Organizational Structure of Walmart
11 Pages3145 Words364 Views
Added on 2020-10-22
Organizational Structure of Walmart
Added on 2020-10-22
ShareRelated Documents
ORGANIZATION
TABLE OF CONTENTSINTRODUCTION...........................................................................................................................11. Key functions of Walmart with respect to its promotion........................................................12. Organizational structure of Walmart.......................................................................................5CONCLUSION................................................................................................................................7REFERENCES................................................................................................................................8
INTRODUCTIONWalmart is the largest and biggest retail store in terms of size, value and has employedthe largest number of employees globally. They are among the most powerful retailers with highsales turnover and generate high revenue. Company was founded by Moore Walton and JamesLawrence Walton in the year 1962. This organization serves to more than 26 billion customers ina week and spread out in 28 countries with 11000 stores globally. The success mantra of anyorganization is selling quality products at low prices and provide the best services to theircustomers1. Key functions of Walmart with respect to its promotionThe company began with an aim to provide goods to its customers whenever theyrequire. They keep prices of their goods and services low by directly buying goods frommanufacturer (Johnson, 2016). They attract customers by providing low priced goods. Walmartis a major name among the one stop shopping center where everything is available from basicutility items to all luxurious items.MarketingThe entire system is so well structured and developed and uses an effective and efficientsystem of supply chain, which helps in reducing cost of products and deliver low priced goods.They have few chain links in its distribution channel. Success and growth of Walmart beganwhen company reduced its supply chain links from its distribution and started purchasing frommanufacturers. In 1989, Walmart was awarded with the name of Retailer of Decade. The organizationcommenced with strategic sourcing in which they gathered information and used thatinformation to find out the best possible prices of goods from the supplier (Vallesi, 2012). Thecompany maintains relationship with its vendors with subject to provide high volume, long termpurchase in exchange of low price goods. Smooth flow of communication, suppliers presentglobally, proper warehouse facility and maintenance of partnership with vendors helps to providegoods at minimum prices possible and also in better flow of inventories. Company attractscustomers by proving low priced goods.The company uses concept of cross docking, which helps them to achieve competitiveadvantages. It is the type of logistic operations, where products are distributed directly to acustomer from a supplier or manufacturer in no time and less charge. It is transferring of goods1
by loading in inbound dock or truck to unloading in outbound truck with any warehouse orstorage charges. Walmart uses the same strategy of cross docking to reduce transportationcharges and eliminate some storage costs. This strategy of routing of products from suppliers toWalmart warehouse helped in reducing cost and grab competitive advantages (Christopher,Payne, and Ballantyne, 2013.). The company also saves a lot of cost by ensuring that theiremployees travel in economy class thus reducing the traveling cost.Technology plays a pivotal role in every industry for growth and development. Walmarthas the largest IT infrastructure among the retailers globally. They have installed technology insuch innovative ways, where they can predict demand, easy transportation routes, track theirinventory levels and manage customer relationships. The company uses universal product code,bar code reader, central database, satellite network. They also use (RFID) Radio FrequencyIdentification Tags.Another factor to be kept in mind is that of location. They look for the best site to opentheir stores where customers can reach easily. A good location means easy transportation fromdistribution center where minimum cost is there for products. Walmart provides its customers’variety of products in all types of size and shape, which means that whatever quantity anindividual desire, whatever brand he/she wants, their demands will get fulfilled under one stopshopping mall. Marketing mix of Walmart is conducted which contains 4 P's that is product, price,promotion and place (Bhasin, 2018). ProductWalmart is one stop multinational retail store providing variety of brands, which a personneeds in his life. From basic utility items to all luxury items are made available to customer at onstore. The products scope from craft, gift, stationary, movies, electronic items, home appliances,grocery, video games, jewelry etc. They grab attention of customers as Walmart store hasnumber of sales personnel who are ready to help us find products in store.PriceWalmart does not produce or manufacture any product. They buy their goods from longterm partnership suppliers in large volume and quantity so that they get effective and minimumprices. They use different pricing strategies to price their products and also uses various2
End of preview
Want to access all the pages? Upload your documents or become a member.
Related Documents
Logistics and Supply Chain Managementlg...
|13
|3011
|238
Assignment Supply Chain Managementlg...
|7
|1482
|110
Warehouse Inventory and Managementlg...
|8
|1706
|122
Ways Barcode and RFID Benefits in E-Supply Chain Managementlg...
|4
|845
|108
Walmart Supply Chain Assignment 2022lg...
|16
|4320
|55
Solving Supply Chain Issues: Case Study of Barillalg...
|4
|610
|193