5.0 Organisation Culture of Wal-Mart that lead to success Wal-mart, is known to be a successful organization which has its beliefs and persistence in doing business of its own way. The founder of Wal-mart, Sam Walton, has a vision for Wal-mart, which is to sell their product as cheap as possible but at the same time, some profits must be earn. To Sam Walton, one needs to be simple and easy to make things possible. Just like what he had done to work with all his supplier and associates to make the organization grow. Wal-mart’s competitors once doubted the thought of Sam Walton’s idea that a successful business could be built around offering lower prices and great service would never work.
Sam Walton was selling supplies cheaper than other companies that way people who were less fortunate could afford it. However people did not stop to notice he is putting companies around his out of business. Other local business are selling supplies normal priced or high end prices because of the quality. The quality from the retailer stores around Walmart is more reliable and durable. Also Sam Walton is receiving his merchandise from overseas which causes his products to be cheaper.
However, it is not yet clear if the company satisfies the live better component of the mission statement. There are criticisms on Walmart’s very low wages that are barely enough for employees to make ends meet. There are also criticisms about the long-term effects of the firm’s continued large-scale sales of cheap and sometimes hazardous imported
Sam Walton a global market and transformational leader who has the vision to sell volume over profit. His vision gave him the opportunity to own and operate a single store in a small town in Arkansas and transformed his business to be one of the biggest corporation with over 4,000 stores in the United States. Sam Walton operate his company, Walmart, with compassion and love for his employees living with moral and ethical standards. He led by example, cared for his workers, customers, and most of all being a servant leader he is. He revolutionized and made a constant inspiration and made a huge impact in the retail industry.
The needs and motivating factors are changing due to the shift in socio-economic structure and multicultural approach. Managing the employees in order to enhance the organizational performance has been a major challenge for the multinational companies. Wal-Mart has been encountering some issues regarding organizational behavior. Mistreatment with the employees have been reported which is the result of poor organizational culture (Pendola, 2014). The role of leaders has been questioned in case of Wal-Mart.
How, in your opinion, did those strategies contribute to the retail chains international success? If you look to how Wal-Mart started its global expansion, at first in mind they took it as a trial and error method and learned about the countries they have entered and merged with local retail stores. Merging gave them inside information as to how the people in the country carry out their shopping, once merged and with goodwill, supply chain, and knowledge in place they took it forward and improved it may it be the supply system, technology, replenishments etc. These strategies at most especially the merger to gain local knowledge and in a foreign country show themselves as locals, showing they understand the locals and serve the locals paid dividends. Wal-Mart inability to localize operations to adapt to local culture and business methods were cited as reasons for it exist from South Korea and Germany in 2006.
The company was among the first retailing firms across the globe to centralize its distribution system using the hub-spoke system. The system has enabled Wal-Mart to enjoy substantial cost advantages (Walmart, 2017). Additionally, the remarkable growth of the company over the years is largely attributed to its reduction of costs through its other efficient and effective supply chain management practices. The strengths of the supply chain are discussed in the successive parts of this paper. Making Investment in Emerging Technology Wal-Mart has heavily invested and continues to invest in communications and IT systems to successfully track merchandise inventories and sales in its stores across the areas that it operates.
Sam Walton was able to shift a rural company into a worth billions of dollar corporation through hard work and dedication. His Strong leadership capability was the essential component that drove Wal-Mart into becoming a successful corporation. Sam Walton had many characteristics that made up a strong leader. The main characteristic that made Sam Walton successful in business were trait approach, style approach, skills approach, situational approach, and leader-member exchange theory. There are numerous characteristics that Sam Walton showed through his career, but the most important characteristics for him is the Trait Approach.
The company has expanded tremendously over the period of time by operating chain of large discount department a “real Wal-Mart” for them. The practice continued by Lee Scott, CEO of Wal-Mart, whose leadership has given a new edge to the company in global financial crises of 2008. Answer # 1 Elucidative Leadership style The most impressive and eminent factor behind Wal-Mart’s success lies in its leadership. Leaders at Wal-Mart always inspire encourage their employees to take initiatives on their own. Transformational leadership style is the core of Wal-Mart, which significantly added to the success of Wal-Mart across the nations.
Walmart aims to provide the type of goods customers desire the most during the time they need it and where they want to get their good. The company starts to concentrate on ways to provide cheap and affordable prices for customers by redefining their cost system. Next, Walmart focus on redefining their own supply chain management so as to remain competitive and top in the market