Napoleon claims that "the education of the young was more important than anything", and commandeers Jessie and Bluebell's puppies. His 'education' of them in virtual isolation is an excuse to groom their direct loyalty. He is rears a private police force. When the humans attack the farm, Napoleon is absent , either from cowardice or self-preservation, while Snowball defends the farm and is awarded a medal. The medal unfortunately elevates the tension between the two leaders, forcing Napoleon into action.
Napoleon removes the competition: Snowball is chased from Animal Farm by the now-grown dogs. Once Snowball is gone, Napoleon announces a restructuring of the farm's organization. A committee of pigs, in private and presided over by himself, will make all decisions. Squealer promotes Napoleon's propaganda, reminding the animals of Napoleon's 'true' concerns for them. The windmill construction proceeds, as Napoleon conceived the idea originally.
Napoleon begins to trade with humans; the pigs move into the farmhouse. When the other animals quote the Seven Commandments, they discover they remember the commandments incorrectly. Napoleon has begun to warp the guidelines of the Commandments to his own needs, a tactic he will repeat.