Question: What would you conclude in the IFAS (Internal Factor Analysis Summary) for the Stew Leonard's case?

Stew Leonard was a second-generation milk- own a cow. After 25 additions, the small barn man with a home delivery route until 1968 when has become an 8 -acre complex with more than state highway construction forced him to re- 600 employees in Norwalk, Connecticut. locate. Because of this change coupled with the In a White fiouse ceremony in 1986. realization that home milk delivery was going Leonard received the Presidential Award for the way of buggy whips, Stew Leonard built a Entrepreneurial Achievement from President bamlike retail dairy store with glass viewing Ronald Reagan. and Leonard was featured in windows separating his customers and milk Tom Peters best-seller A Passion for Excel. cows. The dairy plant provided milk so fresh lence as one of America's best-run companies. that the only way to get fresher milk was to Featured in the television special "In Search. of Excellence," Stew Leonard was heralded as A complaint about strawberries always beting one of the nation's most innovative companies prepackaged so that customers could not ste alongside Disney. McDonald's, and Apple, whether they were getting their money s worth The genius of Stew Leonard is making led to an open-bin arrangemeni where custom. customers happy through quality service and ers could pich and choose, The result was that, innovative marketing. His "Rock of Commat- on average, customers bought more strawberment" credo is "Rule 1: The customer is al- ries, and total sales nearly tripled. Another sug. ways right. Rule 2: If the customer is ever gestion was that friendly cashiers be openly wrong, teread Rule 1. " Leonard says he wants rewarded. Leonard started a daily program of to make customers say "'Wow!" and then re- "stopping the line" to announce and reward store is an experience that reinforces his credo periodically win free shopping sprees. There store is an experience that reinforces his credo periodically win free shopping sprees. There and his policies. Disneylike farm characters are two fish counters-one with prepackaged ers. Live farm animals give children up-close food on ice. Leonard conducts classes through encounters with egg-laying chickens, milk-pro- his employees for customers on cooking, and ducing cows, friendly rabbits, ducks, geese, he periodically hires specialists in nutrition and and other domestic animals. On any given day, diet control both to train employees and to guide there is likely to be a live band, free gifts, and customer purchases. ice cream for youngsters. Stew Leonard and In Leonard's view, creativity is "listen. his family wili be there every day, talking with ing " to others and building a business around customers. solieiting suggestions, and man- the total environment rather than just a meraging the business with one clear objective: chandise line. Consequently, his store sells Make customers happy. His success is dependent on the sincerity the idea of food preparation as a fun concept. the of his policies and the attention of planning that Customers are on his organizational chatt. result in what Leonard calls "action-based pol- as participants in the store and its envirooicies." These include "If you wouldn't take it ment. home to your mother. don't put it out for cus- Success is reflected in more than 100.000 tomers ": "Only happy customers come back"; customers a week and more than $100 million A customer who complains is our best friend in annual sales, making Stew Leonard's the "When in deubt, throw it out": "Do it right more of each item that he stocks than any ofher the first ime"; and "If you re training someone store in the world, including 10 million quars to be even better at your job than you are, then of milk. or about 18,000 quarts per hour. Anyou're one of the most valuable people in our nual sales also include 100 tons of cottage company." Leonard often generates ideas from cus- burger meat, 1,800 tons of poultry products, 2 tomers who are involved in his weekly creative million ice cream cones, nearly 3 million quarts brainstorming sessions. About a dozen custom- of orange juice. 250 tons of butter. 5.6 million ers are choven at random and invited to sit down bananas, and 7.8 million ears of com. These with Leonard's family and staff to explore ideas are a lew of Stew Leonard's 800 record-setting for the store. Meetings can last for several products epitomizing a record-setting family foours, and the results are often quite stunning. husiness