5-2 Final Project One Application of the Fundamental
Principle of Management for a Successful Company
Principles of Management
ZAPPOS, INC. 5-2 Final Project One
In 1999, founder Nick Swinmurn realized no existing online retailers specialized in shoe sales. There were many mom and pop type stores that sold online. However, it wasn't until Nick had several unsuccessful attempts to buy his shoes online that he realized this niche market needed service. Swinmurn created a site that offered a wide selection of brands, styles, colors, sizes, and widths. In July 2009, Zappos announced through an email blast to its employees from the CEO, Tony Heish, that it would join forces with Amazon.com. The email stated, Zappos and Amazon sitting in a tree . . . Since its creation, Zappos.com has never lost its focus on customer service. To that end, they have developed ten core values that govern every decision made at the company. These values include: Delivering 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; Building a Positive Team and Family Spirit; Do More With Less; Be Passionate and Determined, and Be Humble (Zappos.com)
Mission / Vision Statements
Zappos' mission statement is to live and deliver WOW through service. While there is no clear vision statement, the ten core values direct employees to achieving this vision. The ten core values include, among others, delivering happiness to customers, embracing and driving change, building open and honest relationships through communication, and building a positive team and family spirit. By following these core values, Zappos can take care of its employees, resulting in great customer service delivering that WOW.
In 2014, Zappos embarked on an adventure to change the structure of its corporate atmosphere and revolutionize how day-to-day business was conducted. Since then, Zappos.com has adopted the Holacracy management style (Sweeney and Gosfield, 2014). Under this management style, there are no job titles, managers, or hierarchical decisions. Because of its focus on customer service, this management style eliminated red tape in the corporate structure and empowered all workers to do whatever it took to WOW its customers. Zappos.com is now known for its unique approach to organizational structure.
In a typical organization, the executives are highly involved in planning objectives and the courses of action to achieve those objectives. (Carpenter et al., p. 19-21) However, through holacracy, Zappos.com allows all planning, controlling, and leading to be completed by each employee. Empowering the employee with self-motivation and self-organization, all ideas are available for consideration by the circles (or teams) to determine whether an idea will move forward or be...