Video Case: Zappos
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
Today, Zappos is owned by Amazon.com who purchased the company for $1.2 billion in 2010. Zapposâ€™ 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 â€œZapposâ€ is a derivative of the Spanish word for shoes, â€œzapatos.â€ Its culture is driven by 10 core values, the first being to â€œwowâ€ 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 companyâ€”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.
Discussion questions and answers
- What are the four functions of management described in the video?
- At Zappos, the management function of â€œleadingâ€ is implemented in a very specific way. What are the characteristics that are valued by Zappos in terms of management and leadership?
- What is the logic behind the 10 core values at Zappos.com
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