Your SlideShare is downloading. ×
Tough Times Show
Tough Times Show
Tough Times Show
Tough Times Show
Tough Times Show
Tough Times Show
Tough Times Show
Tough Times Show
Tough Times Show
Tough Times Show
Tough Times Show
Tough Times Show
Tough Times Show
Tough Times Show
Tough Times Show
Tough Times Show
Tough Times Show
Tough Times Show
Tough Times Show
Tough Times Show
Tough Times Show
Tough Times Show
Tough Times Show
Tough Times Show
Tough Times Show
Tough Times Show
Tough Times Show
Tough Times Show
Tough Times Show
Tough Times Show
Tough Times Show
Tough Times Show
Tough Times Show
Tough Times Show
Tough Times Show
Tough Times Show
Tough Times Show
Tough Times Show
Tough Times Show
Tough Times Show
Tough Times Show
Tough Times Show
Tough Times Show
Tough Times Show
Tough Times Show
Tough Times Show
Tough Times Show
Tough Times Show
Tough Times Show
Tough Times Show
Tough Times Show
Tough Times Show
Tough Times Show
Tough Times Show
Tough Times Show
Tough Times Show
Tough Times Show
Tough Times Show
Tough Times Show
Tough Times Show
Tough Times Show
Tough Times Show
Tough Times Show
Tough Times Show
Tough Times Show
Tough Times Show
Tough Times Show
Tough Times Show
Tough Times Show
Tough Times Show
Tough Times Show
Tough Times Show
Tough Times Show
Tough Times Show
Tough Times Show
Tough Times Show
Tough Times Show
Tough Times Show
Tough Times Show
Tough Times Show
Tough Times Show
Tough Times Show
Tough Times Show
Tough Times Show
Tough Times Show
Tough Times Show
Tough Times Show
Tough Times Show
Tough Times Show
Tough Times Show
Tough Times Show
Tough Times Show
Tough Times Show
Tough Times Show
Tough Times Show
Tough Times Show
Tough Times Show
Tough Times Show
Tough Times Show
Tough Times Show
Tough Times Show
Tough Times Show
Tough Times Show
Tough Times Show
Tough Times Show
Tough Times Show
Tough Times Show
Tough Times Show
Tough Times Show
Tough Times Show
Tough Times Show
Tough Times Show
Tough Times Show
Tough Times Show
Tough Times Show
Tough Times Show
Tough Times Show
Tough Times Show
Tough Times Show
Tough Times Show
Tough Times Show
Tough Times Show
Tough Times Show
Upcoming SlideShare
Loading in...5
×

Thanks for flagging this SlideShare!

Oops! An error has occurred.

×
Saving this for later? Get the SlideShare app to save on your phone or tablet. Read anywhere, anytime – even offline.
Text the download link to your phone
Standard text messaging rates apply

Tough Times Show

351

Published on

Book and show about how to succeed in tough times.

Book and show about how to succeed in tough times.

Published in: Education, Travel
0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total Views
351
On Slideshare
0
From Embeds
0
Number of Embeds
0
Actions
Shares
0
Downloads
12
Comments
0
Likes
0
Embeds 0
No embeds

Report content
Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
No notes for slide
  • JANIS: Good morning. Today we’re going to talk about our new book, BUSINESS SUCCESS IN TOUGH TIMES. We learned about business that achieved success despite coming up against tough times. The tough times that these businesses faced were sometimes about the economy, but other times were specific to the industry or the particular business, and sometimes were even tough times of a more personal nature.
  • NEIL We started to work on our book about a year ago. We knew the economy was weakened, but we had little idea of how the real estate market would effect the stock market and the whole economy.
  • NEIL Some publications are presenting images of the Great Depression to show how much trouble the U.S. economy is now in.
  • NEIL Here’s a picture from the Great Depression of the 1930s. Proud people wanted jobs that weren’t out there.
  • NEIL Today people want work, too -- we’re in economic hard times again, but maybe the jobs have changed a bit. (read slide)
  • NEIL Some of the most visible and well-respected companies in America have been hit by tough times. Some have gone bankrupt, some have been acquired by other companies. Some are begging for a government bailout.
  • JANIS But even in these tough times, there are companies that are doing well.Today, we profile some business leaders who have run successful companies despite coming up against tough times.
  • JANIS As we interviewed top business people from around the country and researched how some businesses were able to succeed in really tough conditions, we identified nine strategies for business success that were common to many of the situations. We think these strategies are useful for most businesses to help them when times get tough.The nine strategies are: (ALTERNATE READING AND EXPLAINING)
  • NEIL Today, we will tell you some of the stories of businesses that succeeded in tough times and how they did it. Some of the companies are large, others are small. Some are from far away and others are right here in Vermont.
  • NEIL The first strategy we want to talk about is diversification. You can diversify your products -- carry a wide range of items. Or you can diversify geographically, by being available in a number of locations. Diversification can also mean having a diversified customer base, so the loss of one or two customers won’t destroy your business.
  • NEIL We’ll start with a local story about St. Johnsbury Academy in our hometown of St. Johnsbury, Vermont. We interviewed Bernier Mayo and Jack Cummings about their strategy to diversify their customer base of boarding students back in the early 1980s.
  • NEIL St. Johnsbury Academy faced a crisis point in its boarding program in the early 1980s. The supply of boarding students at the school had essentially dried up when Bernier was hired as headmaster. Here’s what Bernier Mayo was up against.
  • NEIL : (before audio) Let’s hear it in Bernier’s own words:
  • NEIL Under Mayo’s leadership, the Academy took the major step of going to Asia to recruit boarding students.
  • NEIL
  • NEIL Jack Cummings is now special assistant to the headmaster but was in Admissions in the 1980s. He talks about how their diversification strategy worked for the Academy.
  • NEIL (after playing audio):Today, almost one-quarter of Academy students are boarding students. The boarding students are profitable for the Academy and bring a great diversity to the student body.
    By diversifying their customer base -- the boarding students -- the Academy succeeding in not only saving the boarding program, but also building the school and really bringing it to a new level.
  • NEIL In Waitsfield, at his Village Grocery and Deli, Troy Kingsbury told us about how he has used diversification to broaden his customer base.
  • NEIL: Troy added a deer weigh-in station during hunting season, and took pictures of every deer brought in.
  • NEIL
  • NEIL: Troy had another idea to bring in new customers and benefit his community, too. Donated bicycles are housed at his store and lent to people to encourage bike usage around Waitsfield.
  • NEIL
  • JANIS The next business strategy we’re going to talk about is Planning. For a business to be successful in tough times, you have to plan for how your business will thrive when times are good or bad.
  • JANIS:Edward Jones is a great example of a large company that understands the power of planning for good times and bad. Despite the failure of many large firms on Wall Street, Edward Jones is one financial brokerage firm that is doing well.
    We interviewed Jim Weddle, CEO of Edward Jones, who shared the reasons why Edward Jones has succeeded in both strong and weak economic periods.
  • JANIS They have an interesting and unusual structure that most other brokerage firms don’t have. They have many offices, but only one broker per office.
  • JANIS They continue to open new offices despite the poor economy.
  • JANIS Let’s hear from Jim.
  • JANIS
  • JANIS Edward Jones’ philosophy for success is to plan for the good and the bad times. They won’t take all the risk in good times, so their upside may be slightly less, but in poor times, they also will have strong value because they don’t go as low.
  • JANIS Marty Beattie owns Marty’s First Stop in Danville, Vermont. He talked to us about how he plans differently for his store in economically tough times.
  • JANIS: Marty was awarded Business Person of the Year by the Northeast Kingdom Chamber of Commerce in 2008. He keeps his business thriving by adjusting to the current conditions. Here’s how Marty describes what he’s doing: (go to next slide)

  • JANIS: He uses everything in the store with a typical Vermonter’s attitude of letting nothing go to waste. He describes it: (go to next slide)
  • JANIS (after hearing Marty): As I’m sure many of you have been doing, Marty has made adjustments based on what his customers ask for and to find ways to economize during tough economic times. His planning helps him make the best use of product and adds to his bottom line.
  • NEIL Adaptability is the next strategy we want to talk about today. Being able to change your business can be a great way to deal with tough times. In our book, we use the product Silly Putty as an example of how being adaptable can create a whole business. Silly Putty was invented as a substitute for rubber during World War II, but it didn’t really work. After the war, an enterprising toy seller realized the potential in the product as a child’s toy, and the rest is history.
  • NEIL We interviewed a doctor who has adapted the way he practices medicine to make use of the Internet and other means of communication. Jay Parkinson has a medical practice in Brooklyn, New York, and has found a way to cut the cost of medicine and at the same time, provide a better quality of service.
  • NEIL: (read slide)
  • NEIL: (play audio first) Parkinson believes that people need catastrophic health care insurance for the big things, but that patients shouldn’t have to wade through the confusion of insurance red tape for routine visits to the doctor.
  • NEIL: Parkinson has found a way to deliver quality health care affordably by changing the way a doctor’s practice is usually organized. Requiring fewer face-to-face visits with the doctor reduces costs for everyone.
  • NEIL: It’s interesting to see a doctor who is thinking like a business person. We think he may have found one way to make medical care simpler and more affordable.
  • JANIS: Encouraging customer loyalty is one of the best strategies to retain customers when times get tough. It’s much easier and less expensive to build business through established customers than to go out and find new ones.
  • JANIS: Adam Burke is in charge of Hilton Hotels’ HHonors loyalty program. He told us that the program is critical for Hilton’s success in tough times.
  • JANIS: The HHonors program has grown to be one of the best in the country and has helped Hilton retain customers even as fewer people travel in poor economic times.
  • JANIS: (before playing audio) Hilton’s loyalty program has more flexibility in its rewards system than most others. Burke says that is the key to its success.
  • JANIS: (before audio) The program gives the company the flexibility to change its rewards structure to respond to the changing economic times.
    (After audio) Finding ways to reward its best customers has worked well for Hilton to stay on top in the hotel industry. We recommend it as a way for your business to keep the customers you already have.
  • NEIL One strategy that we found some businesses use when times are tough might not be obvious. Some companies choose to grow as a way to deal with tough times.
  • NEIL: Warren Buffet, chairman of Berkshire Hathaway, is considered one of the smartest investors ever. Today, when other companies are running scared, he is finding bargains in a depressed stock market. He sees the opportunities for growth and is taking advantage of them.
  • NEIL: We interviewed Umang Gupta, CEO of Keynote, a company that provides testing services for website quality. His company used the strategy of growth to get out of a tough situation about 8 years ago.
  • NEIL: Keynote found itself in a situation where its business was shrinking because many of its customers were going out of business in the late 1990s.
  • NEIL: Keynote had a lot of cash from recently going public, but it didn’t have the sales revenue to support its business.
  • NEIL: Other dot-com companies had expertise but they couldn’t get enough funding to stay afloat. Keynote had money to buy these companies and was able to expand the range of services it could provide in a short time.
  • NEIL: (After playing audio) Today Keynote provides a wide range of website testing services for some of the largest companies in the world. Keynote made the choice to grow when times were tough and it has paid off for the company.
  • JANIS: Niche Marketing is another way to achieve business success. Too many businesses want to sell everything to everybody. Sometimes by limiting your product line, you can become a specialist.
  • JANIS: In the book, we use the example of a local St. Johnsbury company that has relied on niche marketing to grow despite the tough economic conditions here.
  • JANIS: Classic Designs doesn’t rely on the local market to purchase what they manufacture, because it is too narrow a product line. They make something other people can’t easily make -- table legs. They have developed a strong catalog and Internet sales that makes their niche products of table legs available to people all over the world.
  • JANIS: Here is the home page for Classic Designs. If you’re looking for table legs on the Internet, the number one spot in the search engines belongs to Classic Designs. Its Internet name is tablelegs.com.
  • NEIL: Lake Champlain Chocolates is another Vermont-based business that uses niche marketing very effectively. The company has built its brand of high-quality chocolates since its start in 1983. Today’s tough economic times don’t discourage Allyson Myers, the Director of Sales and Marketing.
  • NEIL:(Before audio) Lake Champlain Chocolates understands the value of a small treat during tough times.
  • NEIL: They understand that while purchase size may be smaller, people will continue to buy their product that they have very carefully carved out a niche for.
  • JANIS Here is another example of niche marketing -- this time, a very large firm that does one thing very well.
    We interviewed Steve Swasey, head of communications for Netflix, to find out how they have succeeded despite other big companies trying to do what they do.
  • JANIS Netflix pioneered the online movie rental service, and became known for doing it very well. Then Wal-Mart and Blockbuster decided to invade their territory.
  • JANIS Steve explained to us how Netflix was able to send Wal-Mart away from the online video rental business.
  • JANIS
  • JANIS Then he explained how Netflix was able to beat Blockbuster at its own video rental game.
  • JANIS
  • JANIS Steve told us Netflix won’t get into brick-and-mortar stores -- that’s not part of the way they know how to do business. They have succeeded with their niche and they will build the business on that.
  • NEIL Firms that have a passion for customer service do well in tough times.
  • NEIL We interviewed Don Gallegos, who was President of King Soopers supermarkets for 15 years. King Soopers dominates the Denver market, with a 55% market share despite challenges from Cub Food and Wal-Mart.
  • NEIL Don credits the emphasis on superior customer service as King Soopers’ strategy to succeed facing really tough competitors in their market.
  • NEIL(After audio is over) We think it’s a good general rule of thumb that the company with really superior customer service will do better than a similar business with lesser customer service during tough economic times. Service can be a real point of differentiation for a company -- something that sets one company apart from all its competition.
  • JANIS When times are tough, one thing you have to do is patiently persevere. You have to keep searching for the best way to use your talents.
  • JANIS Paula Crowley and Lou Sachs were top executives at the Rouse Company, one of the country’s top developers of commercial real estate. They formed their own real estate development team, but ran into tough times during the real estate recession in the early 1990s.
  • JANIS(Read slide first) Paula explained to us how they finally hit on the idea that would turn their business around and make them very successful during the real estate slump of the 1990s. They were renting one room in the offices pof a graphic arts firm, who had a client that was in health care.
  • JANIS
  • JANIS By persevering and working on new ways to use what they were good at, they found a new market for real estate development that has built a whole new business for them. Today, they are one of the leaders in health care real estate development in the country.
  • NEIL Here’s another story about perseverance, but a completely different one.
    Stew Leonard’s four supermarkets are huge, 100,000 square feet stores, with singing milk cartons, a petting zoo, one aisle, and a passion for taking care of customers.The tough times Stew faced were not economic, they were personal. Stew lost a child in a drowning accident. Then several years later, the business was rocked when his father, then the Chairman of the company, was convicted for tax evasion and sent to jail.
  • NEIL
  • NEIL
  • NEIL(After the audio)
    Stew Leonard’s is really a story of a company that, in most people’s hands, probably would have failed after 2 personal tragedies. But Stew says he just kept at it, and the work helped him through the tough times.
  • JANIS The final strategy for business success is Collaboration. We found many businesses that realized the power of working together for a common purpose.
  • JANIS Joe Thompson is Director of MASS MoCA, the Massachusetts Museum of Contemporary Art in North Adams, Massachusetts. He told us his story of spending 12 years building a coalition of people to get the new museum off the ground.
  • JANIS North Adams is an old mill town in northwestern Massachusetts. Its heyday was over 100 years ago, and by the 1970s, most of the industry had dried up and left huge industrial buildings empty in the center of town.
  • JANIS Everyone debated what to do for the town, and the idea of turning the buildings into a museum began to take hold.
  • JANIS(before playing the audio)
    Here are Joe Thompson’s words about how enthusiastic North Adams citizens were about the prospect of a museum.
  • JANIS(read slide first)
    He was able to get state financing for the project... until ---
  • JANIS The new governor of Massachusetts took it away when the state economy went sour.
  • JANIS(before playing the audio)
    Here’s how Joe tells it:
  • JANIS Joe knew he had to show the governor that North Adams wanted the museum and that it would make economic sense for the area. So he built a coalition of local businesspeople who pledged $8 million toward the project. Finally Gov. Weld was convinced.
  • JANIS(read slide, then)
    The town of North Adams has had a great economic resurgence since MASS MoCA opened. And the museum still relies on collaboration with other cultural institutions to operate.
  • NEIL Our final story today is a local one. In the town of Hardwick, Vermont, people there have started building a collaboration around the theme of local food and agriculture.
  • NEIL These are just some of the businesspeople who have made a commitment to produce and sell food and farm products to benefit the area around Hardwick.
  • NEIL: Tom Stearns is at the center of a lot of the activity in Hardwick. As head of the Center for Agricultural Economy, he is leading the effort to build the area’s economy with agricultural businesses.
  • NEIL:(before playing the audio) The number of agricultural businesses around Hardwick has increased dramatically in the past few years. As a new business develops, it becomes part of the network of area food-related businesses.
  • NEIL: (after playing the audio): Tom is a firm believer in working together to make everyone more successful. He’s seeing it happen in the Hardwick area.

  • NEIL: They meet every month to help each other and figure out ways that they can improve all their businesses. They have even provided short-term loans to each other when necessary. Claire’s Restaurant was started by 50 people each contributing $1,000 to be repaid in meals over time. In the past 2 years, more than 100 jobs have been added in the Hardwick area and they are getting lots of media attention.
  • JANIS: We’ve covered all the nine strategies today. There are many more stories and examples in our book, which will be available for sale after the presentation.
  • NEIL: We’d like to thank the Vermont Grocers’ Association for having us here to speak with your group this morning, and thanks to the Vermont grocers we interviewed who gave us information about what you’re doing in these tough times.
  • NEIL: Good luck to you all. And now we have some time for your questions.
  • Transcript

    • 1. October 20, 2008
    • 2. October 13, 2008
    • 3. Depression
    • 4. Today
    • 5. Major companies hit by Tough Times • • Bear Stearns Alcoa • • Lehman Brothers State Governments • • AIG Universities • • Merrill Lynch Circuit City • • GM Steel Companies
    • 6. What’s the solution?
    • 7. Nine Strategies for Business Success • Adaptability • Loyalty • Collaboration • Niche Marketing • Customer Service • Perseverance • Diversification • Planning • Growth
    • 8. Marty Beattie Don Gallegos Steve Swasey Marty’s First Stop King Soopers Netflix Supermarkets Jack Cummings and Allyson Myers Stew Leonard, Jr. Bernier Mayo Lake Champlain Stew Leonard’s Chocolates St. Johnsbury Academy Supermarkets
    • 9. Bernier Mayo Headmaster Emeritus St. Johnsbury Academy
    • 10. Here’s the dilemma St. Johnsbury Academy faced
    • 11. “The board had already closed the girls’ half of our boarding department. We had boys remaining in one dorm. The question was when I came in 1981: Should we close the boarding school?”
    • 12. “The board had already closed the girls’ half of our boarding department. We had boys remaining in one dorm. The question was when I came in 1981: Should we close the boarding school?”
    • 13. Making a decision to look for students in a new market
    • 14. “We decided we would do what only one other school at the time was doing, Cushing Academy, and that was recruiting overseas, especially Asia. We decided to do that and the board bought it. The board has always been enormously supportive. And they bought our proposal that we try to crack the international market and frankly our private school colleagues all over northern New England looked down their noses at us because nobody wanted to do that.”
    • 15. “We decided we would do what only one other school at the time was doing, Cushing Academy, and that was recruiting overseas, especially Asia. We decided to do that and the board bought it. The board has always been enormously supportive. And they bought our proposal that we try to crack the international market and frankly our private school colleagues all over northern New England looked down their noses at us because nobody wanted to do that.”
    • 16. Jack Cummings Special Assistant to the Headmaster, St. Johnsbury Academy
    • 17. “The growth in the 80s was actually very quick. We went from about 30 students to 125 students in about five years.”
    • 18. “The growth in the 80s was actually very quick. We went from about 30 students to 125 students in about five years.”
    • 19. Village Grocery and Deli Waitsfield,Vermont Troy Kingsbury, owner
    • 20. Troy Kingsbury decided to start a deer weigh-in to provide a reason for people to come after foliage season.
    • 21. “We take a digital picture of every deer and we post it on our computer and put in on a slide show. I wouldn’t post it online because then the hunters could be at home and they could look at it. We only have it on our computer and the hunters say, ‘Did you see that buck that Jim got?’ They come in here and you have it going on a five or ten second delay and that keeps them in the deli where the food’s cooking and usually they buy a beer or a breakfast sandwich.”
    • 22. “We take a digital picture of every deer and we post it on our computer and put in on a slide show. I wouldn’t post it online because then the hunters could be at home and they could look at it. We only have it on our computer and the hunters say, ‘Did you see that buck that Jim got?’ They come in here and you have it going on a five or ten second delay and that keeps them in the deli where the food’s cooking and usually they buy a beer or a breakfast sandwich.”
    • 23. Troy also helped the town start a program to have free bicycle transportation in town.
    • 24. “By next year our goal is to have 25 bikes with bike racks throughout the surrounding village here where we provide free bikes for people to use to get around town.”
    • 25. Jim Weddle CEO Edward Jones
    • 26. Edward Jones has more brokerage offices than any other brokerage firm
    • 27. Edward Jones intends to grow through the current recession
    • 28. How will Edward Jones do it?
    • 29. “The stock market and bond markets are offering us a tremendous opportunity right now. It’s not a reason to panic or to be overly concerned. The activities of the market over the last six months or so you could call it a 20 percent off sale. Good heavens to Betsy. Quality investments are available for a discount price and for people who can be encouraged to think with their heads instead of their hearts, they’re going to be able to take advantage of this. And that’s what we try to do. That’s what we always try to do. You are going to have these opportunities from time to time.You are just going to have to be ready to take advantage of them.”
    • 30. “The stock market and bond markets are offering us a tremendous opportunity right now. It’s not a reason to panic or to be overly concerned. The activities of the market over the last six months or so you could call it a 20 percent off sale. Good heavens to Betsy. Quality investments are available for a discount price and for people who can be encouraged to think with their heads instead of their hearts, they’re going to be able to take advantage of this. And that’s what we try to do. That’s what we always try to do. You are going to have these opportunities from time to time.You are just going to have to be ready to take advantage of them.”
    • 31. Edward Jones’ Advantages • Only one broker per office • Don’t encourage customers to take on risky investments such as options or derivatives • Existing brokers train new brokers
    • 32. Marty Beattie Owner Marty’s First Stop Danville, Vermont
    • 33. Marty’s response to tough times has been to adjust his buying to respond to customer demand.
    • 34. “During the winter we try to run a lot of in-store specials with different grocery items. It depends on your wholesale supplier that you buy from what they offer to you. They’re all running quite a few deals right now. They’re in the same boat. They want to sell a lot of product also.”
    • 35. “During the winter we try to run a lot of in-store specials with different grocery items. It depends on your wholesale supplier that you buy from what they offer to you. They’re all running quite a few deals right now. They’re in the same boat. They want to sell a lot of product also.”
    • 36. Marty also tries to use all his stores’ products in a creative fashion.
    • 37. “I grew up on a farm with a large family and we were taught how to cook and how to take advantage of a lot of things. I’ve been very fortunate that way and know how to make a lot of soups and lunch specials. So, the consumer that comes in to buy the tomato is getting the nice looking tomato and the green peppers are in your chili. If a steak has been around for a day it looks great in beef stew.”
    • 38. “I grew up on a farm with a large family and we were taught how to cook and how to take advantage of a lot of things. I’ve been very fortunate that way and know how to make a lot of soups and lunch specials. So, the consumer that comes in to buy the tomato is getting the nice looking tomato and the green peppers are in your chili. If a steak has been around for a day it looks great in beef stew.”
    • 39. Jay Parkinson, MD
    • 40. Jay Parkinson doesn’t accept insurance. He sees people in their home for the first visit and then communicates through video visits and email.
    • 41. “I started my practice with less than $1,500. I didn’t have to be a slave to anyone. I get to visit people in their home. I get to have a really good vibe. I have no overhead, hardly whatsoever. I charge $150 bucks and $140 of that is in my pocket.”
    • 42. “I started my practice with less than $1,500. I didn’t have to be a slave to anyone. I get to visit people in their home. I get to have a really good vibe. I have no overhead, hardly whatsoever. I charge $150 bucks and $140 of that is in my pocket.”
    • 43. Parkinson foresees a future in which most patient care will move out of the doctor’s office.
    • 44. “It’s just natural for my generation and younger to communicate via text or video online. That’s hopefully going to be the wave of the future. ”
    • 45. “It’s just natural for my generation and younger to communicate via text or video online. That’s hopefully going to be the wave of the future. ”
    • 46. Adam Burke Senior Vice President Customer Loyalty Hilton Hotels Corporation
    • 47. With 8 million active customers, Hilton HHonors program is one of the most successful loyalty programs in the U.S.
    • 48. “We’re the only ones that allow you to earn both points and miles for the same stay among the major programs. So you don’t have to trade off between one currency or the other. And every time we research it we find far and away that is the most compelling earnings proposition you can give someone.”
    • 49. “We’re the only ones that allow you to earn both points and miles for the same stay among the major programs. So you don’t have to trade off between one currency or the other. And every time we research it we find far and away that is the most compelling earnings proposition you can give someone.”
    • 50. “We may decide in a down market as we have in the past to be more generous about how we retain people in the VIP tiers because we recognize that they may not be staying as frequently and if we apply the same criteria we may lose some of that loyalty.”
    • 51. “We may decide in a down market as we have in the past to be more generous about how we retain people in the VIP tiers because we recognize that they may not be staying as frequently and if we apply the same criteria we may lose some of that loyalty.”
    • 52. Warren Buffet Chairman, Berkshire Hathaway Inc.
    • 53. Umang Gupta CEO Keynote
    • 54. After the Internet bubble burst, Keynote had two choices: grow or go out of business.
    • 55. The company had a great sales force and $40 million in cash, but was losing $20 million a year.
    • 56. Gupta decided other Internet companies in Keynote’s field were cheap and decided to grow by acquisition.
    • 57. “Many of these younger dot-coms that were funded well were now left to twist in the wind. Their revenues were going down and their prices were going down. We ended up essentially buying about 15 companies over the last seven years and of those 15 companies, 10 of those we bought during the depths of the tech depression.”
    • 58. “Many of these younger dot-coms that were funded well were now left to twist in the wind. Their revenues were going down and their prices were going down. We ended up essentially buying about 15 companies over the last seven years and of those 15 companies, 10 of those we bought during the depths of the tech depression.”
    • 59. Classic Designs by Matthew Burak, located in St. Johnsbury, Vermont, has a niche product: table legs
    • 60. Mark Desrochers Matthew Burak Which it sells through a catalog and on the Internet:
    • 61. Allyson Myers Director of Sales and Marketing Lake Champlain Chocolates
    • 62. “Generally, we’ve found chocolate to be fairly recession-proof because it makes people feel better, makes them happy. There’s even some scientific studies that have show the health benefits of chocolate which has been great in the last couple of years. People feel good and feel chocolate is a good part of their diet.”
    • 63. “Generally, we’ve found chocolate to be fairly recession-proof because it makes people feel better, makes them happy. There’s even some scientific studies that have show the health benefits of chocolate which has been great in the last couple of years. People feel good and feel chocolate is a good part of their diet.”
    • 64. “They make cut back in other areas but they will probably still make room for an inexpensive piece of chocolate. We have seen a shift away from people buying bigger gift boxes of chocolates to smaller package sizes. They are changing their buying behavior but they still are buying.”
    • 65. “They make cut back in other areas but they will probably still make room for an inexpensive piece of chocolate. We have seen a shift away from people buying bigger gift boxes of chocolates to smaller package sizes. They are changing their buying behavior but they still are buying.”
    • 66. Steve Swasey Director of Communications Netflix
    • 67. Netflix had to survive challenges from Wal-Mart and Blockbuster
    • 68. Here’s how Netflix was able to compete with Wal-Mart. . .
    • 69. “Wal-Mart is a great sell- through company but they’re not a great rental company, so they never put all the wind behind their arrow and that was our extraordinary good luck.”
    • 70. “Wal-Mart is a great sell- through company but they’re not a great rental company, so they never put all the wind behind their arrow and that was our extraordinary good luck.”
    • 71. And here’s how Netflix competed against Blockbuster. . .
    • 72. “We do one thing extraordinarily well and that’s all we focus on. Netflix changed the way Americans rent movies. Before Netflix you had to go to a video store to rent the movies, you had to pay late fees, which were punitive, and you had pretty crummy service.”
    • 73. “We do one thing extraordinarily well and that’s all we focus on. Netflix changed the way Americans rent movies. Before Netflix you had to go to a video store to rent the movies, you had to pay late fees, which were punitive, and you had pretty crummy service.”
    • 74. Reasons for Netflix Success • Netflix offers 90,000 titles online. A typical video store has 3,000 titles • Fast turnaround - return movies today, receive new ones in two days. Or order movies through your computer and view them immediately on your television or computer • No late fees • Netflix will recommend movies for you
    • 75. Don Gallegos President King Soopers Supermarket 15,000 employees Denver, Colorado
    • 76. How do you compete against a discounter like Wal-Mart?
    • 77. “Wal-Mart gets high marks for service. Quite frankly, I don’t think it’s that good. Now, I’m probably jealous, because they do a ton of business. But I got a store that I live near, when Wal-Mart came in about a half-mile away, our store was doing about $900,000 a week. We’re doing $800,000 now, so we lost $100,000. But we’re still doing $800,000. Don’t you think there’s a reason we’re still doing $800,000? It isn’t price. But we do special orders, we don’t ask questions on refunds, you don’t have to show your receipt. Wal-Mart, try to take something back. You got to show a picture of your first born, for god’s sake. And people do it!”
    • 78. “Wal-Mart gets high marks for service. Quite frankly, I don’t think it’s that good. Now, I’m probably jealous, because they do a ton of business. But I got a store that I live near, when Wal-Mart came in about a half-mile away, our store was doing about $900,000 a week. We’re doing $800,000 now, so we lost $100,000. But we’re still doing $800,000. Don’t you think there’s a reason we’re still doing $800,000? It isn’t price. But we do special orders, we don’t ask questions on refunds, you don’t have to show your receipt. Wal-Mart, try to take something back. You got to show a picture of your first born, for god’s sake. And people do it!”
    • 79. Paula Crowley Lou Sachs CEO President Anchor Health Properties
    • 80. They persevered through two years when they took no salary, trying to find new opportunities.
    • 81. “Their predominate clients were health care, mostly hospitals, and almost by osmosis, by being there and hanging out with them we became introduced to the hospital business. I can remember one day just thinking that there is so little interesting work being done in health care what if we took what we had been doing for all of our development years in retail and think about how we might apply it to health care.”
    • 82. “Their predominate clients were health care, mostly hospitals, and almost by osmosis, by being there and hanging out with them we became introduced to the hospital business. I can remember one day just thinking that there is so little interesting work being done in health care what if we took what we had been doing for all of our development years in retail and think about how we might apply it to health care.”
    • 83. Today, Anchor Health Properties runs some of the most progressive Wellness Centers in the country Pavilion at Doylestown Hospital
    • 84. Stew Leonard, Jr. Owner Stew Leonard’s Supermarkets
    • 85. “In 1989 my son drowned in a pool accident. He was two years old. And that was a devastating thing for my wife and I and our whole family. And we had to work through that tough time. And then in 1993 my father went away to prison for tax evasion and it really rattled the whole business. It was a terrible blow. Not only a blow to our business but a blow to our image and everything.”
    • 86. “In 1989 my son drowned in a pool accident. He was two years old. And that was a devastating thing for my wife and I and our whole family. And we had to work through that tough time. And then in 1993 my father went away to prison for tax evasion and it really rattled the whole business. It was a terrible blow. Not only a blow to our business but a blow to our image and everything.”
    • 87. “I don’t think I could have gotten through that if I hadn’t been through the tragedy before that of losing my son. Having a tough situation in a business, there are worse things. And I’ve experienced those worse things.”
    • 88. “I don’t think I could have gotten through that if I hadn’t been through the tragedy before that of losing my son. Having a tough situation in a business, there are worse things. And I’ve experienced those worse things.”
    • 89. “I was able to keep my attitude up and my energy up. I said, ‘We can get through this thing. We can overcome this thing.’ We are now number 26 in the Fortune Best 100 Companies to Work For. I look back on those days and say, ‘Boy, am I glad I didn’t throw in the towel or quit or buckle under that pressure.’”
    • 90. “I was able to keep my attitude up and my energy up. I said, ‘We can get through this thing. We can overcome this thing.’ We are now number 26 in the Fortune Best 100 Companies to Work For. I look back on those days and say, ‘Boy, am I glad I didn’t throw in the towel or quit or buckle under that pressure.’”
    • 91. Joseph C. Thompson Director MASS MoCA
    • 92. North Adams, Massachusetts was a former mill town that had fallen onto hard times by the 1970s.
    • 93. The town had several hundred thousand square feet of industrial space with no tenants.
    • 94. “It was not as if everybody were jumping for joy at the idea of having contemporary art in a proud, former mill town. If you would have asked anybody on the street what they wanted to happen, they would have said ‘Give me a paper clip manufacturing company.’ There was a 150-year tradition of North Adams as a single company mill town.”
    • 95. “It was not as if everybody were jumping for joy at the idea of having contemporary art in a proud, former mill town. If you would have asked anybody on the street what they wanted to happen, they would have said ‘Give me a paper clip manufacturing company.’ There was a 150-year tradition of North Adams as a single company mill town.”
    • 96. MASS MoCA received a pledge of $35 million from Massachusetts Governor Michael Dukakis...
    • 97. But the new Governor William Weld rescinded the promise.
    • 98. “When Weld took office his quote to Time Magazine was ‘over his dead body’ would the state of Massachusetts release $35 million to the Museum of Contemporary Art at a time of economic challenge.”
    • 99. “When Weld took office his quote to Time Magazine was ‘over his dead body’ would the state of Massachusetts release $35 million to the Museum of Contemporary Art at a time of economic challenge.”
    • 100. By recruiting almost 700 local businesses to contribute to the museum, MASS MoCA eventually convinced Governor Weld to release $18 million.
    • 101. Today, MASS MoCA is one of the most successful museums in New England.
    • 102. Hardwick, Vermont Uniting around local food
    • 103. Building an agricultural- based economy • Pete Johnson, Pete’s Greens • Tom Stearns, High Mowing Seeds • Mateo and Andy Kehler, Jasper Hill Farm • Kristina Michelsen, Claire’s Restaurant • Andrew Meyer,Vermont Soy
    • 104. Tom Stearns High Mowing Seeds and Center for Agricultural Economy Hardwick, Vermont
    • 105. “In the last ten years there’s been a big wave, and especially the last three years, a major increase in the number of value-added agricultural processors and farm-based operations. To the point where there’s been about 100 new jobs added in the last three years.”
    • 106. “In the last ten years there’s been a big wave, and especially the last three years, a major increase in the number of value-added agricultural processors and farm-based operations. To the point where there’s been about 100 new jobs added in the last three years.”
    • 107. “Don’t underestimate the power of working together in whatever level of formality, but working together with your peers. It has been literally transformative for what we are doing up here.”
    • 108. “Don’t underestimate the power of working together in whatever level of formality, but working together with your peers. It has been literally transformative for what we are doing up here.”
    • 109. “All of us have realized that by working together we will be more successful as businesses.”
    • 110. Nine Strategies of Business Success • Adaptability • Loyalty • Collaboration • Niche Marketing • Customer Service • Perseverance • Diversification • Planning • Growth
    • 111. Thanks to the Vermont Grocers’ Association!
    • 112. Thanks for coming!

    ×