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Managerial Policy

Book Review
Ayesha Farooq (07179)
Saneeza Asrar (06896)
Sakina Tahir
Samara Ali

Learn from Competitors, but Remain
Faithful to the Vision

There is only one boss. The customer. And he can fire

everybody in the company from the chairman on down, simply
by spending his money somewhere else.

His dads words: work, work and work
Initial taste of retailing as a customer
He opened his first store in 1945
He was always ready to make radical changes to his stores
He visited other retail stores even after he had his own.

First Walmart Store

He opened up his first Walmart store in the same year when
Kmart, Woolco and Target was established.
Discounting was the retailing formula at his Walmart store.
He wanted to improve something everyday
Initially, his stores were not as good as his competitors but
within four decades he coined his name as the worlds largest


He opened his first store as a Ben Franklin franchise
His main competitor was Sterling producing twice as much as
his store
He spent most of his time at Sterling store

Problem with his store

All Ben Franklin franchise owners were expected to buy at
least 80 percent of their stores goods from Butler Brothers
These goods didnt come cheap, given the 25 percent
markup that Butler charged its franchisees
He attempted to go directly to local and regional
manufacturers to buy his goods.
Leading to lower purchase costs, and
increasing sales volume

The stores were classic variety stores, characterized by high

levels of customer service, with clerks helping customers
select items that ranged from cleaning supplies to cookware
to cosmetics.
But in the early 1960s, a new self-service retail model began
to catch fire in different parts of the country.
He set out to copy and improve upon this new model.

Most everything Ive done Ive copied from someone else.


He genuinely believed that all of the best ideas came from the
bottom up, not from the top down, and particularly that all those
people who interfaced with the customer knew more about the
business and more about what we needed to do and more about
how to improve it than anyone else.

Customers would shop almost anywhere if the prices were
Story of second Walmart Store in Harrison

Key learnings
Never stop learningfrom competitors, customers, and your
own employees
Assume that there is something you can learn from even your
worst competitors
Consider weekend meetings with managers to get a jump on
the competition

Consider lowering your prices to boost your volume.

Dont be afraid to shake things up.
Once you have the formula for your industry, work on
improving it
Stay faithful to the vision.

Small Town Strategy

Dont Build Where They Are, Build Where They
Are Going To Be
Opened in small towns ignored by larger competitors
First mover advantage

The First Information-Age CEO

The Faster People Got Information, The Faster
They Would Use It
1992: their computer information system was second
only to that of the Pentagon
Inventory management

Partnerships with Suppliers

The consumer is your customer. Were only a
conduit to get your merchandise to them
Reduced costs

Lessons from Walton

Make sure that the company has a clear vision
statement, and that it gets communicated
throughout the company
Make sure your information systems enable you and
your organization to operate at maximum efficiency

Walmartis the world'slargest companyby revenue,

and thelargestprivate employer in the world.
- Fortune Global 500 list in