Wal-Mart's incomparable success – Sam Walton – an embodiment of his humility This is a review of the book “Sam Walton: Made in America” written by Sam. Walmart's history is tied to the story of Sam Walton himself, and so much of our future .. You can read the rules below, excerpted from his book, Sam www3. dancindonna.info GCR/GCR_Rankings_pdf. THE BOOK: The 10 Rules of Sam Walton, is the story behind the tactics that Sam Walton used to become the world's richest man. He believed it was these
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So first, I want to dedicate this book to Helen Robson Walton and the four fine Hello, friends, I'm Sam Walton, founder and chairman of Wal-Mart Stores. By. file:///C:/DOCUME~1/ARNTHT~1/LOCALS~1/Temp/Rar$EX SAM WALTON MADE IN AMERICA MY STORY by SAM WALTON with JOHN HU. Editorial Reviews. From Library Journal. The late Sam Walton was one of the shrewdest and Shortly after Walton's death, the book was given an overly sentimental postscript (a minor detraction) and rushed into print. Highly recommended for.
Samuel Moore Walton Mar 29, - April 6, Founder of Wal-mart. Declared richest man in America in October by Forbes. Born in in Kingfisher, Oklahoma during the Great Depression. He learned from early age to help provide for the home. Started selling magazines, subscriptions and also had paper routes from very young age.
By cutting the price it boosted the sales to a point where it earned far more at cheaper retail price than it would have by selling the item at higher price. It lead him to bigger and better things.
He expanded it very rapidly and opened many variety stores but, a new concept of discount stores came into existence and sam immediately sensed that disount-idea was the future. Sam always checked on competition and always went around with his yellow pad to note down any new idea. He always used to promote items very innovatively.
Helene always insisted on living in a small town so that they could raise their children with same values they have been exposed to. All four worked for Wal-Mart from young age and even invested in it over years. To get relieved he went public. Over the years even though many has written them off, Wal-Mart stock did very well. He brought out the very best in his employees, gave his very best to his customers, and taught something of value to everyone he touched.
Give them what they want — and a little more. Any greedier retailer that wanted to preserve margins at the expense of price died. If other stores offer sales, he wants his prices lower.
He keeps watch for new trends, like discount stores, and mega-size shopping centers, letting him be among the first in his area to execute. This became such a habit that on family vacations outside town, he would visit stores to study their practices. Look for the good. They were too small to worry about in the beginning. Wal-Mart itself as a discount retailer was an idea taken from earlier discounters.
He prefers tennis instead of golf because of its head-to-head nature. Competitors make each other better, and the customer gets the best value of all.
Sam thanks Kmart for its competition in keeping them on their toes. They had to compete against variety stores.
Retail-specific Wal-Mart Strategy Sam Walton believed that with lower prices, volume made up for lower profit per item. We were trying to find out if customers in a town of 6, people would come to our kind of a barn and download the same merchandise strictly because of price.
The answer was yes. We paid 50 cents for it. If we get a great deal, pass it on to the customer. He obsessed about finding unique goods that he could bring into his store and sell at a discount — like thong sandals and mattress toppers. Wal-Mart holds VPI Volume Producing Item contests between senior downloaders to pick specific items that will sell the best eg a minnow bucket, a brand of apple juice.
This teaches store managers that some products can explode in sales, if the messaging and presentation are correct. While HQ demurred at the volume, it made the news and sold within a week. Same thing happened with riding lawnmowers, stacked in rows in front of the store.
The ones that are operations driven tend to level off. This required control of timely information on what was selling, what needed to get ordered, how to control turnover.
This led to early use of the computer. The Wal-Mart Formula Set up stores in small towns.
Their discount formula works in towns under 5, people, and big competitors like Kmart are only going into large cities above 50k. Classic Christiansen disruption.
Then fill in that territory, town by town, state by state until saturation. When Kmart came in with 3 stores, they had a tough time competing. Word of mouth worked well: from rural town to town; people who traveled South for winter would clamor for stores up north.
In all my years, what I Heard more often than anything was: a town of less than 50, population cannot support a discount store for very long. Thinking like that often seems to turn into sort of a self-fulfilling prophecy.
My only experience was the Penney job, but I had a lot of confidence that I could be successful on my own. Believe in it more than anybody else…. What's special about Shortform: The world's highest quality book summaries - comprehensive, concise, and everything you need to know Interactive exercises that teach you to apply what you've learned Discussion communities - get the best advice from other readers Get the world's best book summaries now Frugality Walton lived through the Great Depression and saw his father go between jobs.
He also traveled with his dad as a repossessor for a loan company. Even when wealthy, they refused to spend lavishly. These principles extended to running Walmart, where they put off downloading a jet and force employees to sleep two to a room. Control your expenses better than your competition. But they made up for it in lowest possible costs, merchandise, and brand reputation.
Sam made constant benchmarks with his rival. He even visited the company headquarters. They did not take him seriously because he was too small to be considered a competitor. Sam also liked benchmarking with other companies in the industry.
He joined a class organization to learn from other market entrepreneurs and went on to invite people from other companies to go to their stores and freely criticize what he was doing.
When they came to the company, they brought new points of view, and this helped them gain a better understanding of the competition, drawing their attention to competing with Kmart. In the early s, while Sam had 70 stores, Kmart already had stores. By , the Kmart network had 1, stores, and Waltons had only Compared to Kmart stores, Walmart stores were ugly and poorly planned. With the benefit of the strategy integrated with the manufacturers of the products sold, Walmart could always be full of avid customers for the lowest price.
And that allowed them to start growing faster than the rival. By this time too, Sam had learned to embrace technology, especially if it reduced costs for the customer.
Even before the popularization of computers in the business world, Sam wanted Walmart to modernize.
He wanted to learn about IBM computers and enrolled in classes on the subject. In a short time, he was 10 years ahead of competitors when it came to the computer revolution, as he had assimilated its importance early on. When Sam wrote his biography, Walmart was so big that it had sold million pairs of socks, enough to give more than one to every single US citizen that year.
Walmart Today Although Walmart is criticized for how it deals with unions and making few donations to causes, Sam defends companies by mentioning their primary goal is to help people save money. With these savings, it helps improve the quality of life of all the people around your stores. If he offered higher wages or more donations, it would not be possible to live this mission. Walton emphasizes that Walmart always prefers to work with American suppliers to create more jobs and make the industry more competitive.
Check it out: Commit to your business. Believe it more than anyone else. If you love your work, you will focus on improving every day, and your passion will possess everyone.
Share your profits with your employees. In return, they will treat you as a partner and perform better than their expectations. With happy employees, customers are well treated and return. The employee profit sharing program causes Walmart to have, for example, half the rate of theft by industry employees.
Motivate your partners. Money and society are not enough.
Set big goals, encourage and embrace the competition and follow the scoreboard. Do not become predictable. Also, the presence of competition forces you to refine. A company needs to embrace your competition as it makes your business better. Communicate everything to your partners. The more they know, the more they understand and care. Once they care, you are aligned for success. Enjoy what your developers bring to the business.
Nothing replaces the appreciation of its employees. It costs nothing and is worth a lot. Celebrate your success. Do not take yourself too seriously, let go and everyone will let go. Have fun and always get excited. That is more important than you think. Listen to everyone in the company. Great ideas come from everywhere and you never know who will bring you the next great idea.
Sam especially liked talking to Walmart drivers to get fresh ideas. Give them what they want and always something else. Correct all your mistakes and never make excuses. Control your expenses better than the competition. That is where you have a competitive edge.