Trader Joe's

DISCUSSION QUESTIONS

1. In what ways does Trader Joe’s demonstrate that top managers do or do not highly value employee talents?

-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 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. This is a German company operating in America and sourcing products from around the world. What are the biggest risks that international events currently pose for Trader Joe’s performance effectiveness and performance efficiency?

- I believe some risks to the Trader Joe’s stores, due to the ownership of a German company, include possible loss of communication- whether it be between executive officers or store to store, the lack of personal communication due to distance provides many opportunities for miscommunication or even no...