sam+walton.ppt - SAM WALTON by suchenfz

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									SAM WALTON
 Made in America


               By
   K.Prashanth      03010420
   K.Vidya Sagar 03010315
   Sultan Ahmed 03010432
    Made in America:Sam Walton   1
                 Introduction
• Samuel Moore Walton (March 29,1918-April
  6,1992)

• Founder of Wal-Mart

• Declared “richest man in America” in October
  1985 by Forbes.

• Born in 1918 in Kingfisher, Oklahoma during the
  Great Depression.

              Made in America: Sam Walton
          To Value a Dollar
• Sam Walton‟s father Thomas Walton was
  a hard worker and loved to trade.
• He learned from early age to help provide
  for the home.
• Started selling magazine subscriptions
  and also had paper routes from very
  young age.


                 Made in America:Sam Walton   3
             Made in America: Sam Walton
          To Value a Dollar
• Sam always set extremely high personal
  goals.
• Played football, baseball and basketball
  and became youngest Eagle Scout in the
  history of Missouri at that time.
• Graduated from University of Missouri in
  1940 with a business degree.
• Since high school he paid for all his
  expenses
                Made in America:Sam Walton   4
            Made in America: Sam Walton
                  First Job
• Sam joined JC Penney, a retailing
  company, as a management trainee.
• There watching store manager he got
  excited about retailing.
• But due to war he had to resign the job
  and move in 1942.
• He married Helen in 1943 while still on
  commission.
                 Made in America:Sam Walton   5
             Made in America: Sam Walton
         Starting on a Dime
• Sam learned much about money and
  finances from Helen‟s father.
• He purchased a store in Newport,
  Arkansas, a Ben Franklin franchise.
• He learned a lot from running a store in
  franchise program.



                 Made in America:Sam Walton   6
             Made in America: Sam Walton
       Wal-Mart‟s philosophy
• In his store, he would buy an item for 80
  cents, priced it to sell at $1.00 and sell
  three times more of it than by pricing it at
  $1.20. The overall profit was much
  greater. By cutting the price, it boosted
  the sales to a point where it earned far
  more at the cheaper retail price than it
  would had by selling the item at the higher
  price.
                 Made in America:Sam Walton      7
             Made in America: Sam Walton
              Bouncing Back
• Due to lease contract,he has
  to sell his store and move.
• It led him to bigger and better
  things
• Sam moved with his family to
  Bentonville, Arkansas to open
  self-service Five & Dime store
  which at that time was a new
  concept.

                   Made in America:Sam Walton   8
               Made in America: Sam Walton
           Bouncing Back
• He expanded very rapidly and opened
  many variety stores.

• But, a new concept of discount store came
  into existence and Sam immediately
  sensed that discount idea was the future



                Made in America:Sam Walton   9
            Made in America: Sam Walton
            First Wal-Mart
• He built a store in Rogers, Arkansas.
• Nobody wanted to gamble on it so Sam
  has to put up 95 percent.
• Sam always checked on competition and
  always went around with his yellow pad to
  note down any new idea.
• He always used to promote a items very
  innovatively.
                Made in America:Sam Walton   10
            Made in America: Sam Walton
           Raising a Family
• Sam and Helen had four kids: three boys
  and a girl.
• Helen always insisted on living in small
  town so that they could raise their children
  with same values they has been exposed
  to.
• All four worked for Wal-Mart from young
  age and even invested in it over years.
                 Made in America:Sam Walton   11
             Made in America: Sam Walton
        Recruiting the team
• All along ,history of Wal-Mart has been
  marked by having right people in right job
  at right time.
• Whitaker- To get it started
• Ferold Arend- To get it organised
• Jack Shewmaker- To push new ideas
• David Glass- To keep cool in crisis and get
  control
                 Made in America:Sam Walton   12
             Made in America: Sam Walton
   Taking the Company Public
• Due to rapid expansion, Sam accrued a
  huge debt.
• To get relief, he went public.
• Over the years, even though many has
  written them off, Wal-Mart stock did very
  well



                 Made in America:Sam Walton   13
             Made in America: Sam Walton
     Building the Partnership
• Sam attributes Wal-Mart‟s unbelievable
  prosperity to the relationship managers
  enjoy with its associates, employees in the
  store.
• They have a profit sharing plan for all the
  associates.
• Information is also shared with associates
  to give them a sense of partnership.
                 Made in America:Sam Walton   14
             Made in America: Sam Walton
   Making Customer Number One
• Sam always believed in secret of
  successful retailing is to give customers
  what they want.
• Strong customer demand in small towns
  made it possible for Wal-Mart to get
  started.



                 Made in America:Sam Walton   15
             Made in America: Sam Walton
     Meeting the Competition
• Sam believes that one of the smartest
  strategic decision was to meet competition
  head on.
• He tributes Kmart and Target for
  legitimizing discount stores and also
  acknowledges that competition with them
  made Wal-Mart a better company.
• Kmart attack on Wal-Mart best external
  event in Wal-Mart‟s history.
                 Made in America:Sam Walton   16
             Made in America: Sam Walton
• Sam always experimented with different
  concepts like Hypermart, Discount drug
  concept and Sam‟s club.
• Sam‟s club now is a $10 billion business
  with huge growth potential.
• Sam‟s club was result of competition from
  Price club stores.


                Made in America:Sam Walton    17
            Made in America: Sam Walton
       Expanding the Circles
• Wal-Mart is known for its distribution and
  transportation system.
• Sam always put up a good fight whenever
  somebody wants to buy a new system.
• He tributes David Glass, Jack Shewmaker
  and Ron Meyer for putting pressure on
  him for new systems.
• They were the first to use satellite in
  retailing
                 Made in America:Sam Walton   18
             Made in America: Sam Walton
• “So you see, technology and distribution
  are every bit important to Wal-Mart‟s ability
  to grow and maintain control. But, don‟t let
  anybody kid you. Without the right
  managers, and dedicated associates and
  truck drivers all across the system, all that
  stuff is totally worthless.”


                 Made in America:Sam Walton   19
             Made in America: Sam Walton
            Thinking Small
• “well, now, Sam, how big do you really
  want this company to be? What is your
  plan?”
                          -FEROLD AREND
• “Ferold, we‟re going to take it as it comes,
  and if we can grow with our own money,
  we‟ll maybe add a store or two.”
                         -SAM WALTON
                 Made in America:Sam Walton   20
             Made in America: Sam Walton
• Think one store at a time
• Communicate, Communicate,
  Communicate
• Keep your ear to the ground
• Push responsibility and authority down
• Force ideas to bubble up
• Stay lean, fight Bureaucracy

                Made in America:Sam Walton   21
            Made in America: Sam Walton
      Running a successful company
1. Commit to your business. Believe in it more than anybody
   else.
2. Share your profits with all your associates and treat them
   as partners.
3. Motivate your partners. Money and ownership alone are
   not enough
4. Communicate everything you possible can to your
   partners.
5. Appreciate everything your associates do for the business.
6. Celebrate your successes.
7. Listen to everyone in your company.
8. Exceed your customers‟ expectations.
9. Control your expenses better than your competition.
10.Swim upstream.
                      Made in America:Sam Walton            22
                  Made in America: Sam Walton
      Giving something back
• He discusses how he gave something
  back to the community in terms of
  scholarships etc.
• Another issue he discusses is Wal-Mart
  being the huge importer of overseas
  merchandise.
• He says in too many cases importing is
  really their only option as American goods
  are simply not competitive.
                 Made in America:Sam Walton   23
             Made in America: Sam Walton
• He accepts that Wal-Mart had fallen into a
  pattern of knee-jerk import buying without
  looking at alternatives.
• Today, Wal-Mart instructs their suppliers
  to look for alternatives in America itself.
• He criticizes the Unions for not believing in
  free market and new solutions and being
  interested in only Union jobs.
                 Made in America:Sam Walton   24
             Made in America: Sam Walton
    Wanting to Leave a Legacy
• Sam believes in global economy, successful
  business is going to do just Wal-Mart is always
  trying to do: give more responsibility for making
  decisions to the people who are actually on firing
  line.
• He would like to see American industry
  challenge Japanese industry like auto industry.
• Thinks American management has bent too far
  towards taking care of itself first.

                   Made in America:Sam Walton     25
               Made in America: Sam Walton
  CRITICISM




Made in America:Sam Walton   26
Made in America:Sam Walton   27
    Criticism of his personality
• Modest, down-to-earth and ''casually
  relentless''
• Gentlemanly, modest and notoriously
  chintzy
• A gifted leader
•



               Made in America:Sam Walton   28
Criticism of his business policies
• Walton ''was to the faith of consumerism what the
  Mahatma Gandhi was to nonviolence” – Bob Ortega
• Despite Wal-Mart's claims of ''Made in America''
  program, much of Wal-Mart's merchandise was and is
  made overseas.
• ''The history of the company,'' he writes, ''provides ample
  evidence that Wal-Mart, like any corporation, is merely a
  machine, an amoral construct with one imperative: the
  profit motive. That pursuing that motive to the utmost
  may have a corrosive effect on communities or
  individuals -- including people within the corporation --
  never enters into the equation.''



                     Made in America:Sam Walton            29
Criticism of his business policies
• Unfortunately, what America demands is not fairness or
  decency, but cheap goods and lots of them. It's called
  capitalism.
• A stingy low-wage employer with an arrogant disregard
  for local and national laws . – The Nation
• What do you get when you cross gutted labor laws with a corporate
  culture of impunity? Why, Wal-Mart, of course!
• Who pays for Wal-Mart's cheap products from China: the
  workers who make them.
• Managers are trained to call a special hotline at the first
  sign of suspicious behavior, including “employees talking
  in hushed tones to each other.”

                        Made in America:Sam Walton                30
Criticism of his business policies
• “From the Chairperson of the „Board‟ down
  to the front-line manager … the entire
  management staff should fully
  comprehend and appreciate exactly what
  is expected of their individual efforts to
  meet the union free objective.”
• Open Doors, Closed Minds


               Made in America:Sam Walton   31
  Criticism of Made in America
• Sam Walton says, he didn't believe in
  giving "any undeserving stranger a free
  ride."
• "We feel very strongly," he wrote, "that
  Wal-Mart really is not, and should not be,
  in the charity business."
• He did not believe in being generous with
  company profits.
                Made in America:Sam Walton     32
  Criticism of Made In America
• Money that Wal-Mart donated to charity,
  he reasoned, would only come out of the
  pockets of "either our shareholders or our
  customers." (He didn't mention workers,
  perhaps a tacit acknowledgment that
  picking their pockets was just business as
  usual.)


               Made in America:Sam Walton   33
  Wal-Mart's 'China Price‟ : Injecting
    humanity into dry economic numbers
• "Customers of Wal-Mart: when you wear
  expensive clothes, when your children
  play with high-quality toys, think of China
  and the Far East." Another adds: "Those
  profits you made and the wonderful life
  you made are the sweat, and tears and
  overtime work of Chinese people."


                Made in America:Sam Walton      34

								
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