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The aim of this essay is to present theories that are contextually related to the Walmart
case. In this case, the essay starts by analyzing the organizational culture of Walmart
through explaining each layer as it applies. Further, the essay shall investigate the
absorptive capacity and explain how each step is involved in the day to day running of
the company. Further, the essay will explain levels of commitment as the organization
seek to align itself with the prevailing environment. Strategic control is also essential
for organization like Walmart hence the essay explained how it applies to
organizations. In addition, strategic control types shall also be examined as they are
contextually important in the case. Lastly the essay shall explain the importance of
corporate governance and how firms in the retail industry can reduce risks through
complying with good corporate governance.
Question 1
Edward Hall developed the Iceberg analogy of organisational culture in 1976. By
making use of this analogy, explain the organisational culture of Walmart. In
your answer, you need to briefly explain the various layers of organisational
culture, and then apply it to Walmart. (6 marks, of which 1 mark will be awarded
for the correct explanation of each layer of organisational culture and 1 mark for
applying it to Walmart for each layer) [6 marks]
In Anwar (2018)'s view, cultural norms and practises are like an iceberg: some parts
are out in the open (the obvious part), while others are submerged (the hidden part
known as below the water). The visible, palpable tip of the iceberg represents the more
obvious aspects of the iceberg, such as the espoused values and standards and the
taken-for-granted assumptions that underpin them. In this essay, the iceberg model
shall be explained in the contextual realm of Walmart.
Visible artefacts
Things that are present and obvious in every department are called "artefacts" in the
business world. A human-made artefact is defined by Venter and Botha (2019) as
"something of cultural or historical significance." Therefore, dress standards, office
decorations and layout, language, symbols such as branding elements ranging from
logos to stationery, rituals, and myths are all examples of artefacts that make up
organisational culture. An organization's artefacts include its brand, which includes its
identity, its personnel, its output, its infrastructure, its procedures, and its contracts.
The usefulness, beauty, and symbolism of artefacts are three essential aspects to
consider. The instrumentality of an artefact is its ability to improve or hinder the
efficiency and effectiveness of an organization's internal structures, processes,
protocols, and infrastructure. The aesthetics of an object consider how it appears to
the naked eye and how it makes the senses feel. For example, Walmart Stores, Inc.
is an American multinational retail company that owns and runs the Walmart brand of
hypermarkets (also known as supercenters), discount department stores, and grocery
stores. Walmart is making an effort to broaden its selection of organic foods and fresh
produce in response to rising customer interest in health and wellness. This shift is
most noticeable in the American market, and it is now a central part of the brand's
marketing communications strategy.
Espoused values and norms
What this term alludes to is the set of beliefs and practises held in common by
members of a given community or organisation (Venter & Botha, 2022). This also
applies to the attitudes and actions of employees within the company. Organizational
values (beliefs and ideas about what kinds of goals the members of an organisation
should pursue) and the appropriate kinds or standards of behaviour organisation
members should use to accomplish these goals are often outlined in value statements.
Because they control how groups of people will react to envisioned changes, such
values and behaviour have a significant impact on strategy development and
deployment. Management's explicit and written-down value statements serve as the
compass by which employees pursue the organization's vision and purpose. These
values encompass the beliefs, characteristics, and behavioural norms that make up
the organization's culture. Beliefs that represent a person's sense of what should be
included and are usually discernible in the way people discuss problems facing the
organisation. The day-to-day operations of an organisation, such as its work routines
and its organisational structure and control, are also significant components of the
stated entailing values. These practises may eventually become the "ways we do
things around here," providing a foundation for competitive advantages that no one
else can match. However, such actions may also serve as major roadblocks to
implementing the necessary strategy changes. For example, at Walmart, culture
serves as the bedrock upon which the company's activities are built. Culture at
Walmart means putting principles into practise. Walmart's founders had a dream of
creating the greatest shopping experience for customers and workers. Financial
considerations have also been a major factor in shaping consumers' and workers'
perceptions of the business. Walmart's subsidised prices benefit both the business
and its customers, who receive wages from the company's labour force. By helping
customers save money, as the company hopes to improve their quality of life. Values
held by the business include serving customers, honouring employees, pursuing
excellence, and acting ethically. Walmart's commitment to worldwide ethics has
helped to cultivate a trustworthy workplace environment. Anywhere Walmart does
business, it adheres to its own code of ethics. The company's guiding concepts are
excellence in the workplace, authenticity in communications, and improved customer
service.
Taken-for-granted assumptions
Assumptions about employees' behaviour within an organisation are based on the
artefacts, beliefs, and norms of the organisation (Venter & Botha, 2019). It is easy to
take something for granted when it has been proven to work frequently. However,
these presumptions eventually become the bedrock of an organization's culture
because they determine how members respond emotionally to events and what they
do in different scenarios. Assumptions that are taken for granted are not always
obvious because they exist on the periphery of one's consciousness. This is why many
initiatives to bring about change have limited, superficial effects. For instance, the
business has already accomplished its goal of becoming a market leader in the retail
sector. Walmart's goal is to help customers save money so they can live better lives,
and the company does this through providing exceptional service, fostering a positive
front-line work environment, and boosting productivity. To better serve its customers,
"Walmart is working to integrate its physical stores with its digital company," as
reported. As an illustration, with the most recent updates, customers can now pick up
their online orders in stores and get SMS reminders from the pharmacy. On the other
hand, the South African commercial, catering, and allied workers' union (SACCAWU)
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