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Recently, "Fortune" magazine announced the world's top 500, the retail giant Wal-Mart Stores finally pulled off the Exxon Mobil Oil Company, with a total revenue of 219.81 billion US dollars to board the United States and even the world's top companies. This is the first time in the history of the United States that service companies have become the Fortune 500 leader.
“Fortune” magazine reporters wrote without hesitation: How can a street vendor selling cheap shirts and fishing rods become the most powerful company in the United States? In fact, the success of Wal-Mart does not have the mystery of the mystery, but it is it for decades to abide by their own operating rules, perseverance, assiduously, assiduously, a little profit, sand and pagodas, set into a tower, form a Wal-Mart brand-name effect, and finally force pull In the first place, he will climb the top of the world's top 500 companies.
One of the rules of operation: puerile
Wal-Mart's "trousers theory" is the best explanation for the "small profits but quick turnover" strategy: women's trousers are priced at US$8, priced at US$12, each with gross margin of US$4, one day for sale, and gross profit of US$40. If the selling price drops to 10 US dollars, each gross profit of 2 US dollars, but it can sell 3 times the goods, gross profit of 60 US dollars, an increase of one-third of the profits. This is the famous Wal-Mart "trousers theory." In addition, Sam opened a store and adhered to a belief that "as long as the store can provide the most complete goods, the best service, customers will flock."
Therefore, he asked the staff two requirements: "The sun goes down" and "The ten-foot attitude." “The sun goes down” means that every employee must satisfy the customer before the sun goes down: “The ten-foot attitude” means that when the customer goes within 10 feet of the employee, the employee must actively ask the customer what the requirements are, and You must look at the customer's eyes when speaking.
The second rule of business: service first
In addition to low prices, Wal-Mart’s other compelling feature is good service. Sam Walton developed three mottos for the company: The customer is God, respects every employee, and strives for excellence every day. This can also be said to be the essence of Wal-Mart's corporate culture.
Retiring from 1962 to 1992, Walton emphasized the need to provide the best possible service during the 30 years leading the company’s rapid development. In order to achieve this, Walton has compiled a set of management rules. He had asked the staff to make a pledge: When the customer walks within 10 feet of you, you must look gently into the customer's eyes, greet him and ask if he needs help. This famous ten-foot attitude has been a code of thumb for Wal-Mart employees. For the staff's smile, Walton has a quantified standard: Please show your customers your eight teeth. In addition, what the principle of the sun goes down and beyond the expectations of customers are the magic weapon that Wal-Mart attracts customers.
The third rule of business: teamwork
The first of the three basic principles advocated in Wal-Mart’s corporate culture is: respect for individuals. Wal-Mart not only emphasizes respect for customers and provides first-rate services, but also emphasizes respect for everyone in the company. Wal-Mart attaches great importance to the employees' spiritual encouragement. Pictures of advanced employees are hung from the headquarters and shops. The company also confers the title of Sam Walton Entrepreneur on particularly good managers. The Wal-Mart Store Manager earns around US$50,000 a year, and the revenue is directly linked to the store's sales performance. The good performance can exceed the income of the regional manager.
Managers at or above the regional manager’s annual salary of about US$90,000 are linked to the performance of the entire company, and bonuses and equity awards are particularly good for their work. This kind of income distribution mechanism not only makes the earnings of well-performing store managers higher than that of top management personnel, but also ensures that the top management is generally higher in income than grass-roots managers, which is conducive to mobilizing the enthusiasm of employees at all levels. In Wal-Mart, although the division of labor at all levels is clear, there is little discrimination.
The fourth rule of business: strive for perfection
Wal-Mart has grown from being a small store in the early 1960s to becoming a top 10 company in the world in the 1990s. Its ambition for perfection remains unchanged. While absorbing new business ideas and ideas, Wal-Mart quickly follows the times and uses new technologies to serve its own development. It invested US$400 million in huge amounts of money and commissioned Hughes to launch commercial satellites to achieve global networking and provide guarantees for its efficient distribution system. According to reports, through its global network, Wal-Mart’s headquarters can inventory all inventories, shelf-loads, and sales volumes of each commodity in more than 4,000 stores around the world within one hour. In the past two years, the U.S. Internet industry has been generally sluggish. Although Wal-Mart's website has been affected, the operation of the website is getting better and better.
