ORGANIZATIONAL LEVEL OF ANALYSIS-WAL-MART 1 ORGANIZATIONAL LEVEL OF ANALYSIS-WAL-MART 13 Organizational Level of Analysis- Wal-Mart BMGT 464 Organizational Level of Analysis- Wal-Mart Introduction Wal-Mart is profoundly known to be one of the biggest American Multinational Retail Corporation known for the warehouse stores and large discount department. The company stands out as the world’s third best largest public corporation as recorded in the global 500 list. The company remains to be family owned essentially controlled by the Walton’s family that possesses approximately 48 percent of the stake in the entire organization. Sam Walton established the company in the year 1962. In the year 1972, the company was trading in the New York stock exchange and it centered its headquarters in Bentonville, Arkansas. Wal-Mart is currently in possession of almost 8500 stores in the 15 countries, which are identified under 55 distinct names. However, the company operates under the name Wal-Mart in the United States. However, the current deteriorating performance has compelled this paper to address significant issues that may be affecting its performance. The paper will therefore focus on the organizational behavior in explaining the strategies, the strength, weaknesses, opportunities as well as the threats the organization is facing and the most desirable recommendations that the company can take to bring it back on the track. It is worth noting that organizational can be understood as the systematic study as well as application of knowledge on how individuals, groups of people and other relate parties work within a given organization. Methodology Outstanding issues faced by the organization were significantly realized from the two techniques that were applied in the process. An interview that was able to cut across various stakeholders in the entire organizational served a better source of information. On the other hand, the literature review of various cases covering the operations and the performance of the Wal-Mart played a significant role in identifying outstanding issues and problems that the organization has progressively been facing. The two cases under the methodological structure are as covered in the section below. Interview Deployment of the technique covered several members of the organization including the ones involved in the management of the entire company as well as the reachable stakeholders such as the employees who were amicably requested to share the most confidential information concerning the Wal-Mart company. The managerial staff members were further requested to table their opinions as well as views on the performance and activities that were carried out in the organization. This methodology was largely simplified by utilization of the randomized control trial technique (RCT) that made use of isolating the population sample into two gro.

1. ORGANIZATIONAL LEVEL OF ANALYSIS-WAL-MART
1
ORGANIZATIONAL LEVEL OF ANALYSIS-WAL-MART
13
Organizational Level of Analysis- Wal-Mart
BMGT 464
Organizational Level of Analysis- Wal-Mart
Introduction
Wal-Mart is profoundly known to be one of the biggest
American Multinational Retail Corporation known for the
warehouse stores and large discount department. The company
stands out as the world’s third best largest public corporation as
recorded in the global 500 list. The company remains to be
family owned essentially controlled by the Walton’s family that
possesses approximately 48 percent of the stake in the entire
organization. Sam Walton established the company in the year
1962. In the year 1972, the company was trading in the New
York stock exchange and it centered its headquarters in
Bentonville, Arkansas. Wal-Mart is currently in possession of
almost 8500 stores in the 15 countries, which are identified
under 55 distinct names. However, the company operates under
the name Wal-Mart in the United States. However, the current
deteriorating performance has compelled this paper to address
significant issues that may be affecting its performance. The
paper will therefore focus on the organizational behavior in
explaining the strategies, the strength, weaknesses,
opportunities as well as the threats the organization is facing
and the most desirable recommendations that the company can
take to bring it back on the track. It is worth noting that
organizational can be understood as the systematic study as well

2. as application of knowledge on how individuals, groups of
people and other relate parties work within a given
organization.
Methodology
Outstanding issues faced by the organization were significantly
realized from the two techniques that were applied in the
process. An interview that was able to cut across various
stakeholders in the entire organizational served a better source
of information. On the other hand, the literature review of
various cases covering the operations and the performance of
the Wal-Mart played a significant role in identifying
outstanding issues and problems that the organization has
progressively been facing. The two cases under the
methodological structure are as covered in the section below.
Interview
Deployment of the technique covered several members of the
organization including the ones involved in the management of
the entire company as well as the reachable stakeholders such as
the employees who were amicably requested to share the most
confidential information concerning the Wal-Mart company.
The managerial staff members were further requested to table
their opinions as well as views on the performance and
activities that were carried out in the organization. This
methodology was largely simplified by utilization of the
randomized control trial technique (RCT) that made use of
isolating the population sample into two groups. One group was
asked direct positive questions that were based on estimates of
the quantities and the trend of performance of the company.
This group mostly comprised of the shareholders who had
relatively less information concerning the company. The second
group encompassed the members from the management section

3. who were required to give the meticulous information on the
impact of the already implemented strategies, as well as
illuminating the performance trend of the organization. The
approach turned up to be effective because the two groups
facilitated the validation of the numerical data that was given
by the respective group. In the research, interviewing the
managerial staff and shareholders made the methodology to be
more applicable in the case study. This is due to the fact that
the methodology yielded the best results on the customer
relations, employee empowerment, the trending performance,
the marketing strategy, competition standing in the industry and
the cause of the deteriorating performance that has been seen in
the recent years.
Literature review
This considered various articles covering the most relevant
information concerning the organization and its performance.
Most of the materials were solicited from the internet thereby
making the information access quite possible and effective. In
the case below, the brief literature review of various articles
found related to Wal-Mart’s performance position and issues
surrounding its progress and projected future prospects.
The Wal-Mart Watch Report (2007) provide the insight into the
precarious state the company found itself in thereby tabling the
conspicuous problems that has halted the progressive growth of
the company. The stores have, in the past years, failed to meet
the shortages majorly blaming the policy decision for the
subsequent poor sale growth. This has gone further redirecting
the blame on the weather conditions. The report provides the
poor sales for at least 28 years, with the lowest values recorded
in February where the resulting sales are said to have been
brought by the stormy weather and the cold temperatures. On
the other hand, extreme fuel expenses are hurting the company’s
income with delayed purchases bringing about late profits

4. thereby disorienting the company’s operations (Jackson, Joshi &
Erhardt, 2003). Furthermore, the report provides more details on
the remodeling efforts that were expected to refurbish the
centers thereby bringing the company back on its performing
trail. However, this came out disappointing as the growth
formulae is said to have stopped working with new designs and
products proving to be more difficult to comply with the set
remodeling efforts. Analysts say that the compatibility aspect
must have been a big challenge that has rendered the further
investments useless thereby resulting into subsequent losses in
the process. Finally, the power of convincing the customers
must, in most circumstances, have been compromised and this
turned out to be a big challenge as the most shoppers turned
away despite the struggles set forth by the company to retain
most of its customers in the immediate market (The Saylor
Foundation).
Yang (2009) provides the strategic analysis of Wal-Mart.
Preliminarily; the retail industry has been experiencing a
slowdown in terms of the sales made in a single day due to the
wide spread in the economic crisis over the United States
market. Yang provides evidence on the decrease on expenditure
by the customers thereby affecting the operations of many
retailers, of which most of them have opted for closure of the
enterprise or seek best alternatives that will make the retailers
to continue surviving in the recession state. Yang keen analysis
seems to be substantial enough in availing the SWOT analysis
of the company. Primarily, Wal-Mart is famous in terms of the
low-cost structure thereby making more people to save money
and live better. The tendency or the undertaking of the
organization in availing products of high qualities at relatively
low prices compared to other retailers is seen as a strategy that
is aimed at attracting more consumers. This implies that the
company has a price-competitive advantage over the rest. On
the other hand, Yang sees sustainability of Wal-Mart Company

5. as an added advantage over the rest. This can be seen in the
continuous enjoyment of the profitable returns in the economic
downturn despite the bad effects brought by the sales
slowdowns as well as losses that have frequently been occurring
to other retailers in the industry. The outstanding opportunities
Wal-Mart is accessible to include the continuation on the
international expansion especially in the existing developing
markets as well as opening the international stores in the new
potential markets. Given the fact that Wal-Mart is strong in one
way, Yang gives a preview of the weaknesses that have been
making the company to fail in attaining desirable performance.
Primarily, the company has been charged with several issues on
discrimination such as selecting employees on gender basis (The
Saylor Foundation). The company has also been faced by the
wage problems, which resulted in a protest by the workers due
to disagreements on the wages. Concerning the threats, Yang
states that the company’s pressure is due to low apparel sales
that are mainly brought by the personal consumption
expenditure, especially on clothes. Another threat revolves
around the mounting competitive pressure with various large
companies continuously making an entry in the entire market
(Benoit, 1997).
Wal-Mart SWOT analysis
Strengths
· A wide range of the supplied products
· Scales of operations
· Utilization of the cost leadership strategy
· International operations
· Effective information systems

6. Weakness
· Public negativity
· Extreme employee turnover rate
· Labor related lawsuits
· Little differentiation
·
Opportunities
· online shopping
· trending market that favors healthy eating
· growth of retailing markets in new zones
· rising global acceptance of the labeled products
Threats
· mounting competitive pressure especially from online
competitors
· the rise in commodity prices
· the mounting resistance from the local communities
The scale of operations implies that Wal-Mart is a giant to an
extent that no other retailer can be able to match. This has led
to corporate exercise of the strong buyer power thereby bringing
about price reductions. On the other, the company is said to be
effective in terms of the information systems with logistics on
inventory levels as well as sales that can easily be accessible.
Nevertheless, the cost leadership strategy has enabled the
company to become a significant low cost leader in the entire
retail market. This means that Wal-Mart stands high chances of

7. selling the products at a relatively low price. On the strength,
the international operations are a strong ground on which the
company globalizes its operations. Concerning the weaknesses,
the most worrying one is the high employee turnover rate
meaning that the company suffers from low skills. Public
negativity implies that the company’s practices are highly
questioned by concerned stakeholders thereby damaging the
organization’s reputation. Despite the weaknesses, the company
is accessible to numerous opportunities including the online
shopping, which suggests on introducing an online market for
the company with projections settled on the tendency of
customers picking more goods through the online means.
More on opportunities settles on the trending market that favors
healthy eating suggesting on the need to expand on the
groceries thereby earning more income. The rising acceptance
on the labeled products implies on the need for the company to
work on the private labeled products that will enhance branding
thereby boosting the profit margins. More on rising markets
suggests on exploring the new emerging markets, which will
make the company realize a large market share in such regions
like China, Mexico and Brazil. The company is however advised
to be keen on the prevailing threats. The issue of competition
especially from the online competitors seems to be more
sensitive given the fact that such firms like Amazon, Tesco and
Costco have an influence in the entire industry. However, the
dramatic rejection from the local communities may further pose
a negative impact on the retailing firms. This normally distorts
the market structure thereby making it hard for Wal-Mart to
handle the situation. Finally, the rising prices may lead to
competition thereby bridging the gap in terms of the cost
differences.
Documentation and Evaluation of the Strategies That May Boost
the Performance of the Company

8. Looking at the interviews, the literature reviews as well as the
SWOT analysis, it can be noted that the company can
significantly work on two outstanding strategies that will
improve on the performance of the company. The two include
the digital marketing strategy and the employee empowerment
strategy.
Digital marketing strategy
From the SWOT analysis, one of the opportunities suggested on
making use of online shopping. Such competitors like Tesco are
already using the social media in advertising some of the
products, carrying out transactions as well as expanding the
market. Wal-Mart may further consider the digital marketing
strategy in carrying out most of its activities as well as getting
into contact with the customers. Digital marketing strategy
covers the online means, such as making use of the internet as
well as social media such as twitter and Facebook among other
websites. Making use of this strategy will make the company to
neutralize the efforts made by the competitors in outdoing its
existence in the market. Furthermore, Wal-Mart, through the
digital marketing strategy, will be embracing the technological
advancements thereby meeting the customer’s desires and
current needs. The outstanding advantage behind the strategy is
the easy with which Wal-Mart will be able to run its activities.
However, the company should be keen in making use of the
strategy especially in advertising, which may seemingly develop
a negative impact on the morals of young children (Chaffey &
Bosomworth, 2013).
Employee Empowerment Strategy
There has been a mounting rate in terms of the employee
turnover rate as stated in one of weaknesses of the company.
The company may consider this strategy in ensuring that the

9. employees are well motivated through payment of the
significant and reasonable figures of salaries and wages that are
made on time. Employees may also be included in the decision
making process, which is an undertaking that aims at boosting
the morale of employees. This will directly reflect on good
performance of the organization due to a well-motivated labor
force. Good performance will automatically result into a better
position of the organization among the competitive firms in the
industry. However, Wal-Mart should be keen enough when
implementing the strategy as some of the employees may end up
forgetting their positions in the organization and start playing
unnecessary roles.
Recommendations on improvements of the organization
Following the state and the potential of Wal-Mart in making
significant changes, the following recommendations should be
placed into consideration.
· The company should comply with the technological
advancement requirements. This will put the organization at par
or ahead of the competitors who may have not heard of the
technological updates.
· The company should focus on achieving the global standards.
Given the fact the Wal-Mart is further concentrating on global
expansion, the company should evaluate its position in attaining
the global requirements at all levels including the prioritized
environmental ones.
References
Yang, F. (2009). Strategic analysis of Walmart. Wal-Mart Case
Review, p. 1-31.
Wal-Mart Watch Report. (2007). Wal-Mart in Crisis. How the
world’s largest retailer lost its

10. way, p. 1-25.
Jackson, S. E., Joshi, A., & Erhardt, N. L. (2003). Recent
research on team and organizational
diversity: SWOT analysis and implications. Journal of
management, 29(6), 801-830.
Benoit, W. L. (1997). Image repair discourse and crisis
communication. Public relations review,
23(2), 177-186.
Chaffey, D., & Bosomworth, D. (2013). Digital marketing
strategy.
The Saylor Foundation: Organizational Behavior. Retrieved
from:
http://www.saylor.org/site/textbooks/Organizational%20Behavi
or.pdf
Criteria
Outstanding
Superior
Good
Substandard
Failure
Critical Thinking/Reasoning
10.5 points
demonstrates a high degree of critical thinking, is consistent in
accurately interpreting questions & material; provides solid
assumptions, reasoning & claims; thorough analysis &
evaluation with sound conclusions
8.93 points

11. shows good critical thinking; accurately interprets most
questions & material; usually identifies relevant
arguments/reasoning/claims; offers good analysis & evaluation
with fairly sound conclusions
7.88 points
shows occasional critical thinking; questions & material is at
times accurately interpreted; arguments/reasoning/claims are
occasionally explained; offers fair analysis & evaluation with a
conclusion
6.83 points
shows little critical thinking, misinterprets questions or
material; ignores or superficially evaluates; justifies little and
seldom explains reasoning; draws unwarranted conclusions
5.78 points
lacks critical thinking consistently offers biased interpretations;
ignores or superficially evaluates; argues using poor reasoning,
and/or unwarranted claims
Application of Concepts/Development
10.5 points
arguments or positions are well-supported with evidence from
the readings/experience; ideas go beyond the course material
and recognize implications and extensions of the material and

12. concepts
8.93 points
arguments or positions are mostly supported by evidence from
the readings and course content; ideas presented demonstrate
student’s understanding of the material and concepts
7.88 points
arguments are more often based on opinion or unclear views
than on position grounded in the readings of material or
external sources of material
6.83 points
arguments are frequently illogical and unsubstantiated; student
may resort to ad hominem attacks on the author instead of
making meaningful application of the material
5.78 points
arguments lack meaningful explanation or support of ideas
Attention to Instructions
4.5 points
demonstrated full understanding of requirements responded to
each aspect of assignment

13. 3.83 points
demonstrated understanding of requirements; missed one minor
aspect of assignment
3.38 points
demonstrated some understanding of requirements; missed a key
element or two minor aspects of assignment
2.93 points
failed to show a firm understanding of requirement; missed two
key elements or several minor aspects of assignment
2.48 points
did not demonstrate understanding of assignment requirements
Clarity; including grammar
3 points
writing is clear and easy to follow; grammar and spelling are all
correct; formatting gives a professional look and adds to
readability
2.55 points
most ideas are presented clearly; occasional spelling and/or

14. grammar issues
2.25 points
wordy; some points require rereading to understand fully; more
than an occasional spelling and/or grammar
1.95 points
unclear and difficult to understand; frequent spelling and
grammar issues
1.65 points
largely incomprehensible writing/poorly written in terms of
mechanics and structure
Adherence to APA Style (6th ed.)
1.5 points
no APA style errors
1.28 points
attempts in-text citation and reference list but 1 or 2 APA style
errors are present
1.13 points

15. attempts in-text citation and reference list; APA style errors are
present; inconsistencies in citation usage can be found
throughout the document
0.98 points
attempts either in-text citation or reference list but omits the
other
0.83 points
no attempt at APA style
Overall Score
Outstanding
27 or more
Superior
24 or more
Good
21 or more
Substandard
18 or more
Failure
0 or more