...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...
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...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...
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...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...
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...with companies that are more in line with the employee’s personality and values. In my employment history I have only left one company because I was actively disengaged and it was because of the culture. Zappos has been built on the culture of service and employee ‘Happiness”. Both of these elements have led to Zappos growth in the online retail business. In this analysis as part of the organizational behavior course I will explore how the Zappos culture has contributed to its success since 2000 and how culture has played a part in my engagement and performance in the companies I have worked for. What helped the culture at Zappos? Zappos 1believed that in order to be successful they needed to focus on the 3C’s – Company Culture, Customer Service and Clothing. They realized that by defining their culture and understanding what made an employee happy to work for Zappos they could hire the right people who would be prepared to go above and beyond for Zappos. To that end Zappos provided above industry standard benefits for their employees such as free food, computer setup in their internet café which adds a few dollar more to the pay. In other words Zappos designed their organization around a formal design that would be attractive to potential employees. In 2005 Zappos debuted a list of core values that they believed would help develop and grow the company culture. 10 core values formed the backbone of the company’s core beliefs having been...
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...Introduction Zappos, one of the biggest online sales inventories, has been through some dramatic changes over the years. It is not only matching the other competitors’ growths but also exceeding their potentials. Even Zappos has been expending, it did not change the core value of the company. In fact, the company’s philosophy is the fundamental factor of Zappos success, and such culture is hard to change because it was already taken-forgranted. This analysis study will take a deeper look at Zappo’s company culture and discuss how this culture influenced its employees to maximize the productivity. Helping “Newbies” Socialize Into the Culture Zappos has very special values and norms that control the whole organizational members’ interactions with each member inside and also with the customers outside the company. Those guiding principles including terminal and instrumental values were applied during selecting people who wanted to get into the organization. The best candidates for positions at Zappos are the “weird” ones because Zappos believes that the weird ones are the adventurous, creative, and open-minded people. The characteristics of those people within the organization made one of the cores of the company’s culture. This is the energy that drives the company. Within the organizational structure, Zappos is also looking for team players, and they encourage employees to make friends at work (the instrumental value) because having friends at work makes employees happy and happy...
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...fact, the organizational culture is a huge part of every association's success. Company's culture and company's brand are really just two sides of the same coin. This analysis will take a deeper look at Zappos company culture and discuss how this culture transmitted and influenced its employees to maximize the productivity, and how to maintain that culture to create more revenue. Signals from Zappos: Helping new employees socialize into the culture At Zappos, it has special terminal and instrumental values based on their 10 core values. These values control the whole organizational members interaction with each other and also with the customers outside the company. The culture affects its organizational behavior significantly. Zappos applies these values to select candidate, training new hires in order to find the fit ones to grow and thrive. Zappos emphasizes their value “Create fun and a little weirdness” and “be adventurous, creative and open-minded” by the hiring process during their hiring and training process thoroughly. Zappos leadership masters how to use the instrumental value convert to the terminal value. Within Zappos, they are looking for team players, and the employees are encouraged to make friends at work(a desired mode of behavior) . Friends in workplace and fun working atmosphere can create a positive influence, thus employees will initially bring the happy to their customers, and attract more repeat customers (a desired end outcome). Zappos utilizes...
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...Zappos! Corporate Culture Molly Cech Management and Organization 9/20/2012 Zappos’ Corporate Culture 2. Company Profile: Started in 1999 by Nick Swinmurn and Tony Hsieh, Zappos.com is an online retailer that specializes in shoe sales [ (Zappos Family) ]. The company prides itself on its quick shipping time as well as its unique customer service experience. One of the key points in the Company’s Core Values List is to always try to “Wow” the customer through service. And, after hitting $1 Billion in annual sales back in 2008, it shows that the company is reaching that goal [ (Zappos Family) ]. a. “To Live and Deliver WOW” [ (Zappos Family) ] b. Customers complete their orders online which are then sent to the nearest warehouse where the selection is made and shipped with a goal of 8 minutes per order [ (Our Unique Culture) ]. The idea behind this speedy processing is that the company’s service should be so efficient that it “wows” the consumer every time. c. In order to complete this important task, the company needs an IT staff capable of maintaining their website as well as warehouse workers who are capable of filling the order in the time allotted. The company also requires a 24 hour customer service phone number to assist customers in their experience. 3. Company Background and Stats a. The company’s major product is shoes but expanded into clothing as well as handbags and other accessories b. As of 2012 the company employs over 1500 employees ...
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...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...
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...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...
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...Introduction to Management Case Study 7 EMC1 Diego Estrada Marina Rillo Mia Taeza Vincent Zagala Introduction to Management Case Study 7: Zappos DISCUSSION QUESTIONS 1. What traits of effective leadership does Tony Hsieh demonstrates at Zappos? What aspects of his leadership can you criticize, if any? Is his approach transferable to other leaders and other organizations, or is it person and situation specific? For Tony Hsieh, the Zappos brand is less about a particular type of product and more about providing a good customer service. This means that he largely cares about the welfare of his employees and customers. An evidence of him being such an altruist leader was when the blog search engine Land called him “the poster child for how to connect with customers online”. Hsieh exhibits a servant leadership style because he is committed to the empowerment of his employees. This was evident when Zappos was included in the 15 best top companies to work for in Fortune before. Employees at Zappos have no-call times nor scripts for customer service representatives, have regular costume parties, parades, and decorations in each department. Also, Hsieh is a democratic leader because he is committed to both task and his employees. As stated earlier, his main objective with Zappos is to always provide a good customer service to others. This is evident in the company’s goal to always deliver ordered packages fast and maybe before the due time. He is always after...
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...Gene One Benchmarking University of Phoenix Abstract Organizational leadership relates to the elements/content of organizational culture. Through the process of group/team formation within the organization, leaders develop/apply varying leadership styles to enhance/ influence individual performance. Implementation strategies for managing the group process are identified to enhance group/team performance within all levels of the organization while examining the roles/interaction of its members. The purpose is to analyze efforts other organizations take and help Gene One formulate improvement initiatives/alternatives. The focus is to guide Gene One toward incorporating leadership styles that will transform the organization into a publicly held corporation while developing strategies to manage the group/team process through conflict resolution methods and appropriate role/interaction methodologies leading to transformational changes that will benefit all stakeholders. Organizations today must continually evolve, change, and enhance current ways of operating in order to maintain market penetration or grow. The most successful organizations are those who employ leaders capable of visualizing the transformational changes necessary to mitigate the threat of competition. These leaders are skilled at sharing their vision and engaging the workforce in a corporate culture where associates feel valued and empowered. Through this type of culture,...
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...Chapter 5Theories of Motivation LEARNING OBJECTIVES After reading this chapter, you should be able to do the following: 1. Understand the role of motivation in determining employee performance. 2. Classify the basic needs of employees. 3. Describe how fairness perceptions are determined and consequences of these perceptions. 4. Understand the importance of rewards and punishments. 5. Apply motivation theories to analyze performance problems. What inspires employees to provide excellent service, market a company’s products effectively, or achieve the goals set for them? Answering this question is of utmost importance if we are to understand and manage the work behavior of our peers, subordinates, and even supervisors. Put a different way, if someone is not performing well, what could be the reason? Job performance is viewed as a function of three factors and is expressed with the equation below. [1] According to this equation, motivation, ability, and environment are the major influences over employee performance. Performance is a function of the interaction between an individual’s motivation, ability, and environment. Motivation is one of the forces that lead to performance. Motivation is defined as the desire to achieve a goal or a certain performance level, leading to goal-directed behavior. When we refer to someone as being motivated, we mean that the person is trying hard to accomplish a certain task. Motivation is clearly important if someone is to perform well;...
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...S MAKING WAVES IN RURAL KENYA w 909A15 Sebastian Herrmann, Glenn Brophey and Denyse Lafrance-Horning wrote this case solely to provide material for class discussion. The authors do not intend to illustrate either effective or ineffective handling of a managerial situation. The authors may have disguised certain names and other identifying information to protect confidentiality. Ivey Management Services prohibits any form of reproduction, storage or transmittal without its written permission. Reproduction of this material is not covered under authorization by any reproduction rights organization. To order copies or request permission to reproduce materials, contact Ivey Publishing, Ivey Management Services, c/o Richard Ivey School of Business, The University of Western Ontario, London, Ontario, Canada, N6A 3K7; phone (519) 661-3208; fax (519) 661-3882; e-mail cases@ivey.uwo.ca. Copyright © 2009, Ivey Management Services Version: (A) 2009-07-21 With the sun setting over the Rift Valley in Kenya, Sebastian Herrmann walked back to his tent with a head full of questions. He was at a loss as he wondered what kind of marketing campaign would ensure that every family that should use a WaterHarvester received one. If he could answer this question, he could see the potential to significantly improve the living conditions for many of the amazing people he had met over the last couple of weeks during his April 2007 visit. Just yesterday, the first prototype of the WaterHarvester...
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...Hayden 220 D Classroom: Dodge 430 Office Hrs: 3:00 - 4:30 PM MW Class Time/Days: 8:00-9:05 AM (MWTh) Phone: 617-373-5521 Catalog Description The 21st Century enterprise runs on information. Business leaders must have ready access to timely, accurate and relevant information if they are to manage and compete effectively in the global economy. MISM 2301 addresses the central role of information management (IM) and information technology (IT) systems in enabling current business activities. To this end, the course explores how a wide range of enterprises around the world employ information management to operate, to manage and control, and to plan and innovate. The course is entirely case-driven, focusing on real business issues, analysis and problem solving, and out-of-the-box thinking in the creation of value for the enterprise through the effective application of IM and IT. Thus, rather than a focus on specific technical content or skills, MISM 2301 considers the application of IM and IT in running and managing a business and in infusing them with competitive advantage. Prerequisites: None Learning Objectives 1. To identify business needs and the information needed to meet those needs. 2. To introduce the basic types of information systems applications and how they meet business needs. 3. To explore the components of an IT infrastructure and how they support the applications and business. 4. To explore the process of capturing information, making...
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...Prabesh Timilsina, HBD3173.E1, Exercise5 5.1 Study the Learning from Experience Case on p. 445. What is the significance of the organizational design of the company? The basis for any successful organization is for people to work together and understand how their behaviors support the organization’s strategy. Yet, talented people in even the best managed organizations are sometimes left trying to understand how their own activities contribute to their organization’s success. An organization’s design is crucial in clarifying the roles of the leaders and employees who hold the organization together. Organization design is the process of selecting a structure for the tasks, responsibilities, and authority relationships within an organization. An organization’s design influences communication patterns among individuals and teams and determines which person or department has the political power to get things done. The structure of an organization influences the behavior of employees. Therefore, an organization’s design plays a critical role in the success of an organization. Every organization’s design decision solves one set of problems but creates others. Organization design decisions often involve the diagnosis of multiple factors, including an organization’s culture, power and political behaviors, and job design. Organization design represents the outcomes of a decision-making process that includes environmental factors, strategic choices, and technological factors. Specifically...
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