Walmart Stores Case Solution
1. Functional Strategies of Walmart
Functional strategies were made by Walmart to increase its growth, success, efficiency and brand image in the market, because it focused on the smaller towns and offered its products to the customers at discounted rates. Its efficiency was increased mainly by targeting the areas where the stores were not available or were being offered at higher price. The traditional market created an opportunity for the store to enhance and strengthen its operations by influencing the local people. However, the business was saturated in those towns where the available stores were offering their goods at higher prices. The functional market strategy of open book helped the business to grow and perform efficiently. The main reason of success and customers’ responsiveness was the low price strategy, which attracted the customers and created high ratio of current customers. The people got higher savings because of purchasing at affordable and cheap prices rather than buying same products from existing stores at much higher rates.The other reason was the economies of scales in purchasing in bulk and significant operations of logistics. For example; the purchasing price was $20 and selling in $4.84 because of the concept of economies of scale. Moreover, the increase in product line and selling at low prices, gave higher opportunity to Walmart in the retailing store industry. The efficient strategies supported the Walmart to increase its quality, innovate and create brand equity for the business.
2. Wal-Mart’s Business Level Strategy
Walmart’s business is completely owned by the Sam’s Club, which focuses on the bulk sales from the warehouse and sells its products to the customers at the discounted prices. The business level strategy of Walmart is quite different than the other stores,as it provides quality goods at much lower prices, especially in small towns, and generates higher revenue in its relevant industry.
2.1 Organizational Architecture of Walmart
2.1.1 Organizational structure
Walmart has hierarchal organizational structure where the vertical command system is implemented and the level is from top management to the lower management. The duties are assigned from the top management and designated to the further staff. There are different departments in the company, such as:technological, human resource,marketing and sales etc.
2.1.2 Control System
The control or incentive system of Walmart is dependent on the vertical system where the regulations and strategies are defined by the headquarters and are assigned to the regional managers and further to the store managers. There is a highly controlling process as well as an integrated system in the organization.
The organizational culture of Walmart has four basic components, which consist of behaviours, value, norms and guidance to the employees. The culture defines the support to the employees, respect to the customers and integration with the whole practice of the organization.
2.1.4 Human Capital
Walmart has quite good human capital because the store consists of higher human capital because of various outlets. The human capital is higher employee turnover because of pay scale and it has temporary labours as well, because of the hourly wage system. Moreover, Walmart believes in giving higher importance given to its employees after the criticism…………………………
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