Wal-Mart's Systems Theory

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Unit 3 Focus Paper / Systems Theory Latrice Taylor GM504-2 (1108D) Organizational Excellence and Change 12/20/2011 Professor Linda Moershell INTRODUCTION In this focus paper I will be addressing the systems concepts of Wal-Mart. We will be exploring their internal and external processes. Wal-Mart is an outstanding organization that has practically dominated the retail industry. They have managed to exceed the competition and still prosper in this economy. They have a really persistent way of doing business that has given them a great advantage to prosper. A firm buying strategy and a extremely sophisticated database is the Leverage they have over other stores similar to them in the industry. Their company structure and systems theory has been a great guideline for other organizations to follow. They laid out a strategic plan for their organizational structure and it has proven to be very successful with their systems theory. They have a plethora of business associates, and consider themselves leaders in the customer service business. Their motto is: “a strong organizational culture is the foundation for making a good company a great one.” (Sam Walton, founder of Wal-Mart, 2011). I chose them because of their company background, culture and their international operating formats. Even though Wal-Mart is advancing in the industry I have seen other corporations do the same thing and fail due to their neglect when it comes to social responsibility. SYSTEMS THEORY Wal-Mart currently utilizes a relational systems theory. They focus on a high buying power with a low selling price. They use their bargaining tactics to purchase large supplies then in return they profit by selling at a fast past through low prices for their consumers. This process has made them very influential in the retail business with an organizational integrity that cannot be

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