Case Study: Wal-Mart's World
This case focuses on the organizational culture of Wal-Mart. Primary emphasis is placed on how Wal-Mart's culture developed and how it has been maintained. The roots of Wal-Mart's culture date back to Sam Walton, who instilled the now famous "Saturday Morning Meeting" at his Five & Dime store in Bentonville, Arkansas. During these meetings, Walton encouraged his employees to offer suggestions for improvement and empowered them to follow through on those suggestions that he thought were worth pursuing. The Saturday Morning Meeting has continued at Wal-Mart despite its growth into one of the largest corporations in the world. Discussion could focus on how Wal-Mart's culture has been maintained over the years, with special emphasis on the importance of the Saturday Morning Meeting. In addition to the Saturday Morning Meeting serving as a company ritual, discussion could also focus on how the company chant serves as a cultural maintenance tool.
A discussion of the strength of Wal-Mart's culture relates to the notion of core values, which have been instrumental in sustaining its culture over the years. Perhaps as a partial result of this sharing of core values, Wal-Mart is able to respond quickly to changes in the market place, as evidenced by the anecdote about the poker sets. In addition, the attraction-selection-attrition model could be applied to Wal-Mart, as it may explain some of the similarities among Wal-Mart's managers - thus leading to a tight-knit culture.
Finally, although Wal-Mart's culture undoubtedly has been a strength, discussion could also focus on how it could be a weakness. The original practices and ideas of Sam Walton may not fit in today's business environment, so maintaining Wal-Mart's culture may be detrimental to its growth. Moreover, increased public scrutiny may be pressuring Wal-Mart to change its old practices.
Answer the following:
Problem 1: How would you describe Wal-Mart's culture using these seven characteristics?
Problem 2: Based on this case, would you characterize Wal-Mart's culture as strong or weak? Justify your answers using relevant literatures and theories.
Problem 3: How might Wal-Mart's culture contribute to its long-term performance?
Problem 4: As an upper manager of Wal-Mart, what steps could you take to either maintain or enhance the culture of Wal-Mart?
Problem 5: What are some aspects of Wal-Mart's culture that have persevered, but yet may be disadvantageous in today's economy?