Organizational Design, Growth and Challenges Research Paper

Organizational Design, Growth and Challenges - Research Paper Example This is an acronym used to depict the Strengths, Weaknesses, Opportunities and Threats of an organization. The four components are separate yet integrated; in this regard, the best way to carry out SWOT analysis entails identifying the strengths and weaknesses of any organization prior to tackling the opportunities and strengths. This paper analyses the strengths, weaknesses, opportunities and threats of Wal-Mart Stores. Wal-Mart Stores Inc. is a renowned American multinational retailer corporation operating chains of large discount warehouse and departmental stores. It is currently the biggest private employer in the world with slightly over 2 Million employees. Wal-Mart was founded in 1962 by Sam Walton. It was incorporated in 1969 and began to publicly trade in the New York Stock Exchange in 1972. Wal-Mart’s headquarters is based in Bentonville, Arkansas, USA. It has eminently expanded over the years. Currently, Wal-Mart runs 8,416 stores located in 15 different countries. With the view of understanding the entire environment of Wal-Mart, it is important to critically analyze its strengths, weaknesses, opportunities and threats (Oldham, 1980). As evidenced by its incredible success, Wal-Mart has abundance of strength. For instance, Wal-Mart offers a wide variety of merchandise at very competitive prices. Due to their large purchases they receive exorbitant discounts from their suppliers, which is passed down to the customers. Strength of Wal-Mart is in fact that they manufacture their own brands and supply goods from local suppliers to retailers. Wal-Mart’s large size and high purchasing power is also strength on its own. It has an incredible team of executives who form its leadership. This has equipped Wal-Mart with a management of high caliber. The company spends its resources carefully with the aim of maximizing their margins (Burton, 2012). With regards to weaknesses, Wal-Mart, being a large multinational company, has a large pool of employ ees. Managing all these employees is never an easy task. It, therefore, poses a major challenge to Wal-Mart’s management. Quality of goods sold is another major concern. Owing to its low prices, customers sometimes question the quality of goods. Customer satisfaction is, therefore, not guaranteed. As with opportunities, Wal-Mart has been able to expand into other countries and has formed partnerships with other companies. However, there are still some markets that are yet to be reached by Wal-Mart. Another opportunity is that of taking over some overseas companies, such as ASDA in the United Kingdom. With the escalated trend of internet shopping, Wal-Mart has the opportunity to develop strategies that will enhance home delivery of goods whose orders are placed via the internet. Another opportunity is that of creating convenience stores. This could enable Wal-Mart to overcome local restrictions, as well as travel costs. The most prevalent threat facing Wal-Mart is competition. Local, as well as international competition, has posed a major threat to Wal-Mart. Wal-Mart has been vulnerable to attacks regarding ethical issues as well. In this purview, they have been accused in providing low pay and poor working conditions to its workers. Environmental issues also threaten Wal-Mart’s success. Company/Organization Name: Wal-Mart Stores STRENGTHS WEAKNESSES Large market share Discounts by suppliers Price leader Large variety of