Located in Las Vegas, Nevada, with its fulfillment center situated next to the U

Question

Located in Las Vegas, Nevada, with its fulfillment center situated next to the UPS hub, Zappos.com has $1 billion in annual revenue. In 2010, Zappos.com was ranked #6 by Fortune Magazine as one of the best places to work in America. The origin of Zappos was an entrepreneurial effort by Nick Swinmurn called Shoesite.com. Swinmurn launched this company during the dot-com boom. The concept emerged as a result of Swinmurn’s inability to locate shoes that he was looking for in malls. Swinmurn took photos of the shoes from various shoe stores and uploaded them onto his website. He would take orders, go to the shoe store and purchase the shoes for the customer, and ship the shoes the next day. At the time, there was no single place online to purchase shoes in that way.

Today, Zappos is owned by Amazon.com who purchased the company for $1.2 billion in 2010. Zappos’ CEO Tony Hsieh remains at the helm of the company, and the culture of the firm remains intact. In short, Amazon.com has allowed Zappos to continue to operate as it had in the past.

The emphasis on customer satisfaction and employee happiness permeates the culture of Zappos. The name “Zappos” is a derivative of the Spanish word for shoes, “zapatos.” Its culture is driven by 10 core values, the first being to “wow” the customer. Two important core values influence the planning, organizing, leading, and controlling functions at the firm. They are (1) to pursue growth and learning; and (2) to have passion and determination. These and the other core values emphasize teams and employee empowerment, so much so that team leaders (management) are required to spend at least 20 percent of their time off the job with their team members.

Relationship building helps drive a management approach that focuses on the primary goal of the company—that is to provide the best possible experience for the customer. The four functions of management are discussed in the video, and members of the Zappos team indicate how these functions are practiced at Zappos.

1. At Zappos, the management function of “leading” is implemented in a very specific way. What are the characteristics that are valued by Zappos in terms of management and leadership?

2. What do you think is the Value Proposition that Zappos brings to their customers and how it has influenced the internals of the company?

Explanation / Answer

Zappos is a fast growing company and it focuses on strong company culture and values. Top leadership and company corporate culture is strong for the company. It offers interesting offerings like free shipping online for shoes and customer service which responds to the queries instantly. It's focus is on strong focus on the brand of the company and the leadership. The focus is to offer great commodity to the consumers and the focus is on the core values of the company and great customer service.

The company has strong focus on the values of planning, organizing, leading, and controlling function at the firm. There is focus on pursuing growth and learning along with determination. There is emphasis on the teams and employee empowerment. Deletions hip building is vital along with focused customer management approach.

The cultural values have been challenged in this strong corporate environment by the company and there is focus on building culture with focus on best environment and focus on the employees empowerment

People are assets in the company and Zappos has reflected strong beliefs and focus on the corporate values. The organizations focus on people as strong asset and the companies focus on actions and support. The companies have emphasis on low costs and operation in an efficient manner. The cost at Zappos is minimized through low attrition rates.

There is focus on the employee trust and engagement. The incentive plans are monitored and there is maintenance of lower attrition rates. Trust is placed as important concept along with leadership skills.

There is strong value Proposition in the company which helps the employees for making the right choices and focus on activities that are productive and aid the customers for making correct purchase choices

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