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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.
What is Walmart and what is its vision and mission? Walmart is an American multinational retail
corporation that operates a chain of hypermarkets, discount department stores, and grocery stores.
The company was founded in 1950 by Sam Walton in Bentonville, Arkansas. Today, Walmart is the
largest retailer in the world.
Table of Contents
Question 1 ............................................................................................................................ 4
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. ......
4
Make a judgement with regards to the absorptive capacity of Walmart, specifically referring
to the actions of Lee Scott, ex-CEO and President of Walmart in 2005. In your answer, you
need to do the following: ....................................................................................................... 7
2.1 Define the concept absorptive capacity. .......................................................................... 7
2.2 Make a judgement with regards to the absorptive capacity of Walmart based on the four
dimensions that determine the absorptive capacity of an organisation. .................................
8
Organisations respond to the challenges of responsibility and sustainability, either by taking
on a position on or by moving through six levels of commitment. .......................................... 9
3.1 Explain these levels of commitment. ............................................................................... 9
3.2 Identify Walmart’s level of commitment. ........................................................................ 10
In 2011, Walmart acquired a majority stake in Massmart in South Africa. The South African
Commercial, Catering and Allied Workers’ Union (SACCAWU), a local labour union, feared
the purchase would represent important job losses and declines in local manufacturing and
production. The union opposed the transaction, arguing that the entrance of Walmart into
South Africa’s retail market would cause the closure of local businesses and consequently
the loss of many jobs due to the expected increase of imports by Walmart. ........................
11 4.1 Explain the four types of strategic control. .....................................................................
11
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