Business Studies
Please use the company Aramark & Walmart to fill out the template that is attached. All you will need to do is fill out the template attached but it focuses on the areas below. During the assignment while using Aramark and Walmart you will: 1. identify a group of evidence of the contemporary control system the corporations use (informational and behavioral control), and discuss what the main advantages of using contemporary control systems over traditional control systems are for these corporations. 2. identify the body of evidence you see of effective and/or ineffective corporate governance and discuss the role of effective corporate governance in improving the corporations’ performance and ensuring that managerial and shareholder interests are aligned. 3. find a group of evidence of the organizational structure of the corporations and describe it, identify the advantages and disadvantages of the structure, and discuss if the organizational structure is consistent with the strategy that the corporations have chosen to implement. 4. compare and contrast these corporations in terms of their entrepreneurial orientation, and discuss how the corporations’ entrepreneurial orientation is reflected in their strategy and organizational structure.
ANSWER
MODULE 9 | Assignment
Task #1
Using the Internet, go to the corporate site of the Fortune 500 Corporations you have been working with. Then, complete the following activities:
Identify a group of evidence of the contemporary control system the corporations use (informational and behavioral control).
Table 1
| Informational control evidence | Behavioral control evidence | |
| Corporation 1 name: Aramark | Information on controls are based on shared expectations and values rather than dictating behaviors of measuring results. Aramark has a set of values and beliefs such as serving clients beyond just great service.
|
Behavioral controls are geared towards defining the behaviors that leads to the results intended by the corporations. Aramark has a strict business conduct policy that oversees the highest ethical standards and utmost integrity. |
| Corporation 2 name: Walmart | Walmart has four values which includes respect for individuals, acting with integrity, striving for excellence and service provision to the customers. Most of Walmart business results are delivered through a culture of inclusion and a belief of these values.
|
Walmart has an employee reward program that keeps their employees on toes and always striving to their best. The behavior of Walmart employees could be effectively managed through the reward structure. Employees will start acting positive to anticipate the awards. |
Then, discuss what the main advantages of using contemporary control systems over traditional control systems are for these corporations.
Three major steps are involved in the traditional strategic control approach. These three steps include the formulation of strategies and the setting of goals by the top management. The goals are then implemented, and the performance is done monitored against the set goals. Contemporary control systems however prepare companies to anticipate for any external and internal environmental changes that might occur. One of the major advantages of contemporary control systems is that the managers can monitor changes in the external environment and remodel the internal business environment in response to it. The contemporary control systems are also easy to set up and implement as opposed to traditional strategic control approach that requires long-time planning’s and therefore could cause lengthy time lags.
Task #2
Using the Internet, go to the corporate site of the Fortune 500 Corporations you have been working with. Then, complete the following activities:
Identify the body of evidence you see of effective and/or ineffective corporate governance.
Table 2
| Effective corporate governance evidence | Ineffective corporate governance evidence | |
| Corporation 1 name: Aramark | Aramark business policies are in line with the law and all the applicable regulations. The company is very effective in its board reporting and has adequately documented all the governance procedures and processes.
|
Aramark’s management has been accused before of deliberately undermining the role of various government agencies. |
| Corporation 2 name: Walmart | Walmart drive sustainable business practices. The company also has an effective board and is transparent around their roles and responsibilities. Walmart is transparent in its business practices and always engages with its stakeholders.
|
Walmart is a family-run business, and their corporate decisions could tend to favor some individuals. |
Then, discuss the role of effective corporate governance in improving the corporations’ performance and ensuring that managerial and shareholder interests are aligned.
Corporate governance is a system that leads a company, or an organization based on the principles and concepts of good corporate governance. The profitability of an organization is not much influenced by the size of the board. The profitability is however negatively impacted by the Independence of the board. As much as audit committee size does not introduce a positive effect on the profitability, the number of audit committee meetings result in a positive impact on the profitability.
Task #3
Using the Internet, go to the corporate site of the Fortune 500 Corporations you have been working with. Then, complete the following activities:
Find a group of evidence of the organizational structure of the corporations and describe it
Identify the advantages and disadvantages of the structure
Table 3
| Corporation 1 name: Aramark | Corporation 2 name: Walmart
|
|
| Evidence of the organizational structure | Aramark has an organizational structure.
|
Walmart has an organizational structure. |
| Probable organizational structure | Aramark’s organizational structure has 100 executives, led by a board of directors and a CEO who reports to the board.
|
Walmart has a hierarchical functional organizational structure. |
| Advantages of the organizational structure | Aramark has a well-organized organizational structure that isn’t the flow of information through the company. | The hierarchy feature in Walmart’s organizational structure allows for easy flow of command and authority throughout the organization. |
| Disadvantages of the organizational structure | The structure has so many reporting levels. | The backflow of information through the organizational structure is tedious. |
Then, discuss if the organizational structure is consistent with the strategy that the corporations have chosen to implement.
Walmart has a global outreach, and the scope of its operations are throughout the world. Its organizational structure enhances managerial control and maximize is influence throughout the company.
Aramark realizing its organizational structure to ensure the implementation of the company’s core values and principles. The current organizational structure used by Aramark achieves this effectively.
Task #4
Using the Internet, go to the corporate site of the Fortune 500 Corporations you have been working with. Then, complete the following activities:
Fill in the table below comparing and contrasting these corporations in terms of their entrepreneurial orientation
Table 4
| Corporation 1 name: Aramark | Corporation 2 name: Walmart
|
|
| Autonomy | Simple
|
Average |
| Innovativeness | Active
|
Robust |
| Proactiveness
|
Less Proactive | More Proactive |
| Competitive aggressiveness | Less Aggressive | Very Aggressive |
| Risk taking
|
Average | Average |
Discuss how the corporations’ entrepreneurial orientation is reflected in their strategy and organizational structure.
Aramark provides food services facilities and uniform services to university, schools, and hospitals among other institutions. Its organizational strategy is to enrich the community through strategic partnerships and employee volunteerism. Aramark’s organizational structure helps with its unique strategic management process and the implementation of its values.
Walmart aims to be the biggest brick and mortar store in the world. its organizational structure is effective in the management of its world global outreach stores. The management is also responsible for the oversight of the implementation of the company’s vision and mission.
