Organizing Function of Management
[YOUR NAME HERE]
[CLASS SUBJECT HERE]
[PROFESSOR’S NAME HERE]
May 19, 2008
The organizing function of management within any organization corresponds with activities, which usually results within the responsibilities, power of authority, and an organization of effort. Within these organizations, management deals with the current workforce, instructs personnel, obtains resources, and motivates the workforce into a prolific team. Organizing also can be contributed to the tasks sets, which organize persons and groups into accomplishing a goal. Physical assets, monetary, human resources, knowledge and technology are prime examples of resources that assisting in developing the establishment of the organization.
WAL-MART is a force within the retail industry as the #1 competitive business with over 7,000 stores, which include Supercenters, Sam's Clubs, and even warehouses, that have expanded beyond just the United States into both Canada and Mexico as well. Wal-Mart, when measured by its total revenue, is the largest retailer – measured by both net sales
and income increases from its operating stores. Its primary products and service lines generally lies within the competition of its Discount and Variety Retail, as well as Electronics and Appliances Retail, Drug Stores and Pharmacies, and Gasoline Retailers (Hoovers, 2008).
Wal-Mart includes physical assets within its organization that are developed in such a way that allows for utilizing efficient methods in order to manage these assets. Such factors of its environment are quite evident in one example - its retail prices. This is
important because in essence, if Wal-Mart was less efficient in managing its physical assets, more money will have to spent, and profits will decrease (as a result of the lack in maximizing profits), and its competitors will drive it out of the market. However, this is not the case with Wal-Mart. The various consumer goods that it provides which are purchased are usually priced so low, driving other businesses out and keeping its customers happy with its commonly advertised signs of bargain "roll-backs" we all see and hear much of. It causes much influence on both other businesses and inflation as well.
With this being said, its main competitors of these industries are within a landscape that includes Carrefour, Costco Wholesale, and Target. While these retailers have shifted most of their attention on selling to the consumers goods at higher prices (thus receiving higher profits per unit, yet sells fewer units on a downside), Wal-Mart is able to remain profitable as it has the ability to sell more units, surpassing these other retailers. Monetary
Its cost structure has been built upon the foundation of offering quality goods at low, discount prices; furthermore, this structure has been able to thrive through the means of present negotiations with both suppliers and its own distribution network (Hoovers, 2008). These benefits have spread as Wal-Mart uses its market power to compensate consumers with "everyday low prices" while still making a significant healthy profit. Prices are lower at Wal-Mart than in many competing stores, with a magnitude of this price difference much evident when implied side by side to other retailers. Its environment can prove to be quite difficult at times, yet still strives quite high as it outperforms the market, proving its favorability amongst customers as it continues to be quite progressively
successful. It is quite impressive, considering that it has a monopolized market strategy, in which it generally beats out all of those "mom and pop" stores below it Human Resources
In the competitive business world of today’s market, effective human resources management is significantly important to Wal-Mart’s strategic plans if the organization
wishes to remain possible and profitable in the long run – the long-term goals and
objectives (Human Resource, 2008). The human resources in an organization drive its success and ensure its profitability. Its accomplishment of its strategic goals depends on the proper discharge of the key responsibilities, monitoring the changing workforce, employment strategies, succession panning, job depiction, new employee orientation, performance appraisal, training for all levels of employees, employee development, maintenance of records, etc. Talent management is a chief function, and only proper management of the talent pool presented will lead to strategic achievement. The department that runs its human resources must also act as the knowledge center for the most recent federal and provincial laws in regards to labor management. The policies and practices must be consistent with government policies and labor laws as well. Knowledge
Wal-Mart uses acquired knowledge from their information systems division in order to properly tackle surrounding locations for its stores, which include demographic indicators. These indicators, such as the rate of population, density, and unemployment rate, should be carefully monitored and noted, considering that they measure the pulse of the
economy and its various declines and increases within the economy and the effects onto the market scene. However, in a non-economical sense, these demographic factors influence Wal-Mart – the people that shop there. Population, density, unemployment rate, etc. all affect Wal-Mart’s revenue sales and whether they are currently profitable or in a stagnation. An example of demographic factors might include a population's age and location and its influences on the natural purchases of that area (and more specifically, within Wal-Mart). These economic indicators should be carefully monitored and noted, considering that they measure the pulse of the economy and its various declines and increases within the economy and the effects onto the market scene.
Technological advances can vary in many forms, such as a considerable factor of either acquiring or dropping a technological good, such as Linux PC, which was recently dropped since a lack of interest from the consumers existed. Wal-Mart must acquire what is the latest innovations and offer them at a low price to the public, which will draw in more consumers, as well as ridding itself of those which are no longer in a substantial amount of demand (i.e. Linux PC). New products are a must.
Also, the developing complexity of the roles of organization management within technology has prompted individuals to develop modern solutions to arising challenges. Wal-Mart also contains a significant trend within the online technology as it utilizes boosting performances with its technological assets provided. It optimizes profits through the assets manufactured within inventory online. However, in order for this system to work, it must streamline information, which allows it save time and money.
Wal-Mart’s organization design has allowed it to effectively and efficiently utilize its resources through the management paradigm. Thus, this is the chief way of producing the most favorable performance from its organization. It effectively lies on the concept that instead of just increasing its resources (i.e. labor and machines), then it can lay emphasis on enhanced operation of already engaged resources. Wal-Mart defines its crucial resources and tackles the limited ones, which is subsequently followed by the activities executed by these resources. Thus, it yields profitable returns every fiscal year and continues to stay ahead of the game. Therefore, it is essential that Wal-Mart views its above resources as a vital element of the organization’s strategic plans to guarantee efficiency and productivity of the company, leading it to competitive feasibility and profitability.
Hoovers, Inc., (2008). Wal-Mart, Company Description. Retrieved May 19, 2008, from Hoovers Web site: http://www.hoovers.com/wal-mart/--ID__11600--/free-co-profile.xhtml
Hoovers, Inc., (2008). Wal-Mart, Competitors. Retrieved May 19, 2008, from Hoovers Web site: http://www.hoovers.com/wal-mart/--ID__11600--/free-co-competition.xhtml
(2008). Human Resource Planning. Retrieved May 19, 2008, from Resource of HR Web site: http://www.pro-rh.com/human-resource-planning/4124.htm