Book Review - The 10 Rules of Sam Walton

I realize I haven't posted in a while, it's been busy, so here's the new post.

The truth is I never finished this book. I got about 2/3 of the way through before I got bored. The ten rules outlined in the book do make sense, and each of them could be expanded into a great chapter.

Rule 1: Commit to your business.
Rule 2: Share your profits with all your associates, and treat them as partners.
Rule 3: Motivate your partners.
Rule 4: Communicate everything you possibly can to your partners.
Rule 5: Appreciate everything your associates do for the business.
Rule 6: Celebrate your success.
Rule 7: Listen to everyone in your company and figure out ways to get them talking.
Rule 8: Exceed your customer's expectations.
Rule 9: Control your expenses better than your competition.
Rule 10: Swim upstream.
However, Michael Bergdahl seems to repeat himself over and over again. His main point to me seemed to be that Sam Walton was a people person. We can see by the success of Wal-Mart and the quality of its employees that Sam Walton knew how to get people excited and invlolved in the company. Otherwise, there are a few interesting items, and some short inspiring stories. This book was more focused on promoting Sam Walton and Wal-Mart, as it didn't really include any flaws, rather than focus on rules for business success that can be universally applied.

Next Book: The Starbucks Experience

Run your own Starbucks!!

Some of you might already know that I have another blog called The Game Garage: thegamegarage.blogspot.com and I wrote a post about a very interesting game called Coffee Tycoon. I doubt the game has an business merit, but it's a model of Starbucks so it should be fun. Here's the post:

First, there was the Lemonade Stand Game. That was interesting, but wait until you try this game. It's called Coffee Tycoon. Basically, you run a coffee empire. Call it Starbucks and imagine you are Howard Schultz. This is only a demo but it is still fun.
On the first page, you can manage Baristas, Managers, and Executives. After you have done that, you must buy drinks to sell to customers. However, you don't have all the drinks already. You have to make some money first. Then you have a choice of about 36 different ones.
On the next page, you manage your empire. You have the option to open more stores: 1, 5, 25, or even 1000 stores. You also have the option to give your employees benefits.
Next, you can upgrade you equipment to buy better, more complicated drinks. You can also build buildings to make world headquarters or a plantation. Stocks are also controlable so you can hire a Financial Officer or takeover a company.
Finally, there is advertising. You can choose to advertise in a bunch of media places like newspaper or even the super bowl!
And how would a coffee tycoon run if it didn't know it's customers. Therefore, there is a section where you can read about the different customers that enter your stores.
Before you can do any of the big things, you have to work with one store making a few hundred dollars a day.
This game is very fun and will get you to want to buy the full version. Have Fun!!
Play Now

Business Ideas Galore! Thousands of Business Ideas

If you caught my earlier post on Springwise, the site that compiles new business ideas from around the world, this site is similar, except it has more topics. It's called Cool Business Ideas. These are the categories:

• Advertising
• Arts
• Automobiles
• Branding
• Consumer Goods
• Culture & Music
• Design
• E-commerce
• Education
• Entertainment
• Environmental
• Fashion
• Food & Beverages
• Gadgets
• General
• Health & Beauty
• Homes & Living
• Luxury
• Marketing
• Media & Publishing
• Mobile
• Music
• Nanotechnology
• Newsletter
• Non-Profit & Charity
• Online & Social Networks
• Online Services
• Pets
• Retail
• Robots
• Services
• Special Feature
• Sports & Games
• Technology
• Tourism
• Travel & Transport
• Trends & Insights
• Wireless

Make sure to check it out!

http://www.coolbusinessideas.com

Link Love

I'm offering free links to whoever subscribes to my RSS feed and leaves a comment with their URL.

5 Reasons Starbucks is Doing Poorly

No longer a corporate giant?
The Starbucks story is really an amazing one. Howard Schultz, the founder of Starbucks decided to bring a little of Italy to us by offering European-style coffeehouses. The company grew from a couple stores to more than 14,000 stores in many countries within a short amount of time. It seemed as though nothing could stop its growth into a corporate giant.
But then suddenly, Starbucks wasn't the same anymore anymore. Just a year ago, the stock was trading at about $28, but now it's at about $15. In addition, they've just reported their first quarterly loss. What's the cause?

1. The Starbucks Experience: Starbucks wanted its customers, when entering any store around the world, to immediately feel like they are at their "third place". The smell, the comfy chairs, the artwork, and of course the people. But many argue that it's gone. Starbucks has lost its buzz. Customers now feel that Starbucks is too commercialized now, rather than having the feel of an independent coffeehouse.
2. Self Cannibalism: Starbucks has become way too big, expanding in certain countries to the point that some believe that stores are too crowded and take business away from each other. This is only the case in some cities. In New York City, for example, all of the stores are full, and not only because of the free washrooms.
3. The Coffee: Starbucks has been too focused on building its brand more than developing its coffee. Before all these fancy drinks, people came to try different blends and come for coffee that is unique. Now, the company has left that and has moved on to establishing itself in other areas like the music industry. This is all great, but Starbucks has to get back to its core if it wants to win over its more loyal crowd. Also, the prices on the drinks are way too high, which is the biggest problem I have with the chain. Lower the Prices!!
   
4. Recession: I've looked at a list of the areas in th U.S. hardest hit by the recession, and compared it to a list of the store closures. Florida, for example, has 59 stores closing out of 600. That's about 10% of all the stores! Obviously, there is somewhat of a pattern. And many of the stores are ones right next to each other. The most store closures are in California though, a state hard-hit by the recession. For a full list of the store closures, see List of Starbucks Store Closures. For an overview of the states and the recession, see Is your state in a recession?
5. Rising Oil Prices: With oil prices through the roof and people looking for a cheaper way to get around, some people are skipping their $4 cup of coffee and opting for a cheaper cup, perhaps at a different coffee shop. Do the math. buying a $4 coffee evry day for the whole year amounts to $1460 a year!!! Buying a $2 coffee would save you $730! That's a lot of money.Imagine the savings for people who buy more than one a day.

I love Starbucks and I really hope it succeeds. I like Howard Schultz and I believe that he has the ability to turn the company around.
Please comment. Any reasons why you think Starbucks is doing so poorly?

How Teens Make Money Update July 2008

I found this blog and it looks like it has some great suggestions. Check it out.

How Teens Make Money: How Teens Make Money Update July 2008

Find a Need and Fill It

On my recent trip to New York City, the heart of consumerism, aside from going to the regular old places like Times Square and Central Park, we decided to take a walk across the Brooklyn Bridge. It happened to be a hot day and when we started walking, a few times throughout our walk we saw people selling bottles of water for $1 in big coolers of ice. It sounds simple but there's a strong message. They found a need and filled it, and sure enough, a lot of people were buying. Now, if you had one cooler of ice to put anywhere on the bridge, where would you put it? At the beginning? In the middle? Or at the end?