factors influencing organization success a case study of walmart

Factors Influencing Organization Success: A Case Study of Walmart

Walmart was established by Sam Walton and beginning as a small discount retailer in Rogers, Arkansas in 1962. This paper investigates how Walmart become popular and successful in retail business around the world and how they perform well in sales. This study found that some factors were leading to the success of Walmart. Since then, Walmart has become the most trusted retailer that creates value for business and society.

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FACTORS INFLUENCING SMALL FARMERS’ PARTICIPATION IN THE EXTENSION OF TEA FARMING: A CASE OF ILAM, NEPAL

Tea is one of Ilam’s most significant sources of foreign exchange as well as a source of employment and income for the farmers. The quality of Ilam tea is actually among the best in the world but the quantity is still a challenge. In order to increase the quantity of the orthodox tea, farmers are encouraged to extend tea farms. The extension of land under tea cultivation in previous years, Importance of being a member of a cooperative, the source of credit, off-farm employment, the harvest quantity influenced extension positively to farmers while education level, the main occupation did not influence the participation of the farmers in the extension of tea farming. Based on the results the study recommends increasing the farmer’s awareness to join the cooperative. It is suggested that the tea factory and infrastructures should be made easily available to minimize costs and increase benefits. The factors influencing small farmers' participation within the extension of tea farming were studied using both primary and secondary source of data through interviews with 196 tea farmers in Jitpur and Mangalbare areas of Ilam district as a case study. The participants were involved in tea cultivation at least for the last five years. In this study, a detailed analysis of the factors have been carried out. KEYWORDS- cooperative, extension, factors, orthodox tea, small farmers

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Hiperemesis gravidarum pada ibu hamil di klinik bidan supriyati sribit berbah sleman.

Backgroud: The World Health Organization (WHO) explained that the number of Hyperemesis Gravidarum cases reached 12.5% of the total number of pregnancies in the world and the results of the Demographic Survey conducted in 2007, stated that 26% of women with live births experienced complications. The results of the observations conducted at the Midwife Supriyati Clinic found that pregnant women with hyperemesis gravidarum, with a comparison of 10 pregnant women who examined their contents there were about 4 pregnant women who complained of excessive nausea and vomiting. Objective: to determine the hyperemesis Gravidarum of pregnant mother in clinic. Methods: This study used Qualitative research methods by using a case study approach (Case Study.) Result: The description of excessive nausea of vomiting in women with Hipermemsis Gravidarum is continuous nausea and vomiting more than 10 times in one day, no appetite or vomiting when fed, the body feels weak, blood pressure decreases until the body weight decreases and interferes with daily activities days The factors that influence the occurrence of Hyperemesis Gravidarum are Hormonal, Diet, Unwanted Pregnancy, and psychology, primigravida does not affect the occurrence of Hyperemesis Gravidarum. Conclusion: Mothers who experience Hyperemesis Gravidarum feel nausea vomiting continuously more than 10 times in one day, no appetite or vomiting when fed, the body feels weak, blood pressure decreases until the weight decreases and interferes with daily activities, it is because there are several factors, namely, hormonal actors, diet, unwanted pregnancy, and psychology.

ANALYSIS OF FACTORS INFLUENCING THE WORLD TRADE VOLUMES

Social design for services framework.

This paper addresses the fields of social and service design in development contexts, practice-based and constructive design research. A framework for social design for services will be explored through the survey of existing literature, specifically by drawing on eight doctoral theses that were produced by the World Design research group. The work of World Design researcher-designers was guided by a strong ethos of social and service design for development in marginalised communities. The paper also draws on a case study in Namibia and South Africa titled ‘My Dream World’. This case study presents a good example of how the social design for services framework functions in practice during experimentation and research in the field. The social design for services framework transfers the World Design group’s research results into practical action, providing a tool for the facilitation of design and research processes for sustainable development in marginal contexts.

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“We Need People to Lean into the Future”

• Adi Ignatius

For years, Walmart’s unrivaled customer research capabilities helped it dominate retailing. Then along came the internet, and Walmart suddenly found itself playing catchup to e-commerce pioneers like Amazon. In 2014 the board appointed Doug McMillon as CEO and gave him an imperative: Bring Walmart into the future—without sacrificing its longtime strengths.

McMillon, who began his career unloading trucks at a neighborhood Walmart, respects tradition but is impatient for change. In this interview with HBR editor in chief Adi Ignatius, he describes the ups and downs of transforming America’s largest company. Going digital is a top priority—which is why Walmart recently paid $3 billion to acquire e-tailer Jet.com. But the company also wants to strengthen the in-store experience. “The reality,” notes McMillon, “is that customers want everything”—low prices, convenience, and seamless interactions online and in person. In this new world, all employees, including those on the sales floor, will need to be tech savvy. And the management team can no longer make strategic decisions on an annual or even quarterly basis; “strategy is happening on a much faster cycle time,” says the CEO.

A conversation with Walmart CEO Doug McMillon

For years, Walmart seemed to understand exactly what its customers wanted. It developed complicated consumer analytics and used that data, along with relentless pressure on suppliers, to become a retail powerhouse that sold practically everything at the lowest possible prices.

• Adi Ignatius is the editor in chief of Harvard Business Review.

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Walmart's Omnichannel Strategy: Revolution or Miscalculation?

By: Ramon Casadesus-Masanell, Karen Elterman

This case describes Walmart's omnichannel strategy in 2018 as it battled Amazon for online retail market share. The case discusses Walmart's early forays into online retail, as well as its 2018…

• Length: 50 page(s)
• Publication Date: Aug 28, 2019
• Discipline: Strategy
• Product #: 720370-PDF-ENG

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This case describes Walmart's omnichannel strategy in 2018 as it battled Amazon for online retail market share. The case discusses Walmart's early forays into online retail, as well as its 2018 strategy, which aimed to integrate Walmart's enormous brick and mortar footprint with its growing ecommerce business, e.g., through merchandise and grocery delivery and order online, pickup in store options. Walmart's strategy also included the acquistion of Jet.com (in 2016) as well as the acquistion of a number of other specialty eretailers (e.g., Shoes.com , Moosejaw, Bare Necessities) and digitally-native vertical brands that developed their own products and sold them directly to consumers, such as ModCloth, Bonobos, and Eloquii. In addition to building its online marketplace, Walmart hoped to leverage its existing assets, such as its massive network of retail stores and thriving grocery business, in the fight against Amazon. The case poses the question: Could Walmart successfully compete against Amazon and other online retailers in areas such as grocery delivery, product selection, shipping costs, and delivery times?

Learning Objectives

To provide students with an understanding of the decisions Walmart made in developing its omnichannel business, including decisions related to its marketplace, online acquisitions, technological development, and distribution strategies.

Aug 28, 2019

Discipline:

Harvard Business School

720370-PDF-ENG

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Walmart's Workforce of the Future

Any discussion of the future of retail—or how we work—has to include Walmart. As of 2017, 90 percent of the US population lived within 10 miles of a Walmart store; with 11,766 locations worldwide and $514 billion in annual revenues, the discount store also has the distinction of being the largest private employer in the United States, with 1.5 million workers (2.2 million worldwide).

But that size and dominance doesn’t make Walmart immune to pressures faced by any other retail operation. In the second-year Harvard Business School course Managing the Future of Work , Professor William Kerr explores how technology and demographics are changing the way companies like Walmart, and their workers, operate.

“The pace of change in the retail sector is truly extraordinary,” says Kerr, the D’Arbeloff Professor of Business Administration and co-director of Harvard’s Managing the Future of Work initiative . “That requires a lot of reskilling of employees and hard choices, in an uncertain environment, in terms of how to deploy capital.”

“This digital transformation creates new jobs, but, more important, it changes the nature of jobs, even entry-level ones.”

Kerr captures that dilemma by detailing the scope of Walmart’s operations and current strategies in the case “Walmart’s Workforce of the Future.” Published in April, it offers an overview of the considerable investments the retail giant is making in its e-commerce infrastructure, in its employee training and support, and in technological innovations such as robot workers and in-house incubators.

Walmart fights a revenue drop

The case details how the rise of ecommerce (and the success of Amazon in particular) affected Walmart’s discount stores (which sell general merchandise but limited grocery items), resulting in a decrease in annual revenue at those stores from $142.5 billion in 2009 to 97.7 billion in 2018. During the same time period, revenue at Walmart’s “supercenters” (larger stores that also sell groceries and often include services such as eye care, beauty salons, and photo studios) increased by 16 percent, from $409.9 billion to $476.2 billion. (Walmart closed 2,214 discount stores or converted them into other formats from 1993 to 2018, with 2,576 supercenters opening during that time.)

In addition to increasing Walmart’s supercenter footprint, CEO Doug McMillon’s omnichannel strategy focuses on a seamless approach to the customer experience, with an emphasis on employee training and improved ecommerce and automation technology, both on the floor and in back office roles.

One foundational move to beef up its technology was Walmart’s $3.3 billion acquisition of online retailer Jet.com in 2016, an investment that immediately improved its ecommerce infrastructure. Walmart has also piloted and invested in robots to perform a variety of functions, from unloading trucks to scrubbing floors to scanning shelves and bringing items out of storage for curbside delivery orders. But public statements by senior executives made it clear that Walmart was equally committed to the complex, costly effort required to train its human workers.

“I want to be clear that we don’t believe technology is the answer to everything,” McMillon stated in a 2017 annual shareholder meeting. “The secret to success will always be our people. … It will be our humanity that drives our creativity, powers our competitive spirit, and keeps us out in front.”

Technology changes the nature of work

But at the same meeting, McMillon also acknowledged how technology changes the nature of work itself, a perspective echoed by Walmart Chief Sustainability Officer and Walmart Foundation President Kathleen McLaughlin. “…we’re now a tech company as much as a retail company,” Mc Laughlin said. “This digital transformation creates new jobs, but, more important, it changes the nature of jobs, even entry-level ones.”

Those demands require more of workers—and an equivalent commitment to re-skilling and compensation. In the case, Kerr cites Walmart’s investments in wages and training for employees of $1.2 billion and $1.5 billion in 2015 and 2016—part of a move that boosted starting pay for frontline associates from $9 per hour in 2015 to $10 in 2016 (it hit $11 per hour in early 2018). Yet in 2015, announcement of a wage increase resulted in a share price drop the following day of 10 percent, on news that the increase would cut earnings per share by 6 to 12 percent in 2016. It’s a dynamic that lays bare for MBA students the consequences of senior leadership’s choices, says Kerr.

“It’s easy to be critical and say that Walmart should be doing more, but when students review the company’s actions over the past five years, they have to confront the fact that every time the minimum wage went up, the stock price went down—and meanwhile, competitors have better margins.”

The case also outlines Walmart’s approach to training its workers, including its focus on building long-term, transferable skills through efforts such as Pathways, a program that teaches associates about the retail business model, explains the “why” behind the work they’re asked to do, and helps develop the soft skills that are useful in any field. Workers who completed the program received a raise and had increased job opportunities; however, many complained that it lacked clarity and that it took too long to move through the various modules. While Walmart planned for 500,000 employees to go through Pathways in 2016, the initial rollout was considerably lower; as a result, Walmart needed to revamp some parts of the program to speed up its completion rate. (Its Academies program, focused on training and empowering hourly supervisors to directly manage team members, faced similar challenges.)

In another move to build a more skilled, educated workforce, Walmart introduced a program in 2018 that offered workers the opportunity to enroll in online degree programs for $1 a day in business, technology, and supply chain management at three different universities; in June 2019, the program expanded to six universities and 14 areas of study, including cybersecurity and computer science. Widely hailed in the press for the opportunity it offers workers to graduate from college debt-free, the program has seen 7,500 employee enrollments in its first year.

“There’s so much to unpack in the choices that Walmart is making,” Kerr says, remarking that management has also introduced virtual reality goggles to train employees as well as an app, Spark City, that uses a game-type simulation to teach workers about store processes and customer service. Walmart has even crossed over with the gig economy by partnering with platforms including DoorDash, Postmates, Uber, and Lyft for package and grocery delivery.

‘You’re the CEO of Walmart’

So, is Walmart making the right investments for its future? “We spend a lot of time in conversation in this class,” says Kerr. “I’ll say, ‘You’re the CEO of Walmart. What would you have done differently? In 2030, what will your workforce look like? How much of your sales will be in-store, and how much online?

“An early indication of the uncertainty of the future is that, with a bunch of smart MBAs, we had a wide, wide range of opinions as to what the future looks like. From some putting all their chips on ecommerce to others who see Walmart as having a powerful position, particularly in more rural areas, where it can be the one place you go to get your prescriptions, do your shopping, and pick up your ecommerce packages—so building on that, rather than trying to become Amazon.”

Analysts generally give Walmart strong marks for how its investments in technology and training have set it up to compete.

“The progress that they’ve made and the strength they still possess has been working out for them to a good degree,” says Kerr. But it’s too soon to tell whether they have established themselves in a way that will allow them to truly excel. “That’s where the jury is still out. They are still defining the Walmart of the future.”

About the Author

Julia Hanna is an associate editor of the HBS Alumni Bulletin [Image: artran]

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Walmart’s Organizational Structure & Company Culture

Walmart’s organizational structure determines the company’s business activities. Currently, these activities are in the retail industry, including operations in the e-commerce market. The company’s corporate structure also imposes limits on how the business addresses its problems. Structural characteristics help facilitate the company’s strategic implementations in capturing a bigger share of the retail market. On the other hand, Walmart’s organizational culture determines the way people respond to challenges in the workplace. The resilience of the company’s human resources partly depends on the mindset supported through the corporate culture. Cultural features help the retail business adapt to changes and emerging challenges in the international market. The long history of Walmart Inc. in succeeding and continually growing internationally shows that the firm’s organizational structure and organizational culture are helpful in bringing competitive advantages and success. The organizational structure interacts with the organizational culture to maintain the significant competitive advantage of Walmart against other firms, such as Home Depot , Costco , Amazon and its subsidiary, Whole Foods , as well as many other smaller retail businesses.

Formerly named Wal-Mart Stores Inc., the company has a leadership position in the industry. Such a retail market position and potential long-term business success are linked to the beneficial and synergistic combination of the company’s organizational structure and organizational culture. The characteristics and implications of the corporate culture are influenced by how the corporate structure supports human resource development and other aspects of Walmart’s retail business operations, such as marketing , and strategic formulation and organizational design founded on the company’s mission and vision .

Walmart’s Organizational Structure

Walmart has a hierarchical functional organizational structure . This structure has two features: hierarchy and function-based definition. Hierarchy is a feature pertaining to the vertical lines of command and authority throughout the retailer’s organizational structure. For example, except for the CEO, every employee has a direct superior. Directives and mandates coming from the top levels of the company’s management are implemented through middle managers down to the rank-and-file employees in Walmart stores. On the other hand, the function-based definition feature of the company’s corporate structure involves groups of employees fulfilling certain functions. For example, Walmart has a department for the function of human resource management. The company also has a department for the function of information technology, and another department for the function of marketing. These are just some of the numerous function-based departments in Walmart’s organizational structure.

The main effect of Walmart’s hierarchical functional organizational structure is the ability of corporate managers to easily influence the entire organization. For example, new policies and strategies developed at the company’s corporate headquarters are directly passed on to regional managers down to the store managers. In this way, effective monitoring and control are achieved through Walmart’s hierarchical functional organizational structure. However, a downside of this corporate structure is that it has minimal support for organizational flexibility. The lower levels of the organizational structure cannot easily adjust business practices because of the lengthy communications and approval process involving the middle managers and corporate managers at Walmart’s headquarters.

Walmart’s Organizational Culture

Walmart’s organizational culture has four main components. These components guide employees’ behaviors, which determine organizational capacities to add value in the provision of retail service and related services to consumers. The cultural components are also identified as Walmart’s beliefs:

• Service to customers
• Respect for the individual
• Strive for excellence
• Action with integrity

In terms of service to customers, the company prioritizes customers in its operations. Walmart also recognizes the contributions of each employee to the success of the business. In addition, the firm strives for excellence in the performance of individual workers, teams, and the entire organization. In terms of maintaining integrity, Walmart promotes the virtues of honesty, fairness, and impartiality in decision-making processes.

Recommendations for Walmart’s Organizational Culture and Structure

Walmart’s organizational structure is ideal for the company’s type of business and global scope of operations. Managerial control and influence are maximized through this corporate structure, despite the vastness of the company’s retail and related operations. However, Walmart can improve in applying its beliefs in the context of its organizational culture. These beliefs are ideal. Still, the company is frequently criticized for its failure to address employees’ concerns regarding low wages. Such criticisms point to the difference between the belief of respect for individuals in the organization’s culture, and the actual treatment of the employees. Thus, a suitable recommendation for Walmart is to implement more effective measures for fulfilling the respect for the individual component of the organizational culture.

• Arena, M., Hines, S., & Golden III, J. (2023). The three Cs for cultivating organizational culture in a hybrid world. Organizational Dynamics, 52 (1), 100958.
• Chindasombatcharoen, P., Chatjuthamard, P., & Jiraporn, P. (2023). Corporate culture, cultural diversification, and independent directors: Evidence from earnings conference calls. Journal of Behavioral and Experimental Finance, 37 , 100773.
• Junge, S., Luger, J., & Mammen, J. (2023). The role of organizational structure in senior managers’ selective information processing. Journal of Management Studies, 60 (5), 1178-1204.
• Sayyadi, M. (2022). Cut the confusion out of your corporate structure. HR Future, 2022 (6), 52-54.
• Walmart Core Values .
• Walmart Inc. – Form 10-K .
• Walmart Inc. – Leadership .
• Working at Walmart .
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A Case Study of Wal-Mart's "Green" Supply Chain Management

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Walmart Policy and Sustainability Challenges

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Global companies' primary goals are global expansion, sustainability, and considerable market. Sam Walton founded the US retail giant Walmart in 1962. It manages widespread networks of discounted retail warehouses and stores (Williams, 2019). In 2022, Walmart took first in Forbes's Top 500 Fortune companies in market capitalization (Struckell et al., 2022). It is in several nations, including the USA, Argentina, Canada, and Brazil (Williams, 2019). For an extended period, Walmart has endured criticism for its dismal employee treatment, which has been the primary reason for global complaints. This international attention has hindered its global expansion, such as the failure t penetrate the German market. Several factors, including the company's supposedly poor pricing policies and low wages, have contributed to Walmart's rising negative brand image. Despite the company's critics, economists maintain that Walmart has a net beneficial impact on the global economy because it is the largest employer worldwide, with about 2.2 million employees (Alshahari, 2021). The company should re-evaluate its policy to curb growing competition and consumer-changing behavior. Policy and operational adjustment provide a solution to Walmart achieving its sustainability goals and retaining its market share.

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Walmart was established by Sam Walton and beginning as a small discount retailer in Rogers, Arkansas in 1962. This paper investigates how Walmart become popular and successful in retail business around the world and how they perform well in sales. This study found that some factors were leading to the success of Walmart. Since then, Walmart has become the most trusted retailer that creates value for business and society.

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This research aims to provide insight regarding Wal-Mart’s retail development strategy in its expansion across the continental United States. The study examines store location patterns and relationships between Wal-Mart’s store and distribution center locations and markets. The study shows that, although radial expansion is broadly characteristic of the dense store patterns that have been well established for Wal-Mart at the national level, expansion patterns at the regional level are consistent with a selective process based on factors other than store density. These results provide a new perspective on Wal-Mart’s expansion, providing insights of value to retail practitioners and local government. Key Words: distribution center location, location intelligence, retail chain expansion, store location, Wal-Mart.

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Wal-Mart has been both praised and pilloried as a template for twenty-first century capitalism. Therein lies the challenge in analyzing the world's largest retailer. We examine the sociological impact of Wal-Mart in terms of four themes: its business model and organizational structure, the dual impact of Wal-Mart's labor relations in terms of its own stores and working conditions in its

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