WAL SMART

What It Really Takes To Profit In a Wal MartWorld

Presented byB.Babu ReddyS.S.I.MT.P.S-22006

Author: William H.MarquardYear of publication: 2007No of pages : 272.Publisher of the book : Tata McGraw- Hill

Publishing Company Limited, New DelhiISBN -13: 978-0-07-065901-8 ISBN-10: 0-07-065901 -X

About authors Name : William H. Marquard with Bill

Birchard.He served as a professor of finance at

Northwestern’s Kellogg School of ManagementHe has advised major organizations in 25

industries , including Walmart, Meijer and Walt Disney World.He spent 25 years as consultant , fortune 200

executive and industry observer.

Contd..He designed WAL-MART’S first ever strategic

planning process.His Other publication are Dancing with bear- how to win at WAL-MART Era.

Contents of the bookHow the super retailer defines our world?Joy on Tread mill.Gold star Management.Genes of winner.Differentiate, Emulate, Dominate.Leverage ,Invest, Diversify.Reward, Imbalance, Grow.Belong, Align, Engage.

INTROUCTION OF THE BOOKChoose Or Lose Fred Meijer chairman of Meijer chain said, ” how do I win in a world dominated by Wal-Mart?”

1.How the Super-Retailer Defines Our World In 2004 Michael Marx thought of investigating a

big fish (WAL-MART).

WAL MARTS ECONOMY? Facts about Wal Mart:Its share of entire global economy is 1% and US is

2.5%.It has more people in uniform than US army.It sells more than $1000 worth of merchandise for

every man ,woman & child in US in 1year.

Joy on tread Mill

Jack Kahl was the chief executive of Manco Inco.

Jack kahl was main person regarding productive loop.

In 1976 Kahl started doing business with Wal-Mart .

By this productivity loop Wal-Mart business had grown

by 20 percent per year

Wal-Mart Engine: Productivity Loop

Example : Bottle of widget shampoo

PRICE COST GROSS PROFIT

UNITS SOLD

TOTAL GROSS PROFIT

$0.99 $0.75 $0.24 1000 $240

$0.94 $0.73 $0.21 1400 $294

$0.88 $0.71 $0.17 2000 $340

Gold star managementEvery organization falls into SPO or WPO.

WAL-MART is clearly one organization that fits into SPO.

WALMART attains SPO by Gold Star Test.

Gold star test model

Genes of winner Wal-Mart’s DNA includes some potent genes

that encode leadership and work attitude.Of the many genes the following are the five

deserve special attention.1. Focus.2. Correction of errors.3. Constructive paranoia.4. Thrift.5. We can make it better attitude.

Differentiate, emulate, dominateFormula for winning : In order to compete against giant WAL-MART the competitors have to think of 3 things 1.How to differentiate? 2.How to Emulate? 3.Where to dominate?

Leverage , invest, diversifyFormula for winning : In order to compete against giant WAL-MART the suppliers have to think of 3 things 1.What to leverage? 2.How to invest? 3.Where to diversify?

Reward , impassion, growKey to profiting an Employer in WAL-MART

world is to make 3 choices of serving employees in face of dominant player:

1. How to reward? 2. How to impassion? 3. How to grow?

My learning's….By reading this book I learnt about how WAL-MART functions.In order to survive in this competitive

world one must be sharp enough.How competitors can make profits in WAL-

MART economy.To be focused and maintaining good

attitude which results in success in every field.