Nordstrom Case Study

Zappos Case Study

Profits, Passion and Purpose

Austin Community College

BMGT 1327

Kristi Andrews

9/10/2014

Bill Louden

Zappos Case Study

Tony Hsieh is an entrepreneur who created a shoe company called Zappos. The unique way he runs his company and treats his employees has made Zappos a 1.2 billion dollar powerhouse. Most companies are run with CEOs on top, Vice President underneath, and so on and so forth with employees at the bottom. Tony says that “great things will happen if you make your employees happy” (20/20 2011) and stands by his motto. To him, employees are one of the most important aspects of a business and without happy employees most businesses will not become as great as they could be. As the CEO, you would expect Tony to have his own private office, but instead he has a desk in the middle of the floor, next to his assistant, around all his employees. There is free food for employees in the cafeteria, coverage for all medical benefits, and even offers a Life Coach. Sometimes, Zappos even tests their employees’ loyalty by offering them money to quit their job. One employee was offered three thousand dollars to quit right after starting and she said no. This proves how much employees at Zappos actually enjoy their job.

Harvard scholar Robert L. Katz classified the essential skills of managers into three categories; technical, human, and conceptual. Tony uses all three of these managerial skills across his organization. He uses technical skills, which is the ability to apply expertise and perform a special task with proficiency, by hiring employees with initiative. In his ’10 Commandments of Zappos’, commandment number 5 is to “pursue growth and learning” (Hsieh 2013). In the lobby at Zappos there are several bookshelves stocked with business and management books that are free to employees. The company also offers employee classes as a way to learn new skills and disciplines, as well as move up in the company. Tony gives his employees...