...In what ways does Zappos’ culture help and/or hinder the company’s performance? * As an organization grows, it is imperative to have quality talent. Zappos strength was in its hiring practices that focused on organization-fit apart from skill-fit. With a strong people oriented culture already in place, they were adept in judging the fit based on the criteria they created for the culture which in turn led to long term success for the employees. This vision reflected in their extensive hiring practices. * Their strong culture paved the way to become a marketable brand on its own in the industry resulting in talent pool augmentation. * The biggest advantage posed by their strong culture was the ease of buy-in among the new and current employees which resulted in better assimilation and integration of their core principles and vision. The culture was pervasive at all levels of the organization that buy-in was evident in a short span of time. * The culture at Zappos made it possible for the management to delegate and share responsibilities among the peers. This was evident in the vision created by the CEO of a boundary-less organization. * Their egalitarian culture and empowerment aided them in being innovative and helped the management in tapping and maximizing the creative potential of their employees. This was evident in their strong emphasis on cross-training of employees as part of the new hire process and at making it available for various career enhancing...
Words: 635 - Pages: 3
...Professor McCammon 4/8/2013 Zappos’ Case Analysis 1. What are Zappos’ core competencies and sources of competitive advantage? How sustainable are they? What role does corporate culture play in these questions? I identified quite a few core competencies within Zappos that allow them to distinguish themselves from their competitors. First off, they have a very unique return policy, such that they allow the customer 365 days to return the product, in addition to paying for the customer to ship the item back to them. They also have a much faster web interface, as well as extensive online product information. Adding to the technical side of things, Zappos’ also has trained call center operators, and the ability to call toll free. Aside from all those traits, Zappos has really focused on their customer service, and being “a service company that sells shoes.” They are always striving to WOW their customers, or just make sure every customer they deal with is more satisfied with their company as opposed to another. The CRM that Zappos is using is also very successful in making the customers say WOW. Such a strategy of using technology to organize and synchronize sales, marketing, customer service, and technical support helped Zappos get a 75% repurchase rate with their customers, which is another reason their sales are constantly improving. The company’s culture is about growth, both personally and professionally. Because of this company culture, Zappos executives are continuously...
Words: 704 - Pages: 3
...In what ways does Zappos’ culture help and/or hinder the company’s performance? * As an organization grows, it is imperative to have quality talent. Zappos strength was in its hiring practices that focused on organization-fit apart from skill-fit. With a strong people oriented culture already in place, they were adept in judging the fit based on the criteria they created for the culture which in turn led to long term success for the employees. This vision reflected in their extensive hiring practices. * Their strong culture paved the way to become a marketable brand on its own in the industry resulting in talent pool augmentation. * The biggest advantage posed by their strong culture was the ease of buy-in among the new and current employees which resulted in better assimilation and integration of their core principles and vision. The culture was pervasive at all levels of the organization that buy-in was evident in a short span of time. * The culture at Zappos made it possible for the management to delegate and share responsibilities among the peers. This was evident in the vision created by the CEO of a boundary-less organization. * Their egalitarian culture and empowerment aided them in being innovative and helped the management in tapping and maximizing the creative potential of their employees. This was evident in their strong emphasis on cross-training of employees as part of the new hire process and at making it available for various career enhancing...
Words: 635 - Pages: 3
...Zappos is an online retailer that specializes in footwear and clothing, but sells merchandise ranging from cutlery sets to bedding. Its mission is to have the best selection of merchandise and the best customer service possible. Founded in 1999 by Nicholas Swinmurn, Zappos has transformed from a pipe dream project with headquarters set up in a cramped apartment to a multi-million dollar company that debuted on Fortune Magazine’s list “ The 100 Best Companies to Work for” at number 27, the highest place a company has ever debuted. [10] With headquarters now set up in Henderson, Nevada and a distribution center next door to the UPS world hub in Shepardsville, Kentucky, Zappos has not let this success go to its head but instead has strived to make itself the best company in its field as well as the best company to work for. Behind this unrelenting drive for success is Zappos CEO Tony Hsieh. After investing money into the startup of Shoesite.com, Hsieh became co-chief executive officer beside Swinmurn in 2000. [4] Since then, Hsieh has been focused on creating the perfect work environment that will foster a group of employees that can not only make decisions independently, but also enjoy coming to work. In order to do this, Hsieh created the 10 Core Values of Zappos. [12] This list includes: * Deliver WOW through service * Embrace and drive change * Create fun and a little weirdness * Be adventurous, creative, and open-minded * Pursue growth and learning ...
Words: 5984 - Pages: 24
...Discuss the concept of motivation and Zappos You will use your Group Discussion Board to conduct your analysis of this case study. Discuss the approach used by Zappos. Why is the approach not used very often? What are the challenges and the benefits? Zappos was acquired by Amazon in 2009. What organizational changes do you believe occurred due to the acquisition and would continue to occur over time? Discuss the concept of motivation and Zappos. Would Zappos be a motivating place to work? Why? Why not? Your analysis must include supporting evidence. Motivation is defined as “the desire to achieve a goal or a certain performance level, leading to goal-directed behavior (Erdogan; Chapter 5, P.1 paragraph).” Motivation can mean a lot such as a company trying to accomplish a set goal, or a soldier trying to complete a physical fitness test, in some type of form a person is trying to reach an obtainable goal. Motivation and Zappos is another thing, they encourage employees to be, themselves, just be to be regular people. The concept of support goes further in at zappos than just in its core values, it goes into its Performance, such as no time table on customer service calls, the point of that is to make the customer feel very important and to build a relationship with the customer, and also other motivating effects could be a compressed workweek, and a nice benefits package, which offers full healthcare coverage. Motivation has a lot to do with this organization, in creating...
Words: 261 - Pages: 2
...Acquisitions | Acquisition Case Study: Amazon’s acquisition of Zappos, November 2009 | | Stephen Greening | 26/04/2014 | WORD COUNT: 2489 Contents Executive Summary 3 Introduction 4 Amazon Overview 4 Amazon’s Previous Acquisitions 5 Zappos Overview 6 Acquisition of Zappos 9 Strategy 11 Why Amazon wanted to acquire Zappos 11 Regulation 14 Valuation 15 Comparable Company Analysis (Comps) 15 Discounted Cash Flow (DCF) Analysis 16 Precedent Transactions Analysis 16 Historical Stock Price & Next Twelve Months (NTM) Analysis 17 Financing 19 Defence Tactics 21 Implementation 23 Risk 25 Conclusion 26 References 27 Books 27 eBooks 27 Journals 27 Online Images 27 Presentation 28 Reports 28 Websites 28 Executive Summary In November 2009, ‘Amazon, Inc.’ (Amazon) completed the acquisition of ‘Zappos.com, Inc.’ (Zappos) in a deal worth around $1.2 billion. Amazon announced in July 2009, that it had reached a deal to acquire Zappos in a deal worth $847 million. The deal was financed by 10 million shares of Amazon common stock (worth around $807 million) and $40 million of Cash and Restricted Stock units on the balance sheet. Amazon is an American international electronic commerce (e-commerce) company, while Zappos is an online shoe and clothing shop. The acquisition of Zappos by Amazon was a friendly takeover; the public announcement, negotiation and acceptance of...
Words: 5104 - Pages: 21
...• Drop Ship strategy (Order were delivered by the shoe maker in beginning) • Capital Investment problem • Inventory Issue: - Lack of Information / Integration about inventory Status • Service level: - Priority of supplier / shoe makers to the Bulk orders but not to zappos • Conflict with Traditional supply chain management. • Drop and ship (Ship tracking issue) zappos not have information about the shipment dates • Branded shoe maker reluctant • Logistic distribution issue: - between shoe maker warehouse (operated manually, location) & Zappos & UPS • Strategic partnership with UPS for warehousing which was unsuccessful because the number of SKU was too much. Holding Inventory was too much in number ( bar code & Handler_ • Warehouse in California & then bought another in Kentucky ( using bar code strategy ) • Software to handle the inventory • VMI • Risk Pooling (website catalogue , • Replenishment of slow moving items by making partnership with 9M • Lead-time and transportation Drop and ship Supply Chain Management: Supply chain management is increasingly being recognized as the integration of key business processes across the supply chain. Supply chain management is described as a set of approaches utilized to efficiently integrate suppliers, manufacturers, warehouses, and stores, so that merchandise is produced and distributed at the right quantities, to the right locations and at the right time, in order to minimize system wide...
Words: 3921 - Pages: 16
...and selection, with gross merchandise sales exceeding $1 billion annually. Zappos’ company culture delivers happiness. Zappos’ CEO says, “It’s a brand about happiness, whether to customers or employees or even vendors.” Zappos’ zany corporate culture and focus on customer satisfaction has made it both successful and a model for other companies. In 2010, Amazon bought the company for $1.2 billion. Although Hsieh had rejected an offer from Amazon in 2005, he believed that this buyout would be better for the company than management from the current board of directors or an outside investor. Amazon agreed to let Zappos operate independently and to keep Hsieh as CEO. Hsieh made $214 million from the merger, and Amazon set aside $40 million for distribution to Zappos employees. After the merger, the company restructured into 10 separate companies organized under the Zappos Family. In spite of merging, Zappos intends to continue to deliver happiness their customers. This paper examines how Zappos’ focus on happiness has contributed to its success. First, I examine the strategies of Zappos, its core values, and its unique business model. Next, I figure out Zappos’ a unique strategy in a competitive environment. Third, I analyze SWOT of Zappos and other two companies. First of all, we can find Zappos’ mission statement. As grow as the company, it has become more and more important to explicitly define the Zappos core values from its developing culture, brand, and business strategies. ...
Words: 2321 - Pages: 10
...company 3. Technical difficulties at times 4. Expanding means more employees 5. Only available online 6. Returns from international customers are not free Opportunities 1. Merging with Amazon 2. Expanding into the clothing and merchandise market 3. Being voted Top and #1 in many categories including customer service Threats 1. Amazon 2. Payless, Famous Footwear, etc. 3. Any walk in stores that people can go into 4. Overseas markets available for cheaper prices Problem Statement: How can Zappos keep their repeat clientele and new clientele, both in the US and overseas, while merging with other companies such as Amazon? Alternatives 1. While Zappose is making merges, they should also stay an individual company with their logos on their products. 2. Zappos should incorporate free return shipping for customers outside of the US. 3. Zappos should provide their services in store locations. Evaluation Criteria |Criteria |Weight |Justification | |Financial Considerations |0.4 |What is the most cost effective way to...
Words: 895 - Pages: 4
...Discuss the approach used by Zappos. Why is the approach not used very often? What are the challenges and the benefits? Zappos was acquired by Amazon in 2009. What organizational changes do you believe occurred due to the acquisition and would continue to occur over time? Discuss the concept of motivation and Zappos. Would Zappos be a motivating place to work? Why? Why not? Your analysis must include supporting evidence. Zappos has a very unique approach to motivating its employees, which is spearheaded by its CEO Tony Hsieh. This approach includes a study of happiness, respect, and the company is centered on the idea of “a corporate culture of caring a priority”. Zappos is able to accomplish this using David McClelland’s acquired-needs theory; they motivate employees by taking a strong interest in each employee. This allows each of their employees room to grow, and if they employees see and feel this way then it is reflected in their performance and in how they treat each of their customers. This approach is very difficult to emulate and not used very often because a company has to invest a lot of time training, and trust in each of their employees to make this successful. This approach is a product of a couple of things: First, the CEO cares about his employees. This is made possible, largely because the company only employs around 1,500 people, and they are all located in a central location. Second, it is extremely difficult to measure the value of happiness. Shareholders...
Words: 1498 - Pages: 6
...The human resource activities of Zappos Introduction Zappos, which is an online shoe retailer, was founded in 1999 by Nick Swinmurn. Now it becomes a famous brand in US which have 10 sub-companies in 2011. This company cannot create such a great success without its excellent customer service and human resource management. This essay will state that the influences of environment on the strategy, HR planning and implementation of Zappos firstly. Then it will argue the relevance between HR practices at Zappos and the human resource management. At last, it will evaluate the strengths and weaknesses of Zappos practices and how to promote these practices. Strategy, HR planning and implementation Environment is an important element to help companies making their strategies. Strategy is a function and framework of companies’ actions in the future. The appropriate strategies setting can decide the success of the companies’ operation. So the companies usually base on their strengths, weaknesses and the different situations of external environment to make suitable strategies to achieve their goals in the operation periods. With the information technology developing, the online shopping becomes an important area for the retail market. According to Demangeot and Broderick (2010, 117), the online retailer already occupies almost 50% market of the sale industry. Nick Swinmurn foresaw this situation so he founded the Zappos as an online shoe retailer. Sometimes, the external environment...
Words: 2425 - Pages: 10
...Customer Care is the way in which businesses meet their customers’ needs and wants. Businesses can meet these needs and wants by using Customer Relationship Management. CRM is a strategy that businesses design in order to improve their customer satisfaction levels which in time will increase their profits. The infrastructure required to do this consists of technology, services and a new way of thinking which treats each individual customer differently. For example a company could set up a database with their customer’s details so that management could see what each customer has purchased and can match certain products to the customer’s needs. There are many services that businesses can offer to their customers to ensure that they are providing them with excellent customer service. The following are some of the services that I have chosen that businesses could use: 1. Content management 2. International selling 3. Multi- Channel sales 4. Distribution and returns management 5. Customer service 6. Website strategy and planning Content management Businesses can use a content management system to manage their work flow. It can be used to control access to data, is an easy way to store information and also can be used to improve communication between users. Distribution Businesses should be able to handle all their distribution and logistics from the minute they leave their warehouse until they reach their destination. Having a top notch distribution...
Words: 654 - Pages: 3
...Zappos “More than shoes” An Assignment Submitted by Luis Mendoza Jesus Lopez James “Al” Gonzalez University of La Verne Table of Contents 1. Introduction…………………………………………………………………………3 2. Industry Environment…………..………………………………………………..….4 3. Organizational Mission/Vision and Goals………………………………………….6 4. Organizational Strategy……………………………………………………………..6 5. Zappos Structure………………………..………………………………….……….8 6. Control Features………………………………………………………...…………..9 7. Organizational Culture………………………………………………………...…..10 8. SWOT Analysis …………………………………………………………………...11 9. Conclusion and Recommendations………………………………………………..12 References………………………………………………………………………...13 1. Introduction. The term “E-commerce” has roots in the 1970’s with the development of Electronics Funds Transfer (EFT) and the introduction of the Automatic Teller Machines (ATM) in the 1980’s. With the development of the Secure Socket Layer (SSL) standard in Mosaic web browser and the explosion of the Internet in 1990’s the term has been universally accepted as the ability to buy and sell via the Internet (Graham, 2008; p. 776). Zappos.com is an online shoe and apparel shop that was found in 1999 by Nick Swinmurn and developed into the largest online shoe store. Today this online retailer “offers 500 brand names and 90,000 styles and stocks over 2 million pair of shoes” (Lamb; 2011; p. 97). Currently, the headquarters of the company is based in Henderson, Nevada. Its products include shoes, apparels, handbags...
Words: 3375 - Pages: 14
...later rechristened as Zappos. Hsieh and Lin, the founders of Venture Frogs, funded Zappos; later the pair assumed leadership positions in the firm. Throughout the 2000s, Zappos grew tremendously, thanks to its undiluted focus on the three C's – clothing, customer service, and company culture. Some of the key issues facing Zappos are high return rates, strain on the supply chain (reverse logistics), and expansion strategies. ANALYSIS One of Zappos’ core strengths is its culture. The firm places great emphasis on recruiting not only the best and the brightest, but also those who fit the culture. Workforce is the most important asset of any firm; Zappos scores here. Zappos recruits only “happy” individuals, puts them through a series of paid training programs, weeding out uncommitted individuals, and empowers its employees by letting them be creative and imaginative. Furthermore, employees are authorized to go to any extent to satisfy the needs of the customer. The firm’s undiluted focus on the three C's- clothing, customer service, and culture – is probably the most important reason for its tremendous growth and success. Given the focus of Zappos, these competitive advantages are sustainable. Online retailing has traditionally been about cutting prices; this is a zero sum game, in which the value is captured by the consumers and not by the players. Zappos’ strategy is to focus on customer service. Given the limited interaction with online shopping, Zappos’ positioning strategy...
Words: 642 - Pages: 3
...Shape Hiring Decisions at Zappos Tanya Huff Kaplan University MT203-02 Human Resource Management Andrew Toussaint November 16, 2014 Introduction Zappos is an online retailer of shoes. Zappos is committed to offering the best customer service. Zappos also wants to have a dynamic, fulfilling company culture. (Gerhard, Hollenbeck, Noe and Wright, 2009) A solid recruiting policy can help Zappos entice qualified applicants that have the same interests in the company’s culture. The selection process can help Zappos find the qualified employees that are going to fit into the company’s cultures and have the same value systems. Review/Analysis of the Case A recruitment policy that might benefit Zappos is image advertising. Image advertising would say that Zappos is a good place to work. It would stress the company’s values such as “Deliver Wow through service” and “Create fun and a little weirdness.” Possible employee would see this and know if they would fit into Zappos’ culture and that they are attracted to Zappos. This policy would be a good fit for Zappos because it is focused on finding an employee that will be a good fit with the company’s culture. The image advertising policy should have a positive impact on Zappos. Zappos is looking for employees that will be willing and interested in buying into their company culture and into following their values. The first step in the selection process at Zappos is to have potential employees...
Words: 927 - Pages: 4