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Picking Walmart’s P.O.C.K.E.T.S. Michael Bergdahl International Speaker, Author & Walmart Competition Authority Casas GEO March 2011
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Lions or Gazelles?
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“Bird-Dawg”
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X X Bentonville, Arkansas Walmart Headquarters
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STRATEGIES of the World's Largest Company TACTICS of the World's Richest Man
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1962 Sam Walton’s first store Rogers, Arkansas
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Walmart Big Facts - World’s Largest Employer – 2.3 million - Weekly, 200 million customers shop its stores. - 89% of the USA public shop its stores annually - Its 2010 sales exceeded US$400 billion.
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Sam Walton’s Goal was never to be the biggest...
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Walmart 2011 USA, Japan, United Kingdom, Canada, Mexico, India, China, Argentina, Brazil, Guatemala, Honduras, Costa Rica, El Salvador, Nicaragua & Puerto Rico & South Africa USA, Japan, United Kingdom, Canada, Mexico, India, China, Argentina, Brazil, Guatemala, Honduras, Costa Rica, El Salvador, Nicaragua & Puerto Rico & South Africa
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Mexico is Walmart’s 2 nd largest market!
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Do you shop at Walmart? Why?
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Walmart Venezuela & Colombia?
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The Walmart Way To provide superior customer service Goal to be the best at serving customers To make customers the focus of everything
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The Casas GEO Way To provide superior customer service Goal to be the best at serving customers To make customers the focus of everything
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The Walmart Way Goal: To be the #1 Retailer in every Market
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The Casas GEO Way Goal: To be the #1 Home Builder in every Market
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The Walmart Way P.O.C.K.E.T.S. Price Operations Culture Key Item Promotion/Product Expenses Talent Service
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1.Be #1 in Every Market 2.The Best Place to Live 3.GEO Culture 4.Meet the Budget 5.GEOmore The Casas GEO Way GEOstrategy – Doing everything for the client
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“How did Walmart turn its Price Strategy into such a powerful competitive advantage?” Price Price Strategy Question:
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Answer: Other retailers focused on how much they could charge for their products... Price
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Sam Walton’s Discounting Principle Buy an item for 80¢ & price it at $1.00 Sold 3 times as much as he could at $1.20 Though he made ½ the profit per item He generated a greater profit overall Price
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Shopping Cart Comparison “Walmart saves its customers US$2500 per year on groceries!” Price
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Walmart’s Pursuit of Value 1. Buying at lowest prices 2. Controlling their own expenses 3. Get suppliers to lower expenses 4. Pass savings along to customers Price
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Pricing Ideas for The Casas GEO Way Price Control your costs – pass savings on to customers Provide a better quality home for a comparable price Value price leader – “Building Communities”
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Operations Strategy Question: “What makes Walmart’s Store Operations so unique?” Operations
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Answer: Walmart is a logistics, distribution, transportation, & technology driven company
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120,000 products 8300 stores 120 DC’s Cross docking distribution centers No Warehouses Largest privately owned IT systems in the world 7000 privately owned truck fleet – largest in the USA Operations
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Hurricane Katrina “Walmart’s trucks arrived in New Orleans days before the United States Federal Government!” Operations
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Benchmarking Best Practices Vendor Partners P&G Disney FedEx Operations
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Operations Ideas for The Casas GEO Way Operations 1. Continuous Improvement 2. Leverage Technology 3. Demand Superior execution: By your leaders By your employees By your suppliers
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Culture Strategy Question: “How did Sam Walton turn the people at Walmart into a competitive advantage?” Culture
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Answer: “Sam Walton believed if you take care of your people...” Culture
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What Makes Walmart... Walmart? Istanbul, Turkey Culture
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The Sam Walton Way 1 agenda 3 values 7 POCKETS strategies 10 rules – his tactics Sam Walton
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Walmart refers to its... - Employees as Business Partners - Customers as Neighbors or Friends - Managers as Coaches - Suppliers as Vendor Partners Culture
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Culture Ideas For The Casas Geo Way Culture Communicate Your Primary Mission - SERVICE Drive decision making down - EMPOWERMENT Adapt quickly – EMBRACE CHANGE
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“What is Walmart’s strategy for selecting products?” Key Item Promotion / Products Strategy Question: Key Item Promotion / Products
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“An outside-in approach” Answer: Key Item Promotion / Products
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One Agenda Sam Walton required every employee at Walmart to think like a Retail Merchant Key Item Promotion / Products
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Saturday Morning Meetings Product Presentations by the Buyers Key Item Promotion / Products
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Vendor Partnerships 3 kinds of suppliers Key Item Promotion / Products
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Product mix is adapted “Walmart’s leaders manage as if it were a small company!” Key Item Promotion / Products
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Key Item Promotion / Product The Casas GEO Way Key Item Promotion / Products Provide a product with superior value Be known as the best builder Be known as the best place to live
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Expenses “How important is expense control to Walmart’s strategy?” Expenses
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Answer: “Walmart’s success is driven equally by buying products at the lowest prices and continuously reducing costs.” Expenses
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Sam Walton’s People Greeters Theft control specialists Expenses
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Expense Control at Walmart Everyone is expected to negotiate The Walmart Price Walmart leverages Scale Expenses
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Expense Control at Walmart Everyone is expected to negotiate The Walmart Price Walmart leverages Scale Expenses
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Expense Control The Casas GEO Way As volume rises – expenses go down Leaders need to lead by example Pass savings along to clients Expenses
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Talent “How did Sam Walton get hundreds of thousands of employees to execute his aggressive tactics?” Talent
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Answer: “Sam Walton hired average people, encouraged them to perform at above average levels.” Talent
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H.E.A.T.K.T.E. HE ATKT E High Expectations Are The Key To Everything Talent
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Talent Pool - Bentonville - hired off the farm - 75% of managers promoted internally - The Walmart Way is most important Talent
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Talent Ideas for The Casas GEO Way Hire for attitude and teach the skills Deal with Non-performers Adapt The Casas Geo Way standards Talent
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Service “What is the importance placed on customers and customer service at Walmart?” Service
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Answer: “ The focus of all of Walmart’s Strategies is to improve the customer’s experience.” Service
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All for one and one for all Internal Customer Service Service
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The Walmart Cheer Service Who is Number One?
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Sam Walton’s Legendary Service Standards “99.9% of Customers are honest” The Customer is the Boss 2 rules of Customer Service Service
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Service Ideas for The Casas GEO Way Empower employees to resolve complaints All for one and one for all mentality Drop everything else to serve your customers Service
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The Walmart Way & The Casas GEO Way Focus everything on your clients
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The Casas GEO Cheer Service Who is Number One? CasasGEO
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