You take care of bullies by standing up to them. I was 5'4", 85 pounds, in junior high when I was confronted by a bully. I stood my ground ... he knocked me down. While on the ground, I kicked his feet out from under him, jumped on him, and proceeded to beat him bloody.
I was suspended for three days, but neither he nor his friends ever bothered me again.
Teach your children self-defense and then back them up when they have to use it. Bullies are not impressed by "kumbaya" and "Michael, row the boat ashore" sensitivity sessions.
I feel the same, nothing like showing weakness and rolling over in the face of aggression.
I was picked on in school, a lot, every so often I just served them up a good ol' fashioned beat-down and that seemed to "heal the rift".
No one respects the weak and apathetic.