Chapter 0089: Direction of Development

"Mr. Sam, I highly recognize your business philosophy and management skills, but I would like to put forward some suggestions for your future development:

The first is to have continuous business innovation. At present, the company operates a discount department store chain, is this the best form, I think with the development of society, our business philosophy and business methods should also keep pace with the times,

I think the next stage should be the development of warehousing clubs, a typical warehousing club business area is preferably more than 10,000 square meters, the product mix from food to general goods, it can be said that almost everything, readily available, can meet the needs of consumers to the greatest extent.

At the same time, the average gross profit of the warehouse club is only 10-13%, which is not only lower than traditional department stores and food supermarkets, but even half lower than discount department stores, so the price of goods is extremely cheap.

The key to ensuring a complete range of goods and a particularly cheap price is to only deal in the varieties, specifications or brands that are most in demand and sold in each category, and the minimum sales packaging of many products is much larger than that of ordinary stores, these measures can make the same goods 30-40% cheaper than ordinary retail stores in the storage club, which greatly improves the attractiveness of customers.

Another measure to compensate for costs and stabilize customers is to introduce a membership system, which targets customers who buy large quantities and engage in small businesses, such as restaurants, food stores, etc. Because of all these advantages, the warehouse club is regarded by experts as the most innovative and promising form of business operation after discount department stores, and can be regarded as a perfect combination of wholesale and retail.

The next is the development of shopping plazas, with a business area of about 10,000 square meters and a gross profit margin of 17-18%, which is still advantageous compared with the gross profit margin of general supermarkets. The product mix is equivalent to a supermarket and a discount department store, the product category is slightly narrower than the supermarket, but the quality is better, half of the food and half of the comprehensive goods, following the principle of "one-stop shopping", targeting a small town with a population of less than 10,000.

The second is to have accurate market positioning. In the past, many large enterprises were engaged in retail in large and medium-sized cities. We should focus on the blank space of small and medium-sized towns and implement the strategy of "encircling cities from rural areas."

The strategy is to set up stores on a state-by-state basis, county by county, until the entire state market is saturated, and then expand to another state. From one region to the whole United States, and then from the whole United States to the whole world, steady and steady, and gradually bigger.

The following principles are generally followed in selecting a location to open a store: First, choose an economically developed town. The second is to consider the chain development plan as a whole to prevent the location of the store from being too scattered. The third is to set up independent stores, which are independent stores for Sam's Club, and generally do not gather with other large retail stores. Fourth, choose the urban-rural junction.

In terms of commodity procurement, we are committed to establishing a marketable commodity structure. Its style is: the implementation of a wide and medium depth of commodity portfolio, fully meet the needs of consumers "one-stop shopping"; Pay attention to the high turnover of goods, rather than putting high profits in the first place; Focusing on convenience goods, appropriate allocation of optional items; Mainly mid-range goods, appropriately taking into account high-end and low-end goods.

The third is to have advanced distribution management. Effective fulfillment of goods is central to ensuring that a company achieves maximum sales and lowest costs.

Large chain companies in the United States, such as Kmart, are located in cities and have professional distributors to supply their thousands of branches; As a new company, we don't have any major distributors willing to deliver to its branches in remote towns.

Therefore, the way for the company to obtain reliable supply guarantee and cost efficiency is to establish its own distribution organization, implement direct purchase from the factory, and greatly reduce the distribution links. We have designed and improved the supporting logistics management system to achieve more than 80% of the goods distributed and supplied by our own distribution center.

The introduction of advanced technology has fully automated the operation of the distribution center, where each product has a barcode, and the storage location and delivery of each product are tracked by laser scanners and computers. Many large chains outsource their transportation to specialist trucking companies, but we must have our own fleet and our own drivers to remain flexible and provide the best service to the frontline stores.

This ensures that the time it takes for products to be transported from the distribution center to the branches will not exceed one day. The average time from placing an order on a computer to putting goods on the shelves in a retail branch is only two days.

The fourth is to rely on strong technical support. Enterprises should attach importance to the extensive application of information technology in the distribution system and inventory management, we have the strength if necessary, we can launch our own satellites to establish a satellite interactive communication system, so that the company's headquarters can maintain instant contact with the global distribution center, the establishment of the entire company's computer network system and 24-hour continuous communication capabilities, so that the headquarters of decision-making and meetings, can be transmitted to the branches through satellites.

The fifth is to adhere to the marketing strategy of "parity every day". The so-called daily parity refers to the fact that retailers always emphasize that the price is lower than that of other retailers.

Under the guidance of this price strategy, the price of goods of the same quality and brand is lower than that of other retailers. The price of products in discount stores is 10-20% lower than in other places, and in member stores, it is as low as 30-40%.

In the process of commodity procurement, it is "striving for the interests of customers from suppliers", and resolutely adheres to the low-price strategy for suppliers. In terms of procurement, the direct mode of supply and marketing and the partnership model are adopted. In the sales process, adhere to the long-term low-price positioning strategy.

The basic principles of pricing: first, expand market share and maximize profits; the second is to strictly control the gross profit margin to ensure a low level; The third is to take the competition-oriented pricing method as the main pricing method, and comprehensively shape and strengthen the dynamic management pricing system.

The sixth is to have a harmonious corporate culture. In our company, employees are not treated as "employees", but as "partners". The company's concern for the interests of employees is implemented in a set of detailed and specific implementation plans, including profit sharing plans and compensation and welfare plans.

In corporate decision-making, we promote the spirit of private participation and draw on the opinions of front-line employees. The united and lively corporate culture is compatible with Wal-Mart's intense and efficient management system, and together create an excellent retail team.

The above six suggestions are for Mr. Sam's reference. ”

Sam was startled after hearing this, is the chairman a roundworm in his stomach, how come many things he thinks The chairman knows, there are many ideas that he has never said, no one knows at all, of course, there are more and more advanced ideas that he has never thought of, and he pondered it, it is still a very valuable idea, the chairman is too powerful.

Originally, Sam thought that he was the first person in the chain operation, ambitious to create a great ideal of the world's first, but did not expect the chairman to be much stronger than himself, no wonder there are such great achievements, all of which are beyond his reach, and there is such a huge investment in the dust has no opponent, he believes that with the chairman will be able to create more brilliant achievements, Sam said excitedly:

"Chairman, you speak too well, everything you said is the most advanced business philosophy of supermarket chains, which has given me a lot of inspiration, with these guiding opinions, I am more confident to make the company stronger and bigger, you are really good, I admire it very much."

Sam stood up after speaking, and bowed to Zhao Weidong respectfully, Zhao Weidong quickly stood up and supported him, not letting him bow this way, in fact, all Zhao Weidong said was his own theory, which shows how valuable this theory is, and it shows the greatness of Mr. Sam, Zhao Weidong hurriedly said:

"Mr. Sam, you are so polite, how can I bear you like this, you are still so ambitious at this age, it really makes me admire you very much, I respect you very much, I hope that with our joint efforts, we will create a brilliant era in one future."

"Chairman, you are a major shareholder with 80% of the shares, I own 20%, according to the current market value of about 700 million US dollars, my 20% shares are only 140 million US dollars, if you inject 50 billion US dollars in, according to my capital to 1%, I suggest that I give me shares at 1%, and I will make up the rest in time."

"Mr. Sam, don't mention the question of making up money, your noble personality, your strong dedication, and your advanced business philosophy are all priceless, and I have decided that after our group injects 50 billion US dollars, you will have a 10% stake."

"What, chairman, you give me 10% of the shares? That's 5 billion US dollars, such a high remuneration, even if no one in the world has taken it, and no one has certainly given it! No, absolutely not, I can't take it, I only need 1%, even 1% of the shares are 500 million US dollars, I have already taken a big advantage, so it's decided. ”

"Mr. Sam, 1% of the shares is absolutely not okay, so let's all take a step back, you take 5% of the shares, if you refuse again, we will cancel the cooperation."

Seeing the chairman's tough attitude, Sam succumbed, if he can't cooperate, whether his ideals can be realized in his lifetime, he has no bottom in his heart, but with the investment bank's injection of 50 billion US dollars, it will definitely be able to succeed, I didn't expect that there are still bosses in this world who force others to accept 2.5 billion US dollars, and only such a good boss can be found in the world, so he can only make more money for the company to hug the chairman back and forth, Sam said excitedly:

"Thank you very much for the love of the chairman, I will do my best to run the company well, so that the chairman can rest assured."

"Mr. Sam, you're welcome, you are a person worthy of my respect, I am full of expectations for this company, my goal is to develop into more than 10,000 chain stores, annual sales of more than 500 billion US dollars of super large chain enterprises, the president of this company can only be qualified by you."

"Thanks to the chairman's trust, I will definitely turn this grand goal into reality."

"President Abt, the distribution of Mr. Sam's company's shares is according to what I just said, and the president of this company will determine Mr. Sam, and Mr. Sam will be fully responsible for the operation and management, and you will preside over the handling of specific matters."

Abt immediately said respectfully: "Chairman, I have written it down, and everything is handled according to what you said." ”

After finishing speaking, he took Mr. Sam and left, along the way he secretly thought to himself, his boss is too demonic, in the field of financial investment is already a grandmaster, did not expect that in the chain management industry is also a grandmaster, a lot of ideas he has not even heard, and every method is an extremely effective method, this vision he still has, are the chain management industry is extremely clever business know-how, many are the most advanced concepts of this era, how much talent does the chairman have not shown, The chairman is too tough.