stores. The following section includes an evaluation of the organizational behavior, design, and structure of Wal-Mart Stores. The next part includes the assessment of Wal-Mart design strategy and the anticipated impact of environmental internal and external changes. This study also identifies the manifested theories in the organization as well as the impact of omitting other theories. The final part consolidates the indicators of success and failures in the organization, and provides recommendations for future business potentials. Several parts of this document were inspired by the work of Grace S. Thompson (2007).
Wal-Mart Stores Background
In 1962, Sam Walton opened the first Wal-Mart store in Rogers, Arkansas. Walton introduced a “good concept” that involved large stores selling to consumers a wide selection of products at discount prices. This concept was also part of Wal-Mart’s “everyday low prices” strategy. Wal-Mart was able to generate profits while maintaining low prices by using sales volume and unique marketing strategy (MarketLine, 2009). To stimulate business expansion, Walton implemented a warehouse distribution strategy by building warehouses to store large volume of merchandise (Wood, 2008). Walton built stores in close distance to the distribution points. This strategic business practice has reduced Wal-Mart’s distribution costs, increased control over operations,
The open systems theory and resource dependence theory state that organizations maintain fluid and changing relationships with organizations in their environment (Scott, 2003). A complex environment could substantially affect the functioning and potential survival of the organization. Managers must address all conflict and uncertainty in which should come as no surprise that complexity is also a defining feature of life in organization.
The first part of this paper introduces the background information about Wal-Mart Stores. The following section includes an evaluation of the organizational behavior, design, and structure of Wal-Mart Stores. The next part includes the assessment of Wal-Mart design strategy and the anticipated impact of environmental internal and external changes. This study also identifies the manifested theories in the organization as well as the impact of omitting other theories. The final part consolidates the indicators of success and failures in the organization, and provides recommendations for future business potentials. Several parts of this document were inspired by the work of Grace S. Thompson (2007).
Wal-Mart Stores Background
In 1962, Sam Walton opened the first Wal-Mart store in Rogers, Arkansas. Walton introduced a “good concept” that involved large stores selling to consumers a wide selection of products at discount prices. This concept was also part of Wal-Mart’s “everyday low prices” strategy. Wal-Mart was able to generate profits while maintaining low prices by using sales volume and unique marketing strategy (MarketLine, 2009). To stimulate business expansion, Walton implemented a warehouse distribution strategy by building warehouses to store large volume of merchandise (Wood, 2008). Walton built stores in close distance to the distribution points. This strategic business practice has reduced Wal-Mart’s distribution costs, increased control over operations,