Organizational Changes in Wal-Mart

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1. Introduction

Since it has been proven that an otherwise high performing company can experience a sudden overturn in fortunes, managers should be vigilant so as to prevent, or reverse, any unfavorable trend through adopting necessary organizational changes. According to Oslon, Van Bever & Verry (2008) study, notable companies underwent such an experience due to very specific reasons. Particularly, they identified premature abandonment of organizational core business as one of those reasons. This is precisely the case in Wal-Mart. Nevertheless, further damage can be prevented by uncovering the main causes of the problems, and hence determining the appropriate organizational changes needed to be adopted (Wal-Mart Watch, 2007; Chew, Joseph, Cheng, Lazarevic, 2006; Sohal & Durian, 2006).

2. Wal-Mart Stores, Inc

In line with the principles of effective management of organizational change, the report will analyze the current state of Wal-Mart. It will mainly focus on its operation in the US, highlighting any potential dangers and/or problems. Finally, it will suggest needed changes.

2.1. Background

From 1962 (when it opened its first store in Rogers Ark) up to recently, Wal-Mart has evidently enjoyed unprecedented success. The company grew from a local retail store to become not only the largest retailer in the country, but also an organization with a global presence and reputation (Hayden, Lee, Mcmahon & Pereira, 2002). With a history of surpassing sales target, it appeared almost certain that the trend would progress in the new millennium. However signs of danger begun to emerge as early as 2001, when for the first time it missed out on its sales target (Wal-Mart Watch, 2007). Oslon, Van Bever and Verry (2008) noted that wh...

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Smook, G., & Bhimani, H. (2005) Strategic Management in Context: Operation strategy

and Competitiveness. New Jersey: Prentice Hall.

Stevenson, W.J., & Hojati, M. (2007). Operations Management, 3/e. N.Y: McGraw-Hill.

Susanto, A.B., Organization Readiness for Change: A Case Study on Change Readiness in a

Manufacturing Company in Indonesia. International Journal of Management Perspective,2, 50-62.

Wheeler, (2001). Loosing the Competitive Advantage: Timely Organization Change Might Restore the Advantage. The Management Science Journal, 4, 152-87.

Wal-Mart Watch. (2007). Wal-Mart in Crisis: How the World Largest Retailer Lost Its Way. A Wal-Mart Watch Report, 1-25.

Terry, I. (2000). Smooth Transition through an Organization Change: Formulation, Implementing and Sustaining the Change. Journal of Principles of Organization Managemen, H, 7, 276-302.

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