Walmart is a very good example when it comes to identifying a global and enormous company that lowers prices on its products and services

Walmart is a very good example when it comes to identifying a global and enormous company that lowers prices on its products and services. It is a United States multinational company with over 11,000 locations in 28 countries all over the world (“Location Facts,” n.d.). Sam Walton, who was born in 1918 in Kingfisher, Oklahoma, opened the first official Walmart in 1962 in Rogers, Arkansas (“Our History,” n.d.). Since then, it has expanded and grown tremendously for almost fifty years. By 1967, Walmart had 24 stores in operation in the United States that brought in $12.7 million in sales, and two years later, it would become officially known as Wal-Mart Stores, Inc. (“Our History,” n.d.). The broadest assortment of products that are offered by Walmart either in person or online includes but are not limited to groceries, sporting goods, crafts, apparel, entertainment, toys, hardware, household supplies, beauty aids medical aids, and more. Pharmacy, auto, and vision center services, as well as housing specialty shops such as hair and nail salons, fast food chains, and banks, are services that Walmart can usually offer and provide. Furthermore, Walmart has focused on the aspects of marketing online and augmenting its capabilities of connecting more with its customers by offering a variety of features such as shopping online, pickup ordering, and simpler methods of paying (“Our Business,” n.d.). However, the success of Walmart surviving as a well-known company worldwide is not only dependent upon how many different types of products and services it can offer, but it is also dependent upon its management and organizational methods.
Upon closer examination and analysis of Walmart’s overall management and organization methods and styles, a better understanding can be attained on how Walmart may have rose through the ranks over the years in commerce, business, and retail. Dr. Jerry Westbrook’s Integrated Management Model helps identify a few reasons that contributed to Walmart’s success. Westbrook’s model examines both the principles and styles of management, and consist of five elements: external environment, internal environment, management systems, organization structure, and people orientation (Shah, 2012). Walmart’s external factors is recognized though its customers, competitors, and the community. By bringing in annual profits of $10 billion, it is strong evidence alone that Walmart serves a large global number of customers (Mujtaba, 2007). It’s Every Day Low Price (EDLP) has been a way for them to compete with other competitors such as Target, Food Lion, and other big stores as well, because it allows them offer convenience of one-stop shopping (“Our Business,” n.d.). Walmart also gained support through the community by creating more better opportunities for people, making a positive impact in lives, and contributing donations (“Our Focus,” n.d.). This was done and managed effectively through the creation of the Walmart Foundation. A major factor of the internal environment is Walmart’s facilities and employee demographics. Walmart realized as it was growing that the economy was becoming more open to globalization and diversity, and thus responded by creating more diversity in all areas of the company (Mujtaba, 2007). In regard of the management system, Walmart employs several management styles to help manage their large company of products and services. They deploy quantitative, operations, reengineering, and total quality management to assist with millions of customers and demands daily (Mujtaba, 2007). Utilizing bar codes on thousands of products, for example, was one method regarding both the quantitative and operation management. However, without an effective organizational structure established by Walmart, many management systems might have struggled or failed.
Because Walmart is such a huge company, the organizational structure can be described as very hierarchical and complex. The structure also consists of control systems. Walmart consist of mainly an Executive Management, a middle management, and an operational management organization, as well as a Board of Directors (Dudovskiy, 2016). Every member is expected to carry out every day governance and leaderships. The organization can also be described as a team-based organization. At the top of the structure are people in the Executive Management (as shown in Figure 1 below), followed by the people working under them such as senior managers or vice presidents, and lastly people in the operational level working for those people above them (as shown in Figure 2 below). They each help show some departmentalization. In addition, the Executive Management organization represents a flat organization with a wider span of control while the Operational Level represents more of a tall organization with narrow spans.