Decision Making from Wal-Mart !

When the company’s leaders made a clear decision to pursue the new direction, the emergent strategy became the new deliberate strategy.

It may be challenging and unruly, but this is the process by which almost all companies have developed a winning strategy. Wal-Mart is another great example. Many people think of Sam Walton, Wal-Mart’s legendary founder, as a Visionary. They assume he has started his company with a plan to change the world of retailing. But that’s not what really happened.

Walton originally intended to build his second store in Memphis, thinking that a larger city could support a larger store. But he ended up opting for the much smaller town of Bentonville, Arkansas, instead – for two reasons. Legend has it; his wife said in no uncertain terms that she would not move to Memphis. He also recognized that having his second store near his first would allow him to share shipments and deliveries more easily, and take advantage of other logistical efficiencies. That, ultimately taught Walton the brilliant strategy of opening his large stores only in small towns – thereby pre-empting competition from other discount retailers.

This wasn’t how he imagined his business in the beginning. His strategy emerged.