Bus 520 assignment 3

Zappos 2

Lanyeh Pierce

Strayer University

BUS 520

Dr. R. Robinson

February 7, 2014

Zappos was founded in 1999 by Nick Swinmurn. The creation of Zappos was inspired when Nick was unable to find a pair of brown Airwalks at the local mall and wanted to find a way to sell shoes to others that aren’t available anywhere else. The company was initially named Shoesite.com, but after expanding to other brands the name changed to Zappos.com. After one year of business, the company brought in $1.6 million in revenue, in 2001 yearly sales $8.6 million. Years following sales continued to grow over millions each year. Zappos’ selling base is shoes, which are 80% of the business; their inventory also includes clothing, handbags, eyewear, watches and kids’ merchandise.

Zappos has a set of family core values, “it has become more and more important to explicitly define the core values from which we develop our culture, our brand, and our business strategies. Zappos embraces the Club Culture in every aspect of what they do. “Employees should be inspired, not just motivated. They should want to do their jobs, and go beyond them, without thinking about whether a task fits their job descriptions. To get there, employees need to feel that they're in control, that they're making progress, that they're connected, and that what they do has meaning.” (Wilson, 2013) Zappos shows that their employees are to anticipate the customer’s wants and needs. Being courteous and calling them by their names, makes sure everyone is treated fairly, with care and concern. They look to hire employees that are able to communicate effectively and are outgoing. During the interview they look for the “we can make it happen” attitude and are able to balance family and their job.

“Zappos consciously creates and reinforces its corporate culture. The work environment provided for employees won't attract every job searcher and it's not for every employee. But, the people who fit the corporate culture thrive working for Zappos.” (Heathfield, 2014) The company has worked to find core values that will define their culture and provide a guide for employees to follow in their work environment. These are the ten core values that we live by: Deliver WOW Through Service, Embrace and Drive Change, Create Fun and A Little Weirdness, Be Adventurous, Creative, and Open-Minded, Pursue Growth and Learning, Build Open and Honest Relationships With Communication, Build a Positive Team and Family Spirit, Do More With Less, Be Passionate and Determined, and Be Humble.” (Heathfield, 2014)

The hiring process for Zappos goes through various phases. Their employees attend social events that allow them to interact with each other, they call it a courtship that traditional recruitment. “This allows the employees who are not participating in interviews to meet the prospective employee informally.” (Heathfield, 2014) Once Zappos hires an employee “you can expect to spend your first three-four weeks manning phones in their call center learning how to respond to customer needs. While this is an introduction to the soul of the business, it is also a practical approach to serving customers all year long. (Heathfield, 2014) After completing their customer service training, Zappos offer the employees $3000 just to leave the company. “If you haven't become a Zappos insider, committed to the goals and the culture, the company really prefers that you leave. Take the money though, and you can never come back.” (Heathfield, 2014) I really like this aspect of the job, this means that they are truly looking for the best of the best. Those that are willing to learn and want to learn.

Zappos embodied this type of culture because “If it's believed that employees will achieve success by being given freedom and focusing on culture and happiness rather than sales targets and financial goals, then go for it. While certain fundamental practices can be applied across industries, it's important to remember that no company, or employee, is exactly the same.” (-Sight, 2011) They researched the necessary elements that are required for building an environment that will embody the company’s mission. “The company's founders started by hiring friends to fill positions, but eventually they ran out of friends and started hiring based on résumés and qualifications. That's when problems started to arise. "We didn't know better to pay attention to company culture," he said. "I, myself, dreaded getting out of bed to go to my own company." (Wilson, 2011) Just hiring bodies to fill spaces to get a job done gives you exactly what you ask for, a quick fix. Zappos management team realized that there had to be some stability in the company, they had to get a company mission in place for guidance. That's why Zappos' No. 1 priority is building and maintaining a strong culture, even to the point of interviewing prospective employees twice: once for qualifications, a second time to make sure they're a good cultural fit. “ (Wilson, 2011)

Zappos would be best suited to be the transformational leader. This company embraces change within their organization. They have done away with their managers but they still have leaders within the company, they motivate employees to reach their individual goals. They seek out advice and ideas from their employees and they value their opinions. Zappos have trust in their employees and they establish their long-term bond with them.

If there was a decline in the demand of products supplied by Zappos that would be a tragic event. Zappos is known for selling shows, if their vendors stopped the supply to the company they wouldn’t have a way to service their customers. Zapppos would then have to build up their corporate relationship with their vendors. They would have to look into their customer service and how they interact with vendors to obtain more products. Zapppos would also have to train employees on ways to empathize with customers who are waiting for orders to be fulfilled. They will have to be patient and understand how to de-escalate individuals who are voicing their opinions on the company. They will also need to be up front and honest about all issues at hand. Hopefully, customers will remain loyal and the company will never have to face this type of setback. Zappos will continue to maintain its competitive market advantage by embracing and driving change, being humble, continue to build open and honest relationships through communication. Not only that, but continue to wow its customers through service and remain determined and passionate. Zappo’s strong core values and high quality products will enable the company to be profitable for years to come.

References

Heathfield, S. M. (2014, January 26). 20 WaysZappos Reinforces Its Compan Culture. Retrieved from http://humanresources.about.com/od/organizationalculture/a/how-zappos-reinforces-itscompany-culture.htm i-Sight Software. (2014, January 29). Coporate Culture Best Practices: Zappos. Retrieved from http://trackinghr.com/929413-Corporate-Culture-Best Practices: Zappos. Wilson, M. (2014, January 27). 5 Ways Zappos Emphasizes its Corporate Culture. Retrieved from http://www.ragan.com/Main/Articales/5 ways Zappos emphasizes its corporate culture 46593.aspx Wilson, M. (2014, January 29). Zappos CEO Revealed What Keeps Employees So Happy. Retrieved from http://www.hrcommunication.com/Main/Articles/Zappos Ceo reveals what keeps employees so happy 7076.aspx