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Wal-mart case study analysis
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Structure and Controls The structure of Wal-Mart is quite organic, and follows a relatively horizontal; structure. Although the top managerial layers remain vertical, responsibility for daily operations, marketing, customer relations and other activities resides within horizontally aligned groups. The Wal-Mart structure gives employees greater power to work directly with customers and suppliers. It also allows the company to respond faster and more effectively to customer needs. One principle that distinguishes Wal-Mart from other companies is its unusual depth of employee involvement in company affairs. Wal-Mart employees are considered to be associates of the company not just regular workers. Input is encouraged at meetings at both store and corporate level. This type of corporate culture helps to reduce the hierarchical gap within the company and encourage innovation, flexibility and communication within the company. Wal-Mart provides its customers with a vast selection of quality products at low prices through its use of an inventory control system and its dealings with suppliers. The buying power Wal-Mart possesses gives it an advantage over small retailers in product pricing.
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