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By David Chamberlain, Dan Clark, Marjorie Jeannis, and Audra Lenczowski

By David Chamberlain, Dan Clark, Marjorie Jeannis, and Audra Lenczowski. “Successful leaders are learners, and the learning process is ongoing, a result of self-discipline and perseverance” (Maxwell, 2002 p.14). Background History. Operated a paper route Mom died in 1933 from pneumonia

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By David Chamberlain, Dan Clark, Marjorie Jeannis, and Audra Lenczowski

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  1. By David Chamberlain, Dan Clark, Marjorie Jeannis, and Audra Lenczowski

  2. “Successful leaders are learners, and the learning process is ongoing, a result of self-discipline and perseverance” (Maxwell, 2002 p.14)

  3. Background History • Operated a paper route • Mom died in 1933 from pneumonia • In 1933, at age 15 began own candy business • Alcoholic father died when he was 16 years old

  4. Beginnings of Les Schwab • In 1952- bought the O.K. Rubber Welders in Prineville, Or. Paid $11, 000 + $2800 for inventory • The first month of operations Les Schwab made a total of $650 profit and took $350 in salary and paid his employee $300

  5. Mission Statement • Continued programs and policies created by Les Schwab that provide growth and opportunity for Les Schwab employees. • Maintain our employees’ motivation by continuing to dedicate profits for expansion for expansion

  6. Organizational Structure

  7. Company Theory • Never take advantage of customers • Never take advantage of employees • Take all the advantage you can of a rubber company because they are not fair and honest anyway

  8. Outsourcing • Recognized that local tire manufactures were over charging local tire companies for their product • Toyo Tire Company in Japan

  9. Expansion • Spring 1953, branched out into Redmond, Or • Investing $10,000 in land and building • Third store- Bend, Or • Fourth store- Madras, Or • Fifth store- John Day, Or

  10. Expansion • 1972 opened their 35th location • 2012, operates 425 stores that employ over 7,000 employees

  11. Western Regional Expansion Now located in: Washington, Alaska, Oregon, California, Idaho, Utah, Nevada, and Montana.

  12. Original Ideas/Reason for Success • Profit Sharing Contract (the $100 story) • For every $100 profit it is broken down $100.00 15.00 $ 85.00 15% goes into trust

  13. 100 Story cont. • $85.00 - 10.20 $74.80 12% of remaining $ 85 goes into cash bonus program distributed in Oct of each year • $74.80 • 7.48 $ 67.42 10% of remaining $74.80 goes to the assistant manager into his profit sharing contract

  14. 100 Story cont. • $67.32 • 16.83 $ 50.49 25% goes to the manager on his profit sharing contract Only time company takes money out from employees • 49.51% employees portion of the profit • 50.49% company keeps for expansion

  15. Original Ideas/Reason for Success 2. Advertising program 3. Centralized Retreading plant 4. Supermarket tire store concept 5. Les Schwab Sign 6. Walnut sawdust combination tire 7. Free flat tire repair for Ladies 8. Fresh western style

  16. Original Ideas/Reason for Success 9. Percentage rent program 10. New store development program 11. Employee trust fund 12. Cash bonus program 13. More mile treading program 14. Snow flex winter tire retreat 15. Les Schwab written warranty

  17. Original Ideas/Reason for Success • 16) Annual free beef promotion

  18. Strength and Weaknesses Strength • Customer Service • Quality • Satisfied Employees • Relationships with Customers • Brand Weakness • Diversity/gender discrimination • Assistant manager overtime issue

  19. Future Objectives 1. Expand business 2. Successful/profitable • Reasonable return • Buy and build locations • Create a development program

  20. SCHWABISM • Showing concern for every customer, no matter how small their need • Challenging yourself every day to improve • Helping customers when broken down along the roadside • Watching your teammates grow and being happy for them • Acting professional at work and at play • Believing in yourself and taking pride in what you do • Improving our programs to take care of the customer better • Saying yes when everyone says no • Muscle, sweat, and working late if need be, to take care of our customers

  21. Giving Back • We all believe and value our communities • Where we live, and on occasion we have the opportunity to give back. Les Schwab has shown his gratitude for his business and customers in special ways, and has given back especially to our children

  22. Giving Back Continued • Les Schwab All-Star Football Game • Invitational Basketball tournament • Free Beef Program • Les Schwab Amphitheater

  23. In Memory of Les Schwab • His heritage that will stay alive. • Empowering our children • “Leaders who leave a legacy take a different approach. They lead with tomorrow as well as today in mind.”( Maxwell pp. 103 )

  24. Conclusion

  25. Bibliography • References • Les Schwab Tire Centers Moves to New Headquarters and Announces Additions to Its Senior Management Team| Reuters. (n.d.). Business & Financial News, Breaking US & International News | Reuters.com. Retrieved April 1, 2012, from http://www.reuters.com/article/2008/12/08/idUS212516+08-Dec-2008+BW20081208 • Central Oregonian - Prineville, Oregon. (n.d.). Central Oregonian - Prineville, Oregon. Retrieved March 28, 2012, from http://www.centraloregonian.com/PCOFeatures15.html • Les Schwab Tire Centers Company Profile - Yahoo! Finance. (n.d.). Top News Archive - Yahoo! Finance. Retrieved March 28, 2012, from http://biz.yahoo.com/ic/47/47472.html • Les Schwab Tire Centers, Inc.: Private Company Information - Businessweek. (n.d.). Investing & Stock Research by Company and Industry - Businessweek. Retrieved March 28, 2012, from http://investing.businessweek.com/research/stocks/private/snapshot.asp?privcapId=942699 • Les Schwab loses liability lawsuit.. (n.d.). Les Schwab loses liability lawsuit.. Retrieved March 29, 2012, from www.highbeam.com/doc/1-129092879.html • Les, S. (1986). Les Schwab : pride in performance, keep it going!. Prineville, Or. :: L. Schwab. • Manning, J. (2012, February 9). Les Schwab Tire center assistant managers deserved overtime, jury rules . Les Schwab Tire center assistant managers deserved overtime, jury rules. Retrieved March 28, 2012, from www.oregonlive.com/business/index.ssf/2012/02/les_schwab_tire_center _assista.html • Maxwell, J. C. (2002). Leadership 101. Nashville : Thomas Nelson. • Mortenson, E. (2012, March 11). Les Schwab settles EEOC suit for $2M. Les Schwab settles EEOC suit for $2M. Retrieved March 28, 3012, from www.oregonlive.com/business/index.ssf/2010/03/les_schwab_settles_ecoc_suit_f.html • Pierce, S. (n.d.). Les Schwab Settles $2 Million Sex Discrimination Suit. Top Class Actions Connects Consumers to Class Action Lawsuits and Settlements. Retrieved March 28, 2012, from http://www.topclassactions.com/lawsuit-settlements/lawsuit-news/566-les-schwab-settles • LLP., A. W. (n.d.). Secrets behind Les Schwab's success story . The Oregon Biz Report- Business News from Oregon. Retrieved March 29, 2012, from htpp://oregonbusinessreport.com/2011/04secrets-behind-les-schwabs-success-story/ • les schwab - Google Search. (n.d.). Google. Retrieved April 3, 2012, from http://www.google.com/search?tbm=isch&hl=en&source=hp&biw=1121&bih=658

  26. Questions? • Thanks for your time and attention to our presentation!

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