Wal-Mart is one of the US multinational corporations in the retail industry, which have branches in over ten countries. Founded in the year 1962, the firm is currently the largest retail chain not only in US but also around the globe. The retail chain is headquartered in Bentonville Arkansas. Wal-Mart’s aim is to increase it revenue through the innovative retailing processes that offers cheap and quality merchandize to its clients around the globe. In fact, the main philosophy of Wal-Mart is to offer its products at the most affordable prices to the clients. Besides, one of the reasons for the organization’s success is its structural design. The low-pricing strategy of the firm is attained primarily through its structural design, which lowers the cost of operations. In terms of structural design, the firm is organized in a short vertical management channel with moderate horizontal departmental blueprint. The purpose of this paper is to examine the Wal-Mart’s organizational system design. Besides, the paper will identify the relationship between Etzioni’s three approaches to power and compliance in the organization’s chart as well as to examine how the approaches to power and compliance have influenced the development of the system. The paper will then provide recommendations for the most appropriate system. Wal-Mart Organizational System Design Wal-Mart has adopted a short vertical management structure aimed at reducing the operations cost. Broadly, the firm’s structural design can be described using the elements of geographical and divisional structures. However, like most of the large corporations, the top management decisions are taken by the executive governing body of board of directors. Moreover, certain decisions such as the appointment of directors are made by the shareholders at the annual general shareholders meeting. Generally, the top decision-making organ of the organization is Annual General Shareholders Meeting (AGM). However, the Board of Directors (BOD) is the executive organ that executes the decisions made at AGM. The board of directors consists of fourteen members that represent various organs of the organization. The board of directors normally implements the decisions made at the annual general meeting and ensure day to day running of the organization. The Chief Executive Officer (CEO) and the representatives of the annual shareholders general meeting are responsible for making strategic decisions in the organization, which are then implemented by the board of directors. The organization is also divided into divisional and regional subdivisions. The sub-divisions enjoy autonomy in their decisions and operations. However, the strategic decisions are made at the top of the management. In fact, the corporation’s sub-divisions include US Wal-Mart stores, Sam’s Club and Wal-Mart international. These sub-divisions have greater autonomy in terms of governance and operations. The sub-divisions are further divided according to the principles of geographical locations. For instance, the US Wal-Mart store is divided into Wal-Mart West, Wal-Mart South and Wal-Mart North. Wal-Mart international is divided into Wal-Mart China, Wal-Mart India, Wal-Mart Brazil and Wal