Case Study 1 - Trader Joe's

Nicholas Harroun

BSAD 2100

07/10/2015

Case Study 1: Trader Joe’s

1. In what ways does Trader Joe’s demonstrate the importance of each responsibility in the management process-planning, organizing, leading, and controlling?

Trader Joe’s demonstrates planning by intending to carry unique products at a low cost within a fun, relaxing environment. Their organizing skills were apparent due to their approach to find unusual foods from around the world, contract directly with manufacturers, label their products with catchy phrases and by maintaining a small stock of each product. Their leadership was exemplified by hiring employees with job skills such as being “ambitious and adventurous” and providing a laid-back atmosphere both for their workers and customers. Their employees had higher pay rates than those that worked for their competitors and had great benefits. Because managers were hired from within, they had an ultimate knowledge-base of how the system works. Also, the employees were encouraged to taste and learn about the products to be able to share with their customers, creating a more involved employee to customer relationship. Regarding Trader Joe’s control, they were able to control real estate costs by buying smaller stores and staying away from “prime” locations. Their “one in, one out” policy to get rid of poorly selling products or have rising costs replaced by new products helped to control costs and also showed their customers that they’re listening when a product is not liked. In addition to these factors, by controlling the people they hire from the get-go, they have the ability to have the control of the company’s ultimate success considering they will be their future leaders.

2. Trader Joe’s is owned by a German company operating in America. What are the biggest risks that international ownership and global events pose for Trader Joe’s performance effectiveness and performance efficiency?

I believe some risks to the Trader Joe’s stores,...