Organization Structure Paper
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University of Phoenix
MGT/230
January 30, 2011
Organization Structure Paper
Organizational structure and functions are the basis of any company whether small or large. Each structure benefits different styles of businesses and have different benefits and downfalls. When deciding which organizational structure a business is or should follow, executives and management must consider how they are going to delegate tasks to operate efficiently and core competence.
A functional organization works well for a smaller sized company that is able to be monitored by a single executive or manager. Divisional organizations can be good for larger businesses that are located in different areas of the country and have the same functional operations throughout the divisions. A matrix organization can be for either a small of larger company since it incorporates both functional and divisional structures. This paper will discuss the different organizational structures and functions and how they affect one of the largest corporations in the country; Wal-Mart.
Wal-Mart was founded in 1962 by Sam Walton who opened up the first store in Arkansas. The first store was a basic discount store providing its customers with low cost products. In 1983, Sam Walton expanded the Wal-Mart brand name to include its first Sam’s Club, a member’s only store warehouse that offers bulk items from everything to clothing to household cleaning items to food. In 1988, Wal-Mart opened its first supercenter store that offers a functional grocery sector as well as its general merchandise area. Sam was able to establish more Wal-Mart stores when stock for the company was offered on the New York Stock Exchange, providing him with enough capital to offer his discount superstore across the country. There are over 633 stores open nationwide and in 28 countries around the world (Walmartstores.com, n.d.).
Wal-Mart has successfully met the demands of its customers by adding products to its...
MGT/230
January 30, 2011
Organization Structure Paper
Organizational structure and functions are the basis of any company whether small or large. Each structure benefits different styles of businesses and have different benefits and downfalls. When deciding which organizational structure a business is or should follow, executives and management must consider how they are going to delegate tasks to operate efficiently and core competence.
A functional organization works well for a smaller sized company that is able to be monitored by a single executive or manager. Divisional organizations can be good for larger businesses that are located in different areas of the country and have the same functional operations throughout the divisions. A matrix organization can be for either a small of larger company since it incorporates both functional and divisional structures. This paper will discuss the different organizational structures and functions and how they affect one of the largest corporations in the country; Wal-Mart.
Wal-Mart was founded in 1962 by Sam Walton who opened up the first store in Arkansas. The first store was a basic discount store providing its customers with low cost products. In 1983, Sam Walton expanded the Wal-Mart brand name to include its first Sam’s Club, a member’s only store warehouse that offers bulk items from everything to clothing to household cleaning items to food. In 1988, Wal-Mart opened its first supercenter store that offers a functional grocery sector as well as its general merchandise area. Sam was able to establish more Wal-Mart stores when stock for the company was offered on the New York Stock Exchange, providing him with enough capital to offer his discount superstore across the country. There are over 633 stores open nationwide and in 28 countries around the world (Walmartstores.com, n.d.).
Wal-Mart has successfully met the demands of its customers by adding products to its...