Running head: SMITH ROTHAERMEL EXERCISE 3
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Smith - Rothaermel
Betty Jean Smith
BUSI690
Dr. Jonathan Wilson
February 4, 2017
Running head: SMITH ROTHAERMEL EXERCISE 3
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Chapter 11
Discussion Questions
If an organization / firm are to be efficient and effective within their market to
achieve superior performance their structure must follow their strategy. An organization must
“implement a strategy successfully, organizational design must be flexible enough to
accommodate the formulated strategy and future growth and expansion” (p. 367). An example of
this is when Zappos must pull back their decision in using their “drop-shipment orders”. They
were relying on other vendors to ship their shoe orders this was a convenient for them because
they did not have to keep a full stock. However, their orders were not being shipped in a timely
manner to what their customers had expected. Zappos too expected the same level of shipment
to be precise and on time. They had to re-think this decision and scale back this corporate
decision to achieve their goal of one hundred percent accuracy on their shipments (p. 368).
Zappos alignment was to ensure that their shipment would remain contained in its strategy to
structure their accuracy as they intended. It is good that they caught a handle on this when
they did to prevent overlapping their shipments. They could have sent the shipment to the
customer because they did not receive it from their other sources, but then their other sources
could have realized it at the same time and shipped it to the customer without realizing that
Zappos, had already completed the fulfillment of their customers.
Goodwill Industries of Southern California would be a great example of how
their culture values, norms and artifacts have led them to be the number one contender within
their market of non-profit organizations. The value / mission “is to transform lives through the
power of work” (Goodwill, 2016). This is a fact that I have been so fortunate to witness as I
worked for them for six years. Goodwill hires individuals that other organization would not
think to hire. Good believes in giving everyone a second chance. Not only do they believe in
Running head: SMITH ROTHAERMEL EXERCISE 3
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giving second chances, but they also hire the disabled to prove to them that they can perform
work task. I was privilege to witness this first hand as I know watch the television series “Born
This Way”. These are the individuals that used to work at Goodwill of Southern California.
Since being one of the several faces for Goodwill and premiering in Goodwill’s television
commercials, they all have make up the new television series called born this way. These are
individuals that are born with down syndrome living a normal life being able to achieve their
goals, while experiencing the pressures of life. Goodwill is more than a clothing store such as
the Salvation Army, no, Goodwill have separated themselves from this identity to helping their
community achieve their true potential to “RISE” – Respect, Integrity, Service and Excellence -
This is their value, that has helped them to excel within their market.
Chapter 12
Discussion Questions
12.1 The top management team will be able to lower their organization’s chances that
key managers will pursue their own “self-interests” at the expense of stockholders by ensuring
that they all agree with the organizations shared value creation by implementing a governance
mechanism. This will ensure that everyone is following all said rules and regulations that has
been set forth by the governing parties of the organization. By letting key management know
what the public expects of them, therefore adding value to their community and or society
through trust. They should have their managers sign a confidentially agreement that they will
not share or use any information obtain to go to another organization and share their information.
The contract should also state that they will seek the organizations best interest and not their
own. At the expense of the employees it is imperative that the mangers should design incentives,
work task and employment contracts, along with other mechanisms that would allow them to be
able to minimize such self-interest (p. 409). At the expense of other key stakeholder’s
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management must ensure equality across the broad, no special privileges are to be allowed and
everyone should get what they expect no more no less as designed by their said contracts, sales,
investments options, etc... They must also ensure that their organization is diversified.
12.3 Nike Inc. could offer so much if they would just move beyond selling high-
quality footwear and apparel and utilize its expertise to serve a social need, such as designing
foot wear for under developed countries. It could be from sandals to a sneaker that offers
confront to individuals who must walk so many miles to and from their destination on a daily
schedule. This would help connect these countries social needs to their economic needs. Nike
Inc. can even establish a factor within a third world country and train workers within their
community on how to create a wearable shoe for their community. Training these workers to
give back to their community as they develop the skills necessary to design footwear applicable
to their environment.
