Analysis Of Walmart In Terms Of Henri Fayol's Administrative Theory

1697 (4 pages)
Download for Free
Watch out! This text is available online and is used for guidance and inspiration
Download PDF

Henri Fayol (1841-1925), lauded as father of current managerial administration, concentrated on general and states of mind speculations of chiefs’ training. Fayol was the first to find the administrative elements of planning, leading, organizing and controlling. In this essay plan is focusing on two major companies each well-known worldwide however one of these companies is a failure in the society to various facts of the company itself which lead their organization to losses and unprofitable.

To start with the company which is being considered as successful in this essay plan; Walmart, it is the biggest markdown retailer on the planet. The organization began as a little chain of stores in provincial towns. The store chain was established by Samuel Walton in 1962 and at present is one of the biggest managers in the United States. The store has been condemned for running littler “mother and pops” stores bankrupt with its to a great degree low cost. A portion of the stores are viewed as Super Wal-Marts and they normally give a supermarket and car repair look for clients. Situated in America, Blockbuster Inc. chain of stores is in control with the appropriation of tapes, computer games, and DVDs. It recorded its best execution yet in 2009 when it had around 60,000 workers. In January of 2010, the organization had more than 5,000 stores in the United States and in 17 different nations. Walmart has a net sale of $500.34 billion and according to Forbes record list it is the first company in the sales in their ranking of 2018. However, blockbuster is defunct in the last 8 year now (2010) and the company before defuncting has at around 25,00 employees and had a loss of $3.24 billion in the financial statement.

What cause the success and the failure of both companies, Fayol’s function was useful for Walmart and the failure of blockbuster can be explain as they went for their own closure. The following will determine in what ways planning, leading, organizing and controlling make a difference in company.


Planning is basic for any association to accomplish its objectives. It empowers a business to get ready for and foresee future occasions. This is accomplished through a marketable strategy, which isn’t constrained to, yet for the most part comprises of choosing the association’s objectives, the strategy(s) to accomplish these objectives, and the authoritative assets utilized and distributed to accomplish these objectives. Walmart’s best directors in charge of building up key objectives and plans that mirror a pledge to both authoritative proficiency and adequacy by looking to support store effectiveness by associating in-store promoting with “Win, play, appear” which control marketing collection choices. Walmart is the leader of price in the market they are, this happen because the direction of the company was able to understand the way the change in their customer happen and accepts to lose some but however knows how to able to gain back their customer, nowadays 3 main stagey are set by Walmart to attract customers are:

  • Save Money, Live Better
  • Win, Play, Show
  • Fast, Friendly, Clean.

These help the Walmart to concur their consumers from their competitive shop. However, while looking closer to the case of blockbuster and the way they operate was not modern, the blockbuster company did a mistake by letting a potential competitor became their biggest competitors; Netflix. Blockbuster was set in the early years of the 20th century, the company was making their planning over the long term knowing it would be the case each year. When there happen to the introduction of internet, blockbuster didn’t seem to be affected at first and ignore that large factor that change the world and the usual way of the customers. Blockbuster also tried to reimagine themselves as a convenience store (Baskin, 2013), the issue with the strategy is that they never recognized the risk of the business. Blockbuster didn’t have an innovation.


We will write a unique paper on this topic for you!
Place Order

*No hidden charges

Organizing intends to structure working connections with the goal that individuals can cooperate to accomplish objectives. Numerous associations are using this capacity, as if doing this, their workers are inspired to accomplish objectives, subsequently, viability and proficiency are practiced which helps the association’s prosperity. In the case of Walmart’s authoritative structure decides the organization’s business exercises. The long history of Walmart in succeeding and constantly developing universally demonstrates that the association’s authoritative structure and hierarchical culture have been useful in bringing upper hand and achievement. Such an authoritative structure associated with the hierarchical culture to keep up the critical upper hand of Walmart. The hierarchy of importance include relates to the vertical lines of order and expert all through the hierarchical structure. The culture in the organizing of Walmart has four main components which help the worker in their daily attitude, as Walmart belief in a service to customer, the respect of individual, and the action with the integrity. However, the situation at blockbuster was a totally different way, according to Baskin, the client was not motivated at all to visit one of their stores. To be able to back up they change their marketing campaign, promising customer that they will always have the most popular movie in stock and that if they don’t once the copies become available they can rent it for free. “People don’t know what they want until you show it to them”, one famous quote by Steve jobs. The way network change and facilitates human being life, companies start to adapt to the change, but blockbusters didn’t, as they were not prepared to it, and they got deals with Netflix but refuse it. Taking Netflix for granted and ignoring their threat on this market. When blockbuster tried to get into the market it was too late, its competitors was already way too far, and they were already bankruptcy.


Leading is articulating an unmistakable vision while inspiring authoritative individuals to accomplish hierarchical objectives. It assumes a vital job in keeping up an association’s viability; and driving development with a specific end goal to extend and prevail in a quickly changing globalized business condition. The video rental store has turned into the substance of terminated partnerships all over the place. Many reprimand Netflix and Redbox for Blockbuster’s death, however plain and basic, the organization’s initiative neglected to grab some truly astounding chances. This keeps repeating, where blockbuster failed is when they didn’t sign the $50 million deal with Netflix. Now Netflix worth more than $28 billion. Their deadly blemish was an absence of vision. Rather than looking forward and thinking about the developing intensity of advanced media, Blockbuster authority neglected to advance, making the organization today a turn of phrase for a few, and a despairing memory for other people. The leadership of blockbusters was not productive and efficient to able to understand the way of controlling, the time they set things right, Netflix was already controlling the market of streaming movies, video at the demand.

The founder of Walmart was a visionary and transformational leader, by this each type of people getting in his company was delightful people who understand the business better and are aware of the ground realities. Walmart’s leaders show a reasonable arrangement of tenets, grasp three qualities, have one shared motivation, while setting the bar high for themselves and their representatives. Walmart leaders no matter where they stand on the hierarchy, they always give them to the 100% give a smile and things are made in group so no one feel lost in their daily task. Walmart alludes to its “workers” as “partners” to urge everybody to act like entrepreneurs. Walmart offers execution-based rewards to its store and conveyance focus representatives when foreordained deals, cost, and benefit objectives are come to.


Controlling is that the maintaining and up performance thus to attain organizational goals. There square measure 3 stages that management will be measured, these embrace the input stage, wherever feed forward management is employed to anticipate issues before they occur; the conversion stage, wherever coincidental management is employed to manage issues as they occur; and also the output stage, wherever feedback management is employed to manage issues once they need arisen. Dominant ensures that organizational resources square measure with efficiency and effectively want to deliver the goods planned goals. Walmart keeps on offering low costs, and this is conceivable because of (1) its enormous volume of offers that is conceivable because of the spread of its activity and its wide client base, (2) a store network administration framework that amplifies efficiencies and decreases expenses, (3) minimization of overhead and operational expenses, and (4) utilizing of its bartering capacity to constrain providers to bring down costs.

Walmart uses implementation control to help in the keeping strategic action on way and in due time. Walmart is very concern about how the way of doing things look like and make sure that in all its stores everything id clear so that no problem happens. The price is always low as it obtains love prices from suppliers and is providing good quality at a cheap price which is beneficial to the low-income families. Blockbusters had faith in their strategy for success that brought them a million dollars’ worth of accomplishment previously. They had faith in their unrivaled advertising advantage as the biggest video rental organization in the United States. If they kept running into a hiccup in the income division, they assumed that they could expand radio and television promotion recurrence to build the presentation of their image to other buyer’s psyches. The blockbuster board keeping reassuring them that it’s the internet who kill them from the market, but they didn’t care about customer wants, customers found another product much accessible and Netflix is available.

Walmart is well known as the top business in the world as it has more operation than any other companies in that industry. The planning, organizing, leading, controlling of Walmart is the best structure as they follow their company own ethics of operating and has a term of visionary which help them to adapt to the customer want and the changes of the taste. However, blockbuster was a money minding company thinking of them as a monopoly which they thought would always control the market in a forever time, but each mistake it does made them bankruptcy and they must have close.

You can receive your plagiarism free paper paper on any topic in 3 hours!

*minimum deadline

Cite this Essay

To export a reference to this article please select a referencing style below

Copy to Clipboard
Writingbros. (2020, July, 15) Analysis Of Walmart In Terms Of Henri Fayol’s Administrative Theory. Retrived September 20, 2020, from
"Analysis Of Walmart In Terms Of Henri Fayol’s Administrative Theory." Writingbros, 15 Jul. 2020, Accessed 20 September 2020.
Writingbros. 2020. Analysis Of Walmart In Terms Of Henri Fayol’s Administrative Theory., viewed 20 September 2020, <>
Writingbros. Analysis Of Walmart In Terms Of Henri Fayol’s Administrative Theory. [Internet]. July 2020. [Accessed September 20, 2020]. Available from:
Copy to Clipboard

Need writing help?

You can always rely on us no matter what type of paper you need

Order My Paper

*No hidden charges