Overview

The Wal-Mart Way Master Class is based on Michael Bergdahl’s first hand experiences working at the Wal-Mart Headquarters directly with Sam Walton. Bergdahl documented what he learned at Wal-Mart in his book, What I learned from Sam Walton: How to Compete & Thrive in a Wal-Mart World.

The Master Class

P.O.C.K.E.T.S. - The 7 Strategies of “The Wal-Mart Way” Based on his first book, What I learned from Sam Walton, Michael Bergdahl will discuss “The Wal-Mart Way” through a discussion of the 7 key strategies of Wal-Mart. Bergdahl will follow the acronym, “POCKETS” which stands for Price, Operations, Culture, Key Item Promotion, Expenses, Talent and Service. He will explain the key to each of Wal-Mart’s Strategies and it’s Best Practices that have made it the World’s Largest Company. He will discuss Strategies that audience members can take from “The Wal-Mart Way” to make their businesses even more successful.

Master Class participants will learn the strategies of Wal-Mart, the world’s largest company, along with the tactics of Sam Walton, the world’s richest man. The Master Class also helps participants understand how to utilize the POCKETS Strategy in their own businesses, and teaches the Best Practices to help compete and thrive in a Wal-Mart World!

Most importantly Bergdahl will discuss ideas and “tools” that those who attend can take away and use immediately from “The Wal-Mart Way & Sam Walton Way,” to make their own businesses even more successful.

8:30 – 9:00 a.m. - Registration

9:00 am to 11:00 am - Session 1: Price & Operations Strategies & Tactics for Business Success

Agenda “Wal-Mart / Sam Walton’s Strategies & Tactics for Business Success

• What Businesses can learn from “The Wal-Mart & Sam Walton Way”
• Then: How Sam Walton almost failed back in 1962
• Now: Tough Economic Times Even for Wal-Mart 2009
• The Seven Strategies of Wal-Mart – The World’s Largest Company
• Definition/Explanation of P.O.C.K.E.T.S. Niche Strategy
• “The Wal-Mart Way” Strategies of the World’s Largest Company
• “The Sam Walton Way” Tactics of the World’s Richest Man
• Best Practice to Compete / Survive, and Thrive in tough economic times
• As You learn about Wal-Mart, You’ll gather tools you can use to help you to compete

P.O.C.K.E.T.S. Agenda

• Definition/Explanation of POCKETS Niche Strategy
• The Seven Strategies of Wal-Mart – The World’s Largest Company
• Global Expansion Plans
• Media Scrutiny of the Most Admired Company 2003 & 2004

Price Strategy

• How did Wal-Mart turn its pricing strategy into such a powerful competitive advantage?
• Sam Walton’s Discounting Principle - Appeal of Low Prices around the world
• Every Day Low Prices
• Price Rollbacks
• Special Buy Merchandise
• Predatory Pricing
• Low price strategy driven by high volume inventory turnover
• Manufacturing in China & Asia critical to low price profitability
• Shopping Cart Comparisons
• Wal-Mart passes expense savings along to the customer via lower prices
• Pricing Tools for You

Operations Strategy

• What makes Wal-Mart’s store operations so unique? Big Facts behind the Wal-Mart Success Story
• The History of Wal-Mart
• Global Presence
• Types/Number of Stores and Distribution Centers
• Supply Chain Driven Company, in-stock, RFID
• Technology / Cross Docking / Spoke and Hub Distribution / No Traditional Warehouses
• Benchmarking Best Practices
• Operational Excellence Standards - High expectations are the key to everything
• Continuous Learning / Continuous Improvement / Flow Charting Processes
• Operations Tools for You
• Questions & Answers

11:00 - 11:30 am - BREAK

11:30 - 1:00 pm - Session 2: Culture Strategies & Tactics for Business Success

Culture Strategy

• How did Sam Walton turn Wal-Mart’s employees into a key ingredient of the company’s success?
• Why your people can make the difference when the going gets tough
• Profit Sharing is the fuel that drives the Wal-Mart engine
• Sam Walton was a servant leader
• Golden Rule Values
• The Sam Walton Way is The Wal-Mart Way
• The 10 Rules of Sam Walton
• Sam Walton’s 3 Values
• Entrepreneurial Spirit / Work Ethic
• Empowering people by pushing decision making downward
• Embraced Change / Risk-taking
• Reinforce company standards using folklore and storytelling
• Culture Tools for You
• Questions & Answers

1:00 - 2:30 pm - Lunch

2:30 pm to 4:00 pm - Session 3: KIP/Product & Expense Strategies & Tactics for Business Success

Key Item Promotion / Product Strategy

• What is the secret to Sam Walton’s strategy for selecting products for Wal-Mart’s stores? Why are selling skills and supplier partnerships so important
• Everyone is a merchant regardless of job function
• Volume Producing Item program to reinforce merchant skills
• Execution of product promotions
• Outside / in approach to selecting products and services
• Vendor Partnerships – Vendorville
• 3 types of Wal-Mart Suppliers - negotiating to supply Wal-Mart
• Automated Replenishment – just-in-time Inventory
• Store Wars – Wal-Mart battles retailers horizontally and suppliers vertically
• Innovation versus imitation
• Key Item Promotion / Product Tools for You

Expense Strategy

• How important is expense control to Wal-Mart’s overall strategy? Why managing expenses can make or break you.
• Wal-Mart Low Profitability Model
• Low prices are a result of constantly reducing costs – passing savings along to customers
• Management accountability - Sales / Payroll / Shrinkage
• Culturally engrained expense control teaches employees to monitor expenditures
• At Wal-Mart as sales volume rises expense as a percentage continuously falls
• Nothing exposes a weak expense structure faster than falling sales volume
• Each day work schedules are adjusted to reflect sales volume shortfalls
• Wal-Mart’s executives lead expense control by their own example
• Customer greeters are at every front door to greet and monitor theft
• Expense Tools for You
• Questions & Answers

4:00 pm to 4:30 pm Break

4:30 pm to 6:00 pm Session 4: Talent & Service Strategies & Tactics for Business Success

Talent Strategy

• How does Wal-Mart get 2 million employees to execute its aggressive strategies? How to increase productivity when business is difficult to come by?
• Setting aggressive goals with input from the entire team
• Average people and above average performance
• Hire for attitude and teach the necessary skills
• Accentuate the Positive / Eliminate the Negative
• Dealing with Non-performers
• Performance Discrepancy – Dealing with non-performers
• Empathetic versus sympathetic leadership
• Promotion from within, before people are ready
• Cross-functional movement of people
• Hire the Best, Provide the Best Training, and Best Place to Work
• 11 Core Leadership Competencies
• Talent Tools for You

Service Strategy

• What is the importance of customers and customers service according to Sam Walton? Why serving your customers is more important than ever
• The customer is the boss
• One stop shopping – replicate the “High Street” under one roof
• One agenda – the customer
• Drop everything to serve customers
• 10 foot rule / Sundown Rule
• Internal customer service / External customer service
• Customer segmentation strategy
• Saturday Morning Meetings / Wal-Mart Cheer
• Service Desk in the front of store – 100% product guarantee / Wal-Mart museum
• Service Tools for You
• Questions & Answers

Contact Michael Bergdahl: 412-635-2638 – mbergdahl@aol.com