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...