Information Systems in Organisations:
A brief evaluation of the business model implemented by Walmart
By Mudduser Naz
Walmart is one of the largest retail organisations and continuously endeavours to produce significant enhancements in terms of productivity, research and development and the regulation and minimisation of financial losses. These generic objectives are deligated from a Head Office (which is one of many) and then further delegated onto all subordinating businesses. Each subordinate business is almost completely self sufficient and fundamentally contains and maintains its own functional departments with limited cross-functional collaboration. As an autonomous business, each departmental area (functioning body ie HR and Customer Service) carries out its own tasks relevant to its function.
My department would come under customer service. The customer services departments fundamental roles are the affective after-sales care and hospitality which is fundamentally required to promote what Asda call “customer satisfaction”. Customer services within an organisation are generally an amalgamation of smaller elements of other departments combined with its primary task which is to liaise with their demographic as the customer of any organisation are the life force behind the organisational turn-over.
The current system does have issues with cross collaboration and does indeed hamper customer-organisational interaction. However, mainly this occurs surrounding the customer services department.
If one was to analyse an autonomous business of Asda, one could conclude that due to the implications evident within the aforementioned business, one would recommend the Matrix model for implementation as it is an amalgamation of the best parts of both the Functional organisation structure and the Divisional organisation structure. This would enhance information passing and is designed to focus on the organisations customer base.