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Business Models, Systems and Organization

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Our family frequently visits our local Walmart. In fact, we visit it several times a month, for several reasons, for example groceries, personals, and household shopping. Therefore, for the purpose of this assignment, all criteria will focus its attention upon the main components of Walmart’s business model. Components

Walmart’s main three components of its business model are as follows: business commerce, business occupation, and of course business organization. When it comes to business commerce, people exchange money for products, goods, or services by this process. Walmart’s has a business commerce that focuses on trade. The more Walmart expands their business, the more they engage in not only trading their goods, but also their services as well. Some current services Walmart offers are a nail salon, photo studios, and hair salons. These services can only help draw in more customers, and make their business stronger. Jones (2007), states, “Business occupation is the acquired set of specialized skills and abilities that allow people to create valuable goods and services” (p. 11). It seems the more stores Walmart opens, the more efficient they become, which can only mean they have a high set of skills and abilities available to them at all times.

At this point in their business model, the Walmart Company is set up to encourage both efficiency and mass purchasing powers. Third, we have business organization, which is the system which controls interactions between “people so that they can work toward a common goal” (Jones, 2007, p. 11). Looking at other company’s business models in comparison to Walmart’s business model can only assume that Walmart has a very strong business organization to add them in their future business endeavors. Each of these components helps to build a strong business structure, which help the business succeed throughout its lifecycle. Form of Business

Walmart is a joint-stock company like many other major retail chains in same market. According to Merriam-Webster Dictionary (2014), a joint-stock company is, “a company or association consisting of individuals organized to conduct a business for gain and having a joint stock of capital represented by shares owned individually by the members and transferable without the consent of the group.” Any Walmart shareholder who currently holds ownership of a stock can freely transfer their ownership interest of that stock at any time by selling that stock.

Differences between Forms

As mentioned above Walmart is a joint-stock company, so now we need to determine the differences between a limited liability company, a partnership, and a sole proprietorship. According to Small Business Administration (2014), a limited liability company is, “a hybrid type of a legal structure that provides the limited liability features of a corporation and the tax efficiencies and operational flexibility of a partnership.” Whereas, a partnership has at least two individuals who enter into an agreement to share all responsibilities, profits, and share all debts, of the business together. However, the partnership can have more than just two partnership. Now, when someone mentions the term sole proprietorship this means the business only has one owner. The business owner did not collaborate up with anyone to share responsibilities regarding profits, debts, or liabilities of the business. Conclusion

Walmart has a very strong business model consisting of business commerce, business occupation, and business organization. A form of business in which it conducts is a joint-stock business, with many stockholders. Overall, at this point Walmart’s has a very strong stance against its competitors.


“Joint-stock Company.” Merriam-Webster.com. Merriam-Webster, n.d. Web. 22 Sept. 2014. http://www.merriam-webster.com/dictionary/joint-stock Company. Jones, G. R. (2007). Introduction to Business: How companies create value for people. New York: McGraw-Hill/Irwin. Limited Liability Company (LLC) | the U.S. Small Business Administration | SBA.gov. (n.d.). Retrieved September 22, 2014, from http://www.sba.gov/content/limited-liability-company-llc

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