Organizational Life Cycle a 15
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WAL-MART GROUP A15 Organizational Life- Cycle
Transcript of Organizational Life Cycle a 15
WAL-MART
GROUP A15
Organizational Life-Cycle
Product Life Cycle
Birth Growth Decline Death
Wal-Mart
In 2010 it was the world's largest public corporation by revenue (Forbes Global 2000).
More than 8500 stores across the world.
One of the largest employers in the world.
Employs more than 1.9 million people worldwide across 15 countries.
Only the People’s Liberation Army of China, the National Health Service of the UK and Indian Railways employ more people!
The Birth of Wal-Mart
Started in 1962
Had the first mover advantage in the retail shopping sector
Introduced the concept of Every Day Low Prices.
This discounting strategy helped in the initial sustenance of the company.
Survival Strategies
r-specialis
t
r-generali
st
K-specialis
t
K-generali
st
Wal-Mart pursued an r-Generalist strategy.
The Growth of Wal-Mart
Phase of growth started in 1970’s
Opened its first Distribution Centre.
Went public in 1970.
By this time its stores had increased to 38 and had 1500 employees.
It also adopted the Hub and Spoke model of distribution
Hub and Spoke model
Distribution Centre
Store
Store
Store
Store
• Goods were ordered centrally
• Assembled at a hub
• Dispatched from the hub to different centre
• This structural change resulted in increase in total sales to $340.3 million
Growth Stage contd.
Growth through Direction Sam Walton adopted the hub and spoke structure to meet
the growing needs of the organization. Increased its employee strength to more than 7500.
Growth through Creativity introduced Sam’s Club scheme. Started new innovative methods like “people-greeters” .
Growth through Coordination incorporated various offices like inventory, sales etc. also introduced barcode and radio-id tags to keep track of a
large inventory.
Wal-Mart over the years.
Year19
7019
7319
7619
7919
8219
8519
8819
9119
9419
9720
0020
0320
0620
090
50000
100000
150000
200000
250000
300000
350000
400000
450000
Revenue
Revenue
Year19
7019
7319
7619
7919
8219
8519
8819
9119
9419
9720
0020
0320
0620
090
20
40
60
80
100
120
140
160
%Growth(Inc)%Growth(Rev)
Growth of Net Income and Revenue
Awesome -15
Thank You.
