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Organizations

Walmart, a Centralized Organization

A decentralized organization offers workers  greater freedom, empowerment, and the ability to be innovative. This creates a much more satisfying environment to work in. However, Walmart is, in a way, the complete opposite. It is a centralized organization that enforces strict rules that doesn’t make any allowances.

The employees at Walmart are all required to follow the company’s policies, called the Ten Rules of Sam Walton. Although the last of the ten rules is “swim upstream, be different, and challenge the status quo”, Walmart managers do not allow anybody to stray from their expectations. Managers keep watch of each worker, and penalize them if there is even the slightest mistake. The managers are like this because their higher-ups keep an eye on them as well, and there are strict evaluation of each member of Walmart.

Every employee must greet and help any customer within 10 steps from them. Every employee must smile and treat the customer like family. Every employee must do everything to make the customer happy. The customer is everything, and is always right. There is absolutely no satisfaction in the workplace. In the end, every employee becomes an identical robot under this extremely centralized organization.

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Is Wal-Mart Too Powerful?

The difference between two stores can be drastic

The Ten Rules of Sam Walton

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Organizations

Direct Dell

Usually, products that you buy in store come from a long supply chain. Once it is produced by the manufacturer, it goes through the distributor into warehouses, then to the retailers, and finally to the hands of the consumers. However, that means the product will go through double marginalization, which will cost more to customers who only want a fair price.

Dell, on the other hand, not only supply to retailers such as Futureshop, but they are also a direct business on their own. This means having a possibility to customize products for consumers and also having the ability to charge lower prices while earning more profit.

Dell uses mass customization in its factory outlet. The consumer chooses the model of the product, then gets to customize the storage space, docking, audio system, battery type, and also the skin. The buyer can also choose to include accessories along with their original purchase, such as getting the mouse, office software, product bags, headphones, or others. Dell also provides free shipping for shoppers who order from their factory outlet.

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Dell Factory Outlet

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News Articles

Undercapitalized Ireland

On November 16th, the banks in Ireland faced great troubles from the collapse of the “real-estate bubble”. This caused many investors to withdraw tens of billions of euros. The fear caused not only the loss of investors and liquidity funds, but also a government that was unable to provide a bailout. To save other countries from being hit by this terror of failing banks, European Union will be funding Ireland with €80- to €90-billion from their emergency rescue fund.

How did the banks in Ireland come to this in the first place?

They were undercapitalized. Since the collapse of real-estate caused such an enormous effect on the banks, it can be assumed that the banks were highly levered on lending out mortgages. They took a risk, and now they are in trouble. This is why Ireland needed an injection of liquidity, and a large one, from the European Union. The effects of this is still to be determined, but for now, these funds are merely a hope to stop the increasing fears of investors in Ireland.

Video: Infectious Sovereign Debt Risk

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Will Ireland life jacket keep others in euro zone from sinking?

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News Articles

Facebook, an Entrepreneur

To me, Facebook was simply a very popular website that people go on to socialize with others. It did not occur to me that Facebook is an entrepreneurial venture, and one of the most successful ones out there. It meets all the definition points of entrepreneurship: great amount of wealth creation, fast speed of such wealth creation, high risk, and high innovation.

Facebook creates millions in revenue from the advertisements on the website. Although this doesn’t seem like it can earn much, consider this: Facebook is the second most visited website in the world. Because of this, many businesses want their ads on this social website.

Facebook started in 2003, and until now, has only been running for around seven years. Yet, they became one of the fastest revenue-earning businesses, leaving MySpace in the dust.

It is impossible to say that Facebook did not face any risk. Of course they did. Tremendous risk, especially regarding privacy issues. However, they still took that risk, made necessary changes, and moved forward.

Facebook itself is an amazing innovation, and they are continuing to create more. On November 15th, 2010, it announced a new feature being released soon: the next generation of Messages. It includes chat via SMS, chat, email or Messages, and even provides an @facebook.com e-mail address that functions differently than normal e-mail.

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Facebook, always making new innovations, taking risks, and bringing in revenue at shocking rates in short periods of time, is a very successful entrepreneur.

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How Exactly is Facebook Making Money? – Technology Blog

See the Messages that Matter – Facebook

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