Friday, February 6, 2009

Leadership Capacities

Sam Walton was a leader full of moral purpose. His purpose was to give America a retail outlet that would provide products at the lowest price possible. Sam was a proponent of American made products, but never deceived the public by claiming all of Wal-Mart’s products were American made. He had a strong global awareness and tried to help industries in both China and Central America. He was awarded the Golden Star Foreigner’s Award for his efforts in China. Sam started a program in Central America to encourage capitalism and the privatization of business in an effort to combat communism. Sam wanted to help empower people from different cultures so they could also prosper.

Sam was able to accomplish his goal and reward his employees with excellent working conditions along with fair wages and benefits. Sam, at the urging of his wife, offered profit sharing and stock purchase programs to his employees. Sam had many attributes of a successful leader and as stated by Fullan was able to “engage others with their energy and are, in turn, energized by the activities and accomplishments of the group.” (Fullan, 2003) Sam realized the importance of having good relationships with his employees and the benefits to both his company and customers. Today’s Wal-Marts still have people greeters at the door to meet you with a smile and give children a smiley face sticker. Sam made each and every employee feel like a valued member of the Wal-Mart team whether they were a cashier or vice president. The Wal-mart team “is a real team rather than a team in name only.” (Fullan, 2003)

Wal-Mart itself has a very distinct culture that was created by Sam Walton, but they continue to change and expand their offerings. Sam went on to create Sam’s Club that offers even lower prices for bulk purchases. Wal-Mart is now a superstore with an array of offerings from car repair to eye care. Wal-Mart is not afraid to change in order to meet the demands of today’s society, but they continue to remain morally forthright in their efforts. Sam Walton definitely left a legacy for his family, employees and today’s consumers. Sam Walton was a visionary who embraced change and developed relationships that made him rich not only monetarily, but also spiritually. Sam was unpretentious and he realized his success would not be possible without the support of his family and employees. Sam’s leadership capacity made Wal-Mart a household name that is synonymous with his concept of “low prices.”

Fullan. M. (2003). Leadership and sustainability. Retrieved January 27, 2009 http://www.cdl.org/resource-library/articles/ldr_sustainability.php
McHenry, S. (1998, December 7). Sam Walton. Time. Retrieved January 30, 2009 from http://www.time.com/time/time100/builder/profile/walton.html
Thompson, M. (Writer), & Cascio, M. (Director/Producer). (1997). A & E Biography-Sam Walton Bargain Billionaire [Television Series Episode]. New York: A&E Television Networks.

Qualities of Leadership

Based on my research of Sam Walton and my previous work experience at Wal-Mart I believe that Sam would be classified as a “controller.” Sam was eagerly ambitious and extremely competitive. Competition was what drove him to create many of his innovative retail practices such as discounting. Sam was extremely strong-willed and when faced with an obstacle he would always come up with a way around it. He was quick to respond to his competitors and that helped make him so successful. He was extremely intelligent and used this to reach logical solutions when faced with problems.

Sam’s secondary behavior characteristic is that of a “promoter.” He was able to use enthusiasm to persuade people to invest in his retail dream. He was able to motivate his employees with his friendly manner. As an employee of Wal-Mart I was able to participate in and somewhat enjoy the Wal-Mart cheer. Sam’s “aw shucks” persona made people feel at home and participate in such motivating activities. He used his imagination and creativity to build his retail empire.

The dust bowl caused many people to lose their farms and one of his father’s jobs was to repossess these farms for the bank. As a youngster Sam saw first-hand the devastating effects of being poor; this made him work even harder so he would never have to face poverty. Another major turning point for Sam was when he built up his first successful store and then had to abandon his efforts because the owner of the building would not renew his lease. The owner wanted to give the store to his son. Sam eventually opened another store in that same town and forced the rival store to go out-of-business. Sam always learned from his misfortunes and from that point on he leased all of his properties for 99 years. If Sam would have listened to his first boss who told him that retail was not the business for him, we wouldn’t have Wal-Mart today.

McHenry, S. (1998, December 7). Sam Walton. Time. Retrieved January 30, 2009 from http://www.time.com/time/time100/builder/profile/walton.html
Thompson, M. (Writer), & Cascio, M. (Director/Producer). (1997). A & E Biography-Sam Walton Bargain Billionaire [Television Series Episode]. New York: A&E Television Networks.

Wednesday, February 4, 2009

Overview of Sam Walton

Sam Walton created the retail empire of Wal-Mart. Sam was born on March 29, 1918 to Thomas Gibson Walton and Nancy “Nannie” Lee Lawrence. Sam lived in several Midwestern states as his father changed careers from a farmer to mortgage man. Sam was a stellar athlete and student body leader in high school. He majored in economics at the University of Missouri and was an ROTC officer. After graduation Sam took a job as a manager trainee with JC Penney, which was the beginning of his career in retail.

After serving time in the military during WWII Sam took his savings along with a loan from his father-in-law and purchased a Ben Franklin variety store. Sam implemented many new retailing concepts in his store and it became extremely successful. It was so successful that the owner of the building would not renew Sam’s lease. Sam then opened a new store in the town that would become the headquarters of Wal-Mart—Bentonville, Arkansas. Sam took his younger brother under his wing and together they opened several more Ben Franklin stores.

In 1962 he opened the first Wal-Mart, which has become the world’s largest retailer. Sam went on to become a billionaire using the concept of discounting. He worked to cut costs as low as possible in order to drive prices down. Sam was included in Time’s list of 100 most influential people of the 20th Century. He was a supporter of various charities and tried to promote capitalism in Central America in an effort to combat communism. Sam was also the recipient of the Presidential Medal of Freedom for his retailing efforts and innovations. Sam beat cancer once, but at 74 he passed away after losing his second bout with cancer. He left his ownership in Wal-Mart to his wife and four children. Sam became known as the “bargain billionaire.” (Thompson & Cascio, 1997)

McHenry, S. (1998, December 7). Sam Walton. Time. Retrieved January 30, 2009 from http://www.time.com/time/time100/builder/profile/walton.html

Thompson, M. (Writer), & Cascio, M. (Director/Producer). (1997). A & E Biography-Sam Walton Bargain Billionaire [Television Series Episode]. New York: A&E Television Networks.