Walmart

Wal-Mart (Successful) “A divisional structure on the other hand, functions is grouped according to the specific demands of products, markets, or customers” (Jones, 2004, p. 167). The advantage of a divisional structure is that it creates smaller, more manageable subunits within an organization (Jones, 2004). Wal-Mart was founded in 1962, with the opening of the first Wal-Mart discount store in Rogers, Ark. The company incorporated as Wal-Mart Stores, Inc., on Oct. 31, 1969. The company's shares began trading on OTC markets in 1970 and were listed on the New York Stock Exchange two years later. The company grew to 276 stores in 11 states by the end of the decade. In 1983, the company opened its first Sam’s Club membership warehouse and in 1988 opened the first supercenter -- now the company’s dominant format -- featuring a complete grocery in addition to general merchandise. Wal-Mart became an international company in 1991 when it opened its first Sam's Club near Mexico City (Wal-Mart, 2010). Currently Wal-Mart has 8,416 stores and clubs in 14 markets and employs over 2.1 million associates while serving 176 million customers a year Wal-Marts history is an illustration of how to manage organizational growth without losing organizational values. Wal-Marts organizational value has and remains to be customer service. To ensure that Wal-Mart retains its organizational values (customer Service) Wal-Mart strives to be a divisional organization. Wal-Mart has evolved into an organization that is divisional. Wal-Mart has many managers that oversee each of the organizations divisions. The managers are responsible for success of his or her division. Allowing each manger to have his or perspective division on the other hand, allows the manager to focus on meeting organizational goals. Wal-Mart Stores, Inc. is structured by divisions like Wal-Mart Stores, Wal-Mart International, and Sam’s Clubs. Wal-Mart retail divisions were created to meet the demand of consumers. The Wal-Mart discount stores provides general merchandise well lit aisle, stocked shelves with item that is essential to one’s family like apparel, automotive products, health and beauty aids, home furnishings, electronics, hardware, toys, sporting goods, lawn and garden items, pet supplies, jewelry, and house wares. The Wal-Mart Supercenter meets s the consumer demand of one stops shopping. Wal-Mart Supercenters combines full grocery lines and general merchandise under one roof. Wal-Mart neighborhood markets provide consumers with groceries pharmaceuticals and general merchandise. The Wal-Mart neighborhood markets are generally located in markets with Wal-Mart Supercenters. The Sam’s Club on the other hand is also a division of the Wal-Marts organization. The Sam’s club is the leading member’s only warehouse that offers consumers a broad range of large volume products at low prices. In addition to Wal-Mart, Wal-Mart Supercenters, Wal-Mart neighborhood markets, Sam’s Club Wal-Mart International operates member warehouse and stores in 13 markets outside the continental United States “As an organization increases the kinds of goods it manufactures or the services it provides, a functional structure becomes less effective at coordinating task activities” (Jones, 2004, p. 167). Wal-Mart has evolved into a divisional structure that offers consumer in different markets, products that are low in price that is developed to meet consumer demands who are located geographical around the world. Wal-Marts divisional structure is beneficial to the organization accomplishing its goals. TRW Systems (Successful) “An organization with a matrix structure is differentiated into whatever functions the organization needs to achieve its goals. The matrix organization on the other hand, is flat, having minimal hierarchical levels within each function and decentralized authority” (Jones, p. 183). TRW Systems is one of the largest U.S. defense contractors, uses the matrix structure to create the Atlas and Titan rockets, which on the other hand, was the mind behind the United States Space Program in the 1960s. TRW in the 1960 operated as a matrix organization in the 1960’s. TRW main function is to supply automobile manufactures with parts while servicing smaller operations like space and defense technology and information systems services. A matrix organization has many advantages and the first is the cross functional team which is designed to reduce functional barriers and overcome the problems of subunit orientation. The second advantage is that the matrix structure starts with communication among functional specialist and creates a chance for team members of various functions to learn from one another and enhance his or her skills. The third advantage is the matrix allows an organization to maximize its use of skilled professionals, who alternate from product to product as he or she needs. The fourth advantage of the matrix structure is the dual functional and product focus on endorsing concern for both cost and quality. The main objective is that the functional specialists is likely to be technical (producing the highest quality, most innovative product possible. In addition to the matrix structures advantage on the other hand there are disadvantages the matrix structure lacks the advantages of the bureaucratic structure. The matrix lacks a control structure that leads employees to develop stable expectations of one another without a structured hierarchy of authority conflict may arise. In the end the matrix structure must be managed carefully if the advantages are to outweigh the disadvantages. TRW on the other hand in 1970 and early 1980 experienced a major lost that later on would cause the organization millions of dollars. TRW organizational structure suffered the most and “as an example of poor planning misunderstood markets and organizational barriers caused senior executive to reassess the organization structure, planning and reporting system. (Dyer, 1980) Reference Dyer, D. (1998). Trw : Pioneering technology innovation since 1900 . Cambridge, MA: Harvard Business Press. Jones. (2004). Organizational theory, design, and change, 4th ed.New Jersey: Pearson-Prentic Hall. Wal-Mart . (2010). Wal-Mart . Retrieved from http://walmartstores.com/AboutUs/297.aspx